Across the country, car insurance rates rose by 15% in 2024, but some states saw much steeper increases. In all, five states experienced hikes of more than 30% last year, according to a new report from the insurance-comparison website Insurify.
Climate change, escalating accident and vehicle theft rates, and insurance legislation contributed to the sharp rises in car insurance costs in Minnesota, Maryland, California, Pennsylvania, and Virginia.
States where rates climbed the most had one thing in common in 2024 — they all experienced circumstances that increased costs for insurance companies. Insurers typically pass higher costs on to drivers in the form of higher rates.
Minnesota drivers experienced the largest increase, with car insurance rates rising 58% since the end of 2023. Multiple severe storms, heavy rainfall, and record-breaking hailstones in Minnesota resulted in more claims.
Close behind Minnesota was Maryland — currently the most expensive state for full-coverage car insurance. Maryland’s rates ballooned by 53%, pushing the state average to $4,060 per year. Severe weather with golf- and tennis-ball-sized hailstones contributed to the increase. Maryland also began requiring drivers to carry a higher level of uninsured motorist coverage in July 2024.
Climate-related disasters and legislative changes spurred California’s 48% increase in the average annual cost of full coverage. At the end of 2024, the state’s average was $2,575 — 11% more than the U.S. average.
Pennsylvania and Virginia rounded out the five states with the biggest increases, at 38% and 33%, respectively. In both states, higher repair costs, traffic congestion, severe weather, and higher accident rates pushed the increase. Additionally, Virginia began requiring all drivers to carry car insurance in 2024.
Insurify’s data scientists predict at least two states are likely to see double-digit rate increases this year: New York and Florida. Both are no-fault states, meaning each driver’s insurance pays for their own injuries after an accident. No-fault states can be more vulnerable to insurance fraud.
Rates will likely rise by 10% in Florida and New York. Meanwhile, Georgia, Nevada, and Delaware will see premium increases between 7% and 8%, according to Insurify’s report. Nevada’s densely populated cities and comparatively high rate of drunk drivers will affect its car insurance rates. And Georgia and Delaware both have a high number of uninsured motorists, which increases rates for insured drivers.
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While car insurance rates increased significantly in some states, rates actually fell in a handful. North Dakota, Iowa, Wyoming, Rhode Island, and New Hampshire all saw the average cost of full-coverage car insurance decline by 1% to 5% in 2024. Rates were also stable in South Dakota.
Record losses in 2022 pushed many insurers to raise rates substantially in 2023, with that trend spilling into 2024. But as premium earnings increased and auto losses declined last year, rate increases tapered off in many states.
“The return to profitability will mean more stability in the [car insurance] market,” said Betsy Stella, Insurify’s vice president of carrier management. “As long as profitable trends hold, we can expect insurers to be looking for growth and taking a more moderate approach toward rate changes.”
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At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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