2022 State of Auto Insurance report shows 3% premium jump
The analysis by The Zebra examined over 83 million auto rates across all 34,500 U.S. zip codes.
Independent insurance comparison site The Zebra has released its sixth annual State of Insurance report, which examines over 83 million auto insurance rates across the U.S. This report looks at rate data down to the ZIP code, and can be used to identify trends and see how current events affect rates.
The report found the national average annual car insurance premium is now $1,529, which is up 3% from the previous year when rates decreased during COVID-19 pandemic lockdowns. According to the Federal Highway Administration, the number of miles traveled by U.S. drivers during the first year of the pandemic dipped 14%. This lead to a decrease in auto insurance premiums of about 4% in 2020.
Now that most lockdowns have been lifted, drivers have begun commuting and traveling again, which is one factor that has led to this pricing rebound.
“In 2021, drivers began taking their cars out of ‘park’ and returned to the roads,” Nicole Beck, head of communications at The Zebra, said in a press release. “More drivers can lead to more potential accidents to occur. 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.”
Extreme weather has been at the forefront of the news cycle lately, and it seems that most regions of the U.S. have had their own record-breaking weather events to deal with, but the fact that roads have become deadlier, according to the National Highway Traffic Safety Administration (NHTSA), can’t just be blamed on the weather.
The number of distracted, speeding, aggressive and impaired drivers has increased, and the NHTSA estimates 20,160 people died in motor vehicle accidents in the first half of 2021, which is an 18.4% jump over the same period in 2020.
According to The Zebra’s report, premium prices vary wildly around the country, and while 38 states saw increases this year, 13 saw prices decrease. Louisiana had the largest increase at 42%, and Maryland saw the biggest decrease of around 9%.
The states with the most expensive annual premiums, the report found, are Louisiana ($3,265), Michigan ($2,639), and Florida ($2,425), and the most expensive cities are New Orleans, Louisiana ($3,532), Baton Rouge, Louisiana ($3,473) and Alexandria, Louisiana ($3,202).
You can view The Zebra’s 2022 State of Auto Insurance report in its entirety here.