Car insurance rises for millions over 5 states

The car insurance rates have been skyrocketing across the country for the past few years, powered by more expensive repairs and increasingly risky behavior from drivers. Five states are leaders, with prizes in Minnesota and Maryland rising by more than 50 percent by 2024, according to a new report by Digital Insurance Agent Insurify.

Why it matters

The cost of living that climbed during former President Joe Bite’s administration proved to be a crucial question for American voters on their way to the polls on November 5.

While President Donald Trump has promised to reduce the price of everyday goods, the cost of owning a vehicle is still rising across the country due to higher insurance premiums and expensive repairs, and experts expect the coverage to be more expensive in 2025.

What to know

According to Consumeraffairs, estimated 283,400,986 commercial and personal vehicles were registered to drivers in the United States in 2021; 91.7 percent of US households owned at least one vehicle, while nearly 22 percent had three or more vehicles.

According to the consumer index in December 2024 (CPI) from the US Bureau of Labor Statistics (BLS), the cost of car insurance increased by 11.3 percent over the previous 12 months – the second highest increase after the price of the egg price. In the same timeframe, CPI increased 2.9 percent.

Despite the large increase, car insurance increasingly grew less between December 2023 and December 2024 than it had 12 months before, as prizes were 20.3 percent higher than in 2022.

But car insurance is increasing faster than wages and adding significant financial burden to US drivers. Insurance analyzed its database of over 97 million car insurance offers to find that car insurance premiums in full coverage increased by 15 percent in 2024 lights more than BLS estimated and 42 percent since 2022.

According to the agent’s report, the biggest increase was reported in Minnesota, which raises rates by 58 percent by 2024 and reached $ 2,524 a year. Maryland followed with a 53 percent increase last year, bringing prizes up to $ 4,060.

California reported the third highest prize increase, up to 48 percent in 2024 compared to a year earlier for a median rate of $ 2,575. It was followed by Pennsylvania with a 38 percent rate increase that brought prizes to $ 2,114, and Virginia, at a rate of $ 2,276, an increase of 33 percent from the previous year.

What’s behind the increase in prizes?

According to Insurify, “Rising prizes reflect a combination of factors, including serious weather risks, urban connection and escalating repair costs,” the company wrote in the report. “The growing gap at affordable prices highlights the need for drivers to stay informed as car insurance becomes a greater financial burden in these high cost regions,” it added.

What people say

Divya Sangameshwar, an insurance expert at Financial Research Company ValuePenguin.com, said in a statement accompanying the report The state of car insurance in 2025: “If (then) President-elected Donald Trump goes ahead with his plan to impose tariffs on imported goods, insurance rate increases could speed up again.

“In fact, 60 percent of replacement of car parts is imported from other countries such as China. Higher costs for parts can mean higher repair prices and more expensive claims, which will result in a greater interest rate increase in 2026 and above.”

Newsweek has contacted the White House via E -Mail for comment.

Douglas Heller, Director of Insurance for the Consumer Federation of America, told S&P Global That he feared that US drivers will drop their car insurance due to rising costs.

“When the choices are between car insurance and medicine or food, (consumers) cannot take the risk of medication or food. But they can take the risk of car insurance,” he said.

“That’s the risk of us all going together when people choose to go insured or not – or are forced to go uninsured. So we have a real concern that there will be an increase there.”

What is the next

A majority of experts expect a slowdown in rate increases this year, although it does not mean that prizes will stop rising. Insurify’s experts expect car insurance rates to finally slow down to 5 percent in 2025, giving a glimpse of hope to US drivers.

Valuepenguin.com expects the median cost of car insurance to increase by an average of 7.5 percent and reaches $ 2,101 a year. According to the company’s prospects of 2025, Nevada and Florida will become the most expensive states for car insurance this year.

Experts fear that the increase in prizes will lead to an increase in uninsured drivers on US roads.

Are you an American driver struggling to pay for cover and have decided to go without car insurance? Get in touch with us at [email protected].