Pandemic or not, anticipate increased auto insurance charges this yr – Forbes

In contrast to the declines last year, car insurance rates are expected to average around … (+) 0.6 percent in 2022.


In 2020, when the coronavirus was new and both business closings and work / study assignments from home suddenly became the norm, auto insurance companies were giving special discounts and rebates to reflect the fact that Americans drove far fewer kilometers than that in the time before the pandemic times.

But just as many have returned to the classroom and work place albeit with precautionary measures, the Omicron variant of the virus has begun to wreak its own kind of havoc, with confirmed cases skyrocketing.

And while this may potentially keep Americans safe at home again for another period of time to keep the virus under control, don't expect any more discounts on auto insurance unless the nation is completely banned.

Rather, the nation will see an average rate hike of about 0.6 percent in 2022, with 22 states seeing increases of one percent or more. the strongest increases were recorded in Nebraska (+4.4%) and Minnesota (2.5%). On the plus side, rates are falling in 14 other states, but only slightly. By comparison, the cost of average auto insurance fell 1.7 percent in 2021.

This is evident from the annual State of Auto Insurance report produced by Quadrant Information Services for the consumer finance website The results are based on an analysis of 15 million car insurance offers for different drivers in 35,000 postcodes and 72 providers.

The website found that the average cost of fully comprehensive insurance for U.S. drivers is now $ 1,935 per year, with people living in Michigan suffering from the highest rates in the country at $ 7,161. The cheapest rates in the country can be found in Maine, where the typical driver spends $ 1,051 per year on full coverage. That's a low-to-high difference of $ 5,226 that could well exceed the value of an insured vehicle over five years.

Why such a spread? In addition to a driver's license and personal factors such as gender, age and marital status, car insurance rates are based on a person's address. In general, those who live in outer suburbs and rural areas pay less than drivers in large urban areas, which are more likely to be wrecked and / or have a car damaged or stolen.

In addition, rates can vary dramatically from one state to another due to a number of variables including accident / property / crime rates, the number of uninsured drivers, the incidence of bad weather, population density, the number of insurance companies operating within of the state's business is the state, the required minimum amounts of cover and the regulations of the insurance industry.

Below we list the 10 states with the highest and lowest average auto insurance rate increases for 2022.

But before you pack your bags and move to a state with cheaper premiums, be aware that if your personal transportation license is riddled with moving violations and negligent accidents, the cost may not be worth it. The ValuePenguin report found that people with just a single traffic ticket or an accident paid an average of 55 percent more this year than someone with a clean history.

Those who reside in Texas and receive a DUI or speeding violation, or cause an accident, will see average auto insurance premium increases of 142 percent this year, followed by North Carolina (127%), California (107%), and Hawaii (107%). ). The national average rate hike in this regard is $ 3,683 per year for a DUI (a 90 percent increase), $ 2,882 for a culpable accident, and $ 2,403 for speeding. It is of course worth being careful.

Of course, regardless of which state you live in, experts advise checking regularly with competing providers to see which one offers the lowest tariffs and tailoring your coverage accordingly. According to ValuePenguin, getting full coverage costs an average of 147 percent more than government-mandated minimum liability insurance.

Obtaining quotes is especially important if any of your personal factors have changed recently. These include buying a new car, adding a second or third vehicle to your policy, adding or removing a driver from your insurance coverage, getting married or divorced, moving to a new address, or buying a house. And you should definitely shop around if you've been involved in an accident or received a move violation, as some providers are more likely to accept the additional risk at a lower cost than others.

In the future, you need to make sure that your car insurance premiums remain affordable, regardless of where you live, how you drive or what your driving history looks like. Car insurance premiums will continue to rise through 2023 as Americans return to their pre-pandemic patterns, according to ValuePenguin. An increase in car traffic is likely to lead to more accidents, more damage and thus to higher premiums. The continued increase in distracted driving, costly repairs to high-tech systems and ongoing bottlenecks in the supply chain should further contribute to higher premiums.

Here are the states where motorists will see the highest average increases in their auto insurance premiums in 2022:

  1. Texas: 142%
  2. North Carolina: 127%
  3. California: 107%
  4. Hawaii: 107%
  5. Michigan: 82%
  6. Georgia: 63%
  7. Kentucky: 61%
  8. Minnesota: 59%
  9. Connecticut: 57%
  10. Indiana: 56%

And here are the states where motorists will experience the lowest auto insurance premium increases this year:

  1. Alaska: 41%
  2. Ohio: 41%
  3. Oklahoma: 40%
  4. South Dakota: 40%
  5. Florida: 39%
  6. North Dakota: 39%
  7. Missouri: 3 9%
  8. Pennsylvania: 37%
  9. Kansas: 37%
  10. Nebraska: 35%

You can read the full report here.

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