Car Insurance rates set to rise by 8.4%, the highest rate increase in 6 years
NEW YORK, Jan. 9, 2023 /PRNewswire/ — Americans may be in for insurance sticker shock in 2023 – insurers are expected to raise car insurance premiums by an average of 8.4% in 2023 after a slight 0.6% increase in 2022 according to ValuePenguin’s State of Auto Insurance in 2023 report. The average cost of auto insurance is expected to reach $1,780 per year annually, and 45 states will see their car insurance premiums increase in 2023
2023 Auto Insurance Rate Predictions:
- Auto insurance is expected to increase by 8.4% in 2023 with 45 states seeing their rates increase by at least 1%.
- The average cost of full coverage car insurance in 2023 is $1,780/year, with Michigan, Florida, and Rhode Island residents paying the highest premiums.
- Have the need for speed? Drivers with traffic violations in 2023 will see their premiums jump 52% on average.
- Car insurance for new Electric Vehicles will be 28% higher than new gasoline-powered cars. The Porsche Taycan ($3.576) and Tesla Model Y ($3,110) will have the highest insurance premiums in 2023 with the Honda CR-V as the cheapest car to insure in 2023.
The days of pandemic premium decreases and reimbursements are long gone as drivers have returned to the roads. Divya Sangameshwar, insurance expert at ValuePenguin.com says millions of Americans may be surprised when they receive their 2023 statements. “This year’s auto insurance rate increase is the highest rate increase since 2017.” She adds, “After two years of keeping rates low for drivers, car insurance companies are raising rates in 2023 due to an increase in car repair costs and claims”
As insurers feel the pressure from inflation, car insurance premiums are set to rise with some states feeling it significantly more than others. Among the 45 states expected to see premiums increase, Illinois has the largest jump at 17% followed by Arizona (15.6%) and New Hampshire (13.6%). As in years past, Michigan will continue to see the most expensive premiums at $4,788 followed by Florida ($2,856) and Rhode Island ($2,7480). Traffic violations in North Carolina, California will cost you the most. Violations in these states will increase your premiums by more than 100%
State of Auto Insurance 2023 Report: https://www.valuepenguin.com/state-of-auto-insurance-2023
Tips To Save On Your Auto Insurance in 2023
- Compare insurance quotes: 92% of policyholders who switched auto insurance companies in 2022 reported that they saved money, with 26% reporting savings of $200 or more a year. Auto insurance premiums can vary by hundreds of dollars across companies, which is why comparison shopping is one of the best ways to save money on auto insurance in 2023.
- Research car insurance discounts: Americans who work remotely can take advantage of discounts for driving less or opt for pay-per-mile car insurance, which can reduce rates even further for low-mileage drivers. Safe driver discounts are another option as well as discounts for bundling home, auto and other policies.
- Adjust your coverage: Liability-only car insurance is 157% cheaper than full coverage car insurance – a good way to save for those who don’t have a vehicle loan or expensive car. Additionally, removing optional coverage like roadside assistance can bring down car insurance costs.
- Improve credit score: Americans with a poor credit score pay as much as 80% more for car insurance. Improving your credit score is a great way to bring down auto insurance costs in 2023.
For additional information on how Americans shop for auto insurance and how to save visit: https://www.valuepenguin.com/auto-insurance-shopping-survey
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