CT auto insurance rates are high, but the market is competitive

A report released Tuesday by the Consumer Federation of America had mixed news for Connecticut’s drivers:

Since 1989, auto insurance rates in Connecticut have risen more slowly than in most other states; the average auto insurance premium in Connecticut rose 30.4 percent since 1989, but the national average was a 44.3 percent increase.

Nebraska had the largest increase (108 percent) and California, a state that has implemented strong insurance reforms, has actually experienced a slight decrease in the cost of an average insurance policy since 1989.

But, the Consumer Federation of America has also determined that the average insurance policy costs more in Connecticut than in 42 other states.

In 2010, Connecticut ranked eighth when it came to the cost of an average policy, about $965.

Automobile insurance companies also made sizeable profits in Connecticut from 1989 to 2010, the report said.

The report said that the average profit for auto insurers during that period was 12.2 percent, while the nationwide average was 8.6 percent.

The federation, however, gave Connecticut  good marks on the amount of competition among auto insurers in the state – even if that competition did not result in lower rates.

 

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