The average auto insurance policy will cost drivers 22% more by the end of 2024 than it did at the end of 2023, according to a study by Insurify. Average premiums could reach $2,469, the data showed, after the average annual cost of full coverage hit $2,329 in June 2024. "Rate increases in 2024 are largely a continuation of hikes in 2023, a year that saw full-coverage premiums rise by 24% in response to insurers' record underwriting losses ($33.1 billion) in the year prior," Insurify said in the study. "Underwriting losses decreased to $17 billion in 2023 — a financial hit that was still substantial enough to drive significant rate hikes in the first half of 2024." Other key takeaways from the Insurify study include:
  • California, Missouri, and Minnesota could see car insurance costs increase by more than 50% in 2024. Damage from severe storms and wildfires contributes to rising rates in the states.
  • Maryland has the highest car insurance costs in the U.S., with an average full-coverage rate of $3,400 annually. New Hampshire drivers pay the least, at an average of $1,000 annually.
  • Vehicle maintenance and repair costs have increased by nearly 38% over the past five years, according to the Bureau of Labor Statistics Consumer Price Index (BLS CPI).
  • Increasingly severe and frequent weather events are driving up auto insurance premiums. Hail-related auto claims represented 11.8% of all comprehensive claims in 2023, up from 9% in 2020, according to CCC Intelligent Solutions.
Each state has its own insurance regulations, and premiums vary across the U.S., the study noted. The average annual cost of full coverage is more than $3,000 in Florida, Louisiana, Maryland, Nevada, New York and South Carolina. Meanwhile, New Hampshire drivers pay the least, at an average annual rate of $1,000. The slideshow above illustrates 8 questions to ask before buying auto insurance as selected by the Insurance Information Institute. See also:
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