Distractions, more wrecks raised rates

An increase in accidents and more distracted driving have resulted in higher insurance rates for Ohio motorists.

The top 10 insurers by market share in Ohio — which control 76.8 percent of the market — raised rates by an average of 3.1 percent in 2016, according to Ohio Department of Insurance data released Wednesday. That matches 2012 for the biggest increase in the past 10 years.

Rates for this group rose by 2.2 percent in 2015 and 2.5 percent in 2014.

“It’s not a surprise. It’s going up in ‘17 (as well).

The auto claims have been terrifically high in frequency and in repair costs,” said Larry France, owner of France & Associates insurance agency.

Motorists have been driving more, helped by lower gasoline prices and an improving economy, said Kimberly Schwind, spokeswoman for Ohio AAA. That has led to more accidents.

“The insurance companies are trying to cover their costs. They’re paying more money out in claims,” she said. “Passing along a 3 percent rate sounds like a lot. The insurance companies are covering their losses.”

Accidents have been on the rise since 2013, according to Ohio Department of Public Safety records.

There were 305,964 accidents last year in Ohio, up nearly 14 percent from 2013. Injury accidents and fatal crashes have been rising as well.

“There’s too many people on cellphones. There’s too much distracted driving,” France said.

In addition to more accidents, repair costs for vehicles and medical costs are higher.

France said just replacing a bumper can now cost as much as $2,000 to $3,000. Medical costs go up regularly because of new medicines and equipment.

Hurricanes Harvey, Irma and Maria will be a driving factor for higher rates in the future, France said.

Harvey, which struck primarily Texas, flooded about 420,000 insured cars, according to the National Insurance Crime Bureau, more than from Katrina in 2005 and Sandy in 2012. More than 215,000 claims have been filed from Irma, which whacked Florida and the Southeast.

“We’ll see rates go up in Columbus, Ohio, from Houston losses. Will it be the same impact? No, but there will be an impact,” France said.

USAA, an insurer that provides coverage for those in the military State Farm Progressive Allstate Nationwide Geico Grange Liberty Erie American Family USAA State Farm Allstate Liberty Nationwide Grange Erie Westfield Cincinnati Financial USAA American Family

2.7% 1.4% 1.4% 2.1%

flat 7.2% 8.2%

2% 3.7% 14.3%

flat 4% 4.1% 2.9% 1.9% -0.2% 4.1% flat 4.5% 4.5%

Source: Ohio Department of Insurance

and their families, raised rates the most among the big carriers last year, 14.3 percent. A message seeking comment was left with the insurer.

Liberty Mutual raised raise rates 8.2 percent, and Columbus-based Grange raised rates 7.2 percent.

For homeowners, rates went up 1.9 percent in 2016 among the biggest carriers.

It was the second straight modest increase after seven years of big increases tied to severe storms that struck the state.

“We haven’t had bad storms like that, so we haven’t had any big jumps,” France said.

As the case with auto, though, rates might be headed higher in the future because the hurricanes are driving up the cost of building supplies, he said.

Despite the increases in rates, the amount that Ohioans pay remains well below the national average.

Ohioans pay an average of $797 (ninth lowest) for homeowners insurance and $683 (12th lowest) for auto coverage, the state said, citing the National Association of Insurance Commissioners. The combined average premiums are $518 below the national average.