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Auto Insurance

The average cost of automobile insurance declined by 1.7 percent in 2006, according to a November 2008 report from the National Association of Insurance Commissioners (NAIC). The District of Columbia had the highest average expenditure ($1,164), followed by New Jersey ($1,152), Louisiana ($1,094), New York ($1,083) and Florida ($1,069).

AVERAGE EXPENDITURES FOR AUTO INSURANCE, UNITED STATES, 1997-2006


Year Average expenditure Percent change Year Average expenditure Percent change
1997 $705 2.0% 2002 $786 8.3%
1998 703 -0.3 2003 830 5.6
1999 685 -2.6 2004 842 1.4
2000 690 0.7 2005 831 -1.3
2001 726 5.2 2006 817 -1.7
Source: © 2007 National Association of Insurance Commissioners.

TOP TEN MOST EXPENSIVE AND LEAST EXPENSIVE STATES FOR AUTOMOBILE INSURANCE, 2006 (1)


Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 D.C. $1,164 1 North Dakota $530
2 New Jersey 1,152 2 Iowa 536
3 Louisiana 1,094 3 South Dakota 554
4 New York 1,083 4 Idaho 577
5 Florida 1,069 5 Kansas 579
6 Massachusetts 1,042 6 Nebraska 584
7 Rhode Island 1,038 7 Wisconsin 590
8 Delaware 1,024 8 North Carolina 596
9 Nevada 1,006 9 Indiana 631
10 Connecticut 981 10 Maine 634
(1) Based on average automobile insurance expenditures.

Source: © 2008 National Association of Insurance Commissioners.

AUTO INSURANCE EXPENDITURES, BY STATE

The table on the following pages shows estimated average expenditures for private passenger automobile insurance by state for 2002 to 2006, providing approximate measures of the relative cost of automobile insurance to consumers in each state. To calculate average expenditures the National Association of Insurance Commissioners assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages.

Expenditures are affected by the coverages purchased as well as other factors. In states where the economy is healthy, people are more likely to purchase new cars. Since new car owners are more likely to purchase physical damage coverages, these states will have a higher average expenditure. The NAIC notes that urban population, traffic density and per capita income have a significant impact on premiums. The latest report shows that high premium states tend also to be highly urban, with higher wage and price levels and greater traffic density. Tort liability and other auto laws, labor costs, liability coverage requirements, theft rates and other factors can also affect auto insurance prices.\

AVERAGE EXPENDITURES FOR AUTO INSURANCE BY STATE, 2005-2006


2006 2005
State Liability Collision Compre-
hensive Average expenditure Rank (1) Average expenditure Rank Average expenditure percent change 2005-2006
Alabama $367 $318 $135 $684 35 $679 37 0.7%
Alaska 596 381 158 955 11 968 11 -1.3
Arizona 507 310 231 913 14 929 14 -1.7
Arkansas 387 291 161 684 34 694 34 -1.4
California (2) 483 376 118 843 16 842 19 0.2
Colorado 453 281 188 785 23 829 21 -5.3
Connecticut 621 335 125 981 10 993 9 -1.2
Delaware 706 298 111 1,024 8 1,028 8 -0.3
D.C. 610 445 261 1,164 1 1,187 1 -2.0
Florida 752 287 113 1,069 5 1,064 6 0.5
Georgia 424 372 169 788 22 785 24 0.4
Hawaii 542 309 117 853 15 846 18 0.8
Idaho 339 232 125 577 48 585 48 -1.4
Illinois 410 296 118 740 27 743 28 -0.4
Indiana 361 253 111 631 43 658 41 -4.0
Iowa 282 199 163 536 50 555 50 -3.6
Kansas 300 235 198 579 47 589 47 -1.7
Kentucky 484 266 132 739 28 751 26 -1.5
Louisiana 660 386 209 1,094 3 1,078 5 1.5
Maine 362 270 106 634 42 644 42 -1.6
Maryland 564 326 146 949 12 948 12 0.1
Massachusetts 670 327 127 1,042 6 1,113 4 -6.4
Michigan 494 415 158 925 13 931 13 -0.6
Minnesota 446 224 173 753 25 792 23 -4.9
Mississippi 430 294 165 746 26 746 27 0.0
Missouri 379 262 146 673 36 685 36 -1.8
Montana 399 241 197 661 37 686 35 -3.7
Nebraska 327 213 189 584 46 619 44 -5.7
Nevada 651 344 142 1,006 9 985 10 2.1
New Hampshire 435 300 109 793 21 792 22 0.2
New Jersey 747 378 160 1,152 2 1,185 2 -2.8
New Mexico 457 292 165 737 29 731 30 0.8
New York 730 331 153 1,083 4 1,125 3 -3.7
North Carolina 342 251 121 596 44 602 46 -1.0
North Dakota 255 196 238 530 51 555 51 -4.4
Ohio 382 252 104 654 39 670 39 -2.3
Oklahoma 384 271 169 659 38 678 38 -2.9
Oregon 483 226 103 726 30 738 29 -1.7
Pennsylvania 499 309 125 832 18 850 17 -2.1
Rhode Island 695 377 125 1,038 7 1,062 7 -2.2
South Carolina 471 255 149 756 24 754 25 0.3
South Dakota 296 200 202 554 49 566 49 -2.2
Tennessee 363 293 123 654 40 659 40 -0.8
Texas 454 349 175 820 20 857 16 -4.3
Utah 424 266 120 702 31 707 31 -0.7
Vermont 361 298 129 687 32 700 32 -1.8
Virginia 395 264 118 685 33 700 33 -2.1
Washington 543 260 127 839 17 842 20 -0.3
West Virginia 510 297 180 827 19 859 15 -3.7
Wisconsin 331 204 123 590 45 615 45 -4.1
Wyoming 334 261 216 639 41 640 43 -0.2
United States $489 $308 $140 $817 $831 -1.7%
(1) Ranked by average expenditure.
(2) Preliminary.

