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