PriyaPatel
TLDR:
Car insurance premiums rose rapidly in 2023 due to increased repair costs of high-tech vehicles, climate catastrophes, and severe accidents. New York, Nevada, and Florida are the most expensive states for car insurance. Insurify projects that premiums will go up another 7 percent this year, reaching an average of $2,160. Factors contributing to New York’s high premiums include its population density and a supplemental spousal liability insurance law. In Nevada, severe accidents, expensive repairs, surging medical costs, and parts and labor shortages are driving up prices. In Florida, severe weather events and insurance fraud are straining insurers and increasing premiums.
Insurify also found that rates of car insurance increased in 2023 for close to 62 percent of Americans, with almost 22 percent experiencing multiple rate hikes. Low-income states have been hit particularly hard, with drivers in Mississippi paying an average of $1,718 per year for car insurance, making up 3.4 percent of the median household income. Additionally, electric car drivers may face higher premiums due to higher repair costs.
