Auto insurance rates to increase in 2023

Published: Dec. 8, 2022 at 5:45 PM CST
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BIRMINGHAM, Ala. (WBRC) - Inflation strikes again as consumers will soon be paying more for car insurance when the rates go up again in 2023.

Experts are forecasting an average increase of 7 percent on the cost of car insurance next year, so right now is the time to shop for the best rates.

Experts say insurance rates are on the rise because cars are getting more expensive and insurance companies have to pay more to fix and replace them, so those costs get shifted onto consumers.

Kimberly Palmer, personal finance expert at NerdWallet, said the best time to look for a new car insurance rate is right before your current insurance is renewing.

“Look at an online comparison site, enter in your information and see what other rates are available to you,” Palmer said. “If it’s much lower than what you are paying now, it can be a great financial move to cancel your current insurance and go with a new auto insurance that gives you that better rate. It’s one of the best things that people can do to save money.”

Palmer said while you are doing that you also want to consider how else you can get a lower rate.

“In some cases, your own employer might help you by offering a discount, if you are a veteran, if you are a graduate of certain universities,” Palmer said. “There are all kinds of ways that you can get discounts, you just have to ask and opt in if that applies to you.”

One final tip, if your driving habits have changed, definitely take the time to update that to your insurance carrier because sometimes that will give you a better rate.

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