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."
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
