Auto insurance rates are projected to increase significantly in 2023 according to recent reports from insurance industry experts. Property and casualty insurance companies, which provide auto and home insurance, are facing higher costs that are expected to be passed on to consumers in the form of higher premiums.
Several factors are driving the increase in auto insurance rates. Vehicle repair costs have been rising due to more advanced electronics and sensors in new cars. Medical costs associated with auto accident injuries have also been increasing. In addition, traffic accident rates have started climbing again after a decade of declines, leading to more claims being filed with insurance companies.
For the average driver, higher auto insurance rates mean you will pay more for your car insurance policy when it comes time to renew. The projected rate increases vary by company and coverage level but are expected to be in the range of 10 to 30 percent. Some drivers may see even larger increases depending on their driving and claims history.
The impact of inflation on insurance rates is ongoing from year to year. Even moderate inflation of just a few percent annually can significantly increase business costs over time for insurance companies, which then results in steady premium increases for consumers. Fighting inflation is an important factor in helping to control the rising cost of auto insurance for drivers.
To avoid significant rate hikes, drivers should talk to their agents to adjust coverage levels and discounts to meet their needs at a lower cost. Drivers with a good driving record and no recent claims may also qualify for discounts that can help offset some of the increase.
Christina DeSimone Nappi
Desimone Agency Insurance
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