New report tasks 22% improve in automotive insurance coverage prices after 15% spike in first half of 2024

• Common annual value of full protection: $3,400
• P.c larger than the U.S. common: 46%
• Projected common fee improvement in 2024: 41%

Maryland drivers pay essentially the most for full-coverage automotive insurance coverage, with a mean month-to-month value of about $283. The state’s 43% year-over-year fee improvement could also be partially defined by a spike in visitor fatalities. Maryland noticed an 8.2% rise in motorized vehicle crash deaths in 2023, whereas on common the U.S. noticed a 3.6% decline, in line with the Nationwide Freeway Site vVisitorsSecurity Administration, or NHTSA.

New Maryland laws, effective July 1, 2024, require auto insurers to offer enhanced uninsured motorist protection. The supply permits policyholders to “stack” the at-fault driver’s legal responsibility insurance coverage with their private uninsured or underinsured motorist (UM/UIM) protection. Insurers account for this increased financial responsibility when setting charges.

2. South Carolina

• The common annual value of full protection: $is 3,336
• P.c larger than the U.S. common: 43%
• Projected common fee improvement in 2024: 38%

Full-coverage charges in South Carolina soared 43% year-over-year to $278 monthly as of June 2024. South Carolina ranks thirteenth within the U.S. for questionable vehicle-related insurance coverage claims, in line with the Nationwide Insurance Coverage Crime Bureau, or NICB.

Insurers think about fraud threats when setting charges. Climate-related damages from an active 2024 hurricane season are additionally a threat insurers have to cover.

A 2023 South Carolina Supreme Courtroom choice elevated monetary accountability for insurance coverage corporations, ruling that auto insurers cannot restrict property harm claims to only lined autos beneath UM/UIM protection. Beneath the brand new legislation, insurers need to successfully cover all properties registered to the policyholder and their household.

3. New YorkThe common

• n annual value of full protection: $3,325
• P.c larger than the U.S. common: 43%
• Projected common fee improvement in 2024: 4%

New York drivers beforehand had the most costly full protection within the nation at the finish of 2023 however noticed a 1% lower within the first half of 2024 as charges in different states skyrocketed. New York is the ninth most densely populated state in the U.S., which contributes to larger insurance coverage prices because of the better threat of claims.

New York additionally has the very best variety of stolen automobiles within the U.S., with 32,715 thefts in 2023, NICB information exhibits. The upper probability of auto theft will increase the chance of an insurer having to pay out a declaration, resulting in larger premiums in New York.

4. Nevada

• The common annual value of full protection: is $3,271
• P.c larger than the U.S. common: 40%
• Projected common fee improvement in 2024: 20%

Nevada drivers have seen a 20% improvement in full-coverage premiums since June 2023, bringing the common month-to-month value to about $273. The state had the third-highest automobile theft fee in 2023, with 572.7 automotive thefts per 100,000 residents, in line with the NICB, growing the monetary threat of insuring Nevada drivers.

Nevada’s rising local weather threat may play a big function in future fee setting. Wildfires burn a mean of 450,000 acres in Nevada yearly, and the state additionally sees some harm from hurricanes and tropical storms. These climate occasions improve the probability of fireside and flood harm to automobiles within the state and drive up insurance coverage premiums.

5. Florida

• The common annual value of full protection: is $3,201
• P.c larger than the U.S. common: 37%
• Projected common fee improvement in 2024: 18%

Florida drivers pay about $267 month-to-month for full protection. The state’s ongoing insurance crisis, influenced by extreme climate occasions, has pushed some insurers out of the state solely, whereas others have declared insolvency. In 2023, Farmers Insurance coverage stopped protecting in Florida, and AAA non-renewed sure dwelling and auto insurance coverage insurance policies.

Over the previous two years, Florida has seen a flurry of legislative exercises aimed at lowering frivolous lawsuits in opposition to insurers, decreasing customers’ insurance coverage charges, and mitigating auto insurance coverage fraud. The no-fault state accounts for 74% of questionable auto glass claims within the U.S., in line with the NICB.

Regardless of an attempt to reform the state’s insurance coverage laws, Florida remains a troublesome state for insurers to revenue in—and, consequently, it has one of many nation’s highest common auto insurance coverage charges.

