Car insurance rates in 2024 jump 26% across the US, report says

Motorists across the country are feeling the pinch as car insurance premiums continue to rise, according to a new report. 

Nationally, the cost of full coverage car insurance increased to $2,543 this year, or $212 per month, up 26% over the past year, according to a report released by Bankrate. 

The national median household income is $74,580, according to the U.S. Census Bureau, meaning Americans now spend around 3.41% of their income on car insurance on average, the report said. 

“Auto insurance rates have been rising at a breakneck pace,” said Greg McBride, chief financial analyst for Bankrate, said in a statement. “And though the pace of increases will eventually slow, that doesn’t mean premiums are coming down.”

73% OF AMERICANS STILL HAVEN’T BOUNCED BACK FINANCIALLY FROM THE COVID-19 PANDEMIC

To determine the costs of vehicle insurance, Bankrate analyzed the total percentage of household income spent on car insurance and assigned a true cost ranking to each state and 26 metros in the country. 

Drivers in Detroit pay the highest net average cost of car insurance and highest true cost of car insurance, with 7.98% of income spent on auto coverage, the report said. 

Drivers in Seattle spend the lowest percentage of income spent on car insurance. 

In Louisiana and Florida, which have experienced severe weather events in recent years, drivers are paying an average of 6.53% and 5.69%, respectively. In Wyoming, drivers saw their premiums decline $1 from 2023 to $1,581 in 2024. 

GET FOX BUSINESS ON THE GO HERE

In addition to inflation, several factors impact the cost of car insurance, including population density, driving habits of others living in your state or ZIP code and extreme weather. 

Also factored in are one’s driving history, vehicle type and credit history.