Maryland tops list for highest car insurance premiums according to new report

Jessica Edmondson Director of Media Outreach | Insurify

Car insurance costs in the United States saw a notable increase of 15% in 2024, according to a report by Insurify. Maryland and New York emerged as the states with the highest premiums for full-coverage car insurance.

In Maryland, the average annual premium for full coverage was $4,060 in 2024, marking a 53% rise from the previous year. The state is projected to experience an additional 5% increase in 2025, bringing the average cost to $4,255 annually. This positions Maryland as the most expensive state for car insurance.

New York follows closely behind with a projected 10% increase that will elevate its average annual premium from $3,804 to $4,183. These figures were provided by Insurify's data analysts.

Insurify's analysis of over 97 million car insurance quotes identified ten states with the highest car insurance costs. Alongside Maryland and New York, these include Washington D.C., South Carolina, Florida, Delaware, Nevada, Louisiana, Colorado (tied), and Georgia (tied).

Multiple factors contribute to these rising rates nationally. Climate risk, inflation, and increasing vehicle repair costs have been significant influences. State-specific factors such as vehicle theft rates and legislative changes also play roles.

Maryland's rate hike was not unique; Minnesota experienced an even higher percentage increase at 58% in 2024.

The Insurance Information Institute noted that most drivers opt for more than just liability coverage. Data shows that comprehensive coverage is purchased by eighty percent of insured drivers while seventy-six percent choose collision coverage.

Experian reported that nearly eighty percent of new vehicles and thirty-eight percent of used vehicles were financed in 2023. This often necessitates full-coverage insurance due to lender requirements.

To manage rising costs, Insurify suggests several strategies: practicing safe driving habits; seeking discounts which could lower premiums significantly; bundling auto insurance with other types like homeowners or renters; selecting higher deductibles while saving funds for potential claims; choosing cars cheaper to insure; considering pay-per-mile options; and comparison shopping across multiple insurers.

For further insights or data from Insurify’s Auto Insurance Data Center, media inquiries can be directed via email to [email protected].