Commissioner Praeger Announces Kansas Ranks Fifth Lowest in the Nation ...

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FOR IMMEDIATE RELEASE For more information, contact: December 5, 2006 Charlene Bailey Public Information Officer 785-296-7807 Commissioner Praeger Announces Kansas Ranks Fifth Lowest in the Nation for Auto Insurance TOPEKA, KS Insurance Commissioner Sandy Praeger announced today that a recent report shows Kansas ranks
5 th lowest in the nation for combined average auto insurance expenditures.
This is good news for auto insurance consumers in Kansas and shows that our state represents a healthy
competitive marketplace for auto insurance buyers, said Praeger. Compared with surrounding states, only Iowa
has lower rates.

According to the report, the combined average policy in Kansas costs $603.47 per year, while the nationwide
average is $837.86. Combined coverage includes the total cost of liability, collision, and comprehensive coverage
for a vehicle.

Kansas In Comparison With Neighboring States (ranked lowest to highest) Iowa $579.00
Kansas - $603.47
Nebraska $637.44
Oklahoma $689.89
Missouri $702.39
Colorado $849.84 Most Expensive States Nationwide New Jersey ~ $1,221.08 ~ (1)
District of Columbia ~ $1,184.63 ~ (2)
New York ~ $1,171.62 ~ (3)
Massachusetts ~ $1,112.87
Louisiana ~ $1062.33 (Florida ~ $1062.31) Least Expensive States Nationwide North Dakota ~ $562.45 ~ (51)
Iowa ~ $579.95 ~ (50)
South Dakota ~ $586.96 ~ (49)
North Carolina ~ $597.02 ~ (48)
Kansas ~ $603.47 (47) - more - Page Two Auto Insurance Premiums 5 th Lowest in the Nation The report, which features vital state-by-state auto insurance data, is designed to provide necessary information and
analysis to insurance regulators, consumers and policymakers. Many factors affect the state-to-state differences in average expenditures and premiums for automobile insurance. Some important factors include: Underwriting and loss
adjustment expense; types of coverages purchased; driving locations; accident rates; traffic density; vehicle theft rates; auto
repair costs; population density; medical and legal costs; per capita disposable income; liability insurance requirements; and,
auto laws (seat belt, speed limits, etc.) For each state, average premium and expenditures, pure premium, loss ratio, claim frequency and claim severity are
calculated by coverage. The types of auto insurance coverage included are bodily injury and property damage
liability (including no-fault), uninsured and underinsured motorist, medical payment, collision and comprehensive. A sample of the report, entitled State Average Expenditures & Premiums for Personal Automobile Insurance in
2004, was compiled by the National Association of Insurance Commissioners (NAIC) and is posted on the
Pressroom page of the NAIC Web site at www.naic.org . The complete, 254page report also is available for purchase at the InsPubs section of the NAIC Store on the Web.


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