The state’s Insurance Department has released its annual survey results comparing prices
North Dakota’s Insurance Department has released the results of its annual auto insurance cost comparison, as well as a helpful tool to help drivers in the state to find the coverage they need at the right price.
The survey involved obtaining quotes for six-month policies
The department obtained quotes from auto insurance companies in the state for 12 different hypothetical drivers seeking six-month policies. The purpose of the survey was to better understand how premiums vary among motorists in the state according to categories such as household size, location, driver gender, the vehicle being covered, and the driving record of the applicant.
About 20 insurers participated in the survey this year. Those 20 represented more than 80 percent of the policies sold in the state, according to data from the Insurance Department. The results of the survey were published on the department’s official website.
Auto insurance rates are rising in North Dakota
Though some parts of the country are experiencing higher increases, North Dakota is watching its drivers pay more for coverage than they have in previous years. This, according to an announcement made by North Dakota Insurance Commissioner Jon Godfread, who spoke upon the release of the survey results.
Godfread discussed not only some of the key outcomes of the survey, but also pointed to the current struggles the auto insurance market is facing not only in the state, but overall.
“The U.S. insurance industry is facing a hard market right now,” said Godfread when he spoke about the department’s survey results, “meaning premiums are increasing and coverage options are more restrictive.”
Several reasons to explain the higher prices
Godfread took some time to discuss some of the reasons insurers in the state are charging higher prices to cover vehicles on North Dakota’s roads. He pointed in part to issues associated with rising inflation. Godfread explained that recent trends in inflation had made it more expensive to repair damaged vehicles or replace those that had been stolen. This situation, he said, both worsened and contributed to the automotive parts shortages that have been plaguing the industry in recent years.
“Because policies are typically six to 12-month contracts, it will take time for insurers to bounce back,” he said.
He also recommended that state residents regularly consult with their insurance agents in order to make certain they are finding the best opportunities for saving money as they purchase or renew their policies.