The average cost of auto insurance premiums is predicted to go up dramatically in 2023. Prices are expected to rise by more than 8%, which is the biggest jump in six years. Nearly all states are likely to be affected and some will be hit harder than others.
How do we know?
A report published each year called the State of Auto Insurance Report is a great resource. It informs the insurance industry about costs and predictions regarding motorist and auto trends.
Even excellent drivers may see increases, but there are a few actions you can take to offset rising costs. Keep reading for a breakdown of this year’s report and how to get a defensive driver insurance discount.
What’s in the State of Auto Insurance Report?
The State of Auto Insurance Report covers several topics. Within each topic, the report provides current stats and other information gathered from credible data sources. The report is a deep dive, but the highlights of each section can help you see where it’s all going.
First, 45 states are expected to see an insurance rate increase of at least 1% this year. Michigan residents pay the highest car insurance premiums because the state requires drivers to maintain higher levels of coverage than anywhere else. It’s already 168% higher than the national average but they can expect an increase in 2023.
Researchers also look at year-over-year increases in insurance costs to identify trends. If you live in Illinois, Arizona, Georgia, or New Hampshire, your increase may be up to 17% more than last year.
The cost of new vehicles and potential repair prices impact the outcomes, too. As inflation spikes, it will cost your insurer more to cover any repairs and that increase is then passed on to drivers in the form of higher auto insurance premiums.
Crossover SUVs and small sedans are among the least expensive to insure because their repairs and replacements are the least expensive. Larger SUVs and trucks tend to be more expensive to fix, so these cost much more to insure. Electric cars are evaluated and affected similarly.
4 Ways to Save on Car Insurance
The outlook seems bleak but there are several things you can do to help manage your own auto insurance costs. From making small changes to improving your perceived responsibility, there are action items you can work on immediately.
Cost Comparisons
It’s a good idea to shop around every few years to be sure you’re getting the best possible rate on your auto insurance premiums. Insurance companies are very competitive so they’re constantly finding ways to streamline and offer better deals. If you find a better rate, ask your current insurer if they can beat it.
Ask About Adjustments
If you are still paying for full-coverage insurance, ask yourself if this is necessary. Unless it’s required by your auto financer you may be able to make adjustments to save on your car insurance premiums. Plus, you can reduce your rates by removing any optional extras you’ve forgotten about.
Work on Your Credit Score
It may seem arbitrary, but the insurance companies in many states factor in your credit score when deciding your auto insurance premiums. According to the State of Auto Insurance Report, there’s a potential difference of up to 80% between premiums for people with poor credit versus good credit.
Learn About Auto Insurance Discounts
Are you aware of what potential car insurance discounts your insurer offers? This changes over time so it’s worth asking about. Some examples of discounts we’ve seen:
- Bundling multiple types of insurance like home, auto, and life insurance
- Usage-based Insurance discounts that allow them to track your driving habits
- Loyalty discounts for staying with them for a certain number of years
- Low-mileage discounts for those who aren’t on the road much
- Automatic payment withdrawals or going paperless for billing
- Discounts for paying annually in full instead of monthly installments
- Safe vehicle discounts for having specific features on your car
- Good driving discounts for being accident-free over a number of years
- Good student discounts and long-distance student discounts
- Affiliation discounts if you are a veteran or work in certain industries
- New vehicle discounts because you’re less likely to need repairs
- Defensive driver discounts for those who take a safe driver course
Some of these options only apply if you’re in specific stages or circumstances of life–like college or military service. Some of them are actionable things you can do right away, such as the defensive driver insurance discount and going paperless for your billing.
What’s a Defensive Driver Insurance Discount?
You can earn a defensive driver discount by completing an online traffic school course and gaining a certificate of completion. This shows your insurance company that you’re committed to being a safe driver. Insurers typically offer auto insurance discounts for safe driver training, and we’re happy to help by providing easy-to-take driver improvement courses.
Even if you’re a cautious and experienced driver, there are a lot of uncontrollable factors on the roadways.
A defensive driver class teaches you the best ways to avoid and react to dangerous hazards like aggressive drivers, distracted driving, poor roads, extreme weather, and mechanical malfunctions. It also reviews laws and best practices for safe driving. You’ll become a better driver and get rewarded with auto insurance discounts.
Get Moving and Start Saving!
When you choose DriveSafe Online, you get the best online traffic school available at a much lower price than you might expect. There are no hidden fees or surprises after signing up. You get access to the full-screen videos, practice tests, final exam, and completion certificate for one affordable registration fee.
You’ll be able to access your course from multiple devices, and since the course is online, you can work at your own pace. Once you pass the exam, your certificate is emailed to you immediately.
In as little as one hour, you can be on your way to saving money with a defensive driver insurance discount. Try our free demo to see how easy it is and get started now.
Join 500,000 drivers who use a DriveSafe Online defensive driving course to receive an auto insurance discount or to dismiss a traffic ticket. Select your state to lock in your low price now. You can begin the course whenever your schedule allows.
Patrick M. is Editorial Director for the always expanding DriveSafe Online library of courses. With over two decades of experience developing award-winning training, he now focuses on innovating online driver safety training. Pulling from his background in journalism, he steers the wheel behind the creation of top-tier content that promotes a better journey—whether on the digital highway of learning or the real roads we travel every day.