O‘AHU — Insurance Commissioner J.P. Schmidt announced on August 8 that Hawaii has experienced the nation’s largest decrease in auto insurance premiums.
“Based upon the most recent data assembled by the National Association of Insurance Commissioners, Hawaii saw the nation’s largest decrease in the combined average auto insurance premiums paid by consumers,” said Schmidt. “Since 1997, the average premium in Hawaii decreased by almost 27 percent.
In addition, Hawaii has the lowest comprehensive premiums with an average of $90.86 compared to the national average of $133.49.”
The NAIC data provided the estimated state average annual premium per insured vehicle for private passenger automobile insurance for the years 1997-2001.
In 1997, the total motor vehicle insurance premiums written in Hawaii was $557,795,996.
In 2001, even though the number of motor vehicle insurance policies probably increased, the written premiums decreased to $480,196,678, resulting in a reduction of $77,604,318.
“That’s $77 million in the pockets of the people in the state of Hawaii,” Schmidt said.
He added, “This also illustrates how much consumers saved in premiums as well as the magnitude of the impact of the Insurance Division has on consumers, insurers and the State’s economy.
“Hawaii had the second highest rates in the nation in 1995 but dropped to 21st in rankings in 2001. This is good news for Hawaii’s consumers. These savings place more hard earned dollars in the pockets of our residents and allow more discretion in their spending.”
The Hawaii Insurance Division oversees the insurance industry in Hawaii, issues licenses, examines the fiscal condition of Hawaii-based companies, reviews rate and policy filings, investigates insurance related complaints and prosecutes motor vehicle insurance fraud cases.
For more information, call Schmidt at (808) 586-2799.