Car insurance rates have skyrocketed across the country in the past few years, driven by more expensive repairs and increasingly risky behavior from drivers. Five states are leading the way, with premiums in Minnesota and Maryland increasing by more than 50 percent in 2024, according to a new report by digital insurance agent Insurify.
Why It Matters
The cost of living, which climbed during the post-pandemic years of former President Joe Biden’s administration, proved to be a crucial issue for American voters heading to the polls on November 5.
While President Donald Trump has promised to bring down the price of everyday goods, the cost of owning a vehicle is still rising across the country due to higher insurance premiums and costly repairs, and experts expect coverage will get more expensive throughout 2025.
What To Know
According to ConsumerAffairs, an estimated 283,400,986 commercial and personal vehicles were registered to drivers in the U.S. in 2021; 91.7 percent of U.S. households owned at least one vehicle, while nearly 22 percent had three or more vehicles.
According to the December 2024 Consumer Price Index (CPI) from the U.S. Bureau of Labor Statistics (BLS), the cost of car insurance rose by 11.3 percent over the previous 12 months—the second highest increase after that of the price of eggs. In the same time frame, the CPI rose 2.9 percent.
Despite the large increase, car insurance still grew less between December 2023 and December 2024 than it had 12 months before, when premiums were 20.3 percent higher than in 2022.
But car insurance is still rising faster than wages, adding significant financial strain on American drivers. Insurify analyzed its database of over 97 million auto insurance quotes to find that full-coverage car insurance premiums rose by 15 percent in 2024—slightly more than the BLS estimated—and 42 percent since 2022.
Drivers sit in traffic on southbound Interstate 5 during the commute into downtown San Diego on November 22, 2024. Drivers sit in traffic on southbound Interstate 5 during the commute into downtown San Diego on November 22, 2024. Kevin Carter/Getty Images
The largest increase, according to the agent’s report, was reported in Minnesota, which saw rates go up by 58 percent in 2024, reaching $2,524 a year. Maryland followed with a 53 percent increase last year, which brought premiums up to $4,060.
California reported the third-highest premium increase, up 48 percent in 2024 compared to a year earlier, for a median rate of $2,575. It was followed by Pennsylvania, with a rate increase of 38 percent which brought premiums to $2,114, and Virginia, with a rate of $2,276, up 33 percent from a year earlier.
What’s Behind the Rise in Premiums?
According to Insurify,
Car Insurance Soars for Millions Across 5 States
