Drivers are likely to see an increase in insurance premiums in 2023. Here’s why
Car insurance premiums are expected to creep up this year, but there’s good news for policyholders in Washington: It could be worse.
ValuePenguin’s State of Auto Insurance in 2023 Report predicts an 8.4% increase for car insurance premiums this year. The average cost for full coverage for the year is estimated at $1,780.
Washington’s rates are expected to be, on average, $1,536 for the year — which ranks 34th in the nation. That’s 14% lower than the average.
Nationwide, drivers with traffic violations will see their premiums rise 52% on average, and insurance on new electric vehicles will 28% higher than new gas cars due to the higher price of repairs for EVs.
There’s a number of factors at play pushing rates up, according to AM Best’s Review for January of 2023:
- Rising medical costs for individuals injured in auto accidents
- Higher fatality rates from accidents
- Increased costs to repair newer, more sophisticated vehicles
- Supply chain delays and labor market challenges adding to rental car costs as policyholders wait for extended periods to have their cars repaired
- Higher used car prices
The Office of the Insurance Commissioner’s website offers tips and reminders for reducing your monthly insurance premiums, including:
- Shop around for lower premiums
- Find out insurance costs before buy a car
- Consider higher deductibles
- Ask your agent about common insurance discounts
