Auto Insurance Rates Rise

By: James Flippin · February 10, 2023 · Reading Time: 3 minutes

National Averages

The cost of an auto insurance policy is up nearly 14% from last year. This trend is likely to continue, as auto insurers try to offset the rising cost of repair parts, labor, and claims.

On average, drivers are now spending almost 3% of their income on car insurance, up about 0.5% from last year.

However, it’s important to note these numbers differ from state to state. In New York, drivers spend over 5% of their income on car insurance. Meanwhile, in the cheapest states, Vermont and Maine, residents pay an annual average of about 1.5% and 1%, respectively.

What’s in a Policy?

The cost of your individual auto policy will vary depending on a few factors. While quoting you a policy, insurers are going to weigh factors like your location, driving record, credit score, age, and type of vehicle.

Some of these factors, like your location, can’t be helped – unless you plan to move states just to take advantage of lower rates. But other factors like your driving record and credit score can be improved over time.

Lowering Your Rate

Good strategies to find a lower auto insurance policy include:

•   Asking about discounts. Insurers will often offer discounts for safe drivers, student drivers, low mileage drivers, and work-from-home employees.

•   Switching to a pay-per-mile policy. If you don’t drive too frequently, a pay-per-mile insurance policy could save as much as $1,000 per year.

•   Shopping around. It’s worth checking with every provider in your area to find the best rate. On top of that, some may even offer you a discount just for switching from a rival insurance company.

With the cost of auto insurance accelerating and the destination not yet in view, now is the time to ensure your policy is as affordable as it possibly can be.

Comparing rates for car insurance coverage is made easier with SoFi, powered by Experian. Regardless of what type and how much coverage you decide you need, comparison shopping will help you get a competitive price.

Check it out

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