Car insurance costs soar in 2022, and this state could see a 20% jump: Report

Car insurance rates are on the rise, and some insurance companies are planning to raise rates by as much as 20%. (iStock)

The cost of auto insurance is expected to increase in 2022 across the United States, with some states likely to see average double-digit growth from some of the largest auto insurers. Moreover, some areas across the country are already experiencing growth.

In 2021, the average national cost of auto insurance rose to $1,529, up 3% from 2020, according to The Zebra’s Auto Insurance Status Report 2022. In fact, the company’s report indicates that rates have ballooned by 28% over the past 10 years across the country. Last year alone, The Zebra found that Louisiana ranked highest when it came to the annual rate ($3,265), with New Hampshire the lowest ($999).

“In 2021, drivers started getting their cars out of the ‘park’ and back on the roads,” said Nicole Beck, Zebra’s head of communications. “More drivers can lead to more potential accidents [occurring]. Once the number of claims submitted increases, insurance rates increase. However, drivers aren’t powerless – to cut prices, practice safe driving behaviors and take every precaution to protect your vehicles from damage from inclement weather. “

If you are looking for ways to reduce the cost of your car insurance, consider shopping between different car insurance companies. Visit Credible to compare quotes for free.

Increases in car insurance vary by state

The rise in the average cost of auto insurance varies by state across the United States, and in fact, the Dallas Morning News reported that notices to the state Department of Insurance indicated that some insurers plan to raise rates by more than 20% on average.

In Arizona, drivers see similar patterns. Filings from the state’s Department of Insurance and financial institutions show that Geico, Allstate, Progressive and Farmers have all implemented premium rate increases going back to mid-2021, according to a report by tucson.com. Geico implemented an 8% increase in November 2021, while Allstate delivered a 7% increase in March of this year, the report says.

Moreover, insurance costs are expected to continue to rise throughout the year. According to a report by Insurify, prices are expected to grow another 5% in 2022, driven by rising inflation.

Drivers can stay ahead of future increases by making sure they have the most appropriate car insurance policy for them. Visit Credible to compare quotes from several auto insurance providers at once and choose the best rate for you.

Here’s How You Can Keep Your Car Insurance Premiums Low

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

Improve your credit score

Having a better credit score can help you secure a better rate for your car insurance. Many car insurance companies run credit checks before giving drivers their rates, and poor credit can increase rates compared to drivers with excellent credit, According to the zebra.

“The difference in average auto insurance rates between the lowest and highest credit level is $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 our free credit monitoring services today.

Shop many car insurance companies

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

Looking for new auto insurance can ensure that you continue to get the best possible rate and help you avoid high insurance premiums. Visit Credible to speak to one of our auto insurance experts and have all your questions answered.

Have a question related to financing, but don’t know who to ask? Send an email to our certified money expert moneyexpert@credible.com And your question may be answered by Credible in the Money Expert column.