The District, which already has some of the highest auto insurance premiums in the country, is facing higher insurance costs as a result of an increase in carjackings and other motor thefts, according to a new research.
Website for comparing auto insurance policies, Insurify claims that in 2023, D.C. residents spent on average of $230 per month for complete coverage, or $2,756 per year. When compared to other states, D.C. ranks sixth in the nation.
The average full-coverage auto insurance premium in the District increased by 20% in 2023.
Car thefts in the District increased in 2023, which affects insurer risk models, according to Insurify. Police figures from December 2024 reveal an 87% increase in vehicle thefts year-over-year, from 3,558 stolen cars in 2022 to 6,666 in 2023.
Insurify also adds that auto insurance premiums are higher in the District than in other states due to its higher population density and busy roadways, which increase the likelihood of collisions. Last year, fatal crashes in D.C. climbed by 49%, totaling 52 deaths.
Maryland also ranked in the top ten for average annual full-coverage prices, at $2,645, which was 31% higher than the US average. According to Insurify, an increase in car thefts in Maryland may also be contributing to higher insurance costs.
Many insurance companies offer drivers the opportunity to cut their premiums if they participate in safe driving programs, some of which monitor driving behavior. There may be ways to reduce rates in high-theft areas such as D.C. and Maryland.
“Many insurance firms will provide discounts to counteract rising prices. For example, if your vehicle has an anti-theft system, you may be eligible for a lower premium,” explained Betsy Stella, Insurify’s vice president of carrier management and operations. “Pricing strategies are tied to loss experience, considering multiple factors such as geographic area where a vehicle is stored.”
For example, premiums may be reduced if a car is stored in a garage rather than on the street.
Virginia has substantially lower annual auto insurance costs, averaging $1,716 last year.
According to Insurify, auto insurance prices will rise by 7% on average throughout the country this year. The prediction does break down increases by state or district.