Our experts answer readers’ insurance questions and write unbiased product reviews (here’s how we assess insurance products). In some cases, we receive a commission from our partners; however, our opinions are our own.
Car insurance rates have already risen 17% in the first six months of 2023 and are set to increase another 4% by year-end, according to a report by Insurify. Inflation, more expensive auto parts, natural disasters and record-breaking losses have all contributed to the price increase.
Right now, Insurify pegs the national average cost of a car insurance policy at $1,668. With the projected increase, the average annual auto insurance cost will rise to $1,742 by the end of 2023.
Vehicle repair and higher maintenance costs have outpaced inflation, Insurify reports, and there are no signs of that changing anytime soon. Because of this, insurers are increasing insurance rates to keep up with higher claim payouts.
Drivers already struggling with high car insurance costs should start preparing to absorb another increase soon. It’s more important than ever to take time to comparison shop.
How to find cheaper car insurance rates
If you are interested in lowering your car insurance costs here are a few of our picks for the best affordable car insurance companies:
States have different guidelines on what type of comprehensive auto insurance you need. But the financial responsibility aspect remains the same for every state: All 50 states require drivers to prove they can cover a set amount in damages if they injure another person or their property.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.