Auto Insurance Costs Rise As US Drivers Resume Their Existence – BodyShop Enterprise
If Americans resume normal economic activities in 2022, auto insurance rates will rise 0.6% in 2022 after falling in 2021, according to LendingTree's 2022 State of Auto Insurance report by ValuePenguin.com. The average cost of auto insurance is projected to hit $ 1,935 per year, with auto insurance premiums rising in 22 states in 2022. Here are the main results:
Click here to read more
- The effects of the Omicron variant on car insurance: The impact of the Omicron variant on car insurance tariffs in 2022 and beyond should be minimal. Insurers are unlikely to provide COVID-19 discounts to drivers unless there is another nationwide lockdown.
- Auto insurance rates will increase 1% or more in 22 states in 2022. Nebraska (4.4%), Minnesota (2.5%), and Arizona (2.2%) will see the largest rate increases in 2022. However, auto insurance premiums will decrease by an average of 1% in 14 states.
- The average cost of car insurance in 2022 is $ 1,935 / year. Michigan, Florida, and Louisiana will have the highest and Maine, Texas, and Wisconsin the lowest auto insurance rates in 2022.
- In 2022, unsafe drivers will pay 55% more for car insurance. Drivers who receive a DUI can expect their rates to increase by an average of 90% this year. And Texan drivers will experience the largest increase in premiums (142%) if they get a ticket or have an accident in 2022.
- Car insurance premiums will continue to rise in 2023: When Americans return to their pre-pandemic life, more cars on the roads will result in more accidents, more damage, and higher premiums. A sharp increase in distracted driving, more expensive repairs from smart technology, and bottlenecks in the supply chain will also contribute to rising premiums.
The increase in the car insurance rate in 2022 is still below the pre-pandemic level. The premiums rose by 5-6% in each of the previous years. In fact, prices have increased every year since 2011, says LendingTree. Insurers may not give COVID discounts, but that doesn't mean there isn't an option to save. About 76% of Americans who have looked for insurance say they have saved hundreds of dollars in the process. Pay per mile insurance is another way to save if you still work from home and drive less than 12,000 miles a year.
LendingTree said it reviewed 15 million auto insurance quotes for various drivers in 35,000 zip codes and 72 insurers. These, along with RateWatch submissions, were used to showcase the current and historical images of the auto insurance industry and its impact on consumers.
The full report can be viewed here.