Car insurance companies raised personal auto insurance rates an average of 2.5 percent and increased home insurance rates by 5.1 percent nationwide in 2013, according to a report from Perr&Knight, an insurance consulting service in Santa Monica, Calif.
Last year's car insurance rate increase was down from the 2012 nationwide rate hike of 3.7 percent, but it was consistent with a five-year trend of annual average rate increases of between 2 percent and 4 percent, the company said in its RateWatch report.
The five states with the highest auto insurance rate increases in 2013 were:
- Michigan, up 8.6 percent
- Georgia, 5.2 percent
- New York and Delaware, 4.3 percent
- Nevada, 4.1 percent
Home insurance rates, meanwhile, rose 5.1 percent nationwide in 2013, while renters insurance rates were up 2.6 percent and condominium insurance premiums increased by 2.9 percent. Over the last five years, annual average rate increases have ranged from 5 to 7 percent for homeowners insurance, 2 to 4 percent for renters insurance and 2.5 to 6 percent for condominium insurance, according to RateWatch.
The five states with the highest overall increases in 2013 for homeowners insurance were:
- Oklahoma, up 12.1 percent
- Florida, 11 percent
- Kentucky, 10.9 percent
- Kansas, 10.3 percent
- North Carolina, 10.1 percent.
The only state with double-digit increases in renters or condominium insurance rates was North Carolina, where premiums increased 18.7 percent for each, the RateWatch report said. California and Hawaii, meanwhile, saw homeowners rates fall by 3.4 percent and 0.7 percent, respectively. California insurers also dropped overall renters rates by 1.8 percent and condominium rates by 1.4 percent last year.
Perr&Knight's Rate Watch compiles the figures from public rate filings of insurance companies representing about 80 percent of the personal insurance market.