Car insurance costs continue to rise. According to a report from Bankrate, average premiums for full coverage auto insurance hit $2,543 in 2024, a 26% increase from 2023.
Unsurprisingly, drivers across the U.S. are looking for ways to save. Nearly half (49%) of auto insurance customers are actively shopping for a new plan, according to J.D. Power.
Full coverage car insurance combines three kinds of coverage and is usually required if you lease or finance your car.
- Liability insurance pays for damages if you are at fault for an accident and is the minimum allowed in most states.
- Collision insurance pays to repair or replace your vehicle after an accident.
- Comprehensive insurance pays for damages or losses not caused by a collision, including theft, weather damage and hitting an animal.
Where did rates increase the most?
Bankrate shared with CNBC Select that these five states have seen the largest spike in the cost of full coverage auto insurance premiums between 2023 and 2024.
| State | 2023 rates | 2024 rates | Percent increase |
|---|---|---|---|
| New Jersey | $1,754 | $2,555 | 45.69% |
| Missouri | $1,943 | $2,801 | 44.16% |
| Rhode Island | $1,886 | $2,683 | 42.29% |
| Colorado | $2,121 | $2,902 | 36.83% |
| Nevada | $2,779 | $3,549 | 27.73% |
Source: Bankrate.com
Nationwide, drivers in 2024 spend an average of 3.41% of their annual income on full coverage auto insurance. In some states, however, it's a much higher percentage: The average is 5.69% in Florida, 5.01% in Michigan and 4.91% in Nevada.
Drivers in Louisiana spend 6.53% of their pay toward full coverage insurance, the largest chunk of any state.
Shop for the best rates for auto insurance
What affects auto insurance rates?
Many different factors play a role in what you pay for car insurance:
- Your credit history. In most states, insurance providers consider your credit when deciding rates. For that reason, improving your credit score can lower your car insurance.
- Your driving record. Avoid speeding, DUIs and other high-risk driving behavior, as well as lapses in coverage. If you already have a spotty record, our list of car insurance for high-risk drivers is a good place to look.
- Your vehicle. Some types of cars are more expensive to insure than others. On the other hand, built-in security or safety features can qualify you for a discount.
- Your driving habits. The more you drive, the higher you can expect your premiums to be.
- Your demographics. In most states, your gender and age are considered when a provider determines your premiums.
How to save on car insurance
If auto insurance is a problem for your budget, switching to minimum coverage might seem like the solution. After all, the average monthly cost for a liability-only policy is just $62, according to Bankrate, compared to $212 for full coverage. If you're found responsible for an accident, however, having only minimum coverage will leave you vulnerable.
Geico has among the lowest premiums for both liability and comprehensive coverage and is available in all 50 states.
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
To get a better rate, you might need to switch car insurance companies. Gather quotes from several providers to see who has the best price for the coverage you need.
Farmers is a good option for saving, with a whopping 22 discounts on auto coverage. Amica is another affordable provider and, since it offers dividends for auto policies in some states, you could get a portion of your premiums back.
Farmers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Farmers Insurance offers 23 discounts for auto insurance and issues policies in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and Washington, D.C.
Terms apply.
Read our review of Farmers car insurance
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
App available
Yes
Bundling policies can also help you save. If you get both auto and home insurance from Nationwide, you could get a discount of up to 20%. There are also discounts for combining Nationwide auto with renters insurance, life insurance and other policies.
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
FAQs
Why is a newer car more expensive to insure?
Newer cars are usually pricier to insure because they have higher value. They also depreciate faster.
Is it normal for car insurance to increase every year?
It's not uncommon for your rates to go up annually, even if you haven't filed a claim. This can be caused by inflation, an increase in claims in your area or any number of other reasons.
Does your credit score affect car insurance rates?
In most states, auto insurance companies use a credit-based insurance score to determine your premiums. While it's not the same as your FICO score, it's calculated using much of the same information.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
