InsWeb: Auto Rates Up 11% In 2002

NU Online News Service, March 7, 2:20 p.m.EST?An online auto insurance quoting service has foundthat personal lines automobile insurance rates are upsignificantly.

Sacramento, Calif.-based InsWeb Corp.'s Auto Insurance Index,which tracks general pricing trends in personal auto insurance,found premiums nationwide in 2002 increased on average by 11percent over the prior year.

The average price quoted for a six-month auto insurance policyon InsWeb's marketplace during 2002 was $1,350, compared to $1,200during 2001. Based on this data, consumers could be paying as muchas $150 more for six-month policies when compared to 2001, InsWebsaid in a statement.

"The cost of auto insurance based on a six-month policy in 2002accounted for approximately 6 percent of the average household'sincome, a full percent increase over the prior year," notedInsWeb's chairman, Hussein Enan.

For the fourth quarter of 2002, rates for auto insuranceappeared to stabilize, exhibiting a pattern similar to the previoustwo quarters, according the index's findings.