Note: Average expenditure=Total written premium/liability car years. A car year is equal to 365 days of insured coverage for a single vehicle. The NAIC does not rank state average expenditures and does not endorse any conclusion drawn from these data.

Source: © 2008 National Association of Insurance Commissioners.

AVERAGE EXPENDITURES FOR AUTO INSURANCE BY STATE, 2002-2004


Average expenditure (1)
State 2004 2003 2002
Alabama $677 $657 $627
Alaska 974 938 884
Arizona 931 921 887
Arkansas 708 698 672
California (2) 846 837 779
Colorado 850 923 921
Connecticut 991 988 970
Delaware 1,022 977 900
D.C. 1,185 1,135 1,044
Florida 1,062 1,018 934
Georgia 779 759 739
Hawaii 817 776 739
Idaho 590 586 563
Illinois 760 762 729
Indiana 671 671 648
Iowa 580 581 548
Kansas 603 611 587
Kentucky 758 739 688
Louisiana 1,062 1,015 928
Maine 650 633 587
Maryland 947 893 840
Massachusetts 1,113 1,052 984
Michigan 980 950 887
Minnesota 829 837 801
Mississippi 749 710 681
Missouri 702 702 669
Montana 683 675 628
Nebraska 637 624 590
Nevada 939 914 896
New Hampshire 798 779 733
New Jersey 1,221 1,193 1,125
New Mexico 728 732 706
New York 1,172 1,168 1,100
North Carolina 597 605 588
North Dakota 562 537 505
Ohio 680 672 642
Oklahoma 690 689 654
Oregon 753 736 682
Pennsylvania 843 813 777
Rhode Island 1,034 997 939
South Carolina 763 745 703
South Dakota 587 564 542
Tennessee 666 650 632
Texas 880 918 864
Utah 722 733 703
Vermont 693 683 650
Virginia 702 658 626
Washington 839 825 791
West Virginia 875 844 778
Wisconsin 636 621 611
Wyoming 629 618 585
United States $842 $830 $786
(1) Average expenditure=Total written premium/liability car years. A car year is equal to 365 days of insured coverage for a single vehicle.
(2) Preliminary.

Source: © 2008 National Association of Insurance Commissioners.

TOP FIVE MOST EXPENSIVE AND LEAST EXPENSIVE CITIES FOR AUTOMOBILE INSURANCE, 2007 (1)



Rank Most expensive cities Average annual auto premiums Rank Least expensive cities Average annual auto premiums
1 Detroit, MI $5,072 1 Eau Claire, WI $869
2 Philadelphia, PA 3,779 2 Norfolk, VA 954
3 Newark, NJ 3,381 3 Raleigh, NC 966
4 Los Angeles, CA 3,027 4 Bismarck, ND 989
5 Hempstead, NY 2,764 5 Burlington, VT 1,001

(1) As of June 2007. Assumes $100,000/$300,000/$50,000 liability limits, collision and comprehensive with $500 deductibles, and $100,000/$300,000 uninsured coverage.

Source: Runzheimer International.

TOP TEN WRITERS OF PRIVATE PASSENGER AUTO INSURANCE BY DIRECT PREMIUMS WRITTEN, 2008

($000)

Rank Group Direct premiums written (1) Market share
1 State Farm Group $30,055,729 18.3%
2 Allstate Insurance Group 17,691,133 10.8
3 Berkshire Hathaway Insurance Group 12,516,814 7.6
4 Progressive Group 11,678,759 7.1
5 Zurich Insurance Group 8,884,495 5.4
6 Nationwide Group 7,590,425 4.6
7 Liberty Mutual Insurance Group 7,230,959 4.4
8 USAA Group 6,251,046 3.8
9 American International Group 4,445,702 2.7
10 American Family Insurance Group 3,440,816 2.1

(1) Before reinsurance transactions, excluding state funds.

Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.

WHERE THE PREMIUM DOLLAR GOES,PRIVATE PASSENGER AUTO INSURANCE, 2007


PREMIUMS EARNED: $100
CLAIMS:
Payments to injured persons:
Medical $9
Wage loss and other economic payments 2
Pain and suffering and other noneconomic awards 5
Lawyers’ fees 11
Costs of settling claims 2
Subtotal $29

Payments for damage to cars (1):
Property damage liability $17
Collision claims 16
Comprehensive claims 7
Costs of settling claims 1
Subtotal $41
Total claims $70

EXPENSES:
Commissions and other selling expenses $17
General expenses (costs of company operations) 6
State premium taxes, licenses and fees 2
Dividends to policyholders 1
Total expenses $26

Claims and expense total $96

BOTTOM LINE:
Investment gain (2) $9
Pretax income ($100 - $96 + $9) 13
Tax -5
Income after taxes $8

(1) Includes theft and damage to other property, e.g., road signs.
(2) Includes interest, dividends, and realized capital gains.

