Janna Mullane Head of People & Culture | Insurify
Car insurance rates across the United States increased by 15% in 2024, with five states experiencing more significant hikes, according to a report from Insurify. Minnesota, Maryland, California, Pennsylvania, and Virginia saw increases of over 30%, driven by factors such as climate change, rising accident and vehicle theft rates, and changes in insurance legislation.
Minnesota had the highest increase at 58%, attributed to severe weather events like storms and hailstones that led to more claims. Maryland followed with a 53% rise due to similar weather conditions and new requirements for uninsured motorist coverage starting July 2024. California's rates went up by 48%, influenced by climate-related disasters and legislative changes.
Pennsylvania and Virginia also faced substantial increases of 38% and 33%, respectively. In both states, higher repair costs, traffic congestion, severe weather, and increased accident rates contributed to the rise. Virginia additionally mandated car insurance for all drivers in 2024.
Insurify's report predicts further rate hikes in New York and Florida for 2025 due to their status as no-fault states prone to insurance fraud. Rates are expected to climb by around 10% in these states. Georgia, Nevada, and Delaware might see increases between 7% and 8%.
Despite these trends, some states experienced declines or stability in car insurance costs last year. North Dakota, Iowa, Wyoming, Rhode Island, and New Hampshire saw decreases ranging from 1% to 5%. South Dakota maintained stable rates.
Betsy Stella from Insurify commented on the market outlook: “The return to profitability will mean more stability in the [car insurance] market,” she said. “As long as profitable trends hold, we can expect insurers to be looking for growth and taking a more moderate approach toward rate changes.”
Alerts Sign-up