Auto premiums could increase another 12% in 2024
These rate increases will be driven by more frequent severe weather events and elevated repair costs.
Despite already seeing a jump of 11.2% in 2023, ValuePenguin predicts rising repair costs and severe weather will drive auto insurance rates to increase another 12.6% in the United States in 2024. Premiums have been trending upward over the last several years, and have increased 29% overall since 2018, and 25% in just the last two years.
On average, drivers across the U.S. are paying $165 per month ($1,984 annually) for auto insurance as we begin 2024, though costs vary significantly state-to-state. Michigan drivers currently pay the most for their auto coverage at an average of $386 per month, which is 134% above the country’s average.
Florida has the second-most expensive auto insurance ($249 per month), followed by Nevada, Louisiana and Arizona. Drivers in Maine enjoy the least expensive auto insurance, paying an average of $92 per month.
ValuePenguin predicts Nevada will see the sharpest rise in auto premiums in 2024 at 24%, with Washington expected to see the second-largest increase at 18%, followed by Arizona (17%), Connecticut (17%), Louisiana (16%) and Georgia (16%). According to their analysis, drivers in every state except for Colorado, Hawaii, Idaho and North Carolina should expect to see their premiums increase at least 5%.
Pickup trucks tend to be the most expensive vehicles to insure at an average of $261 per month, while crossovers are the least expensive at an average of $219 per month.
ValuePenguin notes that electric vehicle sales increased 50% in 2023, and not only are they becoming more popular to drive, but they are also becoming more affordable to insure. The least expensive popular EV models to insure include:
- Volkswagen ID.4 ($223 per month on average)
- Chevrolet Bolt EV/EUV ($242 per month)
- Kia EV6 ($260 per month)
- Hyundai Ioniq5 ($260 per month)
- Ford Mustang Mach-E ($288 per month)
In addition to concerns about weather damage and increased repair costs, there is also concern that an increase in vehicle thefts is also contributing to elevated rates. According to ValuePenguin, car theft rates have continued to increase since 2022, with Hyundai and Kia thefts making up more than half of the thefts that happened in 2023. While catalytic converter thefts have decreased since 2022, the number of these crimes is still up over 700% from 2019.
You can view the rest of ValuePenguin’s analysis in their State of Auto Insurance in 2024 report.