FILE - Heavy afternoon traffic moves along the I-5 on Nov. 23, 2022 in Los Angeles, California. (Mario Tama/Getty Images)
Car insurance rates skyrocketed in 2024 and there doesn’t appear to be any signs that they will come back down – not yet anyway.
Data collected by Bankrate showed the annual average cost of full coverage car insurance is $2,543 per year, which breaks down to $212 a month.
Drivers who opt for minimum coverage pay an average of $740 a year, or $62 a month.
The national average cost of full coverage car insurance increased by 26% in 2024, with some states seeing even higher rate hikes.
In the past three years, the average cost increased a total of 52%.
Missouri saw the biggest increase of any state with a 44% increase in average annual cost of full coverage car insurance, Bankrate said.
Residents went from paying $1,943 on average in 2023 to $2,801 in 2024.
Philadelphia, Pennsylvania, and Detroit, Michigan, also saw huge spikes in rates, at 154% and 85% respectively.
"Auto insurance rates have been rising at a breakneck pace," said Greg McBride, chief financial analyst for Bankrate. "And though the pace of increases will eventually slow, that doesn’t mean premiums are coming down. The insurance market is very competitive — lots of commercials — so shop around and compare coverage to see if you can get a better deal elsewhere. If you have a healthy savings cushion, see if increasing your deductible can reduce your premiums."
Louisiana drivers pay the most
Of all 50 U.S. states, Louisiana pays the most, with the average resident shelling out 6.53% of their income towards car insurance, according to Bankrate.
Florida comes in second with drivers spending 5.69% of their income on car insurance on average.
Both Florida and Louisiana have historically dealt with extreme and catastrophic natural disasters and thus are determined to be at high financial risk, according to Bankrate.
Of the 26 major metro areas that Bankrate observed, Detroit drivers pay the highest net average cost of car insurance and the highest true cost of car insurance.
Detroit drivers pay, on average, a whopping 7.98% of their income towards car insurance.
Additionally, Florida is home to three cities with the highest true cost of insurance: Miami, Tampa and Orlando.
Seattle drivers pay the least
Drivers in Seattle, Washington, pay the least for their car insurance and Boston, Massachusetts, and Washington, D.C., are not far behind, according to Bankrate.
Statewide, Massachusetts residents paid the least, with 1.76% of their income going toward car insurance on average.
New York surprisingly has an average full coverage car insurance cost of $4,198 which puts it in the middle of the pack.
"From population density to weather patterns, your car insurance rate is strongly influenced by where you live. However, insurance is multifaceted. Several other rating factors, such as driving experience and life events, are assessed to assemble an insurance premium based on your unique driving characteristics," Bankrate said.
This story was reported from Los Angeles.