Are Car Insurance Costs on the Rise in Your State? (2020)

Insurify Insights

By: Insurify Insights

Published on January 14, 2020

As we enter a new decade, which states have been seeing car insurance prices fall and which are trending higher and higher?

No one likes paying car insurance bills; and no one likes the idea of those bills getting more and more expensive, especially when others’ are getting increasingly cheaper.

It’s no breaking news which state is home to the priciest auto insurance policies. Michigan has historically sky-high premiums, charging 72 percent more for car insurance than the next most expensive state. However, this doesn’t mean that car owners in other states should rest on their laurels, confident that they will always enjoy cheaper quotes for the same coverage. Pricing trends can matter just as much as costs themselves.

On this front, there‘s good news and bad news, so let’s begin with the good. There are in fact states in which quotes have been getting progressively lower in recent years. In fact, there are a dozen states where the average driver pays less for insurance today than they did in 2017.

Now for the bad news. In the approximately three dozen remaining states, the pricing outlook is not so rosy. Among these states, car owners are paying 22 percent more on average than they were 3 years ago.

So to ring in the new year, Insurify presents the state of insurance pricing trends in America going into 2020.

Insights

  • A look back at 2017. Since 2017, American car owners have seen the cost of their insurance increase by 12.9 percent on average. For states in which costs have been trending upward, this increase is 21.5 percent, whereas for states in which prices have been falling, premiums have decreased by 12.4 percent in that time.

  • National trends. In the past three years, national premium costs have risen an average of 4.5 percent annually. In states where quotes have risen, this figure has been 7.8 percent; and in those where rates have fallen, prices have decreased by approximately 6.0 percent.

  • Fluctuation is normal. Trends are not laws, and just because statewide car insurance costs have been increasing or decreasing year to year, that doesn’t mean they will continue to do so. Aggregate costs, and especially individual policies, can shift up and down over time no matter where you live.

  • Steady states. The cost of coverage in Florida, Oklahoma, and Virginia have held relatively steady since 2017, with the average price of insurance fluctuating less than $17 a month in each state.

Methods

The data science and research team at Insurify, a car insurance comparison platform, identified the average annual percent change in statewide prices. To do so, they analyzed their database of nearly 2 million American car insurance applications. By determining the yearly state by state pricing trends since 2017, they were able to rank the top 5 states with the steepest upward and downward rates of change. Wisconsin was excluded due to insufficient data. Statistics on mean monthly premiums and the absolute change in quote price from 2017 originates from Insurify’s proprietary database as well as from public filings.

Auto Insurance Rate Increases by State

States with the Greatest Upward Insurance Pricing Trends

1. Montana - Average annual percent change: +15.8%

2. Michigan - Average annual percent change: +14.1%

3. Kanses - Average annual percent change: +13.0%

4. South Carolina - Average annual percent change: +12.1%

5. Georgia - Average annual percent change: +11.6%

Insurify Insights
Insurify Insights

Data & Research Team

Insurify’s team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. Through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.

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