- Common annual value of full protection: $3,400
- P.c larger than the U.S. common: 46%
- Projected common charge enhance in 2024: 41%
Maryland drivers pay essentially the most for full-coverage automobile insurance coverage, with a mean month-to-month value of about $283. The state’s 43% year-over-year charge enhance could also be partially defined by a spike in site visitors 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 response to the Nationwide Freeway Site visitors Security Administration, or NHTSA.
New Maryland laws, efficient July 1, 2024, requires auto insurers to supply 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
- Common annual value of full protection: $3,336
- P.c larger than the U.S. common: 43%
- Projected common charge enhance in 2024: 38%
Full-coverage charges in South Carolina soared 43% year-over-year to $278 per thirty days as of June 2024. South Carolina ranks thirteenth within the U.S. for questionable vehicle-related insurance coverage claims, in response to the Nationwide Insurance coverage Crime Bureau, or NICB.
Insurers think about fraud threat when setting charges. Climate-related damages from an active 2024 hurricane season are additionally a threat insurers have to cost in.
A 2023 South Carolina Supreme Court docket resolution elevated monetary accountability for insurance coverage corporations, ruling that auto insurers cannot restrict property harm claims to simply coated autos beneath UM/UIM protection. Underneath the brand new regulation, insurers need to successfully cowl all properties registered to the policyholder and their household.
3. New York
- Common annual value of full protection: $3,325
- P.c larger than the U.S. common: 43%
- Projected common charge enhance in 2024: 4%
New York drivers beforehand had the costliest full protection within the nation on 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 within the U.S., which contributes to larger insurance coverage prices because of the higher threat of claims.
New York additionally has the very best variety of stolen vehicles within the U.S., with 32,715 thefts in 2023, NICB knowledge exhibits. The upper probability of auto theft will increase the danger of an insurer having to pay out a declare, resulting in larger premiums in New York.
4. Nevada
- Common annual value of full protection: $3,271
- P.c larger than the U.S. common: 40%
- Projected common charge enhance in 2024: 20%
Nevada drivers have seen a 20% enhance in full-coverage premiums since June 2023, bringing the typical month-to-month value to about $273. The state had the third-highest car theft charge in 2023, with 572.7 automobile thefts per 100,000 residents, in response to the NICB, rising the monetary threat of insuring Nevada drivers.
Nevada’s rising local weather threat might play a big position in future charge 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 enhance the probability of fireside and flood harm to vehicles within the state and drive up insurance coverage premiums.
5. Florida
- Common annual value of full protection: $3,201
- P.c larger than the U.S. common: 37%
- Projected common charge enhance 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 fully, whereas others have declared insolvency. In 2023, Farmers Insurance coverage stopped providing protection in Florida, and AAA non-renewed sure house and auto insurance coverage insurance policies.
Over the previous two years, Florida has seen a flurry of legislative exercise aimed toward lowering frivolous lawsuits in opposition to insurers, decreasing shoppers’ 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 response to the NICB.
Regardless of makes an attempt to reform the state’s insurance coverage rules, Florida stays a troublesome state for insurers to revenue in—and, in consequence, it has one of many nation’s highest common auto insurance coverage charges.
6. Louisiana
- Common annual value of full protection: $3,182
- P.c larger than the U.S. common: 37%
- Projected common charge enhance 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 house insurance coverage. Nonetheless, the state’s local weather threat can be starting to influence automobile 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 car thefts in 2023, in response to NICB knowledge. Each components enhance insurer threat and, due to this fact, automobile 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 declare to 2 years after the policyholder is aware of (or ought to know) concerning the harm. These reforms, aimed toward decreasing charges, scale back some insurer accountability.
7. Delaware
- Common annual value of full protection: $2,982
- P.c larger than the U.S. common: 28%
- Projected common charge enhance in 2024: 13%
Delaware drivers pay about $249 month-to-month for full protection, a 9% enhance since June 2023. The state has the seventh-highest inhabitants density within the nation, in response to Census Bureau knowledge, which may enhance the chances of accidents and claims on busy roadways.
In a single brilliant 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.
- Common annual value of full protection: $2,977
- P.c larger than the U.S. common: 28%
- Projected common charge enhance in 2024: 17%
Drivers within the District of Columbia noticed a 17% year-over-year enhance in full-coverage charges, bringing the typical month-to-month value to $248.
Washington, D.C., has the very best inhabitants density within the nation. The district additionally noticed site visitors fatalities enhance by greater than 40% between 2022 and 2023, in response to NHTSA knowledge. This mix of things raises the chance of an insurer having to pay out a declare, so corporations enhance the value of automobile insurance coverage in response.
Premium will increase might quickly gradual in D.C. The D.C. legislature handed a brand new regulation requiring house and auto insurers to file for prior approval to boost charges. Extreme hikes require discover and a possibility for a listening to. Beforehand, D.C. had a file-and-use system, that means insurers might elevate charges immediately after filing with the Department of Insurance.
9. Michigan
- Common annual value of full protection: $2,719
- P.c larger than the U.S. common: 17%
- Projected common charge enhance in 2024: 8%
Michigan adopted a no-fault insurance coverage system in 2019 in an try to minimize charge will increase. The state noticed a 4% enhance in full-coverage premiums between June 2023 and June 2024, in comparison with a 28% rise nationwide, however Michigan nonetheless has a few of the highest charges within the nation, at a mean of practically $227 per thirty days.
The Michigan Division of Insurance coverage and Monetary Providers Fraud Investigation Unit acquired 3,789 fraud studies between July 1, 2023, and June 30, 2024. Of these studies, 99% have been insurance-related, and 50% involved auto and no-fault claims. Increased fraud charges make the state riskier for insurers to function in, and so they elevate charges in response.
10. Georgia
- Common annual value of full protection: $2,688
- P.c larger than the U.S. common: 15%
- Projected common charge enhance in 2024: 24%
Georgia drivers pay a mean of $224 month-to-month for full protection. Automobile thefts would possibly affect the state’s excessive automobile insurance coverage prices since insurers issue that threat into charge setting. Georgia drivers reported 28,171 vehicles as stolen in 2023, the ninth-highest quantity within the nation, in response to NICB knowledge.
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 assessment charge filings earlier than insurers can implement will increase. Regardless of the brand new laws, Georgia drivers noticed a 21% enhance in full-coverage prices between June 2023 and June 2024.
