Illegals. They are not paying for insurance, so the costs gets passed on to us. ....

By Megan Henney

A new report published by Insurify, an insurance comparison shopping site, shows the average U.S. rate for full auto insurance surged to $2,329 in the first half of 2024. That marks a 15% increase from 2023 and a stunning 48% spike when compared with 2021.

By the end of 2024, the cost of coverage is expected to rise even further, to $2,469, according to the report.

The problem is even worse in some states, where prices are projected to rise more than 50% this year.

Minnesota
Missouri
California
Maryland
(others to follow)

What's to blame?

Several factors have caused the spike in car insurance rates.

The price of both new and used cars rose sharply after the COVID-19 pandemic, the result of both supply chain disruptions and unseasonably high demand. As a result, vehicles are more expensive and costlier to replace, which has driven up the price of repairs.

Auto insurance premiums are most expensive in Maryland, where the average yearly cost is $3,400, and South Carolina, where it costs $3,336. Both of those states saw legislative changes over the past year that increased insurers' financial responsibility for 'other' drivers. These changes, the report said, could contribute to higher premiums.

"Climate risk will likely start to play a role in new areas. As we experience tornadoes, hail and flooding in places where they weren’t necessarily a major threat before, the increased frequency and severity of these events will need to be considered in pricing," said Betsy Stella, vice president of carrier management and operations at Insurify.