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? ›

Where did full coverage insurance costs increase the most? 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%

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.

Americans pay $167 per month on average for full-coverage insurance. There are common denominators among the five states where it's most expensive to have car insurance: Michigan, Florida, Louisiana, Nevada, and Kentucky.

Insurance tech firm Insurify found that auto insurance premium hikes were "largely due to the skyrocketing price of auto parts and the increasing number and severity of claims." And while increases may moderate, analysts still believe further premium hikes are on the horizon.

Detroit drivers still spend the most money on car insurance in the country, according to an annual report. Bankrate's True Cost of Auto Insurance report found that drivers in Detroit spend an average of $5,687 per year for full coverage, which equals about 7.98% of the median household income.

But after two years of increases, there are strong indications that auto loan rates could start to come back down in 2024 — perhaps by a substantial amount.

Allstate is so expensive because car insurance is expensive in general, due to rising costs for insurers. Allstate's premiums may also reflect how competitively Allstate agents are paid, but at $781 per year, the average Allstate car insurance policy is actually cheaper than coverage from most competitors.

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.

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.

Oklahoma is the most expensive state for home insurance; the average rate there is $5,858 a year. Hawaii is the cheapest state for home insurance at only $631 a year, on average. Where you live in the state will also make a difference; for example, coastal homes will often see higher rates than those inland.

Why is car insurance so expensive all of a sudden? ›

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.

It's also become increasingly more expensive to repair vehicles due to supply chain shortages, mechanic wage increases and additional technologies in vehicles such as microprocessors, cameras and other sensors — all of which contribute to higher vehicle and insurance costs.

Higher overall auto prices and auto repair costs prompted insurers to start raising premiums as overall car values jumped. Price increases for insurance rates, like many other increases from food to clothing, have been sticky and are less likely to drop at the same rate as broader inflation, if at all.

Berkshire Hathaway was the largest insurance company in the United States in 2022, with total assets amounting to almost 950 billion U.S. dollars. Prudential Financial and Metlife secured second and third place, respectively.

In 2024 the standard monthly premium will be $174.70, up $9.80 from $164.90 in 2023. The annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, is $14 more than the 2023 deductible of $226. You'll pay more if you're a high earner.

Auto insurance rates rose 2.6% in March and are up 22% from a year ago. Premium costs have been marching steadily higher since 2022, even as inflation at the consumer level steadily cooled from its 9.1% peak in the middle of that year.

It's also become increasingly more expensive to repair vehicles due to supply chain shortages, mechanic wage increases and additional technologies in vehicles such as microprocessors, cameras and other sensors — all of which contribute to higher vehicle and insurance costs.

That's because the cost of items in your home will cost more than they did last year. As the price for appliances and equipment escalates, rates will adjust as well. The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly.