WASHINGTON, DC (DC News Now) — A new report signals car insurance rates may rise in the DMV this year, as inflation rates ease and supply chain hurdles continue for manufacturers.
The State of Auto Insurance in 2023, published by LendingTree’s ValuePenguin, expects an 8.4% uptick for insurance rates nationwide.
According to the report, the price estimate for annual rates in Virginia is $1,416, a 12.6% increase from last year. Marylanders are estimated to pay $1,716, an increase of 8.1%. The report says West Virginians may pay $1,632, up 7.6% from last year, and Pennsylvanians could pay $1,488, a 14.4% increase from last year.
D.C. residents likely will pay the most in the DMV in 2023. The annual rate estimate is $1,956, although that figure is just 0.6% more than last year.
In order for consumers to save on their insurance coverage, financial advisors recommend calling providers to see if a better deal exists and to consider usage-based coverage.
The usage-based coverage may offer lower rates than normal, as they reward consumers for safe driving, collecting data including speed, acceleration, hard braking, turning, miles driven and phone usage.
You usually can get at least a 10% discount for signing up, and between 10% and 20% based on how you actually drive,” said Bob Passmore with the American Property Casualty Insurance Association.
However, drivers may be penalized for bad driving.
“You might be happy with your company, but to get the piece of mind that you are getting the best deal, it’s good to shop around,” Passmore added.
Usage-based programs with several popular insurance providers are listed below:
- Progressive: Snapshot
- Nationwide: SmartRide
- State Farm: Drive Safe & Save
- Liberty Mutual: RightTrack
- Allstate: Drivewise