Nationwide, personal auto insurance rates are projected to grow around 8%-9% this coming year, which ValuePenguin.com reported would be the biggest increase in car insurance costs seen in the past six years. The average annual cost for full coverage car insurance is projected to reach $1,780 in 2023. Inflation and more frequent and severe accidents are the primary drivers of this growth. "Many of the factors that contributed to rate increases in 2022 will continue to be in play for American drivers in 2023," Snejina Zacharia, Insurify's CEO and founder, said in a release. "Our annual data reflects the state of the insurance industry, and our new report projects that higher driving rates, more severe accidents, inflation's impact on vehicle repairs and medical costs and the potentially increased frequency of wildfires and hurricanes will continue to be the key factors contributing to rate increases next year." Drivers in Michigan are again expected to pay the most for car insurance in the coming year, during which the average Mitten Stater will pay $4,788 for coverage, according to ValuePenguin. The state has the highest national cost, on average, because it imposes the highest minimum insurance requirements. Florida has the second highest auto insurance costs, on average, according to ValuePenguin. Sunshine State residents pay 60% above the national average, around $2,856 annually. Rhode Island drivers pay the third most, on average, with an annual cost of $2,748. So where are the lowest average costs? Drivers pay the least in Vermont, which welcomed the highest percentage of new residents in 2022. The slideshow above reviews the states that are expected to see the biggest year-on-year rate increase, according to ValuePenguin.com. Related: |

• Higher auto premiums result in drivers buying less-than-desired coverage levels
• Auto insurance in 2023: 3 predictions, 3 ways to respond
• 6 surprising things auto insurance policies do not cover