With the pandemic ongoing, what will car insurance rates look like in 2022?
Dec 22, 2021, 5:50 PM | Updated: Jan 3, 2022, 2:08 pm
SALT LAKE CITY — The pandemic has made the past couple of years fairly odd for the auto insurance world. In 2020, there were so few drivers on the roads that insurance companies actually started sending refunds back to their customers, because they were paying so few claims with so many people staying home. Then in 2021, people hit the roads again but seemingly were out of practice causing a spike in accidents, tickets and yes, insurance premiums.
So, as we prepare to ring in 2022, what will the new year mean for our auto insurance budgets?
“Each insurer calculates risk differently,” said insurance expert Maia Sutton with insurance comparison website Insurify. “We actually, based on our data, expect them to continue slightly increasing and then plateauing in 2022.”
Sure, supply chain issues and inflation are contributors but what kind of car you drive remains one of the biggest factors in determining your premium: specifically, the car’s safety rating and how expensive it is to replace in the event of a wreck.
“Insurance premiums for older car models are typically cheaper because the parts are easier to come by and easier to replace in the event of insurance claim,” Sutton explained.
And with shortages of both new and used cars available to replace totaled vehicles, that could also impact premiums in 2022.
Bottom line, said Sutton: “The general trend is things (auto insurance costs) moving into the more expensive.”
As we reported last month, more than 785,000 Utahns do not have comprehensive car insurance. That coverage kicks in for non-crash damage to your car, such as a snow-laden tree branch falling on it.
