Spending on auto insurance is up: Here’s how drivers are saving money

As part of the money-saving proposition, 65% of drivers said they would consider driving less and 10% said they would consider dropping their insurance policy altogether, according to a survey by Insurify. recently. (iStock)

American drivers are looking for ways to save money on rising car insurance rates to deal with the cost of livinghigh interest rates and inflation, says a new study.

The average American will spend $1,705 a year on auto insurance in 2022, up 4% from 2021 and 17% from 2020, according to Insurify’s 2022 Auto Insurance Trends Report .

In a bid to save money, 65% of drivers said they would consider driving less and 30% of drivers would consider switching insurance providers to find cheaper premiums. Additionally, 10% of drivers said they had considered canceling their insurance altogether.

The insurance market isn’t likely to stabilize until at least mid-2023, said Betsy Stella, Insurify’s vice president of insurance partnerships.

“Based on comprehensive research and feedback from over 100 carriers, the consensus is eight to twelve months (starting fall 2022) before the market stabilizes,” Stella said in the release. “Some think it could be years before a soft market returns.”

Also Read :  PayPal user agreement fining users up to $2,500 for promoting 'misinformation' was sent 'in error,' spox says

If you are looking to save money on car costs, you may want to consider changing your car insurance provider to get a lower rate. You can visit Credible to shop around and see your personal fees without affecting your credit score.

Rising costs prompt more Americans to cut insurance policies to save money, survey says

Lower gas prices provide some relief

Fluctuations in gas prices have reduced drivers’ spending.

The average American driver pays $4,960 a year to operate their car, the study found. Among primary care costs — insurance, gas, taxes and maintenance — gas was the single largest expense in 2022, at $1,726 based on August gas price data, the Chase Gardner, data reporter at Insurify.

Gardner said the drop in gas prices since the end of June means “the average driver is now spending $45 less per month on gas than they were this summer.”

“This drop helps offset the cost of adjacent vehicles that will increase in 2022, such as auto insurance,” Gardner said.

Also Read :  The Global Personal Finance Software Market is expected to

Since October, pump prices have decreased, but in the first week of November they increased again, according to AAA.

If you’re shopping for new car insurance, you can use Credible’s marketplace to compare multiple providers and find your best rate in minutes without affecting your credit score.

More consumers shopping for new car insurance to save money: JD POWER REPORT

Tips to lower your insurance rates

Americans looking to lower the cost of their car said they would consider buying a hybrid or electric car (30%), while 16% said they would consider moving to a city with better and more accessible public transportation. . Here are some other ways Insurify suggests drivers can save money:

  • Compare quotes from at least four to five companies before choosing a policy and review your policy every six months to make sure it still meets your needs.
  • Check out discounts and insurance savings. Drivers can reduce their car insurance premiums by up to 15%, worth $258 per year for the average driver, through a policy that offers discounts for risky driving, according to Insurify. These behaviors may include becoming an AAA member or taking an auto safety class.
  • Just pay for the coverage you want and need. Understanding what your policy covers is the first step to determining if it meets your needs. All US states, except New Hampshire, require liability coverage, according to Insurify. This covers injuries and property damage to other parties when you cause an accident.
Also Read :  Hospitality Software Frontrunner Agilysys Receives Three Awards for Mobile Food & Beverage (F&B) Ordering and Payment Self-Service, Interoperability Advancements and Positive Impact on the Gaming Industry

If you are struggling with rising costs and want to save money, you may want to consider finding a new car insurance provider to lower your monthly premium. Visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.

AUTO, DOMESTIC VEHICLE SALES Hindered in Q2, TRANSUNION Says

Have a finance-related question, but don’t know who to ask? Email The safe money experts at [email protected] and your questions may be answered by Credible in the Expert Money column.

Source

Leave a Reply

Your email address will not be published.