Like many things right now, the cost of auto insurance is rising.
For 2022, the average national cost to insure a car is expected to jump 5% to $1,707 annually, up from $1,663 in 2021, according to Insurify.
“Our prediction for 2022 is on par with projected inflation rates, and factors in the continued elevation in reckless driving behaviors, which have become more frequent following the 2020 Covid lockdowns,” said Tanveen Vohra, Insurance Specialist at Insurify.
Inflation is touching most aspects of American life, with everything from groceries to cars and gas jumping in cost. The latest data shows inflation rising at an annual 6.8% clip, far above the Federal Reserve’s 2% target.
Meanwhile, Americans drove 32% more miles in March, April and May of 2021 compared with the same months in 2020, when shutdowns early in the pandemic resulted in fewer cars on the road, according to Insurify’s research.
However, the fatality rate was 26% higher in spring 2021 than it was in 2019, pre-pandemic, “suggesting that reckless driving habits adopted during initial pandemic shelter-in-place orders have endured well beyond the onset of the pandemic,” the report says.