Car insurance rates are up in Ohio and across the nation. Here's why.

Jessie Balmert, Cincinnati Enquirer
·3 min read

If you noticed a recent spike in your car insurance bill, you aren't alone.

Car insurance rates are expected to increase by 8.4% across the United States and 12.3% in Ohio this year, according to ValuePenguin, a subsidiary of Lending Tree, which researches insurance and other consumer trends. The nationwide increase is the biggest jump in the past six years.

Still, the average cost for full coverage car insurance in Ohio (about $1,296 per year) remains 27% lower than the national average (about $1,780 per year). That makes Ohio one of the least expensive states for car insurance, according to the analysis.

More: Ohio's car insurance rates are going up. Here's why | Betty Lin-FIsher

In comparison, Kentucky's annual cost is $2,040 or 14% above the national average. And Michigan's average of $4,788 a year is the highest in the United States.

Another analysis by Insure.com found Ohio had the lowest car insurance rates in the nation. The average premium was $1,023, or 40% less than the national average of $1,682, according to Insure.com.

The most recent data from the Ohio Department of Insurance is from 2021 when rates increased by 2.7% for the state's 10 largest insurance providers.

Here are some reasons why rates are rising:

  • Crashes and auto claims have increased as Americans return to work and their daily commutes.

  • Repairs cost more and take longer because of supply shortages and inflation.

  • Bad driving habits, including texting while driving and distracted driving, lead to more claims.

Ohio recently passed new rules to crack down on distracted driving.
Ohio recently passed new rules to crack down on distracted driving.

Beyond the macro trends, other factors can hike your rates, including a poor driving record, age, gender, where you live and what car you drive.

The Ohio Department of Insurance approved increases for some of the most-used car insurance companies in the past year. They include:

  • GEICO Secure Insurance Company increased its rates by 34.7% on average, for about 125,800 customers in September 2022.

  • In January 2022, Progressive Direct Insurance Company increased its rates by 20%, on average, for about 425,000 customers. And Progressive Specialty Insurance Company increased its rates by 15.1%, on average, for nearly 375,000 customers.

  • GEICO Advantage Insurance Company increased its rates by 13.5% for 158,000 customers in May 2022 and 12.4% for 143,000 customers in September 2022.

  • Other significant increases affected a smaller number of customers. For example, USAA General Indemnity Company increased rates by 23% on about 40,000 customers; Garrison Property and Casualty Insurance Company increased rates by 19.5% on nearly 17,800 customers and American Family Mutual Insurance Company increased rates by 19% on about 46,700 customers.

Ohio law requires the state Department of Insurance to review and approve car insurance rates to make sure they aren't "excessive."

"Ohio Department of Insurance staff review rate filings to make sure that premiums are actuarially sound, not excessive, inadequate or unfairly discriminatory," spokesman Robert Denhard said.

Consumers should compare different auto insurance options and switch if they find a better one for them, Denhard said.

Consumers can contact the Ohio Department of Insurance with questions and concerns about auto insurance at 1-800-686-1526, consumer.services@insurance.ohio.gov and www.insurance.ohio.gov.

Jessie Balmert is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.

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This article originally appeared on Cincinnati Enquirer: Car insurance rates are on the rise nationwide and in Ohio