Car insurance rates hit all-time high – study

National car insurance premiums are at an all-time high, shooting up 20% since 2011, according to insurance search engine The Zebra.

The Zebra released the findings in its annual State of Auto Insurance Report. The report showed extreme pricing volatility in recent years and raised questions about how the industry is reacting to changes in weather, driver behavior, legislation and technology.

“Insurance companies leverage thousands of data points to determine car insurance rates – things like your age, driving record, and even your credit score,” said Adam Lyons, founder and executive chairman of The Zebra. “Today, we’re also seeing extraordinary forces like overnight tech innovation and devastating natural disasters impact rates.”

The report examined more than 52 million auto insurance rates across all US zip codes. Among its key findings:

• Car insurance rates in the US are higher than they’ve ever been. The national average annual premium is $1,427 – a 20% hike from 2011. Some cities have an average annual premium of more than $6,000.
• The most expensive state for car insurance was Michigan, followed by Louisiana and Kentucky.
• The most expensive city for car insurance was Detroit, followed by New Orleans and Hialeah, Fla.
• Care insurance rates have shown significant volatility. In some states they’ve increased more than 60% since 2011, while others have seen increases as little as 1%. Ten states actually had net decreases, some by up to 20%.
• Rate changes from one year to the next were as high as 9% nationally and up to 45% in some states.