February 22, 2004

By: Tom Fredericks
Website: http://www.1st-in-cars.com

California Auto Insurance System Continues To Save Money For Consumers

Just a week ago, CFA released its report that documented the achievements of the California auto insurance system put in place by the enactment of Proposition 103 in 1988. One of our key findings was that, while the national auto insurance rates had risen by 38.9% in the typical state, California’s had dropped by 4.0%, the best in the nation.

Now the National Association of Insurance Commissioners has released another year of auto insurance data. California’s auto insurance costs dropped again, by 8.5% in just one year so that the total drop in costs since Proposition 103 passed has been 11.8%.

The national average change was an increase of 37.2%. Factoring inflation into these changes, the national average auto insurance rates have risen by 2.4%, but California’s rates have fallen by 34.2%. California’s auto insurance rates, 36% higher than the nation in 1989 have dropped to be 3.5% below the national average.

These results confirm what we so recently reported, that California has the best auto insurance regulatory system in the country, said J. Robert Hunter, CFA’s Director of Insurance and former Texas Insurance Commissioner. Every state needs a system modeled after this remarkable success story.

A table ranking the states on the basis of rate change in the eleven-year period from 1989 and 1999 is attached. As the table shows, the best states for consumers, as respects rate changes, have been California, New Jersey, Pennsylvania, Hawaii and Connecticut. The worst have been Nebraska, South Dakota, North Dakota, Arkansas and Kentucky.

About The Author:

Tom Fredericks is a successful author and regular contributor to http://www.1st-in-cars.com.  Great car accessories and parts plus financing, insurance and leasing tips.