Online Auto Insurance Quote Analysis Quantifies Effect of Location on Nebraska Rates

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The average difference between the lowest priced territory and the highest priced territory was 51 percent

Though most Nebraskans have access to relatively cheap car insurance premiums, access to those low prices can vary widely depending on which part of the state a policyholder lives in, according to a new FAQ from the writers at OnlineAutoInsurance.com (OAI).

To quantify the effects of location on prices, the site looked at a regulator-provided quote comparison containing more than 650 sample rates from 14 of the state’s largest insurers. Quotes were provided for eight pricing territories and six different driver profiles.

According to the OAI analysis of those rates, Nebraskans residing in northeastern Omaha are quoted the highest prices on average, while those who live in Lincoln had access to the most inexpensive car insurance rates.

The average price for the five driver profiles for the Lincoln area was $1,016. The average for northeastern Omaha, on the other hand, was $1,363—a whole one-third higher.

OAI said these territories weren’t always the highest or the lowest of the eight, but they were on average.

The analysis showed prices from the same insurance companies for the same drivers could vary widely among the eight territories.

In one case, the rate for the highest priced territory was nearly three times the size of the rate quoted for the same driver in the lowest priced territory. And the smallest percent increase between the lowest and highest priced areas for the same insurer was still substantial: 28 percent.

Source: http://www.doi.ne.gov/brochure/autorateguide.pdf

Surcharges and discounts for living in certain parts of the state fluctuate so much because insurers generally rely on their own internal claims data to determine policyholders’ risk.

Because of the variability in location-based pricing, Nebraskans and drivers in other parts of the country should comparison-shop in order to find the insurers who view their areas most favorably.

To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/affordable/ where they will find informative resource pages and a quote-comparison generator that can help consumers efficiently find the best rates for a policy.

To access the full FAQ, follow the “Questions” link located at the top of any page on the site.

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Benjamin Zitney
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