Car Insurance Rates Increase in 2022 As Americans Resume their Pre-Pandemic Lives

Rhea-AI Summary

According to ValuePenguin's report published on January 5, 2022, auto insurance rates are projected to rise by 0.6% in 2022, with the average cost reaching $1,935 annually. 22 states will experience increases, with Nebraska (4.4%), Minnesota (2.5%), and Arizona (2.2%) seeing the highest raises. Unsafe drivers face up to 55% greater premiums, with Texas drivers facing a 142% hike for infractions. Despite these increases, rates remain below pre-pandemic levels, and 76% of consumers who shop around save money.

Positive

• Auto insurance rates are rising but remain below pre-pandemic levels.
• 76% of Americans who compared quotes saved money.
• ValuePenguin analyzed 15 million quotes across 72 insurers to provide insights.

Negative

• The average car insurance cost will reach $1,935, indicating increasing financial burden on consumers.
• 22 states will see insurance premium increases, adversely affecting consumers in those regions.
• Unsafe drivers will pay up to 55% more, with Texas experiencing the steepest increase.

NEW YORK, Jan. 5, 2022 /PRNewswire/ -- As Americans resume normal economic activities, Auto insurance rates will rise by 0.6% in 2022 after falling in 2021 according to ValuePenguin's State of Auto Insurance in 2022 report published today. The average cost of auto insurance is expected to reach $1,935 annually, with 22 states seeing car insurance premiums increase in 2022.

Here are the key findings from the report:

• The Omicron Variant's Impact on Car Insurance in 2022: The Omicron variant's impact on Auto Insurance rates should be minimal. Insurers are not likely to give out COVID-19 discounts to drivers unless there is another nationwide lockdown.
• The average cost of car insurance in 2022 is $1,935/year. Michigan, Florida and Louisiana will have the highest, and Maine, Texas and Wisconsin the lowest car insurance premiums in 2022.
• 22 states will see car insurance rates increase by 1% or greater in 2022, Nebraska (4.4%), Minnesota (2.5%) and Arizona (2.2%) will experience the largest rate hikes in 2022. In 14 states however, car insurance premiums will fall by an average of 1%.
• Unsafe Drivers will pay 55% more for Auto Insurance in 2022. Texan drivers will experience the steepest increase in premiums (142%) if they get a ticket or get into an accident in 2022.

Despite the increase, Divya Sangam, Insurance Spokesperson at ValuePenguin.com says rates are still below pre-pandemic levels. "Prior to 2020, we saw premiums increase anywhere from 5 - 6% respectively. In fact, rates increased every year from 2011 to 2020." She adds, "While Insurers may not be giving out COVID discounts, there are still ways to save. 76% of Americans who shopped around for insurance say they saved hundreds of dollars doing so."

Car Insurance premiums will continue to rise 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 steep increase in distracted driving, more expensive repairs from smart technology in cars and supply chain shortages will also contribute to rising premiums.

ValuePenguin.com analysts reviewed 15 million auto insurance quotes for different drivers across 35,000 Zip Codes and 72 insurers. These, combined with RateWatch filings, were used to present the current and historical pictures of the auto insurance industry and how consumers will be impacted.

To read our State of Auto Insurance 2022 report visit: https://www.valuepenguin.com/state-of-auto-insurance-2022

For information on How Americans Shop for Insurance, visit: https://www.valuepenguin.com/consumers-shopped-around-insurance-saved-money

About ValuePenguin.com: ValuePenguin.com, part of LendingTree (NASDAQ: TREE), is a personal finance website that conducts in-depth research and provides objective analysis to help guide consumers to the best financial decisions. ValuePenguin focuses on value, assessing whether the return of a particular decision is worth the cost or risk of that option, and how this stacks up with the other possible choices they may have. For more information, please visit www.valuepenguin.com, like our Facebook page or follow us on Twitter @ValuePenguin.

Media Contact:
Nadia Gonzalez (Ms.)
Nadia@LendingTreeNews.com

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SOURCE ValuePenguin.com

FAQ

What is the projected increase in auto insurance rates for 2022?

Auto insurance rates are expected to rise by 0.6% in 2022.

What is the average cost of auto insurance in 2022?

The average cost of auto insurance in 2022 is projected to be $1,935 annually.

Which states will see the highest insurance premium increases in 2022?

Nebraska, Minnesota, and Arizona will see the largest increases in insurance premiums.

How much more will unsafe drivers pay for insurance in 2022?

Unsafe drivers will pay up to 55% more for auto insurance in 2022.

Will car insurance rates continue to rise in the future?

Yes, car insurance premiums are expected to continue rising as more cars hit the roads.