Ohio’s new-car insurance rates cheapest in nation

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AP file photo Insure.com reports that the average policy costs $926 this year for a new vehicle in Ohio. For all vehicles, the Ohio Insurance Institute estimates the average insurance policy in the state this year costs $671. Request to buy this photo ' class=''> Enlarge Image Request to buy this photo AP file photo Insure.com reports that the average policy costs $926 this year for a new vehicle in Ohio. For all vehicles, the Ohio Insurance Institute estimates the average insurance policy in the state this year costs $671.

By Dan Gearino The Columbus Dispatch Tuesday February 25, 2014 1:58 AM

Competition for new-car insurance policies has helped make Ohio the least-expensive place in the country to buy coverage, according to a new report.

Insure.com reports that the average policy costs $926 this year for a new vehicle in Ohio. The national average is $1,503, and Michigan is the most-expensive state at $2,551.

Last year, Ohio was the fourth-cheapest among the 50 states and Washington, D.C.

The report is based on a survey that Insure.com commissioned to calculate rates from six large insurers in 10 ZIP codes per state. About 850 models were included, and the rates for all vehicles surveyed were averaged for each state. The rates are based on coverage for a single, 40-year-old male with a clean driving record and good credit whose one-way commute to work is 12 miles. The rates were compiled in January.

Auto-insurance rates can vary considerably from one state to the next based on an assortment of issues. In Ohio, a big factor that keeps rates down is competition.

Insure.com, citing A.M. Best, said more than 660 insurers do business in Ohio. Only Illinois and Texas have more.

Insure.com’s Amy Danise also said the state’s drivers report fewer claims than drivers in other states. “For any state, it comes down to two things — competition and claims — and Ohio is making out on both of them,” she said.

One Ohio insurance observer warned that the dollar figures in Insure.com’s report should be taken with a grain of salt.

“The Insure.com study findings should be viewed as a general comparison among states but not as an exact premium,” Mary Bonelli, spokeswoman for the Ohio Insurance Institute, said in an email. “ Premiums will vary by the actual driver(s) of a car, including their driving records, levels of coverage selected and discounts, among other factors.”

Ohio typically is among the states with the lowest insurance rates overall. In fact, rates for this year are about the same as in 2003.

This year, auto insurance in Ohio is expected to average $671, about 2 percent more that last year, the institute said.

The National Association of Insurance Commissioners estimated in December that Ohio drivers pay $177 less for auto insurance than the national average.