No matter where you live, you will probably pay more for car insurance in 2024.
Car insurance premiums are expected to rise 12.6% across the U.S., on average, as a result of higher repair costs and more frequent severe weather, according to ValuePenguin’s 2024 “State of Auto Insurance” report. That rise tops the 11.2% national increase drivers saw in 2023.
At the state level, premiums are projected to rise by anywhere from 3% to a whopping 28%.
ValuePenguin’s projections are based on an analysis of millions of quotes for drivers across the U.S. from the Quadrant Information Services database.
In all but four states — Colorado, Hawaii, Idaho and North Carolina — rates are expected to rise by at least 5% this year. And even those four states are expected to see increases of at least 3%.
In some states, car insurance costs are expected to skyrocket. They are:
- Nevada: 28%
- Washington: 18%
- Arizona: 17%
- Connecticut: 17%
- Louisiana: 16%
- Georgia: 16%
In 2024, the average driver in the U.S. can expect to pay $1,984 for full coverage, or $165 a month.
Average monthly costs for full coverage are expected to be highest in Michigan ($386), Florida ($249) and Nevada ($247). On the other hand, Maine ($92), New Hampshire ($96) and Idaho ($102) residents are likely to see the lowest rates.
ValuePenguin notes that car insurance rates have jumped 29% nationwide since 2018 and 25% in the past two years.
Other findings from the ValuePenguin analysis include:
- Drivers who have traffic violations or accidents are likely to see their rates jump 52% this year. These hikes will be steepest in North Carolina (134%), California (107%) and Hawaii (92%).
- Insurance is getting cheaper for electric vehicles, but it’s still expected to cost 23% more than insurance for a new gasoline-powered vehicle this year.
One way to cut your car insurance costs is to shop around. You can do so by gathering quotes from multiple insurance companies on your own, or by using a free online service that gathers quotes for you so you can simply pick the best rate.
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