Source: Insurance Information Institute estimate based on data from ISO; National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.; Insurance Research Council; A.M. Best Company, Inc.


* In 2007 claims accounted for $70 of every $100 earned in private passenger auto insurance premiums in the United States.
* Lawyers’ fees accounted for $11 out of every $100 in premiums. Half of the fees went to plaintiffs’ attorneys and the remainder to defendants’ attorneys.
* Theft accounted for about 25 percent of the dollars that go to pay comprehensive claims, or slightly less than 2 percent of premiums earned for private passenger auto insurance.
Where The Revenue Dollar Goes, 2007
(Premiums and investments)
Where The Revenue Dollar Goes, 2007

PRIVATE PASSENGER AUTO INSURANCE LOSSES, 1999-2008 (1)


Liability
Bodily injury (2) Property damage (3)
Year Claim
frequency (4) Claim
severity (5), (6) Claim
frequency (4) Claim
severity (5)
1999 1.23 9,646 4.00 2,294
2000 1.20 9,807 3.98 2,393
2001 1.16 10,149 3.97 2,471
2002 1.15 10,400 3.92 2,552
2003 1.12 11,135 3.84 2,558
2004 1.11 11,613 3.76 2,582
2005 1.07 11,983 3.63 2,657
2006 1.02 12,426 3.44 2,783
2007 0.95 12,712 3.48 2,830
2008 0.96 13,533 3.45 2,889

Physical damage (7)
Collision Comprehensive (8)
Year Claim
requency (4) Claim
severity (5) Claim
frequency (4) Claim
severity (5)
1999 5.73 2,352 2.80 1,116
2000 5.61 2,480 2.89 1,125
2001 5.53 2,525 3.11 1,152
2002 5.48 2,728 2.91 1,250
2003 5.13 2,921 2.76 1,324
2004 4.85 3,080 2.46 1,417
2005 5.04 3,067 2.38 1,457
2006 4.87 3,194 2.40 1,528
2007 5.13 3,139 2.47 1,519
2008 5.34 3,004 2.57 1,549

(1) For all limits combined. Data are for paid claims.
(2) Excludes Massachusetts and most states with no-fault automobile insurance laws.
(3) Excludes Massachusetts, Michigan and New Jersey.
(4) Claim frequency is claims per 100 earned car years. A car year is equal to 365 days of insured coverage for a single vehicle.
(5) Claim severity is the size of the loss, measured by the average amount paid for each claim.
(6) Includes loss adjustment expenses.
(7) Excludes Massachusetts, Michigan and New Jersey. Based on coverage with a $500 deductible.
(8) Excludes wind and water losses.

Source: ISO.


* From 1999 to 2008, claim frequency fell 22.0 percent for bodily injury liability claims and 13.7 percent for property damage liability claims.
* Claim severity (average claim) for liability coverages rose 40.3 percent for bodily injury claims and 25.9 percent for property damage claims from 1999 to 2008.

















*
Claim frequency fell 6.8 percent for collision coverage and 8.2 percent for comprehensive coverage from 1999 to 2008.
* Claim severity increased 27.7 percent for collision coverages and 38.8 percent for comprehensive coverage from 1999 to 2008.


INCURRED LOSSES FOR AUTO INSURANCE, 2003-2007 (1)

($000)

2003 2004 2005 2006 2007
Private passenger liability $56,713,153 $56,317,831 $57,188,070 $56,042,440 $59,776,204
Private passenger physical damage 35,414,529 34,239,353 36,762,455 36,151,909 37,523,529
Commercial auto liability 10,666,889 10,809,661 10,373,070 10,746,525 10,091,916
Commercial auto physical damage 3,365,218 3,355,650 3,508,189 3,583,772 3,523,621
Total $106,159,789 $104,722,495 $107,831,784 $106,524,646 $110,915,270
(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, on a direct basis before reinsurance.



Source: National Association of Insurance Commissioners (NAIC) Annual Statement Database, via Highline Data, LLC. Copyrighted information. No portion of this work may be copied or redistributed without the express written permission of Highline Data, LLC.

THE SHARED/RESIDUAL MARKET AND NONSTANDARD MARKETS

All states and the District of Columbia use special systems to guarantee that auto insurance is available to those who cannot obtain it in the private market. Each type of system is commonly known as an assigned risk plan, although that term technically applies to only one type of plan. The assigned risk and other plans are known in the insurance industry as the shared, or residual, market. Policyholders in assigned risk plans are assigned to various insurance companies doing business in the state. In the voluntary, or regular, market, auto insurers are free to select policyholders.

The percentage of vehicles insured in the shared market is dropping, in part because of the evolution of the nonstandard sector of the voluntary market. The nonstandard market is a niche market for drivers who have a worse than average driving record or drive specialized cars such as high-powered sports cars and custom-built cars. It is made up of both small specialty companies, whose only business is the nonstandard market, and well-known auto insurance companies with nonstandard divisions.

Until the mid-1960s, most drivers who did not meet an insurance company’s “standard” or “preferred risk” underwriting criteria could only find coverage in the shared market, where prices are generally much higher and insurers pool or share the profits and losses. With advancements in computer technology that made it easier to set appropriate prices for smaller and smaller risk categories, some insurers began to specialize in insuring drivers with marginally bad driving records. By the late 1990s the nonstandard market accounted for about one-fifth of the total private passenger auto insurance market. This has held steady. A 2008 Conning study found that in 2006 auto insurers specializing in nonstandard private passenger auto insurance had direct premiums written of $36.9 billion, representing 22 percent of the total private passenger auto insurance market.

