Auto Premium Rates Land W.Va. 16th, Study Shows

The Register-Herald, Oct. 23, 2004

Do you think automobile insurance premiums are high in West Virginia ? Most people think so, but according to a national study, 15 states have higher rates than the Mountain State .

If you've played bumper cars in midtown Manhattan , raced through the fumes of the New Jersey Turnpike or battled Beltway traffic around the nation's capital, maybe you would guess drivers in the crowded northeastern states pay the highest auto insurance premiums in the country - and you'd be right.

The top six states in average combined premiums paid all were in the traffic-choked northeast corridor, led by New Jersey , New York and Washington , D.C. , according to Bankrate.com.

In those three, followed closely by Rhode Island and Massachusetts , drivers paid annual average premiums in excess of $1,000 - almost double the average prices paid by motorists in Iowa , Maine and Idaho and about a third more than in West Virginia .

Bankrate.com's figures come from a study compiled by the National Association of Insurance Commissioners, which says the term "combined premium" comprises liability, collision and comprehensive coverage.

New Jersey was the priciest auto insurance state, with motorists shelling out an average $1,182.54. New York kept pace with an average of $1,161.27 followed by the District of Columbia at $1,156.23.

Iowa , which boasts an average of less than $600, was the least expensive, with Maine and Idaho only a few dollars more. The national average was $817.43, just about the same average price as New Mexico and Texas . West Virginia ranked 16th overall highest price at an average of $841.08.

The nationwide average was $817.43, the study showed.

The figures are for 2001, the last year for which full figures are available. Many in West Virginia believe the state has probably jumped up in the rankings since 2001.

"With the way my premiums are increasing, I would not be surprised to see West Virginia in the top 10 now," said Jerry Smith of Beckley . "I'm paying well over $1,000 a year now and I was not in 2001."

The NAIC study points out a number of factors affect the average expenditures. For example, in states with robust economies more consumers are likely to purchase new vehicles that will be insured for higher amounts than older vehicles, which are used more in states with poor economies.