While inflation appears to be on the downslide, auto insurance is just starting to increase. Consumers are forking over 13.72% more for auto insurance in 2023 as compared to last year.
The numbers are from Bankrate.com’s 2023 True Cost of Auto Insurance Report.
“Although inflation has shown signs of slowing lately, we expect rates to continue to rise in 2023," says Cate Deventer, insurance analyst with Bankrate.com.
"Full coverage car insurance premiums rose in part due to inflation, supply chain disruptions and labor shortages. These factors all individually increase the cost of claims, and when combined, drove up the cost to repair or replace vehicles significantly."
Dallas drivers pay $1,981 for auto insurance each year (up about 4% since last year), which is approximately 2.67% of their household income.
That is compared to the national average premium of $2,014/year, which is 2.93% of the average U.S. household income.
Why is the Dallas area a little more affordable?
"It's hard to point the finger at any specific things," Deventer says. "Generally when we see a lower number, it indicates there's a lower risk to the insurance provider."
The study also notes that everyday life events can majorly impact auto insurance premiums.
Adding a teen driver to the policy will increase Dallas auto insurance premiums to $4,332/year. (Rates for adding a teen driver are based on a married couple with a 16-year-old driver on their full coverage policy)
A decrease in credit for a Dallas driver will increase premiums to $3,217/year.
Causing a car accident will increase Dallas auto insurance premiums to $2,796/year.
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