Motorists in the state won’t be experiencing any relief from the higher prices that they pay for coverage.
Drivers in Connecticut are paying a higher price for auto insurance than other Americans across the country, and studies are now revealing that there are a number of reasons that motorists in that state face higher coverage costs.
The high cost of living and higher income levels have always been contributors to higher premiums.
Studies are indicating that there are a number of new and growing reasons that people in Connecticut are facing higher auto insurance premiums. Analysts have found that beyond the higher income levels and cost of living, state regulators have also played an important role in this trend. Many say that the inaction of the regulators has allowed insurers to have complete control over how much they charge to cover the drivers throughout the state.
Recent studies have shown that although auto insurance rate changes must receive official approval, they are rarely stopped.
In the case of health insurance in the state, the Connecticut Department of Insurance must give its approval before rate change can go into effect. However, in the cause of auto insurance, although insurers must still notify the state of premiums increases, they are automatically allowed to move forward unless the state objects.
According to an Insurance Information Institute (I.I.I.) economist, Stephen Weisbart, “State insurance departments are fairly pro-market operations,” adding that “They don’t try to affect the level or rates too much other than to see they aren’t too excessive.”
The most recent study that was issued by the National Association of Insurance Commissioners (NAIC), regarding auto insurance, showed that there are nine states, as well as the District of Columbia, that have premiums that are higher than those paid by Connecticut drivers. In the last year studied for annual average premiums in the state, 2010, the amount paid by motorists there was $1,065.92, according to the report from NAIC.
The highest auto insurance premiums were paid in Louisiana, where the average was $1,294.94, and the lowest was Iowa, where the average was $644.63. Nationwide, the average premium was $907.38.