What will happen to car insurance rates in 2022?
Furthermore, insurance costs are projected to likely keep going up over the course of the year. According to a report from Insurify, rates are projected to grow another 5% in 2022, driven by surging inflation. Drivers can stay ahead of future increases by making sure that they have the car insurance policy that's best-suited for them.
Why are car insurance rates rising?
The major reasons car insurance rates are rising are inflation, increase in the cost of parts, labor shortages and change in driving habits during the pandemics. As pandemic has changed the driving habits, NHTSA reported a 18.4% increase in fatal crashes during the first six months of 2021, which is the highest percentage increase ever.
What is the average cost of car insurance in 2021?
In 2021, the national average car insurance cost rose to $1,529, a 3% jump from 2020, according to The Zebra’s 2022 State of Auto Insurance Report. In fact, the company's report notes that rates have ballooned 28% over the past 10 years across the country.