10. Nebraska
Auto insurance premiums in the state increased an average of
23% during the first half.
Credit: Shutterstock.com
9. Texas
Auto insurance premiums in the state increased an average of
25% during the first half.
Credit: Nick Fox/Adobe Stock
8. Florida
Auto insurance premiums in the state increased an average of
25% during the first half.
Credit: Ingo70/Shutterstock
7. Pennsylvania
Auto insurance premiums in the state increased an average of
26% during the first half.
Credit: photo.ua/Shutterstock
6. Maine
Auto insurance premiums in the state increased an average of
28% during the first half.
Credit: Tichnor Brothers/Wikicommons
5. Indiana
Auto insurance premiums in the state increased an average of
28% during the first half.
Credit: Sue Smith/Shutterstock
4. Michigan
Auto insurance premiums in the state increased an average of
31% during the first half.
Credit: Andreas Faessler/Wikicommons
3. New Jersey
Auto insurance premiums in the state increased an average of
34% during the first half.
Credit: Famartin/Wikicommons
2. Nevada
Auto insurance premiums in the state increased an average of
36% during the first half.
Credit: Nick Fox/Shutterstock.com
1. New Mexico
Auto insurance premiums in the state increased an average of
38% during the first half.
Credit: Famartin/Wikicommons
During the first six months of this year, personal auto insurance prices have increased an average of 17% in the U.S., according to a mid-year report from Insurify, Inc., which projects another 4% increase before 2023’s close.
The national average annual cost for auto insurance now stands at $1,668, Insurify reported. Inflation, growing repair costs, legislative changes and insurers struggling through record-breaking losses are driving the current price hikes.
“Vehicle repair and maintenance costs have outpaced inflation and show no signs of slowing, leading insurers to increase auto insurance prices to keep up with the cost of higher claim payouts,” Allie Feakins, Insurify’s senior vice president of insurance, said in the report. “Given the lag between regulator approvals and actual rate increases, consumers can expect rates to increase over the next 12 to 18 months.”
For consumers, news of rising insurance costs isn’t exactly news. Insurify reported that the number of buyers seeking full coverage declined 51% during the year’s first half, while searches for liability-only coverage grew 86%. While full coverage policies offer superior protection, they also cost around 62% more than minimum liability coverage.
The above slideshow details which states are seeing personal auto rates grow the fastest, according to Insurify’s mid-year review of the U.S. marketplace.
“The frequency and severity of natural disasters have led to some geographical areas experiencing different types of weather events from what they’ve seen before,” Betsy Stella, Insurify’s vice president of carrier management and operations, said in a release. “More vehicles are being caught and destroyed in fires and floods, and ice is sticking around longer, increasing the likelihood of collisions. This has led to auto insurers paying a higher number of — and a higher price for — customer claims.”
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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.