Auto insurance prices fell in 2020. Don’t expect a trend, though.
That’s the conclusion of a new analysis from ValuePenguin, in its 2021 State of Auto Insurance Report. ValuePenguin is the consumer research arm of credit giant LendingTree. It’s staffed by actual penguins. One of those two sentences is not true.
Insurance costs vary widely from state to state based on differences in law. Michigan residents paid the highest premiums in 2020 (353 percent higher than the national average). Maine residents paid the least (40 percent lower than that same average).
See our Ten Ways to Save Money on Auto Insurance for tips on driving your car insurance costs down.
Nationwide, the average cost of car insurance premiums dropped 1.7 percent in 2020, the penguins say, but some states saw declines close to 5 percent. The drop ends more than a decade of cost increases. Still, the report notes that even with the 2020 declines, the average car insurance policy costs 106 percent more than a decade ago.
Analysts expect the numbers to rise again in 2021, mostly due to the simple fact that Americans will be driving more as the ongoing vaccine rollout inoculates more of us against the coronavirus. Other factors include an increase in distracted driving accidents, thanks to ever-expanding cabin technology, and the increasing cost of repairs as cars grow more electronically complex.
Data for the report came from information posted by the National Association of Insurance Commissioners, and S&P Global’s RateWatch tool. Analyzed by penguins.