PRIVATE PASSENGER CARS INSURED IN SHARED MARKETS AND VOLUNTARY MARKETS, 2007


State Voluntary Shared
market Total Shared market as
a percent of total
Alabama 3,263,498 10 3,263,508 (1)
Alaska 424,290 252 424,542 0.059%
Arizona 4,063,514 49 4,063,563 0.001
Arkansas 2,028,273 1 2,028,274 (1)
California 24,187,996 11,915 24,199,911 0.049
Colorado 3,588,408 3 3,588,411 (1)
Connecticut 2,421,935 958 2,422,893 0.040
Delaware 605,226 84 605,310 0.014
D.C. 223,379 943 224,322 0.420
Florida 11,250,398 21 11,250,419 (1)
Georgia 6,694,814 2 6,694,816 (1)
Hawaii 786,973 5,003 791,976 0.632
Idaho 1,187,889 51 1,187,940 0.004
Illinois 7,780,889 1,853 7,782,742 0.024
Indiana 4,370,136 5 4,370,141 (1)
Iowa 2,383,327 13 2,383,340 0.001
Kansas 2,324,407 1,477 2,325,884 0.064
Kentucky 2,970,884 281 2,971,165 0.009
Louisiana 2,787,136 38 2,787,174 0.001
Maine 1,022,473 58 1,022,531 0.006
Maryland 3,770,632 76,658 3,847,290 1.993
Massachusetts 3,999,112 177,402 4,176,514 4.248
Michigan 6,217,059 1,766 6,218,825 0.028
Minnesota 3,703,118 4 3,703,122 (1)
Mississippi 1,998,203 78 1,998,281 0.004
Missouri 4,151,162 85 4,151,247 0.002
Montana 772,037 265 772,302 0.034
Nebraska 1,492,287 8 1,492,295 0.001
Nevada 1,754,997 29 1,755,026 0.002
New Hampshire 891,794 835 892,629 0.094
New Jersey 5,244,074 26,902 5,270,976 0.510
New Mexico 1,415,853 56 1,415,909 0.004
New York 9,154,980 112,518 9,267,498 1.214
North Carolina 5,470,099 1,506,510 6,976,609 21.594
North Dakota 580,287 3 580,290 0.001
Ohio 8,009,267 0 8,009,267 (1)
Oklahoma 2,713,011 87 2,713,098 0.003
Oregon 2,690,660 21 2,690,681 0.001
Pennsylvania 8,453,793 26,103 8,479,896 0.308
Rhode Island 657,417 17,203 674,620 2.550
South Carolina 3,233,090 1 3,233,091 (1)
South Dakota 664,233 0 664,233 (1)
Tennessee 4,149,908 38 4,149,946 0.001
Texas NA NA NA NA
Utah 1,764,823 -1 (2) 1,764,822 (1)
Vermont 473,219 754 473,973 0.159
Virginia 5,961,143 2,238 5,963,381 0.038
Washington 4,429,429 2 4,429,431 (1)
West Virginia 1,289,984 90 1,290,074 0.007
Wisconsin 3,664,374 1 3,664,375 (1)
Wyoming 490,907 0 490,907 (1)
United States 183,626,797 1,972,673 185,599,470 1.063%

(1) Less than 0.001 percent.
(2) Negative numbers represent vehicles owned by drivers who were rejected or cancelled.

NA=Data not available.

Source: Automobile Insurance Plans Service Office.

COLLISION LOSSES

The chart below shows the claim frequency, average loss payment per claim and average loss payment per insured vehicle year under collision coverage for recent model vehicles. The last item factors in both claim frequency and the average loss payment per claim. This combination is a measurement of overall insurance losses.

The claim frequency is expressed as a rate per 100 insured vehicle years. A vehicle year is equal to 365 days of insurance coverage for a single vehicle.

COLLISION COVERAGE INSURANCE LOSSES IN YEARS SINCE INTRODUCTION, 2005-2007 MODEL YEAR PASSENGER VEHICLES


2005 2006 2007 2005-2007
Claim frequency per 100 insured vehicle years
Passenger cars and minivans 7.9 8.4 8.4 8.1
Pickups 5.7 6.2 6.2 5.9
Sport-utility vehicles 5.9 6.2 6.2 6.0
All passenger vehicles 7.0 7.5 7.5 7.2
Average loss payment per claim
Passenger cars and minivans $3,984 $4,135 $4,172 $4,049
Pickups 4,469 4,522 4,552 4,493
Sport-utility vehicles 3,913 3,795 3,639 3,851
All passenger vehicles 4,026 4,116 4,075 4,059
Average loss payment per insured vehicle year
Passenger cars and minivans $315 $346 $351 $328
Pickups 253 279 282 263
Sport-utility vehicles 231 235 227 232
All passenger vehicles 283 308 307 293
Source: Highway Loss Data Institute.

CONSUMER PRICES

The Bureau of Labor Statistics's consumer price index (CPI) tracks changes in the prices paid by consumers for a representative "basket" of goods and services. The index shows that the cost of auto insurance increased 2.5 percent in 2008, after increasing by less than 1 percent in 2006 and 2007.

