Homeowners insurance and vehicle protection are becoming more expensive in the state
Auto and homeowners insurance premiums have increased in Ohio, according to an announcement from Lieutenant Governor Mary Taylor. While insurance rates have gone up in the state, they remain well below the national average, in terms of vehicle and property coverage. Insurers sought rate increases last year, many of which were approved by state regulators due to various issues that have placed insurance companies under greater financial strain. Higher rates may help insurers recover from the losses they have experienced in recent years.
Average rate for auto insurance coverage grows by 2.6%
In 2014, the average rate from the state’s top auto insurance providers grew by an average of 2.6%. Some drivers say greater increases in their rates, while others experienced very modest rate increases. When compared to rate increases in 2013, the cost of auto insurance coverage has remained relatively stable. Insurers are citing the growing cost of medical care as the result for rate increases. Those involved in serious car accidents typically require extensive medical care, which is becoming more expensive for insurers to manage.
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Ohio remains below the national average when it comes to the cost of homeowners insurance
In terms of homeowners insurance, rates increased by an average of 4.3%. This is a smaller increase over what was reported in 2013 and the state remains the ninth lowest in terms of the cost of this insurance coverage. In Ohio, the average premium for homeowners insurance is $725, whereas the national average is $1,023. Weather-related claims are cited as the reason for the growing cost of homeowners insurance coverage, but the number of natural disasters that have struck Ohio in recent years is somewhat low.
Claims continue to drive up insurance premiums
Claims are typically the main reason that insurance costs rise. Managing claims can be a very expensive problem for insurance companies, which lead to significant financial losses. Natural disasters are, typically, the main cause of claims, but increasing building and material costs are also playing a role in the rise in homeowners insurance premiums in the state.