Inflation: Auto insurance prices have risen 17% since 2020, study says

U.S. drivers are paying about 17% more for auto insurance since 2020. According to new research To GuaranteeCurrently, the average vehicle coverage is $1,750 per year.

Michigan drivers pay the most for car insurance, averaging $2,510 a year. That’s about 55% more than the average $762 a year a car owner in Hawaii pays. cheapest state for coverage.

Inflation, traffic accident rates, medical costs, and vehicle repair costs all contribute to rising insurance premiums.

“While we have seen an economic acceleration and demand recovery post-pandemic, the overall cost of living for Americans, including insurance, has been impacted by pandemic-related disruptions,” said Insurify CEO Snejina Zacharia. It will increase in 2022 due to the accumulation of and inflation.

In terms of vehicles, the Infiniti Q5 has the highest premium at $3,149. Tesla’s (TSLA) At $3,040 a year, the Model 3 is the second most expensive vehicle to insure.

SANTA MONICA, CALIFORNIA – SEPTEMBER 22: Tesla Model 3 vehicles on display at the Tesla Auto Store on September 22, 2022 in Santa Monica, California. Tesla is recalling over 1 million of his cars in the US. (Photo by Alison Dinner/Getty Images)

Auto insurance prices rose 10.3% year-on-year in September, with drivers’ auto insurance rising steadily. Latest Consumer Price Index readings from the Bureau of Labor Statistics.

The study also found that the cities with the highest car insurance premiums were:

  • Detroit: $4,593

  • New York, NY: $3,657

  • Warren, Michigan: $3,236

This can be compared to the cheapest car insurance premiums found in the following metropolitan areas:

  • Honolulu: $768 per year

  • Winston-Salem, North Carolina: $820

  • Raleigh, NC: $929.

The study found that location greatly affects the price of car insurance. Local factors such as warmer weather, less local regulation, and less traffic congestion often result in lower fares.

Rising insurance costs are changing driving considerations for policyholders.About 65% of drivers are considering driving lessaccording to an Insurify study published earlier this year.

About 30% of surveyed drivers are considering purchasing a hybrid or electric vehicle to reduce costs.A staggering 10% of car owners are considering stop insurance coverage Despite the legal risks of driving without insurance.

Ines is a market reporter at Yahoo Finance.Follow her on her twitter @ines_ferre

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