If you are looking to buy a new car there is good news and bad news. The good news is that prices finally appear to be stabilizing after a year of tight supply; nevertheless, insurance rates are expected to rise.
A report from the online insurance marketplace Insurify predicted that auto insurance will have an average increase of 7% by 2023 after rising 9% this year. with the increase the average typical annual rate would rise to $1,895.
To reach the conclusion, 69 million insurance applications were analyzed and it was found that 47% of the insured had at least one rate increase this year and almost 20% reported multiple increases.
States such as Oregon, Maryland and Virginia led the list for the most increases in insurance with more than 25%. Michigan was the most expensive state to insure a car at $2,895 despite finding a 1% increase this year.
Insurify CEO Snejina Zacharia said that Higher driving rates, coupled with more serious accidents, the impact of inflation on vehicle repair and medical costs, as well as the potentially higher frequency of wildfires and hurricanes are key elements that will contribute to higher rates in next year.
Concerns about insurance prices increased from July to November as lower gasoline prices led more people to worry less about how much they were driving.
In view of future price increases, Insurify suggests choosing a more affordable vehicle that is cheaper to insure, shopping around for the best policy price, and checking for discounts you may qualify for. If you are looking for a used car you will also have to pay attention to the prices, since the demand for new cars has led to the appreciation of their value.
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Source: La Opinion