Are you paying too much for car insurance? Get ready to pay more to drive next year
You may have seen what you pay for car insurance go up this past year, and there’s bad news about next year.
Maryland and Virginia are two of the three states where insurance rates rose the most this year, with each going up by 26%. Oregon was the other leader, and rates could go up again in 2023.
Insurify, a website that allows you to compare insurance prices, says rates rose by 9% nationally in 2022 and could go up another 7% by the end of next year, according to its 2022 Auto Insurance Trends Report.
The report says the average American driver could pay nearly $1,900 for car insurance in 2023.
What’s driving the increase?
The higher cost of vehicle repairs, increased driving and accident rates as well as more frequent natural disasters, which often damage vehicles.
“Many of the factors that contributed to rate increases in 2022 will continue to be in play for American drivers in 2023,” said Snejina Zacharia, Insurify’s CEO and founder.
She is also quoted in the report saying, “Our annual data reflects the state of the insurance industry, and our new report projects that higher driving rates, more severe accidents, inflation’s impact on vehicle repairs and medical costs, and the potentially increased frequency of wildfires and hurricanes will continue to be the key factors contributing to rate increases next year.”
Michigan remains the most expensive state to insure a car in at $2,895 a year.