TUCSON, Ariz. (KGUN) — Drivers are likely to pay more for car insurance in 2023. The average annual rate increase across the U.S. is 8.4%, compared to the 1.3% from what we saw in 2022.
Arizona is set to have the second highest increase in car insurance rates of all states in the U.S. this year.
Arizona’s year-over-year rate increase is 15.6%, which is a big change from the 3.8% we saw in 2021. Illinois is coming in at number one with 17.1%
Local insurance agents are saying this auto insurance rate increase isn’t too much of a surprise since people are starting to drive more, and the cost of labor and material is a lot higher for auto companies right now.
“Projecting 2023 is difficult because we are seeing things happen that I haven’t seen in 16 years like cars appreciating which is still happening," saidBrittni Gutman, Allstate Insurance Agency, LLC.
Gutman explains that Arizona has a large population of uninsured drivers that also could be impacting how much you are paying each month for insurance. She advises customers to shop around for insurance and always revise your policy as rates across the nation continue to increase.
Arizona drivers will see rate changes in 2023 when their policies are up for renewal and to put it into perspective for you the average cost of full coverage car insurance for this year is $1,780 per year.
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Brooke Chau is a reporter for KGUN 9. She was a part of Fresno State's newscast, Fresno State Focus and interned at KFSN-ABC30 in Fresno, CA before coming to KGUN 9. Share your story ideas and important issues with Brooke by emailing brooke.chau@kgun9.com or by connecting on Facebook, Instagram and Twitter.
