NY Car Insurance Rates Projected To Spike, New Analysis Says

NEW YORK — Car insurance rates in New York are expected to increase by 4 percent by the end of 2024, according to a new analysis. The spike is significantly less than the projected 22 percent increase in full-coverage premiums nationwide.

The analysis released this month by the insurance advice website Insurify found full-coverage premiums increased by 15 percent nationwide during the first half of 2024. So far, the rate increases in 2024 are largely a continuation of hikes in 2023, when the U.S. saw premiums rise by 24 percent due to record underwriting losses.

By year's end, the average U.S. insurance premium is expected to rise by nearly 22 percent, the analysis said.

To determine which states are likely to see the largest increases, Insurify analyzed rates and factors that contributed to the spikes.

According to the analysis, New Yorkers were paying approximately $3,325 per year in insurance premiums in June, up from $3,355 in December. By the end of the year, rates are expected to spike to $3,484, an annual increase of 4 percent.

Each state has its own insurance regulations and risk factors, so premiums vary across the United States, according to the analysis. The average annual cost of full coverage is more than $3,000 in six states: Florida, Louisiana, Maryland, Nevada, New York and South Carolina. New Hampshire drivers pay the least at an average annual rate of $1,000.

Nationally, the average annual cost of full coverage hit $2,329 in June 2024, up from $2,018 at the end of 2023. Drivers could see average premiums spoke to $2,469 by the end of the year, according to Insurify’s data scientists.

Vehicle maintenance and repair costs have increased by nearly 38 percent over the past five years, according to the analysis, which cited the Bureau of Labor Statistics Consumer Price Index. Higher repair costs mean insurers pay more expensive claims and policyholders see higher premium hikes.

Increasingly severe and frequent weather events are also driving up auto insurance premiums, the analysis states. Hail-related auto claims represented 11.8 percent of all comprehensive claims in 2023, up from 9 percent in 2020.

Vehicle theft rates, traffic congestion and an increase in car accidents also contribute to higher rates, according to the analysis.

See state-by-state predictions online.