Auto insurance costs rise in 2022, and this state could see a 20% jump: report

Auto insurance prices are rising and some insurers are predicting rate increases of up to 20%. (iStock)

The cost of auto insurance is expected to rise in 2022 in the United States, with some states potentially seeing mid-double-digit growth from some of the largest auto insurance companies. In addition, some regions of the country are already experiencing growth.

In 2021, the national average cost of auto insurance rose to $1,529, a 3% jump from 2020, according to The Zebra’s 2022 State of Automobile Insurance Report. In fact, the company’s report notes that rates have climbed 28% over the past 10 years nationwide. In the last year alone, The Zebra found that Louisiana ranked highest in annual rate ($3,265) and New Hampshire the lowest ($999).

“In 2021, drivers started taking their cars out of ‘park’ and back onto the roads,” said Nicole Beck, Zebra’s communications manager. “More drivers can lead to more potential accidents [occurring]. As soon as the number of claims filed increases, insurance rates also increase. However, drivers are not powerless – to lower fares, adopt safe driving behaviors and take every precaution to protect your vehicles from damage caused by extreme weather conditions.”

If you’re looking for ways to lower the cost of your car insurance, consider shopping around for different car insurance companies. Visit Credible to compare quotes for free.

Auto insurance increases vary by state

The increase in the average cost of car insurance varies from state to state in the United States and, in fact, the Dallas Morning News reported that notices filed with the State Department of Insurance indicated that some insurance companies were planning rate increases of more than 20% on average.

In Arizona, drivers are seeing similar trends. Filings from the Department of Insurance and state financial institutions showed Geico, Allstate, Progressive and Farmers all applied premium rate increases dating back to mid-2021, according to a report from Geico, the report says, implemented an 8% increase in November 2021, while Allstate saw a 7% increase in March of this year.

In addition, insurance costs are likely to continue to rise over the course of the year. According to to an Assurify reportrates are expected to rise another 5% in 2022, due to soaring inflation.

Drivers can anticipate future increases by ensuring they have the auto insurance policy that is right for them. Visit Credible to compare quotes from multiple car insurance providers at once and choose the one that’s right for you.

Here’s how you can keep your auto insurance premiums low

Drivers can take several steps when it comes to reducing the cost of their car insurance. In addition to avoiding offenses like speeding tickets or at-fault accidents that require insurance claims, here are some ways drivers can save:

Improve your credit score

Having a better credit score can help you get a better rate on your car insurance. Many car insurance companies do credit checks before giving drivers their rates, and bad credit can drive up rates compared to drivers with great credit. according to The Zebra.

“The difference in average auto insurance rates between the lowest and highest credit tier is more than $1,500 per year,” the company said.

Monitoring your credit can be helpful when it comes to improving your credit score. Visit Credible to sign up for free credit monitoring services today.

Shop multiple car insurance companies

Car insurance companies offer a variety of discounts for drivers who meet certain criteria. These include good student discounts, a safe driver, bundle deals and more, and can lead to savings over time.

Researching new auto insurance could ensure you continue to receive the best possible rate and help you avoid higher premiums. Visit Credible to speak with an auto insurance expert and get all your questions answered.

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

Comments are closed.