Auto insurance

Auto Insurance Costs: Compare Auto Insurance Rates Needed as Premiums Rise

The average motorist will spend approximately $1,771 in auto insurance this year.

This annual cost represents a huge increase from 2019. The average annual premium for auto insurance then was $1,070, according to the National Association of Insurance Commissioners.

Rod Griffin, senior director of consumer education and advocacy at Experian, says insurance rates have risen along with most goods and services. The US Bureau of Labor Statistics reported January prices were 7.5% higher than a year ago. This is the biggest increase since 1982.

“Price increases have also had an impact on car insurance costs,” he explained. “According to the annual report of S&P Global Market Intelligence U.S. auto insurance market reportauto insurance rates are expected to rise this year.

Griffin says consumers can’t control inflation, but there are ways to reduce total costs. For example, evaluate your current policy and compare prices for more affordable rates.

The best car insurance companies

Has the pandemic caused auto insurance rates to rise?

At the start of the pandemic, insurance companies offered payment relief or premium refunds to drivers. They also offered breaks on insurance cancellations and more. “Now, according to industry and media reports, insurers could increase premiums by 6% to more than 10% this year,” he explained. “There are probably many factors behind the decision to increase insurance rates, but we can assume that inflation plays a significant role in these increases.”

Does it make sense to shop around for a different car insurance policy right now?

Griffin says it’s always a good idea to shop around for better coverage. “Consumers should feel empowered to compare prices and find a better rate that suits them and their needs,” he explained. “I recommend doing this at least once a year to ensure they get the best rates possible.”

Experian offers a free auto insurance shopping service it can help you find better auto insurance rates.

What if you are a teleworker and you drive less?

Griffin says many workers have seen commuting evolve given the increase in remote working. “These consumers should contact their insurance carriers to see if they can qualify for a reduced rate or additional discounts,” he explained. This means discounts for driving less or discovering other options to cut costs. “Additionally, these consumers may consider enrolling in a driver tracking program that provides their insurance company with more information about their specific driving habits in exchange for a reduced insurance bill.”


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