If you own a private vehicle, you know how stressful the continuous spike is for auto insurance premiums. After some research, data shows that the lowest rates in Ohio can be found in the Dayton area.
On average, drivers spend $1028 yearly for auto insurance. That figure is $4 lower than the state average, and $442 lower than the country’s average ($1470). This report was given by The Zebra, a company that compares Ohio car insurance rates.
Across the US, Ohio has the 6th least expensive auto insurance policy average. Within the Buckeye state, only the Toledo area has beat Dayton of the lowest average rate.
Dayton offers one of the lowest coverage rates in Ohio
Dayton features a combination of rural, suburban, and urban communities. It also has a lower number of people living in it. These two factors help keep the auto insurance rates low. There are laws in Ohio that necessitate a negligent driver’s insurance to pay claims, which is different in no-fault states.
An AAA Allied Insurance Group agent, Andrew Thelman, says, “The reason why our rates are so low in this area is because I think, in general, a lot of our drivers have done a better job wearing seat belts, not texting, not speeding, not having moving violations.”
One reason why insurance agencies are spiking up their premium costs all over the country lies in the fact that drivers are exposed to more distractions these days: using mobile phones while driving, driving under the influence of drugs or alcohol, and others. According to Alyssa Connolly, a The Zebra analyst, people who get citations get policy go up at an estimated 20% yearly for texting while driving; 23.2% for speeding, 22.7% for running a red light, and 73.9% for DUI charges.
Connolly also said that these violations factor into the insurance rates for 3 years after the date of citation.
She said, “Insurance agencies barely, hardly at all, penalized distracted driving up through 2015, and in 2016 it took a massive jump. Those violations are increasing and people are making more claims because their eyes are off the road.”
The Zebra also tells us that there has been a 25% jump in the Ohio average auto insurance rates since 2011. Across the country, the increase is at 23%
Average cost for repairs is lower
Another factor that helps keep auto insurance costs down in Dayton is the fact that the average costs for repair are also lower here than in other cities. Repairpal conducted a study which shows that it ranked as the 6th best city in the U.S. for getting car repairs, based on its low repair bills and low labor rates on average.
According to Michael Wagner, owner and president of Wagner Insurance Agency (whose offices operate in Dayton, kettering, West Milton, and Lebanon) , for the rest of the nation, however, repair costs and insurance rates keep going up – especially since more metal parts are being replaced with plastic, and since newer technological features are being added.
The Zebra’s research further tells us that safety and anti-theft technologies create minimal impact to the plummeting car insurance policy rates; this is despite the fact that they help reduce incidents of collisions. This is because they actually add to the vehicle’s overall value.
Wagner said, “It’s not just a bumper anymore, it’s the whole front panel. And it’s not just the front panel, it’s all the sensors in there, the warning for someone coming up on the side or the front or the back camera. All that stuff ends up adding to claims.”
Rising insurance premiums in the country
The cost for auto insurance is rising across the U.S. because of increased theft cases, more frequent driving (because of cheap gas prices), and increased distractions on the road (texting), and natural disasters.
How drivers are coping with the rising costs
Connolly said that despite these, drivers find more ways to save a buck, by looking for insurance companies every 6-12 months (since their rates often fluctuate). Keeping themselves insured with no lapses even in between changing insurance companies is seen as a positive trait by the insurance companies too.
Thielman said that drivers also check zip codes prior to moving, checking if insurance companies offer discounts, avoiding incurring any violations, and using a telematics device which is able to track safe driving, and voiding collision coverage if their cars are over 8-10 years old (which would cost more than a repair bill should an accident happen).
According to Thielman, for parents, looking for discounts based on good grades or sending their kids to an added 10-15 hours of driver’s ed classes can give them lower premiums of up to 25%. Older motorists can enjoy 10-15% off for similar driving programs.
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