A new report predicts that auto insurance in the United States will continue to rise and could even increase by as much as 50% in some states.
Auto insurance has been one of the main factors driving up inflation this year. According to the most recent Consumer Price Index report, corresponding to the month of July, among the indices that increased in that month are motor vehicle insurance.
The motor vehicle insurance index rose 1.2 percent in July after a 0.9 percent increase in June. Over the last year, motor vehicle insurance has registered an increase of 18.6 percent and, according to a report by Insurufy, the trend will continue.
States where car insurance could rise by 50%
Insurify is a company that provides data on auto insurance rates, and they say the cost of full coverage car insurance rose 15% in the first half of the year. The average annual premium for full coverage now costs $2,329.
The predict that the average insurance policy in the United States is expected to rise 22% this year to an average annual premium of $2,469 by year-end, but in some states the increase may be higher.
Insurify predicts that California, Missouri and Minnesota could see auto insurance costs rise by more than 50% in 2024. Drivers in those states could see their rates increase by 54%, 61% and 55%, respectively.
Among the reasons contributing to the rate increase are damage caused by severe storms and wildfires that have hit these states.
States with the most expensive car insurance rates
Drivers in Maryland currently pay the highest average rate: $3,400. As for year-end forecasts, rates are expected to increase 41% to $3,748 compared to 2023 rates.
The second-most expensive state is South Carolina, with an average policy premium of $3,336, which could rise 38% to $3,687 by the end of the year compared to 2023 rates.
New York is the third state with the highest rates. This entity registers an average premium of $3,325. By the end of the year, it could register a 4% increase compared to the figures for 2023.
The rest of the top 10 states with the most expensive policies are: Nevada, Florida, Louisiana, Delaware, Washington D.C., Michigan and Georgia.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.