Drivers across the country will likely be paying slightly more for their coverage because of the increases.
As the country keeps the spotlight on Obamacare and the requirement for health coverage, the auto insurance sector has also been making recent news through the latest data that has revealed that prices rose just slightly last year.
This type of increase seems to be occurring in many different sectors of the insurance industry.
The homeowners and auto insurance segments of the industry have been experiencing their own sets of changes and increases in rates and premiums that seem to be flying under the radar, to a certain extent, due to the amount of noise being made about Obamacare and all of its related health care reform laws. That said, Perr & Knight, a market research firm, has released a report that has focused on automobile coverage, and they noticed that there has been a small rise throughout the United States.
On average, auto insurance is now costing 2.5 percent more for drivers across the country.
The average increase last year, according to Perr & Knight, was slightly smaller than what it had been in 2012, when the prices rose by 3.7 percent. The firm expects that vehicle insurance premiums will maintain the trend of rising by about 2 percent to 4 percent per year and feels that last year’s increase is a clear reflection of what will be a continuing trend.
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On the other hand, when the firm looked into homeowners insurance, Americans paid an average of 5.1 percent more, last year. This amount also fits comfortably into the trends that they have observed, in which these rates have been rising by 5 percent to 7 percent per year.
CEO Tim Perr, of Perr & Knight explained that as a whole, the increases for both home and auto policies were considered to be quite moderate, last year. He added that the company’s RateWatch product offers “visibility into these changes by accumulating the approved rate changes extracted from the public rate filings of companies representing about 80% of the personal insurance premiums written.”
Last year, the trend in auto insurance was to rise in its rates, as not a single state saw an average decrease in these premiums.