It’s shocking but true: these 5 states saw car insurance prices go down
The cost of insuring a car in the US has been rising rapidly over the past couple years, jumping another 15% in 2024 nationally, but not everywhere.
Car owners across the United States have been watching in disbelief as the cost of insuring their vehicles has skyrocketed over the past couple years. Since 2022, the average rate nationwide has surged 42% to $2,313 annually for full coverage according to data from Insurify. Five states and the District of Columbia have rates above $3,000.
2023 saw a huge surge in full-coverage policy rates as insurers sought to recover a record $33.1 billion in underwriting losses. Severe climate risks in the form of damaging weather events and natural disasters is one of the factors being calculated into the recent rate hikes.
Another factor that drove the 15% increase for full coverage rates in 2024 were rising vehicle repair costs, especially for high-tech and electric vehicles (EVs). However, not all states saw an increase. In fact, a handful saw rates go down in 2024.
Five US states where car insurance dropped in 2024
There were three states in the US where rates for full coverage decreased in 2024 by 5%, including Iowa, North Dakota and Wyoming, and another two, New Hampshire and Rhode Island, that saw a smaller 1% dip in the annually cost of car insurance.
Car owners in all of those states except New Hampshire aren’t expected to be as lucky this year. Rates in the other four are forecast to rise between 2% and 4% in 2025 but on the bright side that is below the predicted 5% increase nationally.
However, car owners in New Mexico are expected to see the average full coverage rate of $1,900 stay unchanged this year after a 13% hike last year. Rates in Hawaii are forecast to drop 1% in 2025 to $1,481 and those in Vermont are predicted to go down by 2% to $1,530 according to Insurify.
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