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 1999-2008

(Base: 1982-84=100)

Cost of living
(all items) Motor vehicle insurance Medical care items Physicians’ services Hospital services (1)
Year Index Percent change Index Percent change Index Percent change Index Percent change Index Percent change
1999 166.6 2.2% 253.8 -0.2% 250.6 3.5% 236.0 2.8% 109.3 4.1%
2000 172.2 3.4 256.7 1.1 260.8 4.1 244.7 3.7 115.9 6.0
2001 177.1 2.8 268.1 4.4 272.8 4.6 253.6 3.6 123.6 6.6
2002 179.9 1.6 291.6 8.8 285.6 4.7 260.6 2.8 134.7 9.0
2003 184.0 2.3 314.4 7.8 297.1 4.0 267.7 2.7 144.7 7.4
2004 188.9 2.7 323.2 2.8 310.1 4.4 278.3 4.0 153.4 6.0
2005 195.3 3.4 329.9 2.1 323.2 4.2 287.5 3.3 161.6 5.3
2006 201.6 3.2 331.8 0.6 336.2 4.0 291.9 1.5 172.1 6.5
2007 207.3 2.8 333.1 0.4 351.1 4.4 303.2 3.9 183.6 6.7
2008 215.3 3.8 341.5 2.5 364.1 3.7 311.3 2.7 197.2 7.4
Percent change
1999-2008 29.2% 34.6% 45.3% 31.9% 80.4%

(table continues below)

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 1999-2008

(Base: 1982-84=100)

Cost of living
(all items) Motor vehicle insurance Medical care items Physicians’ services Hospital services (1)
Year Index Percent change Index Percent change Index Percent change Index Percent change Index Percent change
1999 166.6 2.2% 253.8 -0.2% 250.6 3.5% 236.0 2.8% 109.3 4.1%
2000 172.2 3.4 256.7 1.1 260.8 4.1 244.7 3.7 115.9 6.0
2001 177.1 2.8 268.1 4.4 272.8 4.6 253.6 3.6 123.6 6.6
2002 179.9 1.6 291.6 8.8 285.6 4.7 260.6 2.8 134.7 9.0
2003 184.0 2.3 314.4 7.8 297.1 4.0 267.7 2.7 144.7 7.4
2004 188.9 2.7 323.2 2.8 310.1 4.4 278.3 4.0 153.4 6.0
2005 195.3 3.4 329.9 2.1 323.2 4.2 287.5 3.3 161.6 5.3
2006 201.6 3.2 331.8 0.6 336.2 4.0 291.9 1.5 172.1 6.5
2007 207.3 2.8 333.1 0.4 351.1 4.4 303.2 3.9 183.6 6.7
2008 215.3 3.8 341.5 2.5 364.1 3.7 311.3 2.7 197.2 7.4
Percent change
1999-2008 29.2% 34.6% 45.3% 31.9% 80.4%

(table continues below)

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 1999-2008 (Cont’d)

(Base: 1982-84=100)

Used cars and trucks Tenants and household insurance (5), (6) Repair of household items (5), (7) Legal services Existing single-family homes
Year Index Percent change Index Percent change Index Percent change Index Percent change Median price
($000) Percent change
1999 152.0 0.9% 101.3 1.5% 107.2 5.3% 180.0 4.8% $138 3.9%
2000 155.8 2.5 103.7 2.4 111.6 4.1 189.3 5.2 144 4.1
2001 158.7 1.9 106.2 2.4 119.4 7.0 199.5 5.4 153 6.6
2002 152.0 -4.2 108.7 2.4 125.1 4.8 211.1 5.8 165 7.8
2003 142.9 -6.0 114.8 5.6 131.0 4.7 221.7 5.0 179 8.4
2004 133.3 -6.7 116.2 1.2 139.4 6.4 232.3 4.8 195 9.3
2005 139.4 4.6 117.6 1.2 147.4 5.7 241.8 4.1 220 12.4
2006 140.0 0.4 116.5 -0.9 154.7 5.0 250.0 3.4 222 1.0
2007 135.7 -3.1 117.0 0.4 161.2 4.2 260.3 4.1 218 -1.8
2008 134.0 -1.3 118.8 1.6 170.0 5.5 270.7 4.0 197 -9.6
Percent change
1999-2008 11.9% 17.3% 58.6% 50.4% 42.8%
(1) December 1996=100.
(2) December 2005=100.
(3) December 1983=100.
(4) 2006-2008. (5) December 1997=100.
(6) Only includes insurance covering rental properties.
(7) Includes appliances, reupholstery and inside home maintenance.

NA=Data not available.

Note: Percent changes after 2007 for consumer price indices calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

