life insurance, auto insurance, health insurance, home insurance

Auto Insurance Rates Decline in 2005

The results are in and the Insurance.com 2005 Auto Insurance Pricing Report shows that many drivers experienced a reprieve in 2005 from the high costs of auto insurance rates.

In the survey of 46 states, the District of Columbia and nearly nine million auto insurance quotes provided by its customers, Insurance.com found an overall decline in the 2005 national average for auto insurance rates, resulting in a rate fall for over 30 states. That`s a 5.6% decline from 2004, saving many households an average of over $115 per year.

Despite the overall decrease, Insurance.com found many states that normally enjoy lower auto insurance rates experienced an increase from 2004 to 2005. And states that experienced a rate decrease are still paying some of the highest car insurance rates in the country. These statistics leave many drivers wondering why, at a time when insurance rates are down, do so many states still feel a price crunch.

It turns out that where you live still plays a large role in how much you pay for auto insurance. For instance, New Yorkers paid an average of $2,673 for automobile insurance in 2005 - a 14.2% decrease from 2004. And Louisiana residents paid an average of $3,016 - a 9.5% decrease from 2004. However even with the rate reductions, both states remain the most expensive states in the country for auto insurance, due in part to the cities` limited parking, higher traffic population, greater theft rate and increase in uninsured drivers.