The Zebra Reveals the Truth Behind Auto Insurance Rate Hikes in Comprehensive Study

Car insurance rates are higher than ever, up 11 percent over past five years; A new national study by The Zebra uncovers how technology, driving behaviors, and major rating factors are impacting the current state of auto insurance and what consumers can do to save on premiums

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The Zebra

Aug 02, 2016, 10:46 ET

AUSTIN, Texas, Aug. 2, 2016 /PRNewswire/ -- The Zebra, the nation's most comprehensive car insurance comparison marketplace, today distributed the findings of its first annual State of Auto Insurance Study, which provides an unbiased look at the key rating factors and drivers of change throughout the auto insurance industry, notably the who, what, where and how of driving.

The Zebra's 2016 State of Auto Insurance Report examines rates by Year, State, Violations, and dozens of other factors.

The 2016 State of Auto Insurance: Rates at All-Time High
Using pricing data from the past five years, The Zebra explored millions of car insurance premiums as impacted by common variables such as state, age, gender, financial behaviors, and vehicles. Car insurance premiums are up nearly 11 percent over five years ago, and up 3.3 percent over 2015, though with significant volatility nationwide.

"For many of the 250 million American drivers, car insurance rates are going up, and unsurprisingly, people want to know why," said Joshua Dziabiak, COO, The Zebra. "The modern car is loaded with new technology, from 360-degree cameras to self-driving features. Many people might assume these innovations should be improving safety and therefore decreasing the cost of insurance. However, there are thousands of complex rating factors, personal attributes, and driver behaviors used to determine the price that you pay for insurance. Our research breaks down all those factors to help consumers make informed decisions regarding both their driving behaviors and their car insurance."

Tech Not a Risk Factor, According to Car Insurance Companies

A DUI raises car insurance rates 3,200% higher than texting while driving does. Cell phone use and texting while driving have the least impact on auto insurance premiums nationwide, raising rates only 2 percent. In contrast, driving under the influence raises rates over $1,000.
New vehicle safety technology won't save drivers—money, that is. Despite plentiful new in-car safety technology, only electronic stability control (ESC) shows any reduction on average national rates -- though it saves just $5 per year. In fact, 17 states show no savings at all for safety devices including blind spot warning, collision preparation systems, lane departure warning, night vision, and rear-view cameras.
Monitoring driving with telematics doesn't benefit the drivers. Telematics devices, which drivers plug into their vehicles to record how (and how much) they drive and presumably help insurers better predict risk, only yield users an average of $9 (less than 1%) in annual savings.

What Actually Is Impacting Car Insurance Rates?

Who you are:
- Men, unmarried people, renters, and those with low education and low credit scores pay more for car insurance, respectively, than women, married people, homeowners, and those with higher education and higher credit scores.
- Teens pay more than double for car insurance than any other age group, with 16-year-olds paying nearly $6,500 annually.
How you drive:
- A DUI raises car insurance rates 80 percent. And though DUIs increase rates the most nationally, 23 states cite racing as the costliest violation, 16 cite DUI, and others cite reckless driving and at-fault accidents.
- Mileage hardly impacts car insurance rates at all; those who drive more than 15,000 miles per year only pay 6 percent more for car insurance than those who drive 0-7,500 miles per year.
Where you live:
- 10 Least Expensive States for Car Insurance:
  - Ohio - $764
  - North Carolina - $817
  - Idaho - $919
  - Maine - $937
  - Iowa - $971
  - Indiana - $996
  - Virginia - $1,002
  - Illinois - $1,003
  - Massachusetts - $1,004
  - Utah - $1,015
What you drive:
- Of the most popular cars by annual U.S. vehicle sales, these 2016 models have the lowest rates:
  - Sedan: Chevrolet Cruze ($1,376)
  - Truck: Toyota Tacoma ($1,363)
  - SUV: Honda CR-V ($1,232)
  - Van: Honda Odyssey ($1,260)
  - Luxury car: Acura RDX ($1,429)
  - Hybrid/electric car: Toyota Prius ($1,469)

See the full 2016 State of Auto Insurance report to explore all rating factors and premiums by state, and to see verified ways to save on car insurance.

About The Zebra
The Zebra is the most comprehensive online car insurance comparison platform in the U.S. Since 2012, the company has sought to bring transparency and simplicity to car insurance shopping — "car insurance in black and white." With The Zebra's real-time, side-by-side quote comparison tool, drivers can identify insurance companies with the coverage, service level, and pricing to suit their unique needs.

Photo - http://photos.prnewswire.com/prnh/20160802/394925

SOURCE The Zebra