Why RIM’s App World Is Key to Its Long-term Success

Why RIM’s App World Is Key to Its Long-term Success

Research In Motion shares took a beating on Friday and several analysts cut their ratings on the stock after the company posted disappointing sales for its fiscal second quarter and ratcheted down expectations for the current one. But while increasing competition and ever-dwindling price points may make for a rough few months in the smartphone market, RIM’s long-term prospects will hinge on the success of its new app store.
Smartphone manufacturing is becoming a cutthroat business as the space heats up. Verizon Wireless — which has provided a huge boost to BlackBerry sales with its buy-one, get-one offer — is slated to launch several competing devices in the coming months, and the iPhone appears to be making substantial headway into the enterprise. In the meantime, margins are thinning as carriers look to target data-hungry customers with high-tech handsets that sell for less than $100. Those factors don’t bode well for RIM, whose products aside from the Storm are “largely unchanged from a year ago,” Deutsche Bank analyst Brian Modoff wrote in a research note released today:
“We see several dozen new smartphones coming on stream in the next six months. This includes solid offerings from Motorola, Palm, HTC, Samsung and LG. Our checks with carriers indicate that they are looking to drive smartphone prices to subsidized levels below $100. RIM may be able to manage its bill of materials down in this environment, but we think price declines will have an impact on gross margins. And this transition will likely be a painful process.”
The BlackBerry has deftly morphed from a business-focused handset to a more consumer-friendly device, and sales have been impressive even as Apple’s iPhone has taken consumers (and the entire smartphone industry) by storm. The Curve actually outsold the iPhone in the first quarter of the year, and RIM claims that more than 80 percent of its new customers last quarter were non-business users who chose the BlackBerry over devices such as the iPhone, Palm Pre and Android devices. But with a slew of attractive new smartphones coming to market and pricing continue to fall, I think that kind of momentum will be impossible to maintain, and I expect RIM to lose ground over the next few months.
Which is why RIM’s app storefront will be key to the firm’s long-term success. Just as Apple’s App Store and iTunes drive sales of the company’s hardware, App World — which has received generally positive reviews — must be attractive enough to lure users away from all the other smartphones on the market. And while Apple has built its empire largely on the strength of free or cheap gimmicky apps, I think RIM has a real opportunity to market App World as a high-end retail for on-the-go users — allowing the company to polish its image as it creates a lucrative new revenue stream with premium mobile applications.
That won’t be easy in the fiercely competitive space, of course, especially when carriers like Verizon Wireless are trying to elbow it off the app distribution playground (GigaOM Pro, sub required). But if RIM can continue to attract developers and build out an attractive storefront — and if it can churn out sexy, user-friendly handsets — it will fare well in the superphone era.

Amazon said

Amazon said this afternoon it’s agreed to buy specialty shoe e-tailer Zappos for $807 million in cash and stock. It’s a smart move as it will allow Amazon to become even more synonymous with e-commerce. Funnily enough, it was just a few weeks ago that I was wondering if Amazon would be launching any more specialty stores. Indeed, they are going vertical — though I didn’t expect them to spend so much money to buy Zappos. Under terms of the deal, Zappos employees will get about $40 million in cash and restricted Amazon stock, and the entire Zappos management team will stay on.

Zappos, while in the commodity business of retail, has carved itself a nice (and fast-growing) niche by focusing on shoes. According to the Las Vegas Sun, Zappos’ hometown paper, the company reached its goal of a billion dollars in sales in 2008, 10 years after it was started by Nick Swinmurn. The sale is yet another smash hit for white-shoe Silicon Valley venture fund, Sequoia Capital. Zappos’ customer service reputation reminds me of Nordstrom, the big department store chain.
“We are joining forces with Amazon because there is a huge opportunity to utilize each other’s strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors,” said Tony Hsieh, CEO of Zappos. “We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term.”

I am a big fan of both Jeff Bezos and Tony Hsieh, because they belong to that rare breed of company CEOs who put the needs of the customers (and their happiness) above everything else. Hsieh has been a fixture at various tech industry events but I’ve never met him, I’ve just enjoyed his talks and his posts on the Zappos blog. In an email to his employees today, Hsieh says something that all startup founders — myself included — would be well-advised to remember: “What happens to our culture is up to us…we are in control of our destiny and how our culture evolves.”

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Myth or Reality: The Recession-Proof Career

Although there's no such thing as a recession-proof career, some jobs may offer more job security than others. The U.S. Bureau of Labor Statistics estimates that by 2016, three out of 10 jobs in this country will be in education and in health care. If teaching or working in a hospital doesn't appeal to you, professional and business-related jobs will provide the second largest area of growth.
If, like many Americans, you want or need a new career, check out these six in-demand careers. With an associate's or bachelor's degree and some career training, you may be well on your way to enjoying peace of mind and job stability, even in this economy.

Computer and Information Scientist
As our need for technology grows, so does our need for computer scientists. Working as researchers, computer scientists solve technological problems and develop successful solutions. Many computer scientists work on teams in industrial settings or at universities, exploring new and innovative technologies. According to the BLS, computer scientists made over $100,000 a year on average in 2007. An online bachelor's degree in computer science may be able to give you the traction you need for this fast growing career.

Computer Systems Analyst
We know computers are important, but consider this: without computers, most American businesses would not be able to run. Computer systems analysts work for companies and businesses, identifying their technological needs. As a computer systems analyst, you will choose and configure hardware and software in order to meet your company's goals. Keeping up to date with current technologies is key. A bachelor's degree in a technical field, such as computer science or management information systems, can give you the career training you need for this rapidly growing, much sought after career. According to the BLS, computer systems analysts made an average yearly wage of $75,890 in 2007.

Employment Recruiter and Placement Specialist
As the job market tightens, more workers are drawn to temporary, seasonal, and part-time work. Employment recruiters have the important job of matching these employees with jobs. As an employment recruiter, you may work for a company looking for new hires or for a local job placement agency. Your duties will probably consist of meeting with prospective employees, interviewing them, and extending job offers. Armed with an online or on-campus degree in human resources, as an employment recruiter and placement specialist you may be able to make an average of over $50,000 a year.

