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Auto insurance is predicted to rise 5% in 2022. Where it costs the most and least

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The cost of vehicle insurance is growing, as is the case with many other things right now.

Based on estimates from Insurify, the average national cost of auto insurance is predicted to rise by 5 percent to $1,707 per year in 2022 from $1,663 in 2021, a rise from $1,663 in 2021.

According to Tanveen Vohra, Insurance Specialist at Insurify, “Our projection for 2022 is in line with expected inflation rates, and it takes into account the continuous rise in hazardous driving behaviors, which have been more common since the 2020 Covid lockdowns.”

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Inflation is affecting nearly every element of American life, with the cost of everything from groceries to automobiles and gasoline rising. Latest figures reveal that inflation is growing at a rate of 6.8 percent on an annual basis, significantly beyond the Federal Reserve’s goal rate of 2 percent.

Meanwhile, according to Insurify’s data, Americans traveled 32 percent more miles in March, April, and May of 2021 as compared to the same months in 2020, when shutdowns early in the pandemic resulted in fewer automobiles on the road.

“This suggests that dangerous driving practices developed during early pandemic shelter-in-place orders have survived far beyond the commencement of the pandemic,” the paper states. The death rate was 26 percent higher in spring 2021 than it was in spring 2019, prior to the outbreak.

Of course, the precise price you pay is determined by a multitude of criteria, including the brand and model of your automobile, the type of coverage you choose, as well as considerations such as your driving record and, in certain cases, your credit score.

It is also important to consider location. According to Insurify, the most costly state for vehicle insurance is Michigan, where the average yearly premium is $2,858. The next most expensive states are New York and Rhode Island, where the average annual premium is $2,321 each.

Hawaii is the least costly state to live in, with an average annual layout of $824 per person. North Carolina ($924), Maine ($945), and Vermont ($945) are all close behind in terms of average income.

Furthermore, if you reside in an urban location, you will pay on average more ($1,666 per year) than drivers who live in rural areas ($1,472 per year). Additionally, according to the findings of the study, a single past traffic violation can increase your insurance costs by an average of 35 percent.

There are alternatives to reducing portions of your coverage or raising your deductibles that might help you save money on your insurance premiums.

According to Insurify, combining your insurance policies — that is, acquiring both your vehicle and homes insurance from the same provider — may save you an average of 8 percent on your annual premiums. Another option is to serve in the military, which can result in a 2.2 percent savings. Additionally, if you are an older American and participate in a driver safety instruction course, you might save as much as 15.2 percent.

As Vohra points out, “the most effective strategy to obtain a reduced rate is to shop about and seek estimates from different insurers to pick the one that provides you with the most favorable terms.”

Insurify’s research was based on an analysis of more than 40 million vehicle insurance premiums contained in its database.

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