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Auto insurance rates rise as Americans return to pre-pandemic lifestyles

By on January 4, 2022 0

As Americans resume normal economic activities in 2022, auto insurance rates will rise 0.6% in 2022 after dropping in 2021, according to the State of Auto Insurance in 2022 report from ValuePenguin.com by LendingTree. The average cost of auto insurance is expected to reach $ 1,935 per year, with 22 states seeing auto insurance premiums increase in 2022. Here are the key findings:

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  • The impact of the Omicron variant on auto insurance: The impact of the Omicron variant on auto insurance rates in 2022 and beyond is expected to be minimal. Insurers are not likely to give COVID-19 discounts to drivers unless there is another nationwide lockdown.
  • 22 states will see auto insurance rates increase by 1% or more in 2022. Nebraska (4.4%), Minnesota (2.5%) and Arizona (2.2%) will see the largest rate hikes in 2022. In 14 states, however, auto insurance premiums will drop in average of 1%.
  • The average cost of auto insurance in 2022 is $ 1,935 / year. Michigan, Florida, and Louisiana will have the highest auto insurance premiums, and Maine, Texas, and Wisconsin the lowest in 2022.
  • Dangerous drivers will pay 55% more for auto insurance in 2022. Drivers who obtain a DUI can expect their rates to increase by 90% on average this year. And Texas drivers will see the biggest increase in premiums (142%) if they get a ticket or have an accident in 2022.
  • Auto insurance premiums will continue to increase in 2023: As Americans return to their pre-pandemic lives, more cars on the road will lead to more accidents, more claims, and higher premiums. A sharp increase in distracted driving, more expensive repairs due to smart technologies and shortages in the supply chain will also contribute to the rise in premiums.

The increase in auto insurance rates in 2022 is still lower than pre-pandemic levels. Premiums have increased in previous years by 5-6% respectively. In fact, rates have increased every year since 2011, according to LendingTree. Insurers may not offer COVID discounts, but that doesn’t mean there is no way to save. Seventy-six percent of Americans who have sought insurance say they saved hundreds of dollars by doing so. Mileage insurance is another way to save money if you still work from home and drive less than 12,000 miles per year.

LendingTree said it has reviewed 15 million auto insurance quotes for different drivers across 35,000 zip codes and 72 insurers. These, combined with RateWatch filings, have been used to present current and historical pictures of the auto insurance industry and how consumers will be affected.

The full report can be viewed here: https://www.valuepenguin.com/state-of-auto-insurance-2022


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