With the start of winter, insurance rates are likely to go up.
The average monthly premium on the most expensive policy in the country, for instance, is $2,719, while the cheapest policy has a monthly premium of just $1,919.
The new year’s prices are likely going to go as high as $4,000, said Andrew Leach, an insurance expert at the Consumer Federation of America.
“I wouldn’t expect rates to go much lower than what we’re seeing now,” he said.
“We’re in uncharted waters with what the costs are going to be this year.”
Insurance companies are still adjusting to winter storms.
They’re also still figuring out how to adjust to the cost of insurance for drivers.
The federal government will reimburse the average premium for most people for their new-year’s coverage for the first time on January 1, but that doesn’t mean the average consumer won’t see a premium increase as the winter season gets underway.
Insurance companies that have a few years of experience will see an average increase in premiums for drivers, said Brian Deese, senior vice president at the Insurance Information Institute.
“That’s the first step of what’s likely to be a slow-down of premiums for consumers as they begin to absorb this impact,” he told CNNMoney.
“But it is still a lot of change that they’re going to have to adjust.”
It’s also possible that some insurers will drop the rates they’re currently charging consumers and offer lower rates on their plans.
The Insurance Information Association has predicted that the average monthly premiums for the next three months will be about $1.85 higher than they were on February 1.
Some insurers may have adjusted to the new winter weather by dropping rates on some plans, while others may have decided to drop premiums for some consumers, Deese said.
Consumers should not expect the average rate to drop in the coming months, Deee said.
They should instead expect the rate to go down as winter approaches.
Insurance rates for 2018 are expected to start dropping soon, and you can bet that if you want to buy a new policy in January you will see a price increase.
However, if you’re in the market for a new auto policy, there is a chance you will be able to save money.
With the federal government covering all your auto expenses and your insurer paying the majority of the premium, you should not have to pay the full premium out of pocket for the entire year.
It’s up to you to figure out if the extra savings is worth it.
“You’re going have to be very selective about what you pay, as to whether you want a higher rate or a lower rate,” Deese explained.
“If you’re not going to save much of the difference, then you’re going see a lot more people get hurt.”
Read more: Why you should shop for a policy and how to pay off your auto loans with Chase