Health Care Technician
Don't like the idea of working with patients but are still drawn to the medical field? Become a health care technician. Since you'll be compiling patients' charts and records and keeping their health information up to date, you'll need to be well organized and have an eye for detail. An associate's degree in health care management or a related field can prepare you for this rapidly growing field. Many employers prefer technicians who are also registered health information technicians (RHITs), which requires attending an approved program and passing an exam. The BLS estimates that medical records and health information technicians made an average yearly wage of $31,450 in 2007.

Registered Nurse
Approximately 587,000 new nursing jobs are projected within the next eight years, making nursing one of the largest job markets in the United States. According to the BLS, nurses made an average annual salary of $62,480 in 2007. An online program can give you the training you need for a nursing career as you earn your associate's or bachelor's nursing degree. As a registered nurse you will tend patients, providing them and their families with much needed emotional support and education in a doctor's office, hospital, or clinic. You can choose to specialize in one of medicine's many exciting fields, such as oncology or neonatal care.

Special Education Teacher
Within the next eight years, an estimated shortage of special education teachers will coincide with a rise in the anticipated number of qualifying students. Special education teachers work closely with students who have handicaps and disabilities. As a special education teacher, you will modify your students' lessons and help them and their families set and achieve goals. In order to become a special education teacher, you need a bachelor's degree in an approved program. Special education teachers in the United States made over $50,000 a year in 2007, according to the BLS. Plus, along with the good feeling that often accompanies helping others, you may get a portion of your summers off.

Pundits can predict where the rough economy will go within the next few years, but nobody knows for sure. An in-demand career could be one way to ride out the storm.

life insurance

Cash value life insurance, like whole life, will help me retire wealthy.Truth: Cash value life insurance is one of the worst financial products available.Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is an insurance product that packages insurance and savings together. Do not invest money in life insurance; the returns are HORRIBLE. Your insurance person will show you wonderful projections, but none of these policies perform as projected.
Example of Cash ValueIf a 30-year-old man has $100 per month to spend on life insurance and shops the top 5 cash value companies, he will find he can purchase an average of $125,000 in insurance for his family. The pitch is to get a policy that will build up savings for retirement, which is what a cash value policy does. However, if this same guy purchases 20-year-level term insurance with coverage of $125,000, the cost will be only $7 per month, not $100.
WOW! If he goes with the cash value option, the other $93 per month should be in savings, right? Well, not really; you see, there are expenses.
Expenses? How much?
All of the $93 per month disappears in commissions and expenses for the first 3 years. After that, the return will average 2.6% per year for whole life, 4.2% for universal life, and 7.4% for the new-and-improved variable life policy that includes mutual funds, according to Consumer Federation of America, Kiplinger's Personal Finance

5 Ideal Jobs for Work-Life Balance

Training for a triathlon. Knitting. Playing in a rock band. Growing heirloom tomatoes. We each have preferences when it comes to using our precious hours of free time. Whether you choose to work on your political blog or lose yourself in a book, there's no denying that we all could use time to pursue whatever hobby or interest helps us feel more alive.
Sadly, leisure activities usually can't pay the rent or even cover the grocery bill. All too often, personal rejuvenation gets put on the back burner because career demands leave us with little time or energy left to devote to ourselves. Being employed doesn't have to lead to a life dominated by work, however. In fact, there are careers out there that can offer you the freedom to use your "me time" to do exactly what you want.

1. Teacher, K-12

These days, newcomers to the teaching force include twenty-somethings just beginning their career as well as middle-aged workers who are switching to teaching after working in another field. Average earnings for elementary school teachers were just over $50,000 in 2007.

Prepare Yourself: If you have a bachelor's degree, becoming a teacher can be as simple as enrolling in a year-long master's teaching program which can make you eligible for certification as a teacher. Some schools even offer employment in conjunction with a training program, allowing you to earn your credentials while working in a classroom.

Me-Time Potential: Although the workload for teachers during the school year is often intense, extended winter and summer vacations can allow you time to reconnect with yourself and loved ones.

2. Emergency Room Nurse

The fast pace and high intensity of emergency room nursing is not for the faint of heart. However, for registered nurses who perform well under pressure and want a position that will keep their critical thinking skills sharp, ER nursing is an attractive option. The median salary for RNs was $60,010 in 2007.

Prepare Yourself: To become a registered nurse you'll need at least an associate's degree in nursing, available from vocational schools, community colleges, and even online institutions.

Me-Time Potential: Although working as an ER nurse could keep you challenged while on the job, many professionals in this field enjoy at least several days off a week.

3. Administrative Assistant

Offices of every size, in nearly every industry, rely on administrative assistants with strong communication and organizational skills to keep them running efficiently. Average salaries in this field were nearly $30,000 in 2008.

Prepare Yourself: Online diploma, certificate, and associate's degree programs can prepare you for an administrative career, or allow you to specialize as a legal or medical secretary.

Me-Time Potential: Punch out at the end of the day and you should be able to leave most of your work behind, allowing you to spend evenings and weekends as you please.

4. Computer Support Specialist

Maintaining hardware, upgrading software, and keeping a network online are just some of the duties of computer support specialists, whose median earnings were $42,400 in 2007.

Prepare Yourself: Although some support specialists are self-taught, most employers look for candidates with at least an associate's degree in a computer-related field. A bachelor's degree in computer science or information systems could offer you more career options, however.

