Car Insurance Costs Are Highest in Maryland and New York, New Report Reveals

Car insurance rates have been climbing across the U.S. and increased by 15% in 2024, according to a new report from Insurify. But drivers in Maryland and New York pay the most for full-coverage car insurance.

In 2024, Maryland’s average annual full-coverage premium was $4,060, a 53% increase from 2023. Drivers in the Old Line State face another 5% increase in 2025, Insurify projects. The average full-coverage rate will rise to $4,255 per year, making Maryland the most expensive state for car insurance.

New York is close behind, with a projected 10% increase that would take the Empire State’s annual full-coverage average from $3,804 to $4,183, according to Insurify’s data analysts.

10 most expensive states for car insurance

Drawing on results from its data center of more than 97 million car insurance quotes, Insurify identified the 10 states where car insurance costs are highest. In addition to Maryland and New York, the following states round out the 10 most expensive states for full-coverage car insurance.

State/District	Full-Coverage Average in 2024	Projected Average in 2025
1. Maryland	$4,060	$4,255
2. New York	$3,804	$4,183
3. Washington, D.C.	$3,399	N/A
4. South Carolina	$3,393	$3,603
5. Florida	$3,166	$3,484
6. Delaware	$3,078	$3,308
7. Nevada	$2,973	$3,214
8. Louisiana	$2,820	$2,944
9. Colorado (tied)	$2,815	$2,878
10. Georgia (tied)	$2,815	$3,052

Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Multiple factors drive rate increases. Climate risk, inflation, and rising vehicle repair costs contributed to rate increases at the national level, according to Insurify. At the state level, vehicle theft rates, rising accident rates, climate risk, and legislative changes influenced car insurance premium hikes.

While the average rate in Maryland rose by a whopping 53% in 2024, it wasn’t the only state with hefty double-digit increases. The percentage increase in Minnesota was higher, coming in at 58% in 2024. Here are the states where car insurance rates increased the fastest last year.

What’s next: Drivers can take steps to reduce car insurance costs

Most drivers purchase more than just liability coverage, according to an Insurance Information Institute (Triple-I) analysis of data from the National Association of Insurance Commissioners. Eighty percent of insured drivers buy comprehensive coverage, and 76% buy collision coverage, the Triple-I reported.

What’s more, nearly 80% of new vehicles and 38% of used vehicles were financed in 2023, according to Experian. Auto lenders and leasing companies generally require drivers to purchase full-coverage car insurance, which is typically more expensive than liability-only coverage because it offers enhanced protection.

Drivers can also take several steps to keep car insurance costs down, according to Insurify, including:

• Practicing safe driving habits, like following the speed limit and avoiding hard braking

• Asking for discounts, which can help reduce premiums by 25% or more

• Bundling auto insurance and another coverage type (like homeowners or renters) with the same insurance company

• Choosing a higher deductible and setting aside funds to cover it in case of an accident

• Choosing a car that’s cheaper to insure, either because it’s highly rated for safety, has lower repair costs, or has a lower theft rate

• Considering pay-per-mile insurance coverage

• Comparison shopping by getting quotes from multiple insurance companies.

Insurify’s car insurance data is available for download from its Auto Insurance Data Center. Members of the media looking for additional data or insights should email [email protected].

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