In 2022, many Americans saw their car insurance premiums increase, and some studies believe that the trend will continue into 2023.
There are a number of potential causes for the expected rise in automotive insurance costs. There are ongoing supply chain issues throughout the auto industry, a rise in demand for tech-savvy auto repair workers, gas price volatility and more, according to various studies.
Shortages of parts and new vehicles, waves of retiring mechanics and deadlier roads and more are changing the automotive insurance landscape for insurers and you, according to a study by The General Insurance.
According to a report by Insurify, the average cost of auto insurance increased by 9% to $1,777 per year in 2022. It expects the rate to increase by another 7% to $1,895 in 2023.
The auto industry may be facing a major labor shortage as older workers retire and the auto industry becomes more technology driven, which can affect the cost of car insurance.
The automotive and transportation industry will need to fill about 642,000 technician jobs by the year 2024, according to a 2020 projection by TechForce.
Dealerships and lobbying groups have struck partnerships with schools and nonprofits in recent years to train the next generation of auto technicians, The General said in its study. As cars are loaded with more computer parts, their jobs have become more technologically advanced. The report said that The costly dilemma for drivers is only anticipated to continue for the foreseeable future. The Bureau of Labor Statistics predicts that the number of auto technicians employed in the U.S. will remain the same through the end of the decade. If you want to lower your auto expenses, there are ways to lower your monthly car insurance payments, such as switching providers. You can compare and contrast multiple providers on Credible to see if one is right for you.
Americans may see some relief in their car expenses after gas prices around the country hit record highs in 2022. According to GasBuddy's 2023 Fuel Outlook, the yearly average price for gas is expected to dip nearly 50 cents per gallon from the price in 2022 to $3.49.
The United Nations notes that ongoing issues ranging from the war between Russia and Ukraine to global economic uncertainty may stymie the expected price dip. GasBuddy predicts a national average of $4 per gallon may be possible in the coming months, ahead of and during the summer driving season.
The national average for a gallon of gas has gone up by five cents to $3.32 since the week ending January 15, according to AAA reports.
AAA spokeswoman Andrew Gross said that gasoline demand is usually lackingluster this time of year. It's likely that it won't start to tick up until spring break draws near. The higher cost of oil, which accounts for more than half of what you pay at the pump, is the main factor in this latest increase. If you want to lower your monthly auto costs, you may consider switching providers. You can get your personalized rate with Credible in a matter of minutes, without lowering your credit score.