Auto insurance premiums climb in the Valley. How much may depend on where you live - Insurance News | InsuranceNewsNet

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April 13, 2020 Newswires
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Auto insurance premiums climb in the Valley. How much may depend on where you live

Fresno Bee, The (CA)

Apr. 13--If you drive a car in California, the law requires you to have automobile insurance. It doesn't come cheap -- but it's far more expensive in some parts of the Valley than others.

In Fresno County, the average annual premium for automobile insurance last year was estimated at $1,836, according to data from the recent State of Auto Insurance 2020 report by TheZebra.com, an online insurance-comparison website. But the cost is less in less-populated neighboring counties -- up to about $160 less per year in Kings County.

"The cost of car insurance keeps rising, with average rates up nearly 30% since 2011," the report's authors wrote. "That's more than double the rate of inflation in the U.S." But they're going up even faster in the Valley.

As more drivers make their way on Valley roads and highways, the added volume has contributed to higher rates over the past decade. "The Fresno-Visalia metro area's population keeps growing, leading to busier roads and more crashes, claims, and higher rates for everyone," said Nicole Beck, The Zebra's director of communications. "The area suffered a number of severe weather events in 2018, including storms, flooding, mudslides and devastating wildfires."

"Insurance costs have also been impacted nationally by accidents caused by distracted driving," Beck added, referring to driving while texting, calling or handling a phone or other device, "and technology updates making cars more expensive to repair after a crash."

Rates can vary from one driver to another based on factors such as location, age, driving history, amount of coverage, the insurance company, and others. Among other Valley counties, the reported premium was $1,752 in Tulare County; $1,733 in Madera County; $1,730 in Merced County; and $1,674 in Kings County. The statewide average annual premium in 2019 was $1,866.

While Fresno County's rates are higher than its neighboring counties, they are far from the highest in the state. Los Angeles County topped the California rates at more than $2,330 per year, followed by San Francisco at about $2,260 annually. Those were the only two counties in which the reported premium was over $2,000 a year.

But not only can premiums vary from one county to another, they can also wobble wildly from one ZIP code to another. Out of the five-county Valley region, the highest premium of $2,020 per year was reported in the 93721 ZIP code that includes downtown Fresno. The lowest was $1,598 in the Hanford area, in the 93230 ZIP code.

In Fresno and neighboring counties, premiums rose at a much higher rate over the past decade than the U.S. as a whole. Fresno County's average annual premium in 2019 was 51% higher than in 2011, compared to a 29.6% difference nationally.

The Zebra's report reflects 2019 premiums. But many drivers could see rebates from their automobile insurance companies for at least a few months of 2020 because the novel coronavirus has prompted widespread stay-at-home orders, causing a drastic reduction in vehicle traffic and a corresponding reduction in claims being paid out by insurers. Those rebates, however, aren't reflected in this report.

Because so many factors play a role in how insurance companies establish their premiums, The Zebra's analysis was based on seeking coverage for a 30-year-old unmarried man with a good driving record, driving a 2015 Honda Accord EX with a coverage limit of $50,000 for bodily injury per person or $100,000 total bodily injury per accident, $50,000 for property damage, and a $500 deductible for comprehensive and collision coverage.

___

(c)2020 The Fresno Bee (Fresno, Calif.)

Visit The Fresno Bee (Fresno, Calif.) at www.fresnobee.com

Distributed by Tribune Content Agency, LLC.

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