Car insurance premiums are expected to increase this year

Lending Tree estimates the average annual car insurance premium in Washington will be $1,536 this year. This is well below the estimated national average of $1,780.

OLYMPIA, Wash. — Car insurance rates are expected to increase this year in Washington state and nationally. The state’s Office of the Insurance Commissioner says this is because companies are paying more for claims.

“As we see the cost of auto repairs and claims go up, so do companies,” said David Forte, senior policy analyst with the Office of the Washington State Insurance Commissioner. insurance will have to adjust their rates.

Forte said there are many reasons why rates are expected to rise in 2023. Used cars are now more expensive, causing insurers to pay more when totaled. New cars also increase in price because many are more technically complex and take more time and money to repair. In addition, supply chain issues are making auto repairs more time and money.

“Supply chain issues over the last year, parts shortages, cars taking longer to repair, all of these have contributed to increased claims costs,” Forte said.

Data that the Washington State Office of Insurance looked at from Lending Tree shows two reasons why you might see rates rise sharply. If you commit a traffic violation, your insurance premiums can increase by an average of 52%. If you have a new electric vehicle, you can expect your insurance premiums to increase by an average of 28% due to repair costs.

Lending Tree is expecting car insurance premiums to grow 8.4% nationally this year to an annual average of $1,780. In Washington, rates are expected to be lower at $1,536 per year.

Forte says ways to try to lower your insurance premiums are to look at the type of car you buy, search for insurance providers, and also discuss options with your current insurance provider.

“You can change your life risk profile without them knowing. So you can also get some of the popular discounts that are currently available,” said Forte.

An initial report from the Washington Transportation Safety Board found 745 people will die in accidents in 2022, the most since 1990. This increase in deaths is another reason premiums are rising. .

“The increase in the number of deaths is a matter of consideration, but it also increases the medical costs for those injured in auto accidents,” Forte said.

Forte says repair and medical expenses have dramatically increased auto insurance coverage. As rates increase, he said, the Washington State Insurance Commissioner’s Office will continue to review all rate increases to make sure they are necessary.

“We are doing all we can to ensure that this increase in auto prices is statistically justified and justified by insurers,” Forte said.

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