The Brief

• Car insurance rates increased by 15% in 2024, a report from insurance comparison company Insurify found.

• The five states that saw the sharpest increase were: Minnesota, Maryland, California, Pennsylvania and Virginia.

Rising auto insurance rates contributed to the financial pinch many Americans are feeling amid inflation.

Car insurance rates increased by an average of 15% in 2024, a report from the insurance comparison company Insurify found.

That means American drivers are now paying an average of $2,313 annually for full coverage.

Here’s a look at where the rates increased the most last year:

States where car insurance rates rose the fastest in 2024

By the numbers

• Minnesota – 58% increase; $2,524 average

• Maryland – 53% increase; $4,060 average

• California, 48% increase; 2,575 average

• Pennsylvania, 38% increase; $2,114 average

• Virginia, 33% increase; 2,276 average

Dig deeper

Three states from different regions experienced rapid rate hikes of 48%–58% in 2024: Minnesota, Maryland and California.

The reasons behind the increases vary, from insurance requirement changes to severe weather, Insurify said.

The state experienced several waves of severe storms, producing heavy rainfall and record-breaking 6-inch hailstones, according to the Minnesota Department of Natural Resources. Extreme hail raises risk for auto insurers, contributing to rate increases.

RELATED: Minnesota sees nation’s sharpest car insurance hikes: Why, and how to save

An unusually severe hailstorm also hit Maryland in August, Insurify said, contributing to the rising costs there. The state also started requiring EUIM coverage in July. 
Some legal changes in California also led to increased costs, which included doubling the mandatory liability limits. Increasing wildfires are also posing a major risk.

2025 car insurance price projection

Insurify is able to project where car insurance prices will jump the fastest in 2025, though the agency predicts the increases will be less dramatic this year.

Insurify looks at climate risks, changing laws and other patterns to make their projection.

The Source

Information in this article was taken from a January 2025 report from Insurify, which has collected a database containing millions of car insurance rates from drivers in all 50 states and Washington, D.C. This story was reported from Detroit.