Due to the ongoing inflation in the US — which has already caused the price of groceries, vehicles, electricity, and gas to rise — experts believe auto insurance costs will also increase by 5% in 2022.
In other words, the average national cost for car insurance should reach $1,707 per year (from $1,663 in 2021).
In 2021 (more precisely, March, April, and May), Americans drove 32% more miles compared to the same period in 2020. At the same time, there was an increase in the fatality rate by 26%.
On that note, Michigan is the most expensive state for auto insurance. Namely, Michiganians spend an average of $2,858 per year on car insurance, followed by New Yorkers ($2,321), Rhode Islanders ($2,321), Louisianians ($2,206), Georgians ($2,127), Nevadians ($2,091), Delawareans ($2,020), Floridians ($2,020), South Carolinians ($1,955), and Marylanders ($1,948).
The least expensive states for car insurance are Hawaii ($824), North Carolina ($924), Maine ($945), Vermont ($945), Idaho ($953), New Hampshire ($953), Indiana ($1,017), Ohio ($1,031), Wisconsin ($1,060), and South Dakota ($1,074).
With that in mind, the average price of car insurance is also based on the car’s model, coverage choices, and credit scores — hence why many Americans with bad credit scores opt for car loans from numerous providers.
Moreover, urban areas offer more expensive insurance deals (an average of $1,666 per year) than rural areas (an average of $1,472 per year). Based on the research, traffic offenses can also influence the price by an average of 35%.