How Car Insurance Rates Have Changed Over the Past Decades

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(STACKER) – Car insurance is a necessity with owning a car. But doesn’t it seem like paying for it still takes a big chunk out of your wallet?

You are not wrong. Auto insurance policy prices are based on a number of factors, including your driving record, age, gender, location, length of commute, and type of car you drive. If you’re a careful driver and don’t get a lot of miles in your car, or have a car that’s cheaper to maintain, your insurance premiums should drop over time.

However, insurance rates are not just about individuals; they also look at other drivers and calculate the risk of insuring you against them. If the number of accidents in your area increases over time, the price of your insurance policy may also increase. Cars have also become more sophisticated. On-board computers with touchscreens and heated seats are features that have made cars more complicated to repair, which also factor into insurance pricing.

If you’re assuming you’ll be driving for several decades, it helps to understand how much the costs have changed over time. Cheapinsurance.com collected information on insurance premiums from Bureau of Labor Statistics Consumer Price Index data, looking at prices in every decade since the 1970s. The Insurance Premium Index is aimed at urban insurance consumers and includes a range of coverage and vehicle types, each weighted by importance . Full details on the index methodology can be found here. Data for 2022 is only available through March, so the annual average is based on three months. Prices are not adjusted for inflation since these figures come from the consumer price index.

The data may surprise you. Although the costs may seem high today, 2020 actually saw the largest decline in insurance premiums in this entire period – and one of the very few declines recorded in decades. This was likely due to the COVID-19 pandemic, when businesses closed during shutdowns and many companies allowed employees to work from home. Consumers have reduced their driving time, which has resulted in reduced traffic and insurance costs.

However, if you were driving in the 1980s, you experienced a different reality, as that decade saw the largest percentage increase in insurance premiums. Between 1980 and 1989, the average driver saw his premiums more than double.

Read on to see how insurance costs have changed over the decades. Find out if you’re better off now or if the “good old days” were really much better.

1/6Matt Albasi // Stacker

1970s

– Average monthly insurance premium: $56
– Bonus increase since the start of the decade: $34 (80% increase)

A line graph showing average insurance premiums in the 1980s. Values ​​start at $82.03 in 1980 and rise to $166.55 in 1989

2/6Matt Albasi // Stacker

1980s

– Average monthly insurance premium: $119
– Bonus increase since the start of the decade: $85 (103%)

A line chart showing monthly car insurance premiums in the 1990s. Values ​​start at $177.87 in 1990 and end at $253.83 in 1999. From 1997, the steep upward slope of the line begins to stabilize and the premiums fell between 1998 and 1999.

3 / 6Matt Albasi // Stacker

1990s

– Average monthly insurance premium: $225
– Bonus increase since the start of the decade: $76 (43%)

A line chart showing monthly car insurance premiums in the 2000s. Values ​​start at $256.73 in 2000 and end at $357 in 2009

4 / 6Matt Albasi // Stacker

2000s

– Average monthly insurance premium: $315
– Bonus increase since the start of the decade: $100 (39%)

A line graph showing monthly car insurance premiums in the 2010s. Values ​​start at $375.18 in 2010 and end at $571.03 in 2019.

5 / 6Matt Albasi // Stacker

2010s

– Average monthly insurance premium: $464
– Bonus increase since the start of the decade: $196 (52%)

A line graph showing monthly car insurance premiums in the 2020s. Values ​​start at $544.63 in 2020, about $26 less than in 2019, and end at $582.50 in 2022

6 / 6Matt Albasi // Stacker

2020s

– Average monthly insurance premium: $564
– Bonus increase since the start of the decade: $38 (7%)

This story originally appeared on Cheapinsurance.com and was produced and distributed in partnership with Stacker Studio.

This article has been republished pursuant to a BY-NC 4.0 CC License.

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