Auto insurance
rates in isles
drop the most

Between 1996 and 2000
the cost of premiums in
Hawaii fell nearly 26 percent

The best and the worst

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By Lyn Danninger
ldanninger@starbulletin.com

Hawaii consumers are the beneficiaries of the nation's largest decrease in auto insurance premiums, according to a new report issued by the National Association of Insurance Commissioners.

Between 1996 and 2000, the most recent data released by the NAIC, shows that Hawaii auto premiums fell by nearly 26 percent.

The average auto insurance premium in Hawaii cost $811.50 during 2000. In 1995, that cost was $1,096.67, said Hawaii Insurance Commissioner Wayne Metcalf.

Residents of New Jersey paid the most for auto insurance, with an average premium of $1,146.39 during 2000.

Iowa residents spent the least on auto insurance, paying an average of $557.67 in 2000.

Nationwide, the average premium in 2000 was $785.80.

Hawaii ranked No. 17 in overall nationwide rankings. It was previously ranked as the most expensive.

Since 2000, premiums appear to be holding steady, with some increases and some decreases, Metcalf said.

"There's been nothing particularly significant," he said. "We've seen activity in both directions."

For example, Metcalf noted that while State Farm increased rates by 7 percent this year, it had previously reduced rates a total of 18.4 percent from what they were prior to February 2001. Likewise, Liberty Mutual announced a 4.9 percent hike this year, while Island Insurance raised rates by 8.8 percent.

State Farm spokeswoman Carolyn Fujioka said that overall her company had lowered rates substantially in the past five years.

"Even with the most recent increase, it's still 30 to 35 percent lower than it was five years ago," she said.

Fujioka predicts further increases are likely, due to increases in medical costs and car repair costs.

"Although we are still down from where it was, rates are cyclical, so they may have reached a low point and we might start to see increases."

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Pay up The cost to buy car insurance during 2000, according to the National Association of Insurance Commissioners: State Premium 1. New Jersey $1,146 2. Dist. Columbia $1,144 3. New York $1,091 4. Mass. $1,028 5. Rhode Is. $972 17. Hawaii $812 45. Ohio $646 46. S. Dakota $619 47. Wisconsin $614 48. Illinois $726 49. N. Dakota $601 50. Maine $600 51. Iowa $558