Why are car insurers raising the price of premiums in 2023?

In recent months, car drivers have had to adjust their pockets due to the increase in premiums by insurers.

According to figures from Nerdwallet, the average cost of full-coverage auto insurance in the United States is $2,148 per year, based on 2023 rate analysis; This figure is well above the average for 2022, when the average premium was $1,935 per year, which represents a more than ten percent increase.

Given the upward trend, car insurance costs are expected to continue rising through the end of 2023; but why? Next, we will explain it to you.

Why are car insurers raising the price of premiums in 2023?

According to a couple of analyzes by Market Watch and Value Penguin, there are several reasons behind the high prices; from the increase in the cost of cars; that is, more expensive vehicles, up to more costly repairs, slower claims processing, an increase in storm-related claims, and the resumption of daily commutes.

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Average Annual Cost by State

Here’s the average annual auto insurance costs for full coverage in each state, according to Nerdwallet.