Three states will see car insurance costs rise by as much as 50% by the end of the year, according to a new forecast. It comes after policy rises — which have been a key driver of inflation — were already bumped by an average of 24% across the country in 2023. The annual premium for the average driver will rise to $2,469 by the end of the year. However, in 3 key states drivers will be hit much harder, forking out more than 50% more.
- 1. Minnesota — Prices will rise sharply in Minnesota, where the projected increase is expected to be a staggering 61%. The average annual cost of full coverage in the state in June 2023 was $1,492 but is set to increase to $2,597 by the end of 2024.
- 2. Missouri — The Show Me State is expected to be the second hardest hit, with average costs rising from $1,582 in 2023 to $2,673 by the end of 2024, a 55% rise.
- 3. California — Prices are also set to rise by more than 50% in the Golden State, where average annual cost for car insurance is expected to hit $2,681 by the end of the year, a 54% increase.
North Carolina and Illinois round up the top 5 states that will see major increases. North Carolina will see a 39% increase, while Illinois will see a 31% increase. Car thefts and weather-related claims account for most of the increase overall. Climate change also plays a role, bringing an increased risk of damage to autos from wildfires, floods and other natural disasters like hurricanes.
