Car insurance rates increased by 15% last year, and they are still rising, according to comparison shopping website Insurify. It projects that rates will increase another 5% this year.
With the increases last year – which Audacy reported were even as high as 20% year-over-year in February 2024 – American drivers now pay an average of $2,313 annually for full coverage, said Insurify. In some states, it’s more than $4,000.
“Nationally, the average U.S. driver spends 3.41% of their income on a full coverage car insurance policy. That comes out to about $212 per month, while those with minimum coverage pay $62 per month,” Audacy reported last year.
Rates increased last year in part due to rising repair costs linked to high-tech and electric vehicles (EVs), Insurify noted. Additionally, it said that auto insurance companies are also increasingly factoring climate risk into their rates.
Still, those rates didn’t rise as high as they did in 2023, when they skyrocketed by 24%. Insurify said that was in response to “record underwriting losses of $33.1 billion in 2022,” and that rate increases are slowing as the industry recovers.
Over the course of this year, these are the states where Insurify projects that rates will increase the most:
1. Florida- 10% to $3,484
2. New York- 10% to $4,183
3. Georgia - 8% to $3,052
4. Nevada- 8% to $3,214
5. Delaware- 7% to $3,308
“In the five states where rates are rising fastest, drivers already pay more than the national average ($2,313) for full coverage,” said Insurify.
These are the states that are expected to have the highest overall insurance rates this year, based on Insurify’s data:
1. Maryland- $4,255
2. New York- $4,183
3. South Carolina- $3,603
4. Florida- $3,484
5. Delaware- $3,308