Car Insurance Rates on the Rise for 83% of U.S. Drivers
Tuesday, February 12th, 2019
The Zebra, the nation's leading car insurance search engine, today released its 2019 State of Auto Insurance Report, which reveals that car insurance rates have risen for four out of five American drivers (83%) over the past year. In fact, rates across the U.S. are higher than they've ever been — up 23% since 2011 with an average annual cost of $1,470.
Most expensive states:
Rhode Island: $2,110
Most expensive cities:
Detroit, MI: $5,464
New Orleans, LA: $3,686
Hialeah, FL: $2,997Erratic — Rates vary dramatically, with massive increases (and some decreases) over time, and vast disparity even within a single state.
In Colorado, car insurance costs are up 80% since 2011, but they're down 20% in Oklahoma in the same time frame.
Rate changes from year to year have been as high as 45% in some states.
Even within a state, rates can vary from one zip code to another by as much as 265%.Evolving — In 2019, technology is changing both how people drive and how car insurance companies operate.
Insurance companies are using telematics (apps or plug-in devices to monitor a driver's behavior), which has the potential to lower costs for safe drivers and provide extensive data about driving trends.
Distracted drivers are starting to pay the price for their dangerous behaviors with an average insurance rate penalty of 20%.
Although new technology is making cars safer, it's also making them more expensive to repair or replace, so drivers likely won't see any car insurance savings for these new car features.
Car insurance companies are already leveraging insights from consumers' online behavior for marketing and other purposes, and there is potential this data could inform how they price rates in the future.