NEW YORK, Oga. 25, 2022 /PRNewswire/ — The world’s cheapest personal car insurance continues Louisianawhere the proportion of households paying for car insurance was three times higher than what they could afford, according to new research from Insurance Research Council (IRC), part of The Institutes.
“A study by the Insurance Research Council shows that the cost of personal car insurance, which is used as a percentage of the median household income, has been declining steadily between the 1990s and 2010s in the US across the US and is down to 1.56% in 2019, the most recent year. for which the data is available,” said Dale Porfilio, FCAS, MAAA, President, IRC. “However, our research showed that there is a 3:1 difference in accessibility between the cheapest and the least expensive countries.”
According to an IRC study, the three least expensive states for personal car insurance, based on income as a percentage of median income, are:
- Louisiana (3.01%)
- Florida (2.42%)
- Michigan (2.33%)
The three least expensive countries, based on income as a share of median household income, are:
- Hawaii (0.95%)
- New Hampshire (0.99%)
- North Dakota (1.00%)
IRC courses, State Changes in Auto Insurance Affordability, looked at the main financial drivers that drive insurance prices. Factors that determine eligibility vary from state to state and from state to state in the US. District of Columbia it included the following:
- Often an accident
- Financial planning
- Injuries are common
- Injuries indicate their severity
- Drug use
- Involvement of a lawyer
- Say the abuse
- Uninsured motorists
- The case is the weather
Porfilio, who also works as a director of insurance at Triple-I, said, “Our report aims to highlight these differences with a state-by-state analysis that can help guide policymakers as they work to improve the entire car insurance market.”
In the 1990s, auto insurance premiums rose to 1.93% of household income, falling to 1.70% in the 2000s and 1.60% in the 2010s, the IRC study showed. The arrival of the pandemic in 2020 and the increase in car accidents in 2021 and 2022 have changed the car insurance market since the end of 2019, Insurance Information Institute (Triple-I) Brief Story found earlier this year.
About the Insurance Research Council
The Insurance Research Council (IRC), affiliated with The Institutes, is an independent, not-for-profit organization supported by leading insurance and casualty companies and organizations. The IRC provides timely and reliable research to all stakeholders on government policies that affect insurance companies and their customers. The IRC does not advocate or endorse legal positions.
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SOURCE Insurance Information Institute