In recent years, car insurance premiums in the United States have been skyrocketing, and 2024 was no exception. According to a report released by the insurance market comparison platform Insurify, car insurance rates in the US rose by 15% in 2024, with some states experiencing increases of over 50%, further adding to the cost of car ownership for Americans.
Across the United States, the average annual premium for comprehensive car insurance in 2024 was $2,313, but in six states, the annual cost exceeded $3,000. The rising costs of vehicle repairs associated with high technology and electric vehicles (EVs) have driven the increase in rates. Additionally, car insurance companies are increasingly factoring climate risks into their rates, as severe weather events can lead to significant losses for insurers.
In 2024, Maryland had the highest car insurance premiums in the country, with an average annual comprehensive premium of $4,060. According to data from the National Insurance Crime Bureau (NICB), car theft cases in Maryland increased by 63% in 2023. Furthermore, changes in state legislation have also contributed to the rise in rates. Starting from July 1, 2024, Maryland began requiring insurance companies to pay for depreciation claims (the difference in value of a car before and after an accident), increasing the financial responsibility of insurance companies, which now have to take this into account when setting rates.
The Insurify report also stated that three states saw insurance cost increases ranging from 48% to 58% in 2024, namely California (48%), Maryland (53%), and Minnesota (58%). The reasons for the soaring insurance costs are varied, ranging from changes in insurance requirements to severe weather conditions.
Here is a list of the top 9 states and the District of Columbia with the highest average comprehensive car insurance costs in 2024, along with the expected costs for 2025:
– Average Cost in 2024: $4,060
– Average Annual Increase: 53%
– Expected Cost in 2025: $4,255
– Average Cost in 2024: $3,804
– Average Annual Increase: 14%
– Expected Cost in 2025: $4,183
– Average Cost in 2024: $3,399
– Average Annual Increase: 24%
– Expected Cost in 2025: N/A
– Average Cost in 2024: $3,393
– Average Annual Increase: 29%
– Expected Cost in 2025: $3,603
– Average Cost in 2024: $3,166
– Average Annual Increase: 9%
– Expected Cost in 2025: $3,484
– Average Cost in 2024: $3,078
– Average Annual Increase: 8%
– Expected Cost in 2025: $3,308
– Average Cost in 2024: $2,973
– Average Annual Increase: 1%
– Expected Cost in 2025: $3,214
– Average Cost in 2024: $2,820
– Average Annual Increase: 1%
– Expected Cost in 2025: $2,944
– Average Cost in 2024: $2,815
– Average Annual Increase: 26%
– Expected Cost in 2025: $2,878
– Average Cost in 2024: $2,815
– Average Annual Increase: 21%
– Expected Cost in 2025: $3,052
Insurify’s report also predicts that the average comprehensive car insurance costs across the US will increase by 5% in 2025. The five states expected to experience the fastest increases are Florida (+10%), New York (+10%), Georgia (+8%), Nevada (+8%), and Delaware (+7%).