COVID-19 Support Ends: Automobile Insurance Charges Are Up Once more – El Paso Inc.
Austin, Texas, January 11, 2022 / PRNewswire / – The zebra, the country's leading insurance comparison website, published theirs Report on the status of car insurance in 2022 Show the national average annual cost of car insurance $ 1,529, 3% more than last year's reduced rates due to the COVID-19 pandemic.
Zebra's sixth annual State of Auto Insurance Report provides insight into more than 83 million auto insurance rates in all 34,500 US zip codes. It examines data spanning over a decade to reveal price trends across the country.
"In 2021, drivers started taking their cars out of the park and returning to the streets," says Nicole Beck, Head of Communications at The Zebra. “More drivers can lead to more accidents. As soon as the number of claims submitted increases, the insurance tariffs also increase. However, motorists are not powerless – to lower fares, practice safe driving, and take every precaution to protect your vehicles from damage from extreme weather. "
The COVID-19 factor
The COVID-19 pandemic has fundamentally changed the way Americans travel. The federal highway administration reported a 14% decrease in kilometers traveled by US drivers in the first year of the pandemic. The number of kilometers driven annually is only one factor that is factored into car insurance pricing, which is why drivers saw tariffs only drop by 4% in 2020, a year with fewer car journeys. When Americans started driving again – be it back to work, at grocery stores, or at social gatherings – prices rose as the number of claims submitted returned to their pre-pandemic levels.
Additional claims filed due to deadly roads and extreme weather damage
Drivers are back: the federal highway administration Estimates 11% more kilometers driven October 2021. But roads have become more deadly after the increase in risky driving behaviors such as distracted and aggressive driving, speeding, and impaired driving. The National Highway Traffic Safety Administration Estimates that 20,160 people were killed in car accidents in the first half of 2021, 18.4% more than in 2020.
Weather is also a major factor to consider when considering the national price hike as insurance companies seek to offset losses from filed claims. Even if there were fewer hurricanes in 2021, it was still considered an above-average hurricane season. Winter storms this year set a record $ 15 billion of insured damage $ 1 billion in 2020, almost entirely due to two storms that occurred in February.
Prices vary depending on the zip code
Each state has its own specific requirements and regulations for auto insurance. Auto insurance rates rose in 38 states (including the District of Columbia) and fell in 13 states last year. Louisiana saw the largest increase of 42%, putting the state at the forefront of the most expensive insurance companies. Maryland had the most significant decrease at around 9%.
The most expensive states:
- Louisiana: $ 3,265
- Michigan: $ 2,639
- Florida: $ 2,425
The most expensive cities:
- New Orleans, LA: $ 3,532
- Baton Rouge, LA: $ 3,473
- Alexandria, LA: $ 3,202
Check out the 2022 State of Auto Insurance Report to examine how gender, creditworthiness, age, popular cars, teenage drivers, and rating factors affect insurance costs by state and zip code.
About the zebra
Zebra is the country's leading independent insurance comparison website. With its dynamic, real-time quote comparison tool, consumers can identify insurance companies with the coverage, service level and prices that match their individual needs. Zebra compares more than 100 auto and home insurance companies and provides agent support and educational resources to ensure consumers are able to make the most informed decisions about their insurance. Headquarters in Austin, Texas, The Zebra has been trying to bring transparency and simplicity to insurance purchasing since 2012 – it's “insurance in black and white”.
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SOURCE The zebra