Have you ever thought why car insurance is so expensive? As you can see everywhere the prices are rising on each and every item including auto insurance. Now alot of drivers are getting notices for the car insurance renewal with very high prices. You are not alone having high prices, every single driver is facing this problem.
Read More: Apollo Automobil: From German Engineering to Hypercar Legend
Annual increased rates of car insurance
The rates of car insurance have increased slowly over the past 4 years. Also, after the the analysis of prices, it is concluded that the rates in 2024 were 33% higher as compared to the rates in 2021. You can see a drastic change.
It covers,
$100,000 for any damage to one person.
$300,000 for any damage per accident.
$100,000 for any damage to property.
| Annual car insurance rates | For years 2021 to 2024 |
| $2,149 | 2024 |
| $2,026 | 2023 |
| $1,972 | 2022 |
| $1,615 | 2021 |
Car insurance costs by Company
Below are some top car insurance companies and their rates. The table below shows how the rates changed throughout the past 4 years from 2021 to 2024. Additionally, some rates were constantly increased; however, some rate changes occurred annually.
| Company | Annual fluctuating car insurance rates | |||
| Year 2021 | Year 2022 | Year 2023 | Year 2024 | |
| Allstate | $2,315 | $3,000 | $2,896 | $3,066 |
| Auto-Owners | $1,520 | $1,628 | $1,855 | $1,979 |
| Erie | $1,182 | $2,144 | $1,642 | $1,866 |
| Farmers | $2,073 | $2,381 | $3,093 | $3,062 |
| Geico | $1,221 | $1,716 | $1,597 | $1,849 |
| Nationwide | $1,411 | $2,041 | $1,436 | $1,452 |
| Progressive | $1,825 | $2,157 | $1,826 | $2,000 |
| State Farm | $1,403 | $1,959 | $2,025 | $2,167 |
| Travelers | $1,499 | $1,852 | $1,521 | $1,597 |
| USAA | $1,111 | $1,412 | $1,364 | $1,475 |
Higher price increments compared by States in US
Here are the incremented rates fluctuating in the past two years in the states of the United States.
| CheckState | Annual fluctuated car insurance rates and difference | |||
| Year 2023 | Year 2024 | Difference (Year 2024-Year 2023) $ | Difference in percentage % | |
| Wyoming | $1,241 | $1,720 | $479 | 39% |
| New York | $2,141 | $2,898 | $757 | 35% |
| New Jersey | $2,061 | $2,687 | $626 | 30% |
| Hawaii | $1,314 | $1,655 | $341 | 26% |
| Maryland | $1,825 | $2,290 | $465 | 25% |
| Connecticut | $1,892 | $2,310 | $418 | 22% |
| Rhode Island | $2,038 | $2,414 | $376 | 18% |
| Georgia | $2,056 | $2,410 | $354 | 17% |
| Vermont | $1,071 | $1,237 | $166 | 15% |
| Alaska | $1,946 | $2,217 | $271 | 14% |
Reason behind this rapid increase in car insurance rates
Here are some main factors that seems to be a reason behind why car insurance is so expensive.
- Shortages and Broken supply chains
- Climate Change
- Electric cars adoption
- Increase in stealing of cars and car parts
- Inflation
- Slower claims
Read More: Is Ford Mustang going to end in near future
Personal Reasons
Increase in the rates can also be due to personal reasons like.
- Age
- Gender
- EducationÂ
- Occupation
- Marital Status
- Location
- Home ownership
- Credit History
Driving Skills
Your driving skills also has an impact on the rates of car insurance.
- Adding extra vehicles in your auto insurance policy.
- Driving Experience.
- Driving History.
- DUI Record (car insurance rates after DUI also increases).
- Mileage.
