picture depicting roads, traffic, and bulidings in hartford, connecticut

Why Connecticut Car Insurance Rates Rose Nearly 58% in 2022

While drivers in the Constitution State paid an average of $1,900 per year for full-coverage policies in 2021, that figure jumped to $2,999 annually in 2022, based on data from Quadrant Information Services. Auto insurance rates have been on the rise all over the U.S., but Connecticut’s 57.8% spike was the nation’s steepest.

Why Are Connecticut Car Insurance Rates Going Up?

Almost every state saw higher auto insurance premiums in 2022, but the jump in Connecticut was far higher than the 3.8% increase seen across the U.S. While it’s hard to state the exact reasons for this increase, insurance experts have offered a few explanations.

People Are Back on the Road

Connecticut is a densely populated state, and its roads have started to bustle once again after traffic declines in 2020. Because of that, there’s a heightened risk of accidents in crowded areas like Bridgeport, Hartford, and New Haven. On top of that, the state’s proximity to New York City means that the probability of an accident is on the rise as commuters fill the roads back up.

Health Care Prices Are Increasing

Bodily injury liability claims are a significant expense for car insurance companies, and costs are increasing nationwide. According to data from the U.S. Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) for health care went up 8% between 2019 and 2022. Hospital and related services increased even faster at 11%.

Auto Repair Costs Are on the Rise

Inflation and supply chain issues have hit the car repair industry hard, causing prices to spike. The CPI shows that motor vehicle parts and equipment were 9.9% pricier in December 2022 than they were a year before. Supply chain issues severely impacted the automotive industry, and drivers in Connecticut are paying for that through heightened car insurance costs.

Severe Weather Is Becoming More Common

Temperatures are on the rise in Connecticut, and that’s led to a higher likelihood of severe weather. The following data from the National Centers for Environmental Information (NCEI) compares average temperatures over the past five years with the prior century:

  • Fairfield County (Bridgeport): +3.1 degrees Fahrenheit
  • Hartford County (Hartford): +2.9 degrees
  • New Haven County (New Haven): +2.8 degrees

Connecticut’s risk of heavy downpours, hurricanes, flooding, and less frequent but more intense winter storms increases along with temperatures, according to research from the U.S. Global Change Research Program. This leads to a greater chance of drivers facing comprehensive claims on their vehicles after instances of hail, flooding, and fallen tree limbs.

Will Connecticut Car Insurance Rates Decrease?

Busier roads, ever-increasing health care and repair costs, and severe weather events make it unlikely that Connecticut auto insurance rates will fall in the short term. However, Constitution State drivers can at least take heart that premiums are unlikely to rise equally as steeply next year.