American drivers may face another year of rising car insurance costs in 2023, as rising costs and increased claims push premiums to new highs, a recent report has revealed.
Auto insurance costs could rise another 7% by 2023 to $1,895 a year, the report predicted. Inflation and the continued rise in car prices with consumers driving more will increase insurance premiums next year, said Dan Roccato, professor of finance. at the University of San Diego School of Business.
“It’s hard to see how this will change until the climate change problem is fixed,” Roccato said.
However, drivers can see some relief from the high insurance costs towards the end of 2023.
“The general consensus is that it will be eight to 12 months (from fall 2022) before inflation starts to slow down, and some think it could be years before prices fully stabilize,” Betsy Stella, vice president of insurance partners at Insurify, said.
If you’re looking to save money on your car costs, you can consider switching your car insurance company to get a lower monthly premium. You can visit Credible to shop around and earn your special credit without affecting your credit score..
These states pay the most for car insurance
Oregon, Maryland and Virginia saw auto insurance premiums increase by 25% by 2022, according to the report. And while Michigan drivers saw their rates increase by just 1%, they still paid, on average, $2,895 for insurance in 2022, $1,188 more than the American average.
In some cases, drivers say they’ve seen prices increase more than once in the past year. Almost half 28% say prices have increased at least once and 19% say they see them increase more often.
One insurance expert says in 2023 car insurance rates additional effects from climate change can be felt.
“If the price and cost of auto insurance increases, insurers may raise their rates,” said Laura Adams, an award-winning financial writer, podcaster and speaker. “When insurance becomes less affordable, more consumers will risk driving with little or no insurance.”
If you’re shopping around for new car insurance, you can use the Credible marketplace to compare multiple providers and find your rate in minutes without affecting your credit score.
Tips for lowering your insurance premiums
American drivers may face another year of expensive cars driven by higher car prices, rising insurance costs and an increase in cost-related claims, according to the report. Here are some ways that insurance experts recommend that drivers can save on costs:
Choosing a cheap car can make a difference in what drivers spend, according to Roccato.
“So it’s more ‘happy’ when it comes to saving money on auto insurance,” Roccato said. “Your heart wants a new change; your wallet prefers an old sedan.”
Drivers can also compare quotes from at least four to five companies before choosing a policy and review their policy every six months to make sure it still covers their needs, according to ate with Adams.
“The best way for drivers to manage the highest car insurance rates is by shopping around and comparing quotes at least once a year,” Adams said.
If you are struggling with rising costs and want to save money, you can consider finding a new insurance company to lower your monthly premium. Visit Credible to compare multiple car insurance companies at once and choose the one that’s best for you.
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