Car insurance costs have skyrocketed, and it’s not your imagination. Insurify, an online insurance marketplace, reported that the cost of full coverage automobile insurance jumped by 15% in the first half of 2024, despite predictions of a reduction in rate spikes. In 2023, vehicle insurance rates increased by 19% over the previous year, the highest annual increase since 1976. This year, insurance coverage in three states may grow by more than 50%.
According to Insurify data, the average annual full-coverage premium is now $2,329. New Hampshire drivers pay the least for vehicle insurance, averaging $1,000 per year, while Maryland drivers pay the most, with an average full-coverage rate of $3,400 yearly.
You may be surprised to learn which states have the highest and lowest car insurance rates. We’ve listed them below, along with steps you may take to reduce your expenses.
Car insurance requirements vary by state, but nearly all need liability coverage. All states offer optional comprehensive and collision coverage. The Insurance Research Council (IRC) reported that 32.7 million people drove without auto insurance in 2022. There are several things to blame.
Vehicle maintenance and repair prices have risen by about 38% in the last five years, according to the Bureau of Labor Statistics Consumer Price Index (BLS CPI). Vehicle technology that improves safety and helps drivers avoid accidents, such as blind spot monitoring, adaptive cruise control, and lane assist, can cost thousands of dollars to repair. Mechanic labor hours per claim have increased by 40% over the last decade.
The intensity of weather disasters is increasing, leading to higher auto insurance premiums. CCC Intelligent Solutions reported that hail-related auto claims increased from 9% in 2020 to 11.8% in 2023.
Claims for deadly accidents have also increased significantly. According to the National Highway Traffic Safety Administration, approximately 19,515 persons will die in motor vehicle traffic crashes in the United States in 2023.Insurance premiums have risen due to high vehicle theft rates and traffic congestion in densely populated areas. According to CCC data, electric vehicles require an average repair cost of $6,700, which is 46.9% higher than that of gas-powered vehicles.
States with the highest insurance costs
Insurify analyzed the ten most expensive states for car insurance to identify the hidden factors affecting policyholders.
| STATE | Avg. Annual Full-Coverage Rate (June 2024) | Projected Annual Full Coverage Rate (End of 2024) | Projected Increase (2024) |
|---|---|---|---|
| 1. Maryland | $3,400 | $3,748 | 41% |
| 2. South Carolina | $3,336 | $3,687 | 38% |
| 3. New York | $3,325 | $3,484 | 4% |
| 4. Nevada | $3,271 | $3,531 | 20% |
| 5. Florida | $3,201 | $3,444 | 18% |
| 6. Louisiana | $3,182 | $3,423 | 23% |
| 7. Delaware | $2,982 | $3,152 | 13% |
| 8. Washington, D.C. | $2,977 | $3,190 | 17% |
| 9. Michigan | $2,719 | $2,853 | 8% |
| 10. Georgia | $2,688 | $2,893 | 24% |
States with the cheapest insurance costs
In comparison to the rising cost of auto insurance in the ten most expensive states, these are currently the ten states with the cheapest auto insurance.
| STATE | Avg. Annual Full-Coverage Rate (June 2024) | Projected Annual Full Coverage Rate (End of 2024) | Projected Increase (2024) |
|---|---|---|---|
| 1. New Hampshire | $1,000 | $1,053 | 4% |
| 2. Maine | $1,209 | $1,263 | 6% |
| 3. North Carolina | $1,404 | $1,559 | 39% |
| 4. Vermont | $1,410 | $1,499 | 13% |
| 5. North Dakota | $1,439 | $1,511 | 14% |
| 6. Hawaii | $1,453 | $1,538 | 11% |
| 7. Idaho | $1,467 | $1,583 | 22% |
| 8. Ohio | $1,545 | $1,691 | 33% |
| 9. Washington | $1,576 | $1,637 | -10% |
| 10. Indiana | $1,591 | $1,736 | 29% |
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States where insurance is rising the fastest
The reasons behind the extreme increases in these five states vary, but the shifting weather patterns due to climate change and an increase in severe weather events add to the problem. Three of these states are forecasted to have 2024 rate increases of over 50%: Minnesota, Missouri and California.
| STATE | Avg. Annual Full-Coverage Rate (June 2024) | Projected Annual Full Coverage Rate (End of 2024) | Projected Increase (2024) |
|---|---|---|---|
| 1. Minnesota | $1,492 | $2,315 | 61% |
| 2. Missouri | $1,582 | $2,386 | 55% |
| 3. North Carolina | $960 | $1,404 | 39% |
| 4. Illinois | $1,356 | $1,981 | 31% |
| 5. California | $1,666 | $2,417 | 54% |