car insurance Based on past trends and the present situation of the business, Insurify’s most recent analysis on auto insurance trends forecasts that the average yearly automobile insurance rate will increase by another 7% to $1,895 in 2023.
According to the survey, the average cost of car insurance countrywide increased by 9% in 2022 to $1,777.
According to Insurify, the following factors are the key contributors to the anticipated increase:
- “Americans are driving more, causing more total accidents;
- “Auto repair costs are rising, making every accident more expensive;
- “Inflation is increasing costs of all goods and services; and
- “Climate change could cause more frequent, damaging natural disasters.”
This year, insurance rates increased significantly in some areas, including Oregon, Maryland, and Virginia, where they increased by over 25% apiece. Despite Michigan continuing to be the most costly state for vehicle insurance, prices there have mostly remained the same. The COVID-19 pandemic prevented the Department of Insurance from accepting rate increases, which contributed to Californians’ 15% average decline.
Between July and November, Insurify polled more than 1,800 drivers to learn how they intended to cut back on the costs of insurance, fuel, and maintenance. Due to falling gas costs, drivers were only half as likely to consider buying a hybrid or electric vehicle (EV) in November as they were in July. Around the end of the year, 35% of respondents started to worry more about insurance costs and explored switching insurance providers, while 50% thought about driving less.
Snejina Zacharia, CEO and founder of Insurify, said in a statement that “many of the variables that drove to premium rises in 2022 will continue to be in play for American drivers in 2023.” Our new report predicts that higher driving rates, more serious accidents, the impact of inflation on vehicle repairs and medical costs, and the potential increase in the frequency of wildfires and hurricanes will continue to be the main factors contributing to rate increases next year. This is based on our annual data, which reflects the state of the insurance industry.(learn more)