The average annual cost of car insurance
Projected annual rates for car insurance in 2023
Car insurance rates rose 9% in 2022, 4% more than Insurify projected in the 2021 Auto Insurance Trends Report. Insurify projects rates will rise another 7% in 2023, likely influenced by rising inflation rates, increasingly expensive repair costs, and more frequent and severe traffic accidents over the past year.
The climate may also affect car insurance rates. “If climate- and weather-related auto insurance claims increase, insurers will likely hike rates,” says Laura D. Adams, MBA, financial author, podcaster, and spokesperson. “When insurance becomes less affordable, more consumers may risk driving with too little or no coverage.”
Driving and fatality trends
In 2022, 8.8% of U.S. drivers reported an at-fault accident on record. These crashes cause 1.34 fatalities for every 100 million miles, meaning 1 in every 8,547 Americans die each year in motor vehicle accidents.
Southern states see the most life-threatening accidents. Alabama, Georgia, North Carolina, South Carolina, Tennessee, and Virginia all have at-fault accident rates higher than the national average. South Carolina has both the highest at-fault accident rate and highest crash fatality rate in the country.
Interestingly enough, though, more accidents doesn’t always mean more fatalities. Massachusetts had the second-most car accidents in the country in 2022 but also had the fewest traffic fatalities per capita and mile driven. This is likely due to many of the accidents being low-speed “fender benders” rather than life-threatening, high-speed crashes.
Insuring the nation’s top 3 most popular vehicles
Ford F-Series Pickup
Midsize sedans continue to be a popular choice for American consumers, but the most popular cars in the U.S. come from the Ford F-Series Pickup line. F-Series Pickups are well known for their reliability, carrying capacity, and popularity for both work and leisure. In fact, about 1 in 40 Americans drive these perennially popular trucks.
Coverage and discounts
Insurer discounts can lower premiums by up to 16%, which can get drivers cheap car insurance to save money significantly over time. Insurers grant these discounts to low-risk drivers for a variety of qualifications, such as having a clean record, low mileage, or participating in safety training programs.