2022 Auto Insurance Trends Report: Part II

Insurify’s 2022 Auto Insurance Trends Report Part II: 2022 in Review and What’s Ahead for 2023, the final installment of a two-part report, examines car insurance in 2022 and projects what consumers could face in 2023.

To identify the most relevant trends of the past year and forecast 2023 rates, we reviewed more than 69 million quotes served to consumers who used Insurify to comparison-shop for auto insurance.

This second report forecasts insurance prices for 2023, details where costs rose the most in 2022, and surveys drivers on how their rates are changing and how they’re trying to save.

Interested in learning more about how insurance costs rose in 2022? Check out Insurify's 2022 Auto Insurance Trends Report Part I: Who's Paying More for Coverage.

The projected cost of auto insurance in 2023

In 2022, rising inflation and more frequent and severe traffic accidents pushed car insurance rates higher. 

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.

Where did insurance rates rise the most in 2022?

Some states saw significant hikes in their insurance rates this past year. Oregon, Maryland, and Virginia experienced the greatest increases in average car insurance costs in 2022, with premiums rising by more than 25% in all three states.

While prices stayed about the same in Michigan, rising just 1% year over year, the state remains the most expensive for car insurance. The average Michigan driver paid $2,895 for coverage in 2022, $1,188 more than the average American.

Americans became less interested in EVs but more concerned about insurance prices throughout 2022

Insurify surveyed more than 1,800 total drivers in July and November 2022, asking them in each instance how they were considering saving on rising vehicle expenses, including insurance, fuel, and maintenance costs.

With national fuel prices cooling off since June, drivers were half as likely to consider purchasing a hybrid or EV in November as they were just four months earlier.

However, Americans grew more concerned about insurance prices as the year wore on.

About

Insurify is America's top-rated virtual insurance agent. It provides expert advice on insurance-related topics and empowers customers to securely compare, buy, and manage their auto, home, and life insurance policies from the largest selection of accurate quotes.

Insurify has offered more than 69 million quotes to drivers. Insurify’s insurance experts and data scientists also provide consumers with data-driven insights, fresh perspectives on statistics, and information on general trends throughout the insurance industry.

Methodology

To create Insurify’s 2022 Auto Insurance Trends Report, the research team at Insurify examined more than 69 million rates from car insurance applications in its proprietary database over the past year.

Insurify driver applications originate from all 50 states and Washington, D.C., and include information on the car owner’s vehicle, their driving history dating back seven years, and their demographic information.

The premiums recorded on Insurify’s comparison platform are quoted via integrations with insurance companies. Average premium costs by location, driving history, or demographic subset reflect all premiums that insurance companies quoted to drivers within that subset.

The data on drivers’ experiences and consumer behavior comes from two Insurify surveys of 1,800 total participants in July and November 2022.

All statistics and percentages in this report are based on Insurify surveys and customer data, unless otherwise stated.