New York, NY — New projections indicate that car insurance rates in New York are set to rise by 4 percent by the end of 2024, according to a recent analysis. This anticipated increase is notably lower compared to the nationwide surge of 22 percent in full-coverage premiums.
The analysis, published this month by the insurance advisory website Insurify, reveals a 15 percent uptick in full-coverage premiums across the U.S. during the first half of 2024. This trend continues from the previous year, which saw a dramatic 24 percent rise in premiums due to unprecedented underwriting losses.
By the close of this year, the average insurance premium for U.S. drivers is projected to climb nearly 22 percent, the report states.
Insurify’s report highlights significant regional variations in insurance costs. For instance, as of June 2024, New York residents were paying an average of $3,325 annually for insurance, up from $3,355 in December 2023. By the end of the year, rates are expected to reach $3,484, reflecting a 4 percent annual increase.
Insurance premiums vary significantly across states due to differing regulations and risk factors. Currently, six states, including New York, have average annual premiums exceeding $3,000: Florida, Louisiana, Maryland, Nevada, New York, and South Carolina. In contrast, New Hampshire boasts the lowest average annual premium at $1,000.
Nationally, the average cost of full coverage insurance rose to $2,329 in June 2024, up from $2,018 at the end of 2023. Insurify’s data suggests that by year-end, average premiums could reach $2,469.
The analysis attributes the rising insurance costs to several factors, including a nearly 38 percent increase in vehicle maintenance and repair costs over the past five years, as reported by the Bureau of Labor Statistics. These higher repair costs lead to more expensive insurance claims and, consequently, higher premiums for policyholders.
Furthermore, escalating incidents of severe weather, such as hailstorms, which accounted for 11.8 percent of all comprehensive auto claims in 2023—up from 9 percent in 2020—are contributing to the rise in premiums. Additionally, factors like increased vehicle theft rates, traffic congestion, and a higher frequency of car accidents are also driving up insurance costs.
