American car insurance risk starts to rise following record breaking low

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Auto Insurance Risk IndexThe proprietary Auto Insurance Risk Index from TransUnion has reported a tiny rise by 0.03 percent at the end of 2011’s third quarter, following four consecutive declines in the previous quarters.

The score at the end of the third quarter was 98.85, which, when compared to the second quarter, is three basis points higher. Equally, though, it remains 31 basis points below what it was at the same time in 2010. The peak of the recession in the second quarter of 2009 was 73 basis points higher than it is in this latest quarter’s report.

According to the global chief assistant at TransUnion, Chet Wiermanski, when you examine the state-by-state results of the Auto Insurance Risk Index, it looks as though the auto insurance risk is starting to move into an increasing risk period. He explained that though it may appear that this rise is very small, at a national average of 0.03 percent, among thirty four states, two thirds of them saw an increase between the second and third quarters this year.

Wiermanski said that “This is considerable and suggests that a fundamental change in the level of auto insurance risk is beginning to take place.”

Comparatively, in the second quarter this year, Vermont was the only state that did not experience a decline on the TransUnion index. When looking at the index year-over-year, the District of Columbia and 47 states have all experienced a decline in their risk, with the largest decreases seen in Oregon (where it is down 55 basis points), with New York in second place (down 54 basis points) and Montana in third (down 50 basis points).

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