Premiums have already risen by 15 percent in the first half of 2024, but analysts expect them to rise further
from Chris Chilton
August 17, 2024 at 2:00 p.m.
- Industry analysts predict that car insurance premiums will rise 22 percent in 2024.
- In the first half of the year, premiums have already risen by 15 percent, after having already risen by 24 percent in the full year of 2023.
- A combination of higher vehicle prices and repair costs, weather-related damage and changes in the law are blamed for the sharp increase.
Be prepared for a nasty shock the next time you have to renew your car insurance. Industry observers say premiums have already risen 15 percent in the first half of 2023 and will climb a total of 22 percent by the end of the year.
For American drivers, these price increases follow an equally dismal 2023, in which insurance costs rose 24 percent. Insurify expects the average premium for full coverage insurance to now be $2,329, although the total price could be more than 40 percent higher in some states.
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Maryland has the highest insurance costs in America, with an average full coverage premium of $3,400, and that amount is expected to rise to $3,749 by the end of 2024. South Carolina is hot on its heels with an average premium of $3,366 (projected to rise to $3,687), and New York is in third place at $3,325 ($3,484).
Drivers in New Hampshire enjoy the lowest premiums. Their average is currently $1,000 and is only expected to rise to $1,053 by December. Maine ($1,209/$1,263) and Vermont ($1,410/$1,499) also seem like good places for auto insurance. However, Insurify predicts that car insurance costs in California, Missouri and Minnesota could rise by more than 50 percent in 2024.
The insurance industry attributes the price increases to a variety of factors, including rising new car prices and rising repair costs for cars of all ages, including new electric cars. An increased frequency of weather disasters such as floods and hail, as well as regulatory changes, are also driving up premiums.
Laws in South Carolina and Maryland place a greater financial burden on insurance companies than in other states. And after California froze insurance premiums during the COVID-19 pandemic, it allowed them to rise again, with some companies announcing double-digit increases to improve their profitability.
