State of Auto Insurance in 2022
Auto insurance rates have risen again after falling last year — consumers can expect an average increase of 0.6% across the U.S. for 2022. And the average cost of full coverage car insurance across the U.S. has reached $1,935 annually.
ValuePenguin used the Quadrant Information Services database to analyze 15 million quotes for drivers across the country. These, combined with RateWatch filings, show the current and historical pictures of the auto insurance industry.
How much does auto insurance cost in my state?
The average cost of car insurance for 2022 is $1,935.
Auto insurance rates in Michigan average $7,161 a year, the highest in the U.S. and 270% higher than the national average — primarily due to the state having the highest minimum insurance requirements.
Louisiana ($3,720 — 92% higher than the national average) and Florida ($2,962 — 53% higher) have some of the most expensive yearly rates compared to national averages.
For cheap car insurance, residents in Maine ($1,051), Texas ($1,094) and Wisconsin ($1,175) will find they have the lowest auto rates across the U.S. Auto insurance in these states is 43% cheaper, on average, than nationally.
Annual auto insurance rate changes by state
Twenty-two states will see increases of 1% or greater this year, including Nebraska by 4.4% and Minnesota by 2.5%.
The biggest year-over-year rate decreases are in Hawaii (-2.7%), New Mexico (-2.3%) and Maryland (-2.3%).
In the 14 states where rates are decreasing, the average drop is 1%.
What is the cost of a traffic violation, ticket or accident?
For 2022, we found that an individual with a traffic violation or accident could see an average premium increase of 55% on average.
Texas has the largest percentage increase (142%) in auto insurance premiums on average for the analyzed incidents.
Nebraska auto insurance companies are the most forgiving under these circumstances. Insurers only increase premiums by 35% on average across these variables.
Individuals with DUI violations could see their premiums increase by 90% on average.
Avg premium increase
Percentage increases due to traffic incidents are an average across all the incidents we analyzed in this study; all quotes in this section are for full coverage.
Future of auto insurance
Auto insurance companies have begun raising rates again for 2022 after last year's drop in premiums due to the coronavirus pandemic.
Auto insurance rates increase as economic activity resumes
This is primarily due to people returning to work across the U.S., increasing travel needs and accident claims numbers.
Increase in distracted driving
Technology heavily impacts our day-to-day lives, and some people can’t put down their devices while operating a vehicle. This has drastically increased distracted driving injuries and fatalities, with more than 3,000 yearly deaths on average.
Company-specific auto insurance plans
Car manufacturers are rolling out new company-specific insurance policies. Tesla has started selling car insurance in California and Texas as part of a nationwide rollout, and General Motors has begun selling OnStar Insurance in Arizona.
Vehicles are now more equipped with on-board gadgets. After a crash, this can make car repairs more expensive, leading to insurers increasing rates across the board for these vehicles.
How can I save money on auto insurance in 2022?
Compare car insurance quotes
The most important aspect of searching for car insurance will be comparing quotes from several insurers. Our analysis shows that quotes can vary widely across the largest insurance companies.
Find car insurance discounts
Insurance companies offer many ways for their customers to lower their rates. In the wake of increased work from home, many insurers are offering discounts for driving less, or even pay-per-mile car insurance, which can reduce rates significantly for light drivers.
Adjust your coverage
Switching from full to minimum coverage is a great way to save a significant amount on your car insurance premiums. Full coverage is 147% more expensive than liability-only. And removing optional coverages like roadside assistance or new car replacement can bring down your bill, too.
Improve your credit score
Insurers usually evaluate your credit as a key factor for your insurance rates. Our analysis found the difference between a good and poor credit score can change premiums by 48%, as people with poor credit may be more likely to file claims with their insurers.
About this report
ValuePenguin has a mission to empower consumers with information and resources to help them make smarter and more financially sound decisions. Car insurance can be a difficult and time-consuming topic to understand. This report attempts to unmask some of the critical issues.
In crafting our analysis, we reviewed more than 15 million quotes for different drivers, adjusting for various factors that affect auto insurance premiums. We gathered prices from 72 insurers across the country since insurers may charge drastically different prices.Media Contact
U.S. Insurance Companies
Methodology of this report
Auto insurance rate change data was compiled using RateWatch from S&P Global. The tool is updated yearly using information posted by the National Association of Insurance Commissioners (NAIC).
Our base driver was a 30-year-old man who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state. Standard rates and rate changes were for a driver with an average credit history and no prior traffic incidents. For all other quotes, such as those that included a DUI or speeding ticket, variables were changed to fit the sample profile.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only, as your quotes may differ.
We collected quotes for full coverage and minimum coverage. Minimum coverage corresponded to the minimum amounts required by the states. Full coverage quotes included the following:
Full Coverage Policy
|Coverage Type||Coverage limits|
|Bodily injury liability||$50,000 per person/$100,000 per accident|
|Property damage liability||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
|Personal injury protection||Minimum when required by state|