COLUMBUS, Ohio (WCMH) — Over the past year, inflation has hit nearly every aspect of the market. That includes car insurance. A MarketWatch study found Ohio saw the country’s second-steepest rise at nearly 56%.
The study found on average in 2022, drivers paid $1,027 per year for full-coverage car insurance, compared with $1,599 per year in 2023.
“We’re seeing the convergence of several very large occurrences that have forced rates up,” said Dean Fadel, president and CEO of the Ohio Insurance Institute.
Fadel said occurrences driving up those rates include: the cost of parts and labor, more auto thefts and longer time to repair cars.
“If you’re in a rental car, the insurance company is paying for a rental car for a longer period of time,” he said. “We’re also seeing an increase in the severity of crashes. People are driving faster. People aren’t wearing their seatbelts as often, either.”
Despite the large increase, Ohio’s rates remain comparatively low: 40% less than the national average and 10th cheapest in the county. Meantime, Michigan and Kentucky are paying more than 25% above the national average.
That boils down to supply and demand.
“[Ohio] is a fiercely competitive market [for car insurance], and in those types of markets the consumer benefits the most, and that’s the bottom line. That’s how you maintain customers. We have a ton of companies vying for business in Ohio,” Fadel said.
According to Insure.com, Floridians pay the most for car insurance, more than $1,000 a year more than most Ohioans and 52% above the national average.