Most Expensive Car Insurance (2024) (2024)

FAQs

Most Expensive Car Insurance (2024)? ›

Drivers in Louisiana have the highest true cost of car insurance, with an average annual premium of $3,618 — 6.53 percent of their household income.

According to the Bureau of Labor Statistics, auto insurance premiums in 2024 have increased by a whopping 20.6% year-over-year.

Age: Because age is linked to driving experience and accident risk, young drivers typically pay the most expensive car insurance rates. This guide to cheap car insurance for new drivers can help you find a good deal. Gender: Male drivers are statistically more likely to get involved in accidents than female motorists.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.)

But after two years of increases, there are strong indications that auto loan rates could start to come back down in 2024 — perhaps by a substantial amount.

Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance at $5,858 per year. Below, you'll see the top five most expensive states for homeowners insurance.

Does car color affect insurance rates? The color of your car doesn't affect your insurance rate. Instead, your insurance company uses other information, like your car's age, location, usage, and your driving record, to help determine insurance rates. Learn more about the factors that impact auto insurance pricing.

Does credit score affect car insurance? ›

Does credit score affect car insurance rates? Yes. A higher or lower credit score can have a big impact on your insurance rate. Poor credit increases full coverage rates by 86% compared to good credit.

Inflation and economic factors

Increased car repair expenses for parts and labor and higher replacement costs can lead to insurance rate hikes.

Car insurance premiums don't automatically go down when you pay off your car, but you can probably lower your premium by dropping coverage that's no longer required. Banks and financing companies who loan you money for your car are called lienholders.

Auto insurance rates rose 2.6% in March and are up 22% from a year ago. Premium costs have been marching steadily higher since 2022, even as inflation at the consumer level steadily cooled from its 9.1% peak in the middle of that year.

Although most people believe that 25 is the age when car insurance rates go down, the most significant decreases occur when drivers turn 19 and 21. Rates continue to lower until you turn 30.

What Are the New Rates? A health plan rate refers to your plan's cost — the premium you pay each month. The average health plan rate will increase by 9.6% in 2024. However, this is just an average, and rates vary significantly by region and insurance provider.

Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.