Car Insurance on the RiseHaving a car gives us freedom to travel, but ownership comes with a variety of expenses. Car insurance can be particularly pricey, especially if you live in a heavily populated area of the country. The average cost of car insurance in Iowa is $1,260 for a full coverage policy, while the local average for minimum coverage is $252, according to Bankrate’s 2021 study of quoted annual premiums. That breaks down to $105 and $21 per month, respectively.
Although inflation rates may continue to decline throughout 2023, car owners will likely see an increase in already high insurance rates, making it important to shop around and find the insurance that works best for you.
Although inflation rates are expected to decrease as we move through the new year, car insurance rates are expected to increase by an average of 8.4% across the US, according to research by ValuePenguin. Each state is expected to see an increase by at least 1%, while states such as Illinois, Arizona, Georgia and New Hampshire may see a rise up to 17%. Rates have risen by an overall 16.5% since 2017 due to factors including post-pandemic return to travel, rising car costs, extreme weather due to climate change and higher electric vehicle sales.
Finding (and Keeping) the Best Rate
If you’re looking to keep car insurance rates to a minimum, there are a few things to consider:
- Traffic Violations: Keeping a clean driving record is one of the best ways to keep your insurance rates to a minimum. Drivers with a traffic violation or accident could see a rise of 52%, on average, while a DUI causes an average increase of 84%. Depending on the violation, your rates could be impacted for 3-5 years after the incident.
- Location: Location is one of the biggest factors when it comes to insurance rates. Michigan has the highest rates in the country, with an average annual cost of $4,788 per year. On the other hand, Vermont, Maine and Idaho have rates approximately 36% lower than the national average. While most of us are not in a position to relocate based on car insurance rates alone, it’s something to keep in mind when planning a move.
- Shopping for the Best Rate: When shopping for car insurance, it’s a good idea to get multiple quotes even if you’ve been with your company for a while. When comparing rates, be sure to check that the coverage and any additional features of the plan are what you’re looking for. For example, some plans may be more affordable but require you to pay more out of pocket if something happens, while others may include extra features such as roadside assistance.
When in the market for a used car, stop by Carousel Preowned. Carousel Preowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.