May 06, 2015
New study: Missouri ranks 7th for least expensive auto insurance rates in the country
Director Huff addresses insurance producers at Farmers Insurance Missouri Legislative Conference
Jefferson City, Mo. - Missouri Department of Insurance Director John M. Huff told a group of approximately 150 insurance producers that a new study by insurancequotes.com ranks Missouri seventh amongst states having the least expensive auto rates. Huff was a featured speaker today at the Farmers Insurance Missouri Legislative Conference held at the Capitol.
"Farmers is a leader in our industry for its high level of customer service it provides to its policyholders," Huff said. "With more than $390 million in premium volume in 2014, Farmers ranks in the top five of Missouri's market share for property and casualty lines of insurance. I salute Farmers for its continued commitment to Missourians."
Huff cited Missouri's highly competitive automobile insurance market as a reason why it offers some of the least expensive rates in the country. Missouri auto rates are 26 percent lower than the national average. In 2014, Missouri had 186 companies writing auto coverage, with 80 different insurer groups. A common measure used to evaluate the competiveness of markets, rates Missouri's auto insurance market as "strongly competitive." This is one reason rates for full coverage, when controlling for inflation, actually declined in Missouri by over 20 percent since 2003.
Huff encourages consumers to shop around for auto coverage.
"Missourians should take advantage of Missouri's highly competitive auto insurance market and make insurers compete for their business," Huff said.
Additionally, in 2014 there were 127 insurers in the homeowners market. The average cost of homeowners' coverage increased by just 4.1 percent between 2013-2014. That is down from the previous year when rates increased on average by 5.6 percent.
Missouri also ranked 12th amongst the states as having the overall, lowest insurance regulatory cost. The rankings were based on data from the National Association of Insurance Commissioners.
About the Missouri Department of Insurance, Financial Institutions & Professional Registration
The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.