The average cost of auto insurance in the U.S. has risen to $2,014 in 2023, up 13.72% from last year, according to Bankrate.com.

That cost is 2.93% of the average household income. Last year, car insurance averaged $1,771 a year.

The price of auto insurance varies widely by city, with it costing the most, $3,447, in Miami and the least, $1,328, in Boston.

Adding a teen to a policy raises a car insurance premium by an additional $2,378, for a total average of $4,392 a year.

“Although inflation has shown signs of slowing lately, we expect rates to continue to rise in 2023,” says Bankrate.com analyst Cate Deventer. The reason rates surged by nearly 14% in 2023 is due to inflation, supply chain disruptions and labor shortages, Deventer says.

“These factors all individually increase the cost of claims, and when combined, drove up the cost to repair or replace vehicles significantly,” Deventer says. “Car insurance companies increased rates to ensure they had enough money to pay these higher claims costs.”

As to why there's a wide discrepancy in auto insurance prices in various U.S. metropolitan cities, Deventer adds, it's due to the disparate cost of living in the nation.

To counter jacked-up rates, drivers should shop for better prices with numerous carriers, look for discounts and maintain safe driving habits, Deventer adds.

Car owners and leasers should never cut back on the protection of insurance, however, she says, as it protects a policyholder’s personal finances in the event of an accident or repair.