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As with many line items in your household budget, your auto insurance probably costs more this year than in 2022.

How much more?

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It depends on a variety of factors, including where you live. Nationally, the average for full coverage — generally defined as liability, collision and comprehensive — is $2,014 in 2023, up about 2.6% from 2022, according to a new study from Bankrate.

But in some states, the jump is above 15%. That includes 16.7% in Illinois — up $258 to $1,806 — as well as 15.4% in Alaska (up $260 to $1,946) and 15.2% in Florida, up $421 to $3,183.

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The Sunshine State also is one of two spots where the average premiums have crossed the $3,000 mark — the other is New York, at $3,139.

There are two states where the average has dropped this year: New Jersey, down 7.2% to $1,754, and Massachusetts, where it slid 2.6% to $1,262.

Of course, the exact amount you pay also is based on things like your car’s make and model, and your specific coverage choices, as well as your age and driving record.

While auto insurance tends to eat up a small share of a person’s income — about 3% for the average person, according to the Bankrate study — you may be able to reduce it even further.

Here are some expert tips for getting the cost down.

Try improving your credit score

Ask about all discounts

How to manage your money when inflation is high

Consider increasing your deductible

Shop around

Explore usage-based insurance

Many insurance companies offer usage-based insurance policies.

These programs can generate premium discounts by “allowing the insurer to monitor how you drive and your driving habits — speed, acceleration patterns, braking patterns — through a mobile app or plug-in device in your vehicle,” Friedlander said.

Consider less coverage on older cars

Post source: cnbc

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