Car Insurance Prices Continue to Rise, Here’s How to Combat the Cost Increase
The price of auto insurance has been on the rise across the country with the national average price for full coverage auto insurance jumping from $1,771 in 2022 to $2,014 in 2023. That’s an increase of 13.72% and it means the average household is now spending 2.93% of their income on car insurance.[0]
Research conducted by Bankrate indicates that the price of comprehensive car insurance coverage rose to $2,014 annually in January, an increase of 13.7% year-over-year. Drivers in some locations, like Orlando, Tampa, and Miami, are spending about $3,000 for coverage this year.[1] New York is the most expensive state for car insurance, with average premiums of $3,139 annually.[2]
The expenditure of individuals on auto insurance is increasing, and this cost is expected to keep rising. Be prepared to spend additional money for car insurance and examine your policy to guarantee you are not inadequately insured.
Fortunately, there are still ways drivers can save money on premium costs. To get a better rate for coverage, shopping around and comparing quotes from different insurers is one of the best options.[3] It is beneficial for drivers to explore discounts offered by insurance companies, like those for safe drivers or students. Drivers may be able to lower their expenses by meeting the qualifications for these.[3]
Rising costs of repair parts, labor and medical care; increases in frequency and severity of crashes; record levels of personal injury judgments and vehicle thefts are all driving up the cost of car insurance. Causing a car accident can increase metro Detroit car insurance premiums to $4,270 a year.[4] A married couple who adds a 16-year-old driver will see rates rise to $6,455 a year and a drop in credit will lead to a jump in costs to $8,056 a year, according to Bankrate’s report.[4]
Getting involved in an accident increases the cost of insurance by an average of $840, which is more than twice the increase of getting a speeding ticket ($413). In comparison, the cost of a fall in credit rating from good to poor is much more significant, with an average expense of an additional $1,465.[5]
0. “Study: New York drivers spend over 5% of their income on car insurance” RochesterFirst, 6 Feb. 2023, https://www.rochesterfirst.com/news/finance/study-new-york-drivers-spend-over-5-of-their-income-on-car-insurance/
1. “Auto Insurance Rises 14% to $2,014” Newsmax, 7 Feb. 2023, https://www.newsmax.com/finance/streettalk/car-insurance/2023/02/07/id/1107602
2. “Report finds New Yorkers spend over 5% of income on insurance” FingerLakes1.com, 7 Feb. 2023, https://www.fingerlakes1.com/2023/02/07/report-finds-new-yorkers-spend-over-5-of-income-on-insurance/
3. “Auto Insurance Rates Are Skyrocketing, Up Almost 14% Year Over Year” The Motley Fool, 8 Feb. 2023, https://www.fool.com/the-ascent/insurance/auto/articles/auto-insurance-rates-are-skyrocketing-up-almost-14-year-over-year/
4. “Car insurance in Detroit is expensive, lags Miami, Tampa” Crain’s Detroit Business, 6 Feb. 2023, https://www.crainsdetroit.com/insurance/car-insurance-detroit-expensive-lags-miami-tampa
5. “Average Auto Insurance Cost Soars Nearly 14% To $2,014” CarScoops, 7 Feb. 2023, https://www.carscoops.com/2023/02/average-auto-insurance-cost-soars-nearly-14-to-2014/
