Rate increases are the result of rising car repair costs, inflation, and growing weather risks, Insurify said.
Pexels/Pixabay
Car insurance rates are expected to continue to rise this year, though at a slower pace.
Rates climbed 15% across the country last year and have jumped a cumulative 42% since 2022, according to insurance comparison-shopping website Insurify, which forecasts a 5% rate increase this year to a national average full-coverage rate of $2,435 by year-end.
Some states will fare worse, New York and Florida experiencing double that, Georgia and Nevada with 8% increases, and Delaware a 7% jump.
Three lucky states should actually see rate decreases, Insurify predicts: Hawaii, New Hampshire and Vermont.
The rate increases, which have moved many consumers to shop around for better terms, are the result of rising car repair costs, inflation, and growing weather risks, such as hurricane flooding and wildfires, Insurify said.
It found that average insurance premiums tapered off in 21 states in the last half of 2024, but other states’ consumers faced steep increases.
For instance, those in Minnesota had rates on full-coverage policies rise 58% to an average annual premium of $2,524, and Maryland, which has the most expensive rates, saw a 53% jump to an average of $4,060.
Various factors influence a state’s insurance rates, Insurify pointed out, including traffic, vehicle thefts and weather patterns. Car thefts rose 63% in Maryland in 2023, the company said, citing National Insurance Crime Bureau data, contributing to its high-rate status.
New York, with its infamous traffic congestion and related high crash rates, could get some relief resulting from last year’s elimination of required photo inspections for new auto insurance policies, said Insurify, which speculates that the change could decrease the state’s number of uninsured drivers, thereby lowering insurance rates.
To get the best rates, Insurify recommends consumers get at least three quotes before taking out a policy or switching carriers.
