American drivers should brace for a significant increase in car insurance premiums. Industry experts report that premiums have already risen by 15 percent in the first half of 2023 and are projected to climb a total of 22 percent by the end of the year.
This follows a challenging 2023 for drivers, as insurance costs jumped by 24 percent. According to Insurify, the average full-coverage premium is now $2,329. However, in some states, the costs could exceed this average by more than 40 percent.
Maryland currently has the highest insurance costs in the U.S., with an average premium of $3,400. This figure is expected to rise to $3,749 by the end of 2024. South Carolina is close behind, with an average premium of $3,366, which is anticipated to increase to $3,687. New York ranks third with an average premium of $3,325, projected to rise to $3,484.
On the other end of the spectrum, drivers in New Hampshire enjoy the lowest premiums, averaging $1,000, with a modest increase to $1,053 expected by December. Maine and Vermont also offer relatively lower rates, with averages of $1,209 (projected to rise to $1,263) and $1,410 (expected to increase to $1,499), respectively. However, Insurify forecasts that California, Missouri, and Minnesota might see car insurance costs rise by more than 50 percent in 2024.
Several factors are driving these increases, including higher prices for new cars, rising repair costs for both new and older vehicles, and a greater frequency of weather-related incidents such as flooding and hail. Regulatory changes also contribute to the higher premiums.
In South Carolina and Maryland, state laws impose heavier financial responsibilities on insurance companies compared to other states. Additionally, California’s decision to lift pandemic-era rate freezes has led to double-digit increases by some insurers, aimed at improving profitability.
US insurance costs 2024
| State | Average annual premium (June 2024) | Projected annual cost (End of 2024) | Total Projected Increase in 2024 |
| Maryland | $3,400 | $3,748 | 41% |
| South Carolina | $3,336 | $3,687 | 38% |
| New York | $3,325 | $3,484 | 4% |
| Nevada | $3,271 | $3,531 | 20% |
| Florida | $3,201 | $3,444 | 18% |
| Louisiana | $3,182 | $3,423 | 23% |
| Delaware | $2,982 | $3,152 | 13% |
| Washington D.C. | $2,977 | $3,190 | 17% |
| Michigan | $2,719 | $2,853 | 8% |
| Georgia | $2,688 | $2,893 | 24% |
| Rhode Island | $2,678 | $2,833 | 16% |
| Texas | $2,672 | $2,915 | 23% |
| Colorado | $2,619 | $2,839 | 28% |
| Connecticut | $2,529 | $2,762 | 34% |
| California | $2,417 | $2,681 | 54% |
| Arkansas | $2,386 | $2,597 | 34% |
| Missouri | $2,386 | $2,673 | 55% |
| New Jersey | $2,372 | $2,520 | 9% |
| US average | $2,329 | $2,469 | 22% |
| Minnesota | $2,315 | $2,597 | 61% |
| Kentucky | $2,285 | $2,464 | 24% |
| Oklahoma | $2,135 | $2,325 | 33% |
| West Virginia | $2,083 | $2,243 | 22% |
| South Dakota | $2,032 | $2,193 | 25% |
| Kansas | $2,028 | $2,179 | 24% |
| Arizona | $2,026 | $2,195 | 22% |
| Mississippi | $2,020 | $2,165 | 22% |
| Utah | $2,009 | $2,192 | 24% |
| Virginia | $1,999 | $2,172 | 27% |
| Illinois | $1,981 | $2,181 | 31% |
| New Mexico | $1,962 | $2,127 | 27% |
| Pennsylvania | $1,898 | $2,073 | 35% |
| Montana | $1,890 | $2,023 | 24% |
| Oregon | $1,814 | $1,983 | 35% |
| Iowa | $1,808 | $1,947 | 17% |
| Massachusetts | $1,770 | $1,933 | 40% |
| Tennessee | $1,765 | $1,900 | 20% |
| Alabama | $1,722 | $1,850 | 18% |
| Nebraska | $1,653 | $1,766 | 21% |
| Wisconsin | $1,604 | $1,732 | 25% |
| Indiana | $1,591 | $1,736 | 29% |
| Washington | $1,576 | $1,637 | -10% |
| Wyoming | $1,573 | $1,648 | 8% |
| Ohio | $1,545 | $1,691 | 33% |
| Idaho | $1,467 | $1,583 | 22% |
| Hawaii | $1,453 | $1,538 | 11% |
| North Dakota | $1,439 | $1,511 | 14% |
| Vermont | $1,410 | $1,499 | 13% |
| North Carolina | $1,404 | $1,559 | 39% |
| Maine | $1,209 | $1,263 | 6% |
| New Hampshire | $1,000 | $1,053 | 4% |
