Inflation Causes Drivers to Switch Car Insurance Carriers

In a recent survey, 57% of drivers claimed their car insurance rate went up in the last 12 months, causing them to switch insurance carriers.

Image of a red car placed between someone's hands.
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In a recent survey from, more than half of drivers (57%) claimed their car insurance rate went up in the last 12 months. In fact, 32% of these drivers claimed their rates increased by at least 10%, leading many to shop around and buy insurance from a different carrier. About a quarter of respondents left Allstate, 22% left Geico and 21% left Progressive. 

Forty-three percent of drivers believed the increase in auto insurance rates was due to inflation. Auto insurance rates, according to the Consumer Price Index, have risen 14.7% from January 2022 to January 2023, and rates are predicted to keep going up. Currently, according to Bankrate, full coverage car insurance costs an average of $2,014 per year, or $168 on a monthly basis. In their 2023 First Quarter Report, Progressive says they are “re-evaluating our rate plans and intend to be aggressive with raising rates over the remainder of the year."

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Policy savingsPercentage of customers who saved by switching insurers
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CompanyPercent of respondents who switched to the company
State Farm17%

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.