2002 Outlook for Insurance Rates

Many policyholders have seen the price they pay for auto and homeowners insurance increase over the past year. In 2001, the average cost of insuring cars and homes both rose by six percent nationally. Similar increases are projected for 2002. The increases may have taken some policyholders by surprise given that they came after several years of flat to decreasing prices. While these increases translate into a relatively modest $40 for the average homeowner and $45 per vehicle, many policyholders are understandably concerned about higher insurance costs and have been left wondering why their premium rose and what they can do to keep costs down in the future.