Car insurance premiums in the U.S. have risen by 15% since January, continuing the trend from 2023 due to soaring underwriting losses, which hit $33.1 billion last year. Factors driving this increase include higher weather-related claims, rising new car prices, and steep repair costs for advanced driver-assistance systems (ADAS) and electric vehicles (EVs).
Billion-dollar weather events have surged by 56% from 2019 to 2023, with hailstorm claims averaging $5,000. Repairs for vehicles with ADAS are up by 37.6%, while EV repairs cost 46.9% more and take 5.8 days longer.
Premiums are notably high in Florida, Louisiana, Maryland, Nevada, New York, and South Carolina, exceeding $3,000 annually, while New Hampshire has the lowest at $1,000. Significant increases are also seen in Minnesota (55%), Missouri (51%), North Carolina (46%), Illinois (46%), and California (45%). Car theft rates in some states further compound the rising costs.