6. Louisiana

• The common annual value of full protection: is $3,182
• P.c larger than the U.S. common: 37%
• Projected common fee improvement in 2024: 23%

Louisiana drivers pay a mean of $261 month-to-month for full protection. The state’s rising insurance coverage disaster, tied to Louisiana’s excessive hurricane and twister dangers, has largely affected dwelling insurance coverage. Nonetheless, the state’s local weather threat can start to affect automotive insurance coverage charges, as comprehensive coverage—one a part of a full-coverage coverage—protects in opposition to damages sustained in a climate occasion.

Louisiana additionally noticed a ten% surge in automobile thefts in 2023, in line with NICB information. Each component improves its insurer threat and, due to this fact, automotive insurance coverage charges.

Louisiana lawmakers handed a sequence of auto insurance coverage reforms in 2024. The legal guidelines goal extreme medical billing in private damage lawsuits and restrict policyholders’ time to file an immovable property declaration to 2 years after the policyholder is aware of (or ought to know) in regards to the harm. These reforms, aimed at decreasing charges, cut back some insurer accountability.

7. Delaware

• The common annual value of full protection: $2,982
• P.c larger than the U.S. common: 28%
• Projected common fee improvement in 2024: 13%

Delaware drivers pay about $249 month-to-month for full protection, a 9% improvement since June 2023. The state has the seventh-highest inhabitant density in the nation, in line with Census Bureau information, which might improve the chances of accidents and claims on busy roadways.

In a single vivid spot for policyholders, the Delaware Division of Insurance coverage adopted a brand new regulation in January 2024 requiring insurers to promptly refund any unearned auto insurance coverage premiums (that means cost for the unused days of protection after a driver cancels their coverage).

8. Washington, D.C.

• The common annual value of full protection: is $2,977
• P.c larger than the U.S. common: 28%
• Projected common fee improvement in 2024: 17%

Drivers within the District of Columbia noticed a 17% year-over-year improvement in full-coverage charges, bringing the common month-to-month value to $248.

Washington, D.C., has the very best inhabitant density in the nation. The district additionally noticed visitor fatalities improved by greater than 40% between 2022 and 2023, in line with NHTSA information. This mix of things raises the chance of an insurer having to pay out a declaration, so corporations improve the value of automotive insurance coverage in response.

Premium will increase could quickly gradual in D.C. The D.C. legislature handed a brand new legislation requiring dwelling and auto insurers to file for prior approval to lift charges. Extreme hikes require discovery and a chance for a listening to. Beforehand, D.C. had a file-and-use system, which means insurers may elevate charges immediately after filing with the Department of Insurance.

9. MichigaThe common

• on the annual value of full protection: $2,719
• P.c larger than the U.S. common: 17%
• Projected common fee improvement in 2024: 8%

Michigan adopted a no-fault insurance coverage system in 2019 in an try to reduce fees will increase. The state noticed a 4% improvement in full-coverage premiums between June 2023 and June 2024, in comparison with a 28% rise nationwide, however, Michigan nonetheless has a number of the highest charges within the nation, at a mean of practically $227 monthly.

The Michigan Division of InsuranceCoveragee and Monetary Companies Fraud Investigation Unit acquired 3,789 fraud experiences between July 1, 2023, and June 30, 2024. Of these experiences, 99% have been insurance-related, and 50% involved auto and no-fault claims. Greater fraud charges make the state riskier for insurers to function in, they usually elevate charges in response.

10. Georgia

• The common annual value of full protection: is $2,688
• P.c larger than the U.S. common: 15%
• Projected common fee improvement in 2024: 24%

Georgia drivers pay a mean of $224 month-to-month for full protection. Car thefts would possibly affect the state’s excessive automotive insurance coverage prices since insurers issue that threat into fee setting. Georgia drivers reported 28,171 automobiles as stolen in 2023, the ninth-highest quantity within the nation, in line with NICB information.

On July 1, 2023, Home Invoice 221 went into impact, ending the state’s file-and-use provision and giving Georgia’s insurance coverage commissioner 60 days to assess fee filings earlier than insurers can implement will increase. Regardless of the brand-new laws, Georgia drivers noticed a 21% improvement in full-coverage prices between June 2023 and June 2024.