Car Insurance 2023 – How much will my auto premium be in 2023?
More than it was in 2022. With inflation, supply chain issues, and even the increased severity of accidents – these factors are coming together to raise premiums in 2023. It’s not our job to sugarcoat it – continue reading to see what you can reasonably expect this coming year.
Inflation, continued supply chain woes, and expensive car accidents are leading the way to higher car insurance costs in 2023. – Forbes
Car insurance premiums have increased month-over-month all through 2022, together with inflation.
The cost of car insurance increased 1.7% from September to October 2022, the seventh straight month in a row increase. And year-over-year car insurance prices are up a whopping 12.9%, according to CPI data. Compared to September 2020, car insurance costs have increased an incredible 19.9%. – Forbes
Consumers are facing extenuated hardships, just skimming by on the basics. There’s no way else to spin it, premium hikes are one of the more aching hardships facing drivers across the country.
One of the big concerns consumers face for 2023 is the unrelenting pace of auto insurance rate increases,” says Douglas Heller, director of insurance at the Consumer Federation of America. – Forbes
How much will car insurance go up in 2023?
In recent months, we’ve seen increases as low as .7% and as high as 7.5% on car insurance premiums. The biggest offender is Liberty Mutual, whose policyholders “started paying 7.5% more” at the start of 2021. – Fox 8
Insurify’s recent report on auto premium hikes revealed the 2019 average auto premium was $1,400. In 2022, the average annual rate reached $1,648 – “an increase of around 17.7%.” They predict, as well, insureds could see an average of $1,846 in premiums (+12%) for auto coverage in 2023. – Propertycasualty360
All in all, it’s safe to expect your premium will raise at least 5-10% this coming year as the economy continues to tailspin post-COVID.
Why are insurance premiums going up?
Why did my car insurance go up this year?
For similar reasons virtually everything else is going up in price. Inflation, supply chain issues, worker shortages, as well as recent increases in accident severity – among other reasons.
Quite simply, “the cost of everything has gone up,” said Dean Fadel, president of the Ohio Insurance Institute. It’s about 6% more costly to replace a new vehicle than it was a year ago. Used cars are now also about 20% more expensive, he said. – Fox 8
People are driving less safely post-COVID
Drivers are driving more miles in recent quarters, according to a study by the National Highway Traffic Safety Administration (NHTSA). More miles driven means more chances of getting in an accident. What’s more, the severity of auto accidents is also increasing.
The NHTSA study showed that in Q1 2022 there were “9,560 car crash deaths, the highest number of fatalities in a year’s first quarter since 2002. That is an increase of 7% in fatalities compared to 2021.” – Forbes
Car repair costs are going up, too.
For supply chain and worker shortage reasons we keep hearing again and again, so too do these factors lead to higher repair costs. Meaning, higher payouts are needed from insurance companies to their claimants.
Many personal auto insurers continue to pursue rate increases in response to worsening claims costs, which is being driven by several factors: the higher rate of fatalities, increases in the costs to repair newer vehicles, higher used car prices, supply chain and labor market challenges and rising medical costs. – Forbes
“All in all, the bill is coming due for multiple costs, and auto insurance companies always try to pass the costs on to customers.” – Forbes
Is your insurance company footing you the bill?
Talk to an Auto Insurance Expert at Saltmarsh Insurance Agency before re-signing an inflated auto premium.
Our Insurance Experts draw from our multiple decades-strong network of insurance providers to give you no less than the best coverage for your wallet.
Call Saltmarsh Insurance today at 781-729-4615, or contact us here to be reached back by a representative.