1998's Auto Premium Reductions Not Likely to Continue, NAIC Says.Automobile insurance premium rates decreased about 8% in 1998, according to the latest study by the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. . But the increased use of replacement parts sold by auto makers, coupled with growing medical costs, foreshadow fore·shad·ow tr.v. fore·shad·owed, fore·shad·ow·ing, fore·shad·ows To present an indication or a suggestion of beforehand; presage. fore·shad rate increases this year. Premium reductions were possible in 1998 because insurers more closely monitored medical costs, said Dave Snyder of the American Insurance Association. Increased competition as a result of relaxed regulations also led to rate reductions, he said. New Jersey had the highest premiums in the country in 1998, an average of $1,138 annually, according to the study, followed by the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). with $1,033 and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of with an average annual premium of $960. The NAIC NAIC See National Association of Investors Corporation (NAIC). study shows that the states with the least expensive auto premiums in 1998 were North Dakota at $452 annually, Iowa at $459 annually and Montana at $471 a year. North Dakota remained the least expensive even though premiums rose 3.6% in 1998 and 8.6% in 1997. |
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