2022 Auto Insurance Trends Report: Part I

Inflation, interest rate increases, and soaring gas prices all hurt the wallets of American drivers in 2022. Prices for new and used cars rose more than 10% in August, compared to the year before.^[1][2] Sept. 21, 2022, also saw the fifth-straight increase to the federal funds rate, bringing it above 3%, the highest it’s been since 2008. At the start of 2022, the average interest rate on a 60-month new car loan was 3.85%, but with the recent federal rate increase, car loan interest rates could rise closer to 5.75%.^[3]

Insurify’s 2022 Auto Insurance Trends Report Part I: Who’s Paying More for Coverage is the first part of a two-part report that comprehensively covers 2022’s unique car insurance landscape. To identify the most relevant trends of the past year, we reviewed more than 69 million quotes served to consumers who used Insurify to comparison-shop for auto insurance in 2022. Insurify’s first report details who is paying more for car insurance in 2022, surveys drivers on how they’re managing rising vehicle costs, and provides drivers with expert advice on how they can save.

Interested in learning more about how insurance costs will rise in 2023? Check out Insurify's 2022 Auto Insurance Trends Report Part II: 2022 in Review and What's Ahead for 2023.

Where are drivers paying more for car insurance?

The cost of insurance is not uniform across the nation. Factors such as weather patterns, crime rates, population density, and state-specific coverage requirements contribute to regional variations in car insurance rates.

Michigan drivers spend a whopping $2,510 per year on car insurance, more than drivers in any other state. In fact, they pay $1,748 more per year than drivers in Hawaii, the cheapest state for car insurance.

Which drivers pay more for car insurance?

One of the unsung perks of marriage is actually cheaper car insurance. On average, married drivers see 5% lower rates across the board than unmarried drivers.

Though it is not typically a rating factor, homeownership status can also affect what a driver pays for auto insurance. Unmarried homeowners pay about 17% less for car insurance than unmarried drivers who rent their homes. Many homeowners have lower rates in part because they can take advantage of policy-bundling discounts.

Which driving habits increase insurance costs?

Having just one traffic violation on your record can increase your insurance premium by an average of 34%.

Vehicle owners with a citation-free record within the past three to seven years pay an average premium of $1,574 per year, while drivers with a history of traffic incidents spend an average of $2,116 annually.
Drivers with a DUI on record pay nearly twice as much — $1,559 per year more, on average — for car insurance as drivers with a clean record.

About

Insurify is America’s top-rated destination for the largest selection of accurate insurance quotes and expert advice, and it operates as a licensed insurance agent appointed in all 50 states. Featuring direct integrations with all top insurance companies, Insurify offers a personalized, real-time comparison and buying experience for auto, home, and life insurance policies.

Insurify has offered more than 69 million quotes to drivers. Insurify’s insurance experts and data scientists are also valued source of consumer education, delivering data-driven insights and fresh perspectives on statistics and 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 an Insurify survey of 1,200 participants in July 2022.

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