The average cost of full car insurance went up 26% in 2024 — here are the states with the biggest increase (2024)

Car insurance costs have been on the rise, leaving drivers searching for ways to save on car ownership costs. In fact, according to a report from Bankrate, the average annual premium of full coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.

CNBC Select breaks down the report's findings, explaining which states have experienced the highest spike in car insurance costs — and what you can do to pay less.

Bankrate shared with CNBC Select that the following states have seen the largest change in full coverage auto insurance premiums since 2023:

1. Missouri: $858 ($1,943 to $2,801) – 44.16%
2. New Jersey: $801 ($1,754 to $2,555) – 45.69%
3