Exploring Group Auto Insurance: New York’s Workplace Benefits – Written by Cate Deventer Written by Cate DeventerArrow Right Former Insurance Writer and Editor Cate Deventer is an insurance writer, editor, and professional with more than a decade of experience in the insurance industry as a licensed insurance agent. Connect with Cate Deventer on Twitter Twitter Connect with Cate Deventer on LinkedIn Linkedin Cate Deventer and June Sham Written by June ShamArrow Right Former Insurance Writer June Sham is a former insurance writer for . Prior to joining the team, she worked for nearly three years as a licensed producer writing auto, property, general and earthquake policies. june charade
Edited by Amy Sims Edited by Amy SimsArrow Right Managing Editor, Personal Finance Amy Sims is Managing Editor at , leading a team responsible for creating educational insurance content. amy sims
Exploring Group Auto Insurance: New York’s Workplace Benefits
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The inflation that makes life difficult for consumers is also affecting auto insurance companies. Across the country, auto insurers are filing rate changes, many of which are rate increases. According to data from S&P Global Market Intelligence, the average rate increase presented is around 4.9 percent. This means that with the average cost of auto insurance at $1,771 per year for comprehensive coverage, consumers could soon pay as much as $1,858 per year for the same coverage. To help you prepare for upcoming increases, drill down into the data to discover which states are most and least affected by rate increases.
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Costs will continue to rise through 2022. Shop for a better rate before renewing your current policy.
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Throughout the year, auto insurance companies submit their rating algorithms to each state’s Department of Insurance for approval. These algorithms include rate subscription increases, decreases, or changes, or may include a combination of changes. To help consumers understand how their budget could be affected by increases in auto insurance rates, we used S&P Global Market Intelligence to identify rate changes and analyzed average premium data from Quadrant Information Services to estimate the impact on the cousins.
All rate change data represents rate submissions approved between January 1, 2022 and May 18, 2022. It is important to note that while these rates are average, not all consumers will be affected equally. Some companies may present rate reductions, for example, while other companies have presented large increases. Rate increases aren’t usually one-sided either, meaning they don’t apply to an entire policy or driver. Rate filings typically focus on specific types of coverage and specific pricing factors, including a driver’s claims history and the type of vehicle they drive.
It should be noted that Florida reports rate submissions to a different system; therefore, approved data was not available. Lastly, California is not currently approving rate increases. Requests for rate increases have been made in California, but none have been approved.
Minnesota is by far the state with the largest increase in auto rates. Based on current rate filings in the state, nearly 2 million policyholders will experience an average rate increase of approximately 14 percent. Arizona and Louisiana are also hard hit states, with average increases of more than 7 percent.
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Only Massachusetts has an overall decline in the average auto insurance rate. Rate increases in Vermont and Colorado are less than 1 percent on average, but all other states have an average increase of 1 percent or more.
While knowing the average rate increase in your state can help you prepare for a potential rate increase, there’s more to the story. States with high average premiums can experience a large increase in premiums, even with a lower average percentage rate increase. reviewed the average cost of auto insurance in all 50 states and Washington, D.C. and looked at what the average premium might be after the state’s rate increase is applied. The following five states are poised to have the highest rates after the current rate increases take effect:
Current rate filings show that, on average, auto insurance rates have been trending upwards in the first half of 2022. But what about the rest of the year? Between January 1 and May 18, an average of 9.1 daily rate increases were approved in the country. This means that, for the rest of 2022, there is a
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