Vermont Business Magazine ValChoice, a national insurance analytics and rating firm, has ranked Vermont as the 16th worst state for home insurance value in the nation. For comparison purposes, the average price of auto insurance in Vermont is $665, up 5 percent over three years. Homeowners insurance in Vermont rose 12.8 percent to $844 in the same period.
Mortgage rates are historically low, but rates have gone up several points since the election, ValChoice reports, and have been up and down nearly every week since November. The increase in mortgage rates translates to an increased mortgage payment of over $100 a month for the average homebuyer.
While mortgage rates were dropping, homeowners didn¹t feel the effect of rapidly increasing insurance prices. Since 2000, home insurance rates have increased an average of nearly 6% per year, and increased at four times the rate of increase in family income. During this same time, the paid loss ratio of the home insurance industry has trended down sharply.
Unfortunately, insurance prices rarely, if ever, go down. Dramatically higher home insurance prices are here to stay. As mortgage rates rise, homeowners are getting a double whammy with home insurance rates, making home ownership increasingly unaffordable.
Car and Home Insurance Average Rates and Three-Year Trend
| Average Price* | 3-Year Change | |
|---|---|---|
| Car Insurance | $665 | 5.0% |
| Homeowners Insurance | $844 | 12.8% |
*The most recently publisheddata by the Insurance Information Institute (iii.org)
Five Largest Auto Insurance Companies in Vermont
The five largest car insurance companies in Vermont are shown in the table below. The marketshare of each company is shown in the second column. The third column shows their growth rateover the last three years. A positive number in the growth rate column indicates growth over the last three years. A negative number indicates they are losing customers to other car insurance companies. Companies that are growing oftenprice more aggressively and provide better support to their customers.
| Market Share* | 2012-2015 Change |
|
|---|---|---|
| Progressive Insurance Group | 15.8% | 0.1 % |
| Berkshire Hathaway Insurance Group (GEICO) | 14% | 11.7 % |
| Liberty Mutual Insurance Companies | 8.8% | 4.8 % |
| State Farm Group | 8.2% | -0.2 % |
| Allstate Insurance Group | 6.5% | -3 % |
Vermont Home Insurance Rates andTrends
The five home insurance companies with the largest market share in Vermont are shown in the table below. Like car insurance, companies that are increasing their marketshare often price more aggressively and provide better support to their customers.
Five Largest Home Insurance Companies in Vermont
| Market Share* | 2012-2015 Change |
|
|---|---|---|
| Vermont Mutual Group | 11.8% | -0.7 % |
| Liberty Mutual Insurance Companies | 11.1% | 6.9 % |
| Co-operative Insurance Companies | 10.7% | -0.8 % |
| State Farm Group | 7.4% | -1 % |
| Union Mutual of Vermont Companies | 6.4% | -5.8 % |
Minimum Car Insurance Coverage Required in Vermont
| Minimum Coverage | |
|---|---|
| Bodily Injury, per person | 25,000 |
| Bodily Injury, per accident | 50,000 |
| Property Damage | 10,000 |
The VermontVermont Statute of Limitationsdefines the time limit following an accident when you can file a lawsuit. Once this time limit has passed, you can no longer file a lawsuit.
Source: ValChoice Bedford, NH.