Car insurance premiums could skyrocket 50% in some states this year

foxbusiness.com:

Nevada ranked the second highest auto insurance rates in the country, according to Insurify.

Car prices are finally on the down swing, but drivers are facing a new financial hurdle: Surging auto insurance premiums.

A new report published by Insurify, an insurance comparison shopping site, shows the average U.S. rate for full auto insurance surged to $2,329 in the first half of 2024. That marks a 15% increase from 2023 and a stunning 48% spike when compared with 2021.

By the end of 2024, the cost of coverage is expected to rise even further, to $2,469, according to the report.

The problem is even worse in some states, where prices are projected to rise more than 50% this year.

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Prices are expected to rise most sharply in Minnesota, with a projected increase of 61%. That would bring the average annual cost of full coverage in the state to $2,597, from the current level of about $2,315, according to the report.

A new report published by Insurify shows the average U.S. rate for full auto insurance surged to $2,329 in the first half of 2024. (iStock / iStock)

One reason for the spike is the increased risk of severe weather events. In 2023, Minnesota recorded $1.8 billion in damages due to a severe storm that produced hail the size of golf balls and baseballs, Chase Gardner, Insurify data insight manager, told FOX Business.

«These states have been historically considered severe weather safe havens,» Gardner said. «But insurance companies are having to reassess that risk in the state.» 

Gardner also noted that insurance fraud is on the rise in Minnesota. According to the Minnesota Commerce Fraud Bureau, the state saw an 11% increase in insurance fraud investigations in 2020