Three states saw car insurance prices spike by 25% in 2022 and experts say US drivers

A full-blown inflation storm, rising interest rates, and volatile gas prices have left many American drivers short on cash in 2022.

According to a recent survey by insurance comparison site Insurify, nearly half (47%) of American drivers feel the cost of auto insurance will increase in 2022. For some riders, it wasn't a crawl, it was a giant jump. In his three states of Oregon, Maryland and Virginia, driver insurance premiums increased by 25% for him.

A motorist in Utah, South Dakota, Minnesota, Wisconsin, Ohio, and Tennessee, on average, he's recording a 20-25% climb rate, and is a little out of shape. And experts predict insurance companies aren't ready to put the brakes on further hikes across the country. The good news is that even if inflation continues to push interest rates higher, there are ways to mitigate the impact on your monthly budget.

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This is how much you will pay in 2023
Insurify's survey of more than 69 million auto insurance quotes from him found that the average annual cost of auto insurance in the U.S. will increase by 9% to $1,777 in 2022.

“There are two main factors in the increase in premium rates,” he said.

Consumers are driving more cars and vehicle repair costs are higher than ever. "Until we fix the inflation problem, it's hard to see how it will change."

The company expects the average annual auto premium rate to rise another 7% this year to $1,895.

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Betsy Stella, Vice President of Insurance Partnerships at Insurify, said: 2022 report.

If rising car insurance premiums are already worrying you, here are his five ways to keep your premiums down.

Look around and compare coverage

Might be worth a look around. If your policy is nearing renewal and your costs have increased significantly, you should obtain at least three quotes from other insurers. Drivers can shop online or enlist the help of a local insurance agent to find the best deal for where you live, but when it comes to auto insurance, cheaper is always better. is not limited.

Be careful not to sacrifice coverage. This means you will pay more if you need to make an insurance claim.

Getting a car appraisal to understand the value of your car and how much it will cost to repair or replace it is important when considering insurance coverage.

If your car is older and less than 10 times his premium, the Insurance Information Institute suggests removing the collision or crash damage waiver to save money.

Low-risk, high-reward driving behavior

Safe driving protects you, other road users, and your wallet.

According to Insurify, just one violation of his driving record can increase the price of his auto insurance by an average of 34%. If you have a more serious offense on record, such as a DUI, you may have to pay twice as much as someone with a clean driving record.

Many insurance companies offer discounts if you have had damage or injury in the past and do not pose a serious danger to others on the road. If you've been in an accident in the past, you can regain your insurance company's confidence (and chances of a discount) by taking a certified vehicle safety or defensive driving course. Continue reading:

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Bigger deductible budget

When you buy car insurance, you agree to the deductible. H. The amount you must pay out of pocket before the insurance company covers all costs associated with the claim.

Increasing your deductible amount can significantly reduce your monthly bill. However, this means that you must ensure that you have enough cash on hand to pay the full deductible if you need to make a claim.

Consider pay-as-you-go options

Usage-based or prepaid insurance pays for the drives you actually drive, not the drives your insurance company thinks you're driving.

As part of the process for this type of coverage, insurers have plug-in devices or mobile apps that can be used to measure driving habits such as driving frequency and distance, typical driving time, and driving safety. can be monitored. drive. If the data collected is favorable (for example, you rarely take short trips and always follow the speed limit), you can receive a rebate from your insurance company.

But it works both ways. If you regularly drive long distances and brake too hard, you may be penalized by your insurance company.