Car insurance costs are rising in 2022, and this state could see a 20% jump: report

Here's how drivers can save on their premiums

Car insurance prices are going up, and some insurers are planning rate hikes as high as 20%. (iStock)

The cost of car insurance is expected to increase in 2022 across the U.S., with some states potentially seeing average double-digit growth from some of the largest auto insurance companies. Furthermore, some areas around the country are already experiencing growth.

In 2021, the national average car insurance cost rose to $1,529, a 3% jump from 2020, according to The Zebra’s 2022 State of Auto Insurance Report. In fact, the company's report notes that rates have ballooned 28% over the past 10 years across the country. In the past year alone, The Zebra found that Louisiana ranked highest when it comes to annual rate ($3,265), and New Hampshire was the lowest ($999).

"In 2021, drivers began taking their cars out of ‘park’ and returned to the roads," Nicole Beck, The Zebra's head of communications, said. "More drivers can lead to more potential accidents [occurring]. As soon as the number of claims filed increases, so will insurance rates. However, drivers aren’t powerless – to lower rates, practice safe driving behaviors and take every precaution to protect your vehicles from damages caused by extreme weather."

If you're looking for ways to reduce the cost of your car insurance, consider shopping around among different auto insurance companies. Visit Credible to compare quotes free of charge.

Car insurance increases vary by state

The rising average cost of car insurance varies by state across the U.S., and in fact, the Dallas Morning News reported that notices filed with the state's Department of Insurance indicated that some insurance companies are planning rate hikes of more than 20% on average.

In Arizona, drivers are seeing similar patterns. Filings from the state's Department of Insurance and Financial Institutions showed that Geico, Allstate, Progressive and Farmers all applied premium rate increases dating back to the middle of 2021, according to a report from Geico, the report says, implemented an 8% increase in November 2021, while Allstate filed a 7% increase in March of this year. 

Furthermore, insurance costs are projected to likely keep going up over the course of the year. According to a report from Insurify, rates are projected to grow another 5% in 2022, driven by surging inflation.

Drivers can stay ahead of future increases by making sure that they have the car insurance policy that's best-suited for them. Visit Credible to compare quotes from multiple auto insurance providers at once and choose the one with the best rate for you.

Here's how you can keep your auto insurance premiums low

Drivers can take several steps when it comes to lowering the cost of their car insurance. In addition to avoiding violations like speeding tickets or at-fault accidents that require insurance claims, here are some ways that drivers can save: 

Improve your credit score

Having a better credit score can help you lock in a better rate on your car insurance. Many car insurance companies perform credit checks before giving drivers their rates, and having poor credit can drive up rates when compared to drivers with excellent credit, according to The Zebra.

"The difference in average auto insurance rates between the lowest level of credit and the highest is upward of $1,500 per year," the company said.

Monitoring your credit can be helpful when it comes to improving your credit score. Visit Credible to enroll in free credit monitoring services today.

Shop multiple auto insurance companies

Car insurance companies offer a variety of discounts for drivers that meet certain criteria. These include good student discounts, safe driver, bundling and more, and can lead to savings over time.

Searching for new auto insurance could ensure you continue to receive the best rate possible and help you avoid higher premiums. Visit Credible to speak to an auto insurance expert and get all of your questions answered.

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