Me-Time Potential: While unexpected tech problems sometimes arise at 4:30 on a Friday afternoon, computer support specialists for the most part enjoy a 40-hour workweek, with few out-of-the-office responsibilities.

5. Retail Sales Associate

The Bureau of Labor Statistics projects that over 500,000 new salespeople will be hired through 2016. Earnings in this field, while low overall, top $40,000 for sales professionals in the insurance and auto industries.

Prepare Yourself: No formal training is required for entry-level sales positions, but if you would like to be eligible for management jobs or promotions, a bachelor's degree in sales and marketing is suggested.

Me-Time Potential: Hours for salespeople rarely follow a 9-to-5 workday, as most consumers make purchases on evenings and weekends. If your hobbies are best pursued during daylight hours, however, the schedule of a career in sales could be a perfect fit.

The Bottom Line on Making Time for Yourself

Social obligations, family activities, and household tasks can easily eat into the hours you hope to spend doing your thing. While you may find yourself feeling guilty carving out time for yourself, remember that in order to be an effective worker, friend, or family member, personal time is essential. Plan me-time into your weekly schedule and honor that commitment as you would any other. You deserve it!

Roman to Arabic numbers

The Roman numerals are now written with letters of the Roman alphabet where as they were originally independent symbols. Arabic number use is the common practice but use of roman number is not inappropriate. Hence, it is nice to know how they are used. Very general rule is to remember the following syntax and combination of the same results to different numbers in Arabic or vice verse.I=1II=2III=3IV=4V=5VI=6VII=7VIII=8IX=9X=10XL=40L=50XC=90C=100CD=400D=500CM=900M=1000From the above table it shows that the roman numbers has basic symbols like I, V, X, L, C, D, and M.To remember in easy way, numbers can be categorise into its position like units, tenth, hundred, and thousands. In each category, a new symbol arises for one back combination of middle and last number. The back number is a 'position' unit less i.e., for units position, it is unit less; for tenth position, it is 10 less; for hundred it is 100 less. The main symbols are:I-V-X for units positionX-L-C for tenthC-D-M for hundredM - - for thousandExample, unit category:1 or I is first unit. 5 (V) and 10 (X) are the middle and last numbers so a new symbols arises before 5 and 10. A unit less for middle (5-1=4) is represented by first unit and middle unit i.e., IV. Similarly, for last unit of this category (10-1=9), it is represented by first unit and last unit i.e., IX.Tenth category:Starting or first unit is 10 (X). Middle unit is 50 (L) and last unit is 100 (C). Hence, there should be new numbers for a unit less for middle (50-10=40) and last (100-10=90). A number before middle number (40) is represented by first unit (X) of the category and middle number i.e., XL and last number (90) as first unit (X) and last number (C) i.e., XC. Hundred categoryStarting or first unit is 100 (C). Middle unit is 500 (D) and last unit is 1000 (M). Hence, there should be new numbers for a unit less for middle (500-100=400) and last (1000-100=900). A number before middle number (400) is represented by first unit (C) of the category and middle number i.e., CD and last number (900) as first unit (C) and last number (M) i.e., CM. Thousand categoryStarting or first unit is 1000 (M). Middle unit is 5000 (V bar) and last unit is 10000 (X bar). Hence, there should be new numbers for a unit less for middle (5000-1000=4000) and last (10000-1000=9000). A number before middle number (4000) is represented by first unit (V bar) of the category and middle number i.e., MVbar and last number (9000) as first unit (X bar) and last number (V bar) i.e., Vbar Xbar.In all the cases the forth numbers are the combination of normal symbols in a sequence from highest numbers to units like, thousands place are replaced with thousands category symbols, then hundreds, then tenth and units at the end. The highest symbol of each category available is use in each case.Example: 66. It can be written as six times XXXXXXVI where six times X represents 60 and VI as six but 66 has to be written as 60+6 and for 60 which is under tenth category and neariest number is 50 having symbol. Hence, L is use for 50 now remaining 16 is represented as 10+6 where 10 has symbol X and 6 is nearest to units middle number (5) having symbol V plus one (I). Hence their combination, X and V and I gives LXVI for 66.Another example, to represent, 99, it is tenth category unit so it can not be written as a unit less than hundred (100-1=99) or (IC). It has to be written as 90+9. 90 has a symbol XC and 9 has IX so 99 is XCIX. In similar manner, 4687, it is categorised as 4000+600+80+7. So it is MMMMDCLXXXVII.To convert roman to Arabic or vice verse, please visit:

Life Insurance

It's never too late or too early to think about protecting your family's financial future.

Life insurance is protection against financial loss resulting from death. It is an insurance company's promise to pay your beneficiary a specific amount of money when you die in exchange for timely payment of premiums.

Why do I need life insurance?

Although you may not think about it, your ability to earn income is a significant asset and life insurance helps replace lost income in the event of your premature death. Here are some reasons people buy life insurance.
The death benefit may be used:
To replace income the family would need to maintain their standard of living after the death of a wage earner.
To pay off a mortgage loan and other personal and business debts or to create a rent fund.
To create a fund for children's education.
To pay final expenses, such as funeral costs and taxes.
To create a family emergency fund or a fund for a family member with special needs.

How much life insurance do I need?

The State Farm Life Insurance Needs Calculator provides a quick way to get an estimate of the cash needs you may have at death. Cash needs that exceed your available assets can be covered by life insurance.