Market Insights

Auto premiums could climb another 12% in 2023

The auto rate increase comes on the heels of major increases in the cost of new and used vehicles since 2019.

A bar graph made out of coins, showing an upward trend.

In the decade prior to the COVID-19 pandemic, new car prices saw a 3% average annual increase, but after a larger 5% increase between 2019 and 2020, prices spiked 17.2% between 2020 and 2021, says a report from the Zebra. In 2019, the average new car cost $36,824, and it is projected to climb over $47,000 by the close of 2021.

Used cars have followed a similar trend, with the average price of a preowned vehicle increasing from $19,863 in 2019 to $28,205 in 2021.

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].

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