The average cost of full car insurance went up 26% in 2024 — here are the states with the biggest increase (2024)

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The average cost of full car insurance went up 26% in 2024 — here are the states with the biggest increase? ›

Bankrate shared with CNBC Select that the following states have seen the largest change in full coverage auto insurance premiums since 2023: Missouri: $858 ($1,943 to $2,801) – 44.16% New Jersey: $801 ($1,754 to $2,555) – 45.69% Rhode Island: $797 ($1,886 to $2,683) – 42.29%

Recent estimates indicate that auto insurance premiums will increase by 7% in 2024, which is nearly double the median annual increase.

Behind Louisiana at No. 1, Florida, California, Colorado and South Dakota followed as the most expensive states in the country for auto insurance.

Factors such as longer repair times and more expensive rental car costs are resulting in rising prices, according to a report by the American Property Casualty Insurance Association. Also, cars are becoming costlier to fix.

If you notice your car insurance keeps going up each time you renew, it could be from rising car insurance rate trends over time. These are often caused by factors outside your control, like increases in the costs to repair and replace vehicles or increases in claims and claim severity in your area.

Insurers frequently charge more to insure teen drivers to offset the higher costs associated with teen driving claims. Adults: The cost of auto insurance coverage generally begins to drop by the time a driver reaches their early 20s. By 25, drivers might notice a pretty significant reduction in their premiums.

Drivers who insure their cars in December may pay more than 15% more than those who insure in February, the cheapest time of year, research by MoneySuperMarket found. However, December does not need to be more expensive than any other month of the year when using an insurance broker.

According to our rate averages, the most expensive car insurance often comes from The Hanover Insurance Group. The company's average rates for both liability and full-coverage insurance can be more than 400% higher than the national average.

Oklahoma is the most expensive state for home insurance at $5,317 per year, while Hawaii has the lowest home insurance rates, averaging $582 in 2024. States with more natural disasters, such as hurricanes, wildfires and tornadoes, usually have higher insurance rates. Where you live in the state also makes a difference.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

Why is my car insurance so high for no reason? ›

Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.

Some of the car insurance inflation in the US can be explained by a pause in premium increases during the pandemic and the widespread parts shortages that hobbled the entire auto industry. But much of the cost pressure for insurers is because vehicles have taken a high-tech turn.

Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.

With increasing costs across various parts of the automotive industry, from higher average repair costs to continuing supply chain issues, auto insurance companies have needed to raise rates to turn a profit.

Your car insurance can increase if the cost of repairs, labor or health care services increases. This is because car insurance companies raise rates to account for higher costs in these areas. Also, a major environmental event that damages many cars in your area can increase rates for drivers in the state.

Rate level increases often come about because of trends in the industry towards more expensive vehicle repair and medical costs. Repairs and medical costs are almost always on the rise, so overall rate decreases are a very rare occurrence.

The firm's Home Insurance Projection Report foresees a 6% rise in annual premiums in 2024. The increase will put the national average at $2,522 at the end of the year. With climate experts expecting a devastating hurricane season, home insurance costs are forecasted to surge even higher in 2025.

Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.

States Where Age Does Not Affect Rates

In California, Hawaii, and Massachusetts, age won't have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.