Premium insurance rates continue to increase for private auto insurers nationwide, up 14% in 2024, according to a report by S&P Global. The report attributes the quick increase as an effort to offset historically poor underwriting skills. It also shows rate increases vary significantly from state to state.
Overall, 43 states and the District of Columbia saw a double-digit increase in 2023, according to S&P Global. Find out what insurers are seeing the highest increases this year and which states are seeing premium increases.
- Nevada’s rate increase was the highest overall in 2023 at 28.3%.
- Texas has had a rate increase of 16.9% in 2023.
- Hawaii has seen the lowest increase, 3.8% in 2023.
Top 10 auto company rate changes from 2018 to 2023
Before the current insurance increase trend in the past year, private auto premiums’ annual increases remained in low single-digit increases for several years. There was an exception to this trend during the pandemic when insurers offered premium credits to compensate consumers for decreased driving, the S&P Global report stated.
From 2018 to 2023, several auto insurers have seen cumulative percentage increases in their rates. From 2018 to 2023, Farmers Insurance cumulatively increased by 54.8%, followed by American Family Insurance at 50.3% and Liberty Mutual at 47.1% from 2018 to 2023.
Find more auto insurers’ rate increases since 2018 in the chart below.
| Insurer | 2018 | 2019 | 2020 | 2021 | 2022 | YTD 2023 | Cumulative Change 2022 – YTD 2023 | Cumulative Change 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| State Farm | -3.6 | -3.5 | -10.9 | 3.8 | 9.9 | 16.0 | 27.5 | 9.6 |
| Progressive | 0.0 | -1.3 | -2.9 | 3.9 | 10.1 | 11.5 | 22.8 | 22.4 |
| GEICO Corp. * | 4.9 | -0.2 | 3.1 | 1.6 | 17.2 | 10.1 | 29.1 | 41.7 |
| Allstate Corp. | 1.6 | 2.7 | 1.1 | -0.9 | 14.5 | 13.5 | 30.0 | 35.9 |
| USAA | 4.3 | 3.3 | 1.4 | -0.7 | 8.2 | 16.9 | 26.5 | 37.4 |
| Liberty Mutual | 5.9 | 2.2 | 1.1 | 2.5 | 12.9 | 16.1 | 31.1 | 47.1 |
| Farmers Insurance | 5.7 | 4.1 | 1.4 | 2.9 | 14.5 | 17.6 | 34.7 | 54.8 |
| Travelers | 4.0 | 1.1 | 0.0 | 0.1 | 10.0 | 13.1 | 24.4 | 31.0 |
| American Family Insurance | 9.3 | 8.2 | 0.6 | 0.0 | 7.5 | 17.5 | 26.4 | 50.3 |
| Nationwide | 4.7 | 0.5 | 1.8 | 1.7 | 9.4 | 16.8 | 27.8 | 39.1 |
Source: S&P Global Market Intelligence
Learn more about drivers switching car insurance carriers as inflation continues in 2023
Auto insurance rate changes since 2022
States saw significant cumulative rate increases between 2022 and 2023. Nevada had the steepest rate increase in 2023 at 28.3%, followed by a 19.8% increase in Minnesota and a 19.7% increase in Washington.
The states with the lowest weighted average effective increase since 2022 are Hawaii (3.8%), North Carolina (4.3%) and Colorado (4.5%), according to S&P Global’s report.
Learn more about rate increases in your state in the chart below.
