Why are car insurers raising the price of premiums in 2023?
Auto insurance costs are much higher compared to the average of a year ago, up over ten percent. Why are insurers raising premium prices in 2023?
![The reasons behind the rise in car insurance](https://img.asmedia.epimg.net/resizer/v2/ZBELN4IJGFCVNN6NAJR3R37GAI.png?auth=1441456b8acbca529eaad87fae0ef9cc2fd06c4581e2fad0a353eb2a0763516e&width=360&height=203&smart=true)
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.
- Alabama - $2,269
- Alaska - $1,955
- Arizona - $2,155
- Arkansas - $2,160
- California - $1,659
- North Carolina - $1,487
- South Carolina - $2,715
- Colorado - $2,698
- Connecticut - $2,604
- North Dakota - $1,869
- South Dakota - $1,593
- Delaware - $2,601
- Florida - $3,605
- Georgia - $2,509
- Hawaii - $1,631
- Idaho - $1,349
- Illinois - $1,747
- Indiana - $1,433
- Iowa - $1,596
- Kansas - $2,290
- Kentucky - $3,357
- Louisiana - $3,399
- Maine - $1,323
- Maryland - $2,998
- Massachusetts - $1,394
- Michigan - $3,229
- Minnesota - $1,931
- Mississippi & -$1,950
- Missouri - $2,706
- Montana - $2,831
- Nebraska - $1,788
- Nevada - $3,058
- New Hampshire - $1,557
- New Jersey - $2,809
- New Mexico - $2,127
- New York - $2,600
- Ohio - $1,423
- Oklahoma - $2,438
- Oregon - $1,888
- Pennsylvania - $2,266
- Rhode Island - $3,300
- Tennessee - $1,997
- Texas - $2,398
- Utah - $2,240
- Vermont - $1,376
- Virginia - $1,922
- Washington - $1,759
- Washington DC - $2,260
- West Virginia - $2,075
- Wisconsin - $1,683
- Wyoming - $1,553