ND Reportedly One of the Cheapest States for Auto Insurance

North Dakota flagInsurance Commissioner Adam Hamm recently announced that, according to data compiled by the National Association of Insurance Commissioners (NAIC), North Dakota has some of the cheapest car insurance rates on average in the nation.

Hamm reported that NAIC data show North Dakotans paid an average of $644 for a policy that included liability, comprehensive and collision coverage in 2008. That’s about 28.5 percent lower than the national average of $903.

“North Dakota’s auto insurance market continues to be very competitive and healthy, and that is a benefit to our state’s consumers in the form of lower insurance premiums,” Hamm said in a statement.

Only two other states — Iowa and Wisconsin — had cheaper average premiums for 2008.

South Dakota barely trailed North Dakota, with an average premium of $651.

North Dakota’s other neighbors had considerably higher average premiums in 2008. Minnesota had an average of $780, and Montana had an average of $829.

Although North Dakota didn’t have the cheapest average cost for the three major types of coverage, it still ranked the lowest for average expenditure on policies, according to NAIC data published by the Insurance Information Institute (III).

Data published by the III shows North Dakotans spent $503 on average for coverage in 2008.

Average expenditure differs from average premium in that average premium involves the cost of a policy that includes the three major types of coverage, while average expenditure assumes that all vehicles carry liability but not necessarily comprehensive and collision.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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