| State | 2018 | 2019 | 2020 | 2021 | 2022 | YTD 2023 | Cumulative Change 2022 – YTD 2023 | Cumulative Change 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| National average | 2.3 | 0.7 | -1.6 | 1.8 | 11.4 | 14.0 | 26.9 | 30.9 |
| Alabama | 0.6 | 0.2 | -2.6 | 1.2 | 8.5 | 10.3 | 19.7 | 18.9 |
| Alaska | 3.6 | 1.0 | -2.8 | 1.0 | 5.2 | 10.7 | 16.4 | 19.7 |
| Arizona | 3.0 | 0.5 | -1.3 | 3.5 | 16.7 | 18.4 | 38.1 | 46.1 |
| Arkansas | 1.4 | -0.7 | -4.3 | 1.2 | 8.4 | 14.4 | 24.0 | 20.9 |
| California | 3.5 | 2.2 | -0.7 | 0.0 | 1.3 | 11.5 | 12.9 | 18.5 |
| Colorado | 5.5 | 3.0 | -0.4 | 4.0 | 13.1 | 4.5 | 18.2 | 33.2 |
| Connecticut | 2.9 | -0.1 | -0.7 | 0.3 | 8.9 | 16.7 | 27.1 | 30.1 |
| Delaware | 3.5 | -0.1 | -2.6 | 2.4 | 14.0 | 11.1 | 26.7 | 30.7 |
| District of Columbia | 2.3 | 0.2 | -2.4 | 0.3 | 12.9 | 14.8 | 29.6 | 30.0 |
| Florida | 2.9 | -0.2 | 1.4 | 5.6 | 13.1 | 11.3 | 25.9 | 38.6 |
| Georgia | 4.0 | 2.4 | -1.8 | 1.6 | 14.3 | 17.5 | 34.3 | 42.6 |
| Hawaii | -0.3 | -0.2 | -2.9 | -2.9 | 0.6 | 3.8 | 4.4 | -2.0 |
| Idaho | 3.7 | 0.7 | -0.8 | 1.4 | 9.0 | 5.6 | 15.1 | 20.9 |
| Illinois | 1.2 | 1.4 | -4.4 | 1.9 | 17.9 | 16.8 | 37.7 | 37.6 |
| Indiana | -0.8 | -0.3 | -4.3 | 1.7 | 12.1 | 15.2 | 29.2 | 24.3 |
| lowa | 0.4 | 0.4 | -1.3 | 3.0 | 10.3 | 8.9 | 20.1 | 23.1 |
| Kansas | 1.2 | 1.0 | -1.4 | 1.7 | 13.2 | 15.4 | 30.6 | 33.9 |
| Kentucky | 0.9 | -1.4 | -3.5 | 1.7 | 8.5 | 15.5 | 25.3 | 22.3 |
| Louisiana | 5.5 | -1.3 | -3.8 | 0.7 | 9.3 | 17.0 | 27.9 | 29.1 |
| Maine | 0.2 | -0.3 | -1.2 | 2.1 | 14.2 | 12.4 | 28.3 | 29.4 |
| Maryland | 3.3 | 1.0 | -2.4 | -2.3 | 17.4 | 13.7 | 33.6 | 33.0 |
| Massachusetts | 3.3 | 1.0 | 1.1 | 0.0 | 5.2 | 12.5 | 18.4 | 25.0 |
| Michigan | 3.0 | 2.8 | -3.8 | 0.8 | 6.8 | 12.1 | 19.7 | 22.9 |
| Minnesota | 1.6 | 0.9 | -2.5 | 2.9 | 13.6 | 19.8 | 36.0 | 39.8 |
| Mississippi | 01 | -0.3 | -1.5 | 1.5 | 8.6 | 13.9 | 23.6 | 23.3 |
| Missouri | 2.3 | 1.0 | -3.6 | 3.6 | 15.7 | 14.2 | 32.0 | 36.4 |
| Montana | 0.9 | -1.4 | -1.6 | 1.4 | 6.6 | 11.7 | 19.1 | 18.3 |
| Nebraska | 1.4 | -0.4 | -1.9 | 5.0 | 9.2 | 17.9 | 28.7 | 34.0 |
| Nevada | 4.6 | 2.1 | -2.4 | -0.4 | 4.9 | 28.3 | 34.6 | 39.8 |
| New Hampshire | 0.6 | -0.4 | -2.3 | -0.6 | 15.6 | 10.8 | 28.1 | 24.7 |
| New Jersey | 2.6 | 1.7 | -0.7 | 0.1 | 6.0 | 10.6 | 17.3 | 21.5 |
| New Mexico | 3.2 | -0.5 | -3.2 | -1.2 | 13.7 | 9.6 | 24.6 | 22.4 |
| New York | 3.8 | 2.4 | 1.5 | 1.8 | 6.3 | 16.8 | 24.2 | 36.4 |
| North Carolina | -0.8 | 0.7 | -1.3 | -0.3 | 3.7 | 4.3 | 8.2 | 6.3 |
| North Dakota | 0.8 | -0.4 | -2.3 | 1.6 | 10.0 | 14.1 | 25.4 | 24.9 |
