Many American households should expect to see an increase in auto insurance costs this year. Despite predictions of a pause in rising insurance prices, recent data reveals a 15% rise in full-coverage premiums during the first half of the year.

A new study by Insurify, a platform that compares auto insurance rates, indicates that the average auto insurance cost in the U.S. has been consistently climbing since 2021, with an estimated coverage cost expected to hit $2,469 by year-end.

California drivers are facing some of the largest increases, with insurance premiums projected to soar over 50% by the close of 2024.

Here’s a look at how car insurance rates are anticipated to increase across the country:

Which States Have the Highest Car Insurance Costs?

The Insurify report has identified California, Missouri, and Minnesota as states where car insurance rates could rise by over 50% in 2024. The report suggests that damage from severe weather conditions, such as wildfires, and specific state regulations on coverage may contribute to these increases.

Changes in legislation in Maryland and South Carolina may increase the financial obligations of insurers, which could lead to higher premiums for consumers, according to the findings.

From early 2024 to the end of that year, a 22% increase in the national average auto insurance rate is expected.

Here’s the expected variation in auto insurance rates at a state level:

Cassie Sheets, data journalist at Insurify and report author, noted that three of the ten states with the highest insurance costs have no-fault insurance systems.

“In these no-fault states, drivers submit claims to their own insurance companies for compensation regardless of who was at fault in the accident. While designed to speed up claims processing, these systems can also lead to insurance fraud,” Sheets explained.

What’s Causing the Rise in Auto Insurance Rates?

The costs of auto insurance reflect the type of coverage required, driving history, and residential location, according to YSL News. Insurers determine prices based on their operational costs, including claims payments.

Factors such as skyrocketing repair prices, the severity of claims, the impacts of climate change, and increased vehicle thefts have led to rising operating costs for insurance companies.

With repair costs climbing, insurers face higher expenses, resulting in increased premiums for policyholders.