Car insurance rates have been rising steadily for years, and 2024 proved no different. The latest data from Insurify reveals that auto insurance premiums increased by a significant 15% across the United States last year, leaving drivers to pay an average of $2,313 annually for full coverage. While this increase has affected all drivers, certain states are seeing especially steep hikes in their premiums, with some areas experiencing increases of up to 53%. As insurers continue to adjust their rates in response to inflation, rising repair costs, and growing weather risks, drivers in these states are facing particularly tough financial burdens.

Maryland and New York lead the charge

Among the states with the highest car insurance rates in 2024, Maryland and New York stand out, both experiencing a 53% increase in premiums. According to Betsy Stella, Vice President of Carrier Management and Operations at Insurify, “Maryland’s auto insurance rates tend to be influenced by its large population centers, such as Baltimore, and its proximity to Washington, D.C.”

This leads to a higher frequency of claims due to congestion and traffic-related incidents. In New York, slower regulatory approval for rate increases has compounded inflationary pressures, resulting in higher costs for drivers. “New York has seen slower regulatory approval for rate increases, which has made it more challenging for insurers to keep pace with rising loss costs,” Stella explained. These factors have combined to push the average annual cost of full coverage in Maryland to a staggering $4,060, and in New York to $3,804.

Rising rates across the South

Several Southern states have also seen major jumps in their auto insurance premiums. South Carolina saw a 29% increase in premiums, with drivers now paying an average of $3,393 annually. Stella attributes this surge to both inflationary pressures and rising repair costs: “As the cost of parts and labor continues to climb, insurers must adjust their rates to maintain profitability while ensuring adequate coverage for policyholders.”

Florida, another state with a high risk of weather-related claims, saw a 9% increase, with rates climbing to $3,166. The state’s exposure to hurricanes and other severe weather events, combined with inflation, continues to drive up costs for drivers. “Florida’s auto insurance market is affected by several factors, including a growing population and a higher frequency of severe claims,” said Stella. The combination of these factors has made car insurance significantly more expensive for residents.

A slight relief in Wisconsin

While most states are facing steep increases, some areas are experiencing more moderate hikes. Wisconsin, for example, will see a smaller increase of just 3% in 2025, following a sharp 22% increase from 2023 to 2024. The state’s average annual premium is projected to reach $1,730, still below the national average of $2,435 for 2025. Despite the smaller hike, the trend of rising insurance costs is undeniable. Over the past three years, the average national car insurance rate has risen by nearly 35%. Insurify attributes these increases to higher vehicle repair costs, particularly due to the proliferation of high-tech and electric vehicles, as well as insurance companies adjusting their rates to account for the risks of climate-related disasters.

While the rising cost of car insurance is undoubtedly frustrating for many drivers, it is important to remember why maintaining adequate car insurance is essential. Car insurance not only protects drivers financially in the event of an accident, but it is also legally required in most states. In the case of accidents, insurance can cover repair costs, medical expenses, and legal fees, helping to mitigate the financial strain that can result from unexpected incidents.

Car insurance is crucial for protecting other people involved in accidents, ensuring that drivers are held accountable for damages or injuries they may cause. Despite the rising premiums, having car insurance is an investment in both personal and public safety, and failing to maintain it can result in serious legal and financial consequences.