| Ohio | 0.7 | -1.4 | -4.1 | 3.1 | 18.9 | 16.8 | 38.9 | 36.5 |
| Oklahoma | -1.7 | -2.0 | -4.3 | 2.8 | 13.9 | 15.9 | 31.9 | 25.0 |
| Oregon | 0.7 | -1.8 | -3.3 | 1.2 | 15.5 | 17.0 | 35.2 | 30.8 |
| Pennsylvania | 0.0 | 0.4 | -3.7 | 1.7 | 15.3 | 12.9 | 30.2 | 28.0 |
| Rhode Island | 3.0 | 1.0 | 0.9 | -0.5 | 7.1 | 11.6 | 19.5 | 24.7 |
| South Carolina | 2.4 | 0.4 | -0.4 | 1.6 | 13.3 | 14.0 | 29.1 | 34.4 |
| South Dakota | 0.5 | 0.7 | -1.7 | 1.8 | 7.5 | 15.8 | 24.5 | 26.1 |
| Tennessee | 1.3 | -1.0 | -2.0 | 0.8 | 17.3 | 16.8 | 37.0 | 35.7 |
| Texas | 1.4 | -1.8 | -2.1 | 3.3 | 24.5 | 16.9 | 45.5 | 46.5 |
| Utah | 2.5 | 2.9 | -1.3 | 3.8 | 15.2 | 16.1 | 33.7 | 44.4 |
| Vermont | -0.1 | -0.1 | -2.6 | -0.7 | 5.9 | 12.9 | 19.6 | 15.4 |
| Virginia | 1.0 | 0.2 | -1.2 | 3.2 | 14.4 | 15.4 | 32.0 | 36.2 |
| Washington | 2.0 | 1.7 | -2.1 | -0.1 | 2.9 | 19.7 | 23.11 | 24.9 |
| West Virginia | -0.7 | -1.6 | -3.5 | 1.3 | 8.3 | 13.0 | 22.4 | 16.9 |
| Wisconsin | 1.3 | 0.4 | -2.7 | 1.3 | 12.6 | 15.1 | 29.6 | 30.0 |
Source: S&P Global Market Intelligence
Car insurance rates are rising in 2023: Here’s what to do when car insurance rates go up
Final thoughts: Trend outlook in 2024 and beyond
Insurance premiums have been on an upward trend since 2022, according to S&P Global’s report and the U.S. Bureau of Labor Statistics consumer price index. The consumer-price index for motor vehicle insurance was up an average of 22.6% year-over-year in May 2024.
These increases can be attributed to inflation and supply shortages, costlier claims and seven consecutive quarters of roadway fatality increases that started in the third quarter of 2020. As more than half the country has seen increases in their premiums, the trend is not likely to change anytime soon.
However, drivers may be able to save in other ways. By quote-shopping various car insurance companies and discussing potential discounts, there may be opportunities to save on car insurance even with pricier premiums.
Check out our detailed guide on How to lower car insurance
Resources & Methodology
Sources
- National Highway Traffic Safety Administration. “NHTSA Estimates for 2022 Show Roadway Fatalities Remain Flat After Two Years of Dramatic Increases.” Accessed May 2024.
- S&P Global Market Intelligence. “US private auto insurance rates see a double-digit jump in 2023.” Accessed May 2024.
- U.S. Bureau of Labor Statistics. “Consumer Price Index Summary.” Accessed May 2024.
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