--- title: Average Car Insurance Prices Expected to Hit $2,500 This Year description: Car insurance prices are soaring, up over 20% in a year. A new report Insurify says the average premium will cost almost $2,500 in 2024. authors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true editors: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere is an editor at Money.com. Since joining in 2015, she’s written and edited about a variety of personal finance topics, including banks, credit, student debt, saving strategies and more. education: University of Florida at_money_since: 2015 articles: 217 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2024-08-12T14:54:25.000Z' modified: '2025-04-15T22:25:47.000Z' section: Insurance word_count: 569 canonical: https://money.com/car-insurance-prices-increase/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Cars driving on the freeway with a green background](https://img.money.com/2024/08/News-Car-Insruance-Policy-Cost.jpg) The average car insurance premium is projected to cost nearly $2,500 this year — almost $1,000 higher than in 2021, when prices bottomed out during the pandemic. A new [report](https://insurify.com/car-insurance/report/) from Insurify, an insurance marketplace, estimates that the average cost for a full coverage [auto insurance](https://money.com/best-auto-insurance/) policy will rise to $2,469 by the end of 2024. That would be a 22% increase over last year, when premiums averaged $2,019. The rise is even more dramatic compared to what drivers were paying for insurance a few years ago. The average cost of full coverage was in the low $1,600s in 2020 and 2022, and it dipped to $1,567 in 2021, according to Insurify data. (You may remember that during the early months of the pandemic, [auto insurance prices dropped](https://money.com/more-car-insurance-refunds/) significantly and some [insurers actually gave customers rebates](https://money.com/how-to-cheap-car-insurance-rate-coronavirus/) because people were driving so much less.) ## Make sure that you're not over paying for Car Insurance ### Click your state to get matched to a top ranked Car Insurance provider in your area. [View Rates](https://money.com/pr/a299d667867e?ap_referrer=%2Fcar-insurance-prices-increase%2F) ## Why car insurance prices are rising so fast While prices for most goods rose in the aftermath of the pandemic, costs spiked to a staggering degree for car insurance. Around this time a year ago, Bureau of Labor Statistics (BLS) data indicated that [auto insurance rates were increasing faster](https://money.com/car-insurance-inflation-2023/) than any other common expense — up around 17% in a year, compared to general inflation of 3%. As of March, the rate of [inflation for car insurance hit 22%](https://money.com/inflation-march-2024/) annually. Recent [BLS reports](https://www.bls.gov/news.release/cpi.t01.htm) show that auto insurance prices briefly eased off the gas in the spring — falling 0.1% from April to May — but then popped 1% higher from May to June. Prices have [skyrocketed](https://money.com/why-auto-insurance-prices-higher/) for a variety of reasons. The most obvious one is that prices for new and used vehicles have surged in the past few years. Cars are much more expensive to repair or replace, and insurers are factoring in rising costs related to customer claims and passing them along to drivers in the form of higher premiums. Among the other factors causing car insurance rates to climb are increases in dangerous driving (and more road fatalities and costly crashes) and severe weather episodes that can damage or destroy vehicles such as wildfires, floods and hailstorms. ## Most expensive states for car insurance Insurify says that Maryland is the most expensive state for auto insurance, with average full coverage premiums running $3,400 per year as of June. Here are the 10 states with the most expensive car insurance rates: - **Maryland:** $3,400 - **South Carolina:** $3,336 - **New York:** $3,325 - **Nevada:** $3,271 - **Florida:** $3,201 - **Louisiana:** $3,182 - **Delaware:** $2,982 - **Washington, D.C.:** $2,977 - **Michigan:** $2,719 - **Georgia:** $2,688 Unfortunately, premiums are expected to keep climbing. For example, by the end of 2024, the average in Maryland will rise to $3,748, Insurify predicts — a potential increase of 41% versus 2023. Rates are supposed to soar in states such as California, Missouri and Minnesota as well, with year-over-year spikes forecasted at 54%, 55% and 61%, respectively. To some extent, rising car insurance prices are unavoidable. But there are some classic strategies for [lowering car insurance premiums](https://money.com/how-to-lower-car-insurance-premiums/) that are worth trying, including raising your deductible and [bundling home and auto insurance](https://money.com/best-home-and-auto-insurance-bundles/) policies to get a discount. It’s also smart to [shop around for cheaper car insurance](https://money.com/how-to-buy-car-insurance/) once a year or so, to see if there are better options. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/car-insurance-prices-increase/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Insurance", "item": "https://money.com/insurance/" }, { "@type": "ListItem", "position": 3, "name": "Car Insurance", "item": "https://money.com/car-insurance/" }, { "@type": "ListItem", "position": 4, "name": "Average Car Insurance Prices Expected to Hit $2,500 This Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/car-insurance-prices-increase/#webpage", "url": "https://money.com/car-insurance-prices-increase/", "name": "Average Car Insurance Prices Expected to Hit $2,500 This Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2024-08-12T14:54:25.000Z", "mainEntity": { "@id": "https://money.com/car-insurance-prices-increase/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/car-insurance-prices-increase/#breadcrumb" }, "dateModified": "2025-04-15T22:25:47.000Z" }, { "@type": "Article", "headline": "Average Car Insurance Prices Expected to Hit $2,500 This Year", "articleSection": "Insurance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2024/08/News-Car-Insruance-Policy-Cost.jpg", "width": 2880, "height": 1920, "caption": "News-Car-Insruance-Policy-Cost" } ], "author": [ { "@type": "Person", "name": "Brad Tuttle", "url": "https://money.com/author/brad-tuttle/", "@id": "https://money.com/author/brad-tuttle/#author", "description": "Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals.\r\n\r\n", "image": "https://img.money.com/2014/01/Brad-Tuttle.png?w=226&h=247&crop=1", "alumniOf": "Columbia University School of Journalism, MS", "sameAs": [ "https://twitter.com/bradrtuttle", "https://linkedin.com/in/brad-tuttle-834b225" ] } ], "publisher": "https://money.com/#organization", "datePublished": "2024-08-12T14:54:25.000Z", "description": "Car insurance prices are soaring, up over 20% in a year. 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