Something getting cheaper? Car insurance

We’re writing this post knowing that you will not believe it.

But thanks to the National Association of Insurance Commissioners and the Federal Reserve Bank of Minneapolis, there are numbers to prove that car insurance premiums in Minnesota have been falling.

The Minneapolis Fed recently crunched the latest data (2009) collected by NAIC on auto premiums and concluded for Minnesota and the other states in its region, “average auto insurance premiums — including liability, collision and comprehensive coverage — are getting cheaper.”

Since 2005, every district state has seen average premiums decline, led by Minnesota and the Dakotas, all of which saw a price drop of at least 10 percent.

Here are the calculations from the Minneapolis Fed, based on the insurance commissioners’ report:

autoinsur.jpg

The Minneapolis Fed’s Ron Wirtz writes that, “state insurance regulations — like required coverage and coverage levels — play a big role in average premiums, which might also explain why Minnesota drivers pay more than Wisconsin drivers, and Montana drivers pay significantly more than drivers in the Dakotas.”

  • Mark Gisleson

    Um, a couple of questions, please?

    Does the fact that average drivers are driving older (less expensive) cars impact these numbers?

    Do these numbers suggest that drivers in a tough economy are downgrading their insurance coverage?

    And lastly, since those numbers are over two years old, is this a trend that has continued into the present? Surely there must be some more recent numbers available.