Austin, Texas, January 11, 2022 /PRNewswire/ — The zebra, the nation’s leading insurance comparison site, has Auto Insurance Report 2022 revealing the national average annual car insurance costs $1,529, up 3% from last year’s reduced rates due to the COVID-19 pandemic.
Zebra’s sixth annual State of Auto Insurance Report provides an under-the-hood look at more than 83 million auto insurance rates across all 34,500 U.S. zip codes. It examines more than a decade of data to reveal trends in prices across the country.
“In 2021, drivers started taking their cars out of ‘park’ and returned to the road,” says Nicole Beck, head of communications at The Zebra. “More drivers can lead to more potential accidents. Once the number of claims filed increases, insurance rates will also increase. However, drivers are not powerless – to lower rates, practice safe driving and take every precaution to protect your vehicles. against damage caused by extreme weather.”
The COVID-19 factor
The COVID-19 pandemic has brought major changes to the way Americans travel. The Federal Highway Administration reported a 14% drop in mileage by U.S. drivers during the first year of the pandemic. The number of kilometers driven per year is only one factor that is taken into account when pricing car insurance. That is why motorists saw rates fall by only 4% in 2020, a year of less driving. When Americans started driving again — be it back to work, grocery stores or social gatherings — prices rose as the number of claims filed returned to pre-pandemic levels.
More claims filed by deadly roads, extreme weather conditions
Drivers are back: the Federal Highway Administration estimates an 11% increase in kilometers driven October 2021. But roads have become more deadly as risky driving behaviors such as distracted and aggressive driving, speeding and drink driving have increased. The National Highway Traffic Safety Administration estimates that 20,160 people died in traffic accidents in the first half of 2021, 18.4% more than in 2020.
Weather is also an essential factor to consider as a factor in the national price increase as insurance companies try to make up for losses from claims made. Although fewer hurricanes occurred in 2021, it was still considered an above-average hurricane season. Winter storms this year set a record $15 billion in insured losses, from $1 billion in 2020, almost entirely due to two storms that occurred in February.
Prices vary up to the zip code
Each state has its specific auto insurance requirements and regulations. Auto insurance rates rose in 38 states (including the District of Columbia) and declined in 13 states in the past year. Louisiana saw the largest increase of 42%, putting the state in first place for the most expensive insurance. Maryland had the largest drop at about 9%.
Most Expensive States:
- Louisiana: $3,265
- Michigan: $2,639
- Florida: $2,425
Most expensive cities:
- New Orleans, LA: $3,532
- Baton Rouge, LA: $3,473
- Alexandria, LA: $3,202
Check out the 2022 State of Auto Insurance Report to see how gender, credit score, age, popular cars, teen drivers, and rating factors affect insurance costs by state and zip code.
About the zebra
The Zebra is the nation’s leading independent insurance comparison site. With its dynamic, real-time quote comparison tool, consumers can identify insurance companies with the coverage, service level and pricing that fit their unique needs. The Zebra compares more than 100 auto and home insurance companies and provides agent support and educational resources to ensure consumers can make the most informed decisions about their insurance. headquarters in Austin, TexasSince 2012, The Zebra has been trying to bring transparency and simplicity to insurance shopping – it’s ‘insurance in black and white’.
SOURCE The Zebra