Auto insurance rates are rising in 2023

PHOENIX — A new report from Bankrate.com details how much more Americans are expected to pay for their annual auto insurance premium.

The report says on average, Americans will pay an average annual premium of $2,014, about 3% of the median U.S. yearly income. This is a slight increase of half a percent compared to premiums in 2022.

The average premium increase across all states was $95 with drivers in some states faring better than others.

New Jersey and Massachusetts are the two states with annual premiums dropping.

New York was ranked dead last among the states with drivers paying about 5% of their annual income for car insurance, a 1.18% increase from 2022.

Arizona ranked 15th with a premium average of $1,810, slightly below the U.S. average.

Arizona drivers are expected to pay $67 more in insurance premiums this year.

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Live events can have a major impact on what drivers end up paying for auto insurance.

Arizonans insuring teenage drivers will more than double annual insurance premiums.

A DUI will cost on average $1,719. A drop in credit score will have drivers forking over an additional $1,448.

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The impact of a drop in credit score is not proportional either.

Annual premiums for U.S. drivers with excellent credit make up 2.56% of their annual income.

Drivers with poor credit are nearly double with annual premiums costing them 5.05% of their yearly income.

Bankrate’s report attributes this to drivers with lower credit scores being statistically more likely to file claims, leading to higher rates.

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There are more obvious factors that increase premiums as well such as at-fault accidents, or the type of car for example.

Bankrate says that electric vehicles are generally more expensive to repair or replace.

As they grow in popularity they will impact rates even for drivers that don’t own one.

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