Inflation has tightened many Americans’ budgets, with rising car insurance rates playing a significant role.

According to a report by Insurify, an insurance comparison company, car insurance rates saw an average increase of 15% in 2024, bringing the average annual cost of full coverage to $2,313 for U.S. drivers. Here’s where the rates surged the most:

States with the Highest Car Insurance Rate Increases in 2024

By the numbers

• Minnesota: 58% increase, with an average cost of $2,524
• Maryland: 53% increase, averaging at $4,060
• California: 48% increase, with an average of $2,575
• Pennsylvania: 38% increase, average cost $2,114
• Virginia: 33% increase, average cost $2,276

Three states – Minnesota, Maryland, and California – saw dramatic rate hikes ranging from 48% to 58% in 2024. The causes of these increases are multifaceted, including changes in insurance regulations and severe weather events, according to Insurify.

Minnesota was hit by severe storms, including record-breaking 6-inch hailstones, which significantly increased auto insurance risks.

Maryland faced a similar issue with an unusually severe hailstorm in August, alongside a new requirement for EUIM coverage starting in July.

In California, legislative changes like doubling the mandatory liability limits, combined with the growing threat of wildfires, have driven up costs.

2025 Car Insurance Rate Forecast

Insurify has forecasted that car insurance rates might surge in 2025, although they expect the increases to be less severe. Their projections consider factors such as climate risks, legislative changes, and other trends.

Meanwhile, in Florida, industry experts expect both auto insurance and homeowners insurance to rise steeply in 2025, due to the impacts of Hurricanes Debby, Helene, and Milton, which caused a flurry of claims to be filed by customers impacted by these storms.

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