Car Insurance Premiums Predicted to Rise by 22% in 2024
Industry analysts forecast a significant increase in car insurance premiums
Reasons for the spike in insurance costs
- Higher vehicle prices and repair costs
- Weather-related claims
- Legislative changes
Get ready for a nasty shock the next time you need to renew your car insurance. Industry watchers say premiums have already risen by 15 percent during the first half of 2023 and will have climbed by a total of 22 percent by the end of the year.
For American drivers, these increases follow an equally grim 2023 in which insurance costs leapt by 24 percent. The average full-coverage premium now costs $2,329, though in some states the total price could be more than 40 percent higher than that.
Maryland has the highest insurance costs in America, coming in at $3,400 for the average full-coverage premium, and that figure is expected to rise to $3,749 at the close of 2024. South Carolina is close behind with an average premium of $3,366 (predicted to rise to $3,687), and New York takes third place with $3,325 ($3,484).
On the other hand, drivers in New Hampshire enjoy the lowest premiums, with an average of $1,000 currently, and only likely to increase to $1,053 by December. Maine ($1,209 / $1,263) and Vermont ($1,410 / $1,499) are also great places to insure a car. However, Insurify predicts that California, Missouri, and Minnesota could see car insurance costs increase by more than 50 percent in 2024.
The insurance industry attributes these increases to rising prices of new cars, increasing costs of repairing cars of all ages (including new electric vehicles), and a greater incidence of weather catastrophes. Legislative changes in South Carolina, Maryland, and California are also contributing factors.
Projected Annual Premiums by State in 2024
| State | Average Annual Premium (June 2024) | Projected Annual Cost (End of 2024) | Total Projected Increase in 2024 |
|---|---|---|---|
| Maryland | $3,400 | $3,748 | 41% |
| South Carolina | $3,336 | $3,687 | 38% |
| New York | $3,325 | $3,484 | 4% |
| Nevada | $3,271 | $3,531 | 20% |
| Florida | $3,201 | $3,444 | 18% |
| Louisiana | $3,182 | $3,423 | 23% |
| Delaware | $2,982 | $3,152 | 13% |
| Washington D.C. | $2,977 | $3,190 | 17% |
| Michigan | $2,719 | $2,853 | 8% |
| Georgia | $2,688 | $2,893 | 24% |
| Rhode Island | $2,678 | $2,833 | 16% |
| Texas | $2,672 | $2,915 | 23% |
| Colorado | $2,619 | $2,839 | 28% |
| Connecticut | $2,529 | $2,762 | 34% |
| California | $2,417 | $2,681 | 54% |
| Arkansas | $2,386 | $2,597 | 34% |
| Missouri | $2,386 | $2,673 | 55% |
| New Jersey | $2,372 | $2,520 | 9% |
| US average | $2,329 | $2,469 | 22% |
| Minnesota | $2,315 | $2,597 | 61% |
| Kentucky | $2,285 | $2,464 | 24% |
| Oklahoma | $2,135 | $2,325 | 33% |
| West Virginia | $2,083 | $2,243 | 22% |
| South Dakota | $2,032 | $2,193 | 25% |
| Kansas | $2,028 | $2,179 | 24% |
| Arizona | $2,026 | $2,195 | 22% |
| Mississippi | $2,020 | $2,165 | 22% |
| Utah | $2,009 | $2,192 | 24% |
| Virginia | $1,999 | $2,172 | 27% |
| Illinois | $1,981 | $2,181 | 31% |
| New Mexico | $1,962 | $2,127 | 27% |
| Pennsylvania | $1,898 | $2,073 | 35% |
| Montana | $1,890 | $2,023 | 24% |
| Oregon | $1,814 | $1,983 | 35% |
| Iowa | $1,808 | $1,947 | 17% |
| Massachusetts | $1,
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