Car Insurance Rates Increase in 2022 as Americans Resume Their Pre-Pandemic Lives, Arizona Tops List

Here are the key findings from the report:

• The Omicron Variant’s Impact on Car Insurance in 2022: 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.
• 22 states will see car insurance rates increase by 1% or greater in 2022, 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 says rates are still below pre-pandemic levels. “Prior to 2020, we saw premiums increase anywhere from 5 – 6% respectively. In fact, rates increased every year from 2011 to 2020.” She adds, “While Insurers may not be giving out COVID discounts, there are still ways to save. 76% of Americans who shopped around for insurance say they saved hundreds of dollars doing so.”

Car Insurance premiums will continue to rise in 2023, as Americans return to their pre-pandemic lives. More cars on the road will lead to more accidents, more claims and higher premiums. A steep increase in distracted driving, more expensive repairs from smart technology in cars and supply chain shortages will also contribute to rising premiums.

ValuePenguin.com analysts reviewed 15 million auto insurance quotes for different drivers across 35,000 Zip Codes and 72 insurers. These, combined with RateWatch filings, were used to present the current and historical pictures of the auto insurance industry and how consumers will be impacted.

Read the State of Auto Insurance 2022 report here.