Personal auto premiums to jump another 7% in 2023

“We always have some type of inflation year-over-year, but when you have this rapid increase in inflation like we’ve seen over the past couple of years it is like kryptonite for insurance companies,” says Bill Brower, vice president of industry relations, vehicle claims, at Solera. (Credit: GITTI.NUNCHO/Shutterstock.com)

During the course of 2022, personal auto insurance rates increased 9%, according to Insurify, which projects rates to increase another 7% by the end of 2023 as inflation as well as more frequent and severe accidents continue to drive up costs for insurers and drivers alike. By the end of 2023, the average annual cost of car insurance is expected to reach $1,895.

Insurify’s report found 47% of drivers saw at least one auto insurance rate increase during 2022, while almost 1 in 5 said they had multiple rate increases during the past year.