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Wednesday, 05 January 2022 08:57

Car Insurance Rates Increase in 2022 as Americans Resume Pre-Pandemic Lives

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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 Jan. 5.

The average cost of auto insurance is expected to reach $1,935 annually, with 22 states seeing car insurance premiums increase in 2022.

 

Key findings from the report:

 

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.

 

Twenty-two states will see car insurance rates increase by 1% or greater in 2022, and 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, said rates are still below pre-pandemic levels.

 

"Prior to 2020, we saw premiums increase anywhere from 5% to 6% respectively. In fact, rates increased every year from 2011 to 2020," Sangam said. "While insurers may not be giving out COVID discounts, there are still...


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