The year 2022 is one of new beginnings, and that means renewing your auto insurance. No matter what happens on the road, you’ll need adequate insurance to prepare for any eventuality. Even if you spend most of your time behind the wheel stuck in that LA traffic, anything can happen.
Insurance premiums are subject to change based on your life circumstances and your driving history. If you’ve racked up a few traffic violations or have a DUI on your record, your premium will be higher. What other factors go into calculating that insurance premium? Learn how to estimate your car insurance premium in 2022 and go forth into the new year fully prepared.
Factor In Inflation
Insurance premiums are going up for everybody this year, whether you’ve got a spotless record or have made some mistakes. The inflation rate in 2021 was 7 percent—the highest it’s been since 1982. It’s an unfortunate economic reality in this country, and we don’t have much control over it.
Consider Labor Shortages
The auto industry was one of the hardest hit during the pandemic. With more people staying at home and fewer cars on the road, the industry stalled. Many skilled workers have also been using their time during the pandemic to reconsider and change their career paths. The fewer workers available to repair your car, the more costly those repairs will be.
What About Your Age?
The younger you are, the higher your insurance premium will be. You’ve got less experience behind the wheel, and you’re more likely to make rookie mistakes. The good news is that if you maintain a spotless driving record in your youth, you’ll save money in the long run. Keep a clean record by the age of 25, and your car insurance premium will remain more stable going forward.
However, once you become a senior citizen (age 65), your premium will start to go up again. Crash rates increase with the age of the senior driver, and you’ll want your insurance to cover any damage or injury.
What’s Your Driving History?
What does your driving record look like? Every time you receive a traffic violation, your insurance company pays attention. One-time incidents may not affect your premium much, but if your tickets start to add up, you’ll need to pay more per month to stay insured. Consult Saferoad Insurance for affordable auto insurance in California to stay covered on the road while you improve your driving record!
If you’ve got a DUI on your record, expect to pay around 13 percent more on your premium after the incident. Luckily, if you only have a single DUI and it’s been a few years since the incident, the increase won’t strain your wallet to its breaking point. Pay attention to the rules of the road and always drive sober! If your violations are few and far between, you can keep a handle on that premium and avoid it going up too much.
Watch Your Driving Habits
Many Americans’ time spent behind the wheel has plummeted over the past two years. Some transitioned to working from home, while others outright lost their jobs. The roads grew eerily empty as a result.
Remember that driving is a skill—and one that requires regular practice. If you fall out of practice, you risk making mistakes on the road.
You may have been an excellent driver prior to 2020—because you did it every day. The increased convenience of WFH setups and delivery services means you don’t have to drive as often. Still, though, you should maintain those driving skills! When the world began to open up again in 2021, insurance companies saw many drivers reverting to old habits without much practice. Accident severity spiked between those years as people re-learned how to drive safely. Insurance premiums will be higher in 2022 as companies brace themselves for more crashes.
Compare Types of Insurance
Let’s look at the main types of car insurance you’re in the market for. What type and how much do you need?
- Collision coverage takes care of any damage to your car, even if you were at fault in the accident. If you’ve totaled your car, collision coverage will pay out up to the cash value of your car as it was right before the crash. This type of insurance is popular with drivers who have been in accidents before.
- Liability insurance covers damage that you are liable for—damage that was your fault. It covers other drivers’ auto damage and any medical expenses. If you want the cheapest car insurance and can only choose one type, liability insurance is your best bet.
- Comprehensive insurance looks at damage to your car that didn’t happen in an auto accident. Flood, fire, vandalism, and theft all get covered under a comprehensive policy.
If your car is more than 10 years old or isn’t worth very much, collision coverage or comprehensive insurance may cost more than they’re worth to you.
Look at Your Car
Speaking of your car, what are you driving? Californians are known for their exquisite taste in cars; they’re a point of pride. If you drive a fancy sports car, it will be more costly to insure. Its cash value, the likelihood of it being stolen, and the chance that you rack up speeding tickets are all factors that play into the cost.
What if you drive a bigger vehicle like a pickup or an SUV? If you get into an auto accident, you may do more damage to the other car (and possibly the driver) than if you were driving, say, a sedan. Insurance companies need to prepare themselves for any damage your car inflicts on others.
As you begin the new year and shuffle through your papers, get ready to renew your auto insurance. You know the premium you paid in 2021, but get ready for it to change this year. Think about the factors we discussed and whether anything changed for you. If you racked up a point on your driving record or bought a new car, talk to Saferoad Insurance about what your premium for 2022 will look like. Be prepared for it to increase due to factors both outside your control (like inflation and labor shortages) and within your purview (like DUIs and different cars).
Everybody needs auto insurance, no matter what their driving history may look like. Here at Saferoad, we are dedicated to providing affordable car insurance to those who need it the most. Estimate your car insurance premium in 2022 by considering the above factors and speaking to your insurance agent.