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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: Jordan Siemens/Getty Images June 09, 2022 Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. The inflation that is making life difficult for consumers is also impacting car insurance companies. Across the nation, 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 filing is about 4.9 percent. This means that, with the average cost of car insurance at $1,771 per year for full coverage, consumers could soon pay as much as $1,858 annually for the same coverage. To help you prepare for the coming increases, Bankrate dug deep into the data to find out which states are the most and least impacted by rate increases. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More Lightbulb Key insights Nearly 2 million policyholders in Minnesota may experience the highest rate hike approved in the U.S. New York, Louisiana and Nevada policyholders may experience the highest premium impacts after rate increases take effect. Rates will likely continue increasing in 2022 due to inflation and increased insurance claims. Approved auto insurance rate increases
Throughout the year, car insurance companies file their rating algorithms to each state’s Department of Insurance for approval. These algorithms include rate increases, decreases or underwriting changes, or may include a combination of changes. To help consumers understand how their budget might be affected by , we utilized S&P Global Market Intelligence to identify rate changes and analyzed average premium data from Quadrant Information Services to estimate premium impact. All rate change data represents approved rate filings between January 1, 2022, and May 18, 2022. It’s important to note that, although these are average, not all consumers will be affected equally. Some companies may file rate decreases, for example, while other companies filed large increases. Rate increases are also not usually unilateral, meaning they don’t apply to an entire policy or driver. Typically, rate filings are pinpointed to specific coverage types 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 filings to a different system; therefore, approved data was unavailable. Finally, California is not currently approving rate increases. Rate increase requests have been made in California, but none have been approved. States with the highest auto rate percentage increases
Minnesota is, by far, the state with the highest auto rate increase. Based on the current rate filings in the state, nearly 2 million policyholders will experience an average rate increase of about 14 percent. Arizona and Louisiana are also hard-hit states, with average increases of over 7 percent. State Percentage rate change Number of policyholders affected +14.0% 1,984,835 +7.1% 2,910,569 +7.1% 827,667 +6.7% 431,112 +6.2% 4,629,130 States with the lowest auto rate percentage increases
Only Massachusetts has an overall average car insurance rate decrease. Rate increases in Vermont and Colorado are lower than 1 percent on average, but all other states have an average increase of 1 percent or more. State Percentage rate change Number of policyholders affected -0.1% 399,570 +0.2% 30,098 +0.4% 666,357 +1.0% 97,614 +1.5% 229,300 States with the most impactful premium increases
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 may experience a big jump in premiums, even with a lower average percentage rate increase. Bankrate reviewed the in all 50 states and Washington, D.C. and analyzed 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: State Average annual full coverage premium before rate changes Percentage rate change Estimated average annual full coverage premium after rate changes $2,996 +4.0% $3,117 $2,864 +7.1% $3,066 $2,426 +6.7% $2,588 $2,345 +3.7% $2,432 $2,009 +5.8% $2,126 What will happen with auto insurance rates throughout 2022
Current rate filings show that, on average, car insurance rates have trended upward in the first half of 2022. But what will happen in the remainder of the year? Between January 1 and May 18, there were an average of 9.1 approved rate increases per day in the country. This means that, for the rest of 2022, there is a high probability that rate increases will continue to be filed. According to Greg McBride, Chief Financial Analyst at Bankrate, “With inflation running at 40-year highs, auto insurance premiums will also be pushed higher, in part reflecting the higher costs to repair and replace vehicles.” Increased costs for insurance companies are then shifted over to policyholders. According to Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute, “We expect to see significant rate actions taken by many national and regional insurers during the second half of 2022 as auto insurers are experiencing a large spike in the frequency and severity of auto accidents. As a result, insurers’ loss costs have increased substantially because claim payouts are higher due in part to the escalating prices of auto replacement parts, which have increased by double-digits year-over-year due to supply chain disruption, as well as the rising costs of labor.” Car insurance companies often increase rates to help rebuild their claims reserves. Although paying a higher premium is not ideal, it could mean a greater likelihood that a company will be able to stay financially healthy enough to pay future claims. The bottom line
There is a good chance that auto insurance policyholders will see an increase in their 2022 insurance rates if they haven’t already. Knowing that rate increases are coming could help you plan your budget accordingly. It’s important to remember that not all rate hikes are created equal, though. Increases may only affect a certain coverage type or a certain driver profile, leaving other policyholders unaffected. For policyholders experiencing premium increases, it may be a good idea to shop for a new policy or find ways to offset these increased costs through additional discounts, like telematics discounts, if your insurer offers that option. Methodology
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits: $100,000 bodily injury liability per person $300,000 bodily injury liability per accident $50,000 property damage liability per accident $100,000 uninsured motorist bodily injury per person $300,000 uninsured motorist bodily injury per accident $500 collision deductible $500 comprehensive deductible To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should only be used for comparative purposes. For private passenger auto rate filings, we partnered with S&P Global Market Intelligence. S&P compiles rate filings from (SERFF). Some states, including Florida, do not report rate filings to this system, and therefore, data is unavailable. SHARE: Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Amy Sims is a managing editor for Bankrate, leading a team responsible for creating educational insurance content.