Insurify, America’s top-rated virtual insurance agent, has released their 2022 Auto Insurance Trends Report: 2022 in review and what’s ahead for 2023, the final installment of a two-part report, which examines car insurance in 2022 and projects what consumers could face in 2023.
Nationwide, the average cost of car insurance rose by 9%, to $1,777 per year in 2022. Based on historical trends and the current state of the industry, Insurify’s expert team predicts the average annual car insurance rate will rise by another 7%, to $1,895, in 2023.
It is troubling to see these increases for the consumer, at a time when they are struggling with so many costs of living increases such as housing, children daycare, housing, and medical needs, to have these auto insurances increases is dramatic!
This report does recognize the cost of repair increases, but it does not dive deep enough into the reasons that the cost of repair is increasing. It needs to be recognized that the cost of the vehicle is escalating even quicker than inflation and along with this increase is the fact that car manufacturers are doing all they can to create a cradle to the grave vehicle ownership experience.
With programs like first notice of loss, certified repair facilities, design patent on parts, to mention a few, it limits the consumers repair options and so they are locked into a network of noncompetitive repair options which the insurer is then obligated to pay.
Therefore, higher insurance rates.