Reports Find Wide Range of Auto Rates Across U.S.

Two recently released studies on automobile insurance rates show a wide variation in costs across the nation. They also seem to show a big discrepancy in their findings. It turns out, however, that al-though they’re not exactly comparing “apples to oranges,” they do consider different criteria in determining what auto insurance costs are.

The latest analysis by the Rochester, Wis.-based consulting firm, Runzheimer International, shows that the nation’s lowest annual premium, $978, can be found in Nashville, Tenn. However, a report by the Insurance Information Institute (I.I.I.) indicates that for 2004 the average cost for auto insurance in the United States is estimated at $871—$29 more than last year’s average and $17 below Runz-heimer’s lowest annual premium.

The difference is that Runzheimer’s study is based on the purchase of full coverage: comprehensive, collision, bodily injury, property damage and uninsured motorist coverage; and the I.I.I.’s analysis looks at amounts that people actually pay for insurance.

“I’m looking at what people are actually buying,” I.I.I. chief economist, Robert Hartwig, said. His figures do not reflect an average premium that includes both a liability and property component.

According to Runzheimer, Detroit was the costliest city in the United States for auto insurance last year with a $4,945 average premium for a mid-size sedan.

The I.I.I. reported that the cost of auto insurance is expected to rise by 3.5 percent in 2004, the smallest increase in four years. Rates rose nationwide an average of 7.8 percent in 2003 and 8.8 percent in 2002.

“A reduction in auto accidents, combined with improved insurer financial performance are contributing to a significant moderation in the cost of auto insurance in 2004,” Hartwig said.

Still, motorists in some states, such as Florida, Massachu-setts and New York can expect costs to remain high due to increases in auto theft rates and fraud.

According to Runzheimer’s study, afterDetroit, the areas with the most expensive premiums are: Philadelphia ($3,666); New-ark, N.J.($3,557); Los Angeles ($3,258); and New York City at $2,762.

After Nashville, the areas with the lowest average premiums include: Boise, Idaho ($990); Richmond, Va. ($1,038); Burlington, Vt. ($1,039); and Evansville, Ind. ($1,045).