Expect to pay more for car insurance in 2023, analysts say

Jason Stoogenke
·1 min read

You’ve probably noticed that gas prices are coming down. According to GasBuddy, North Carolina’s average dropped 40 cents from last month, and South Carolina’s almost 44 cents.

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But Action 9 investigator Jason Stoogenke says drivers should plan to pay about $10 more on car insurance per month next year.

The group Insurify says the average driver has been paying $1,777 for car insurance this year. The group expects that to go up to $1,895 next year, which is a 7% jump, and 29.5% more than 2020.

There are at least three reasons why:

1. People are driving more.

2. Cars and car parts are more expensive because of inflation and lingering supply chain issues.

3. More accidents. Safety groups say there’s more reckless driving since the pandemic started. There are different theories why, but no matter the reason, federal safety officials estimate 9,560 people died in crashes the first three months of this year, the highest rate since 2002.

Bottom line: more expenses and more claims mean higher rates.

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So how can you offset higher rates?

Stoogenke says:

- Ask your insurance company about discounts.

- Shop around.

- Own a less expensive car.

- Make sure you have a good driving record.

- Work on your credit score.

- You may want to go with less coverage or a higher deductible but weigh the pros and cons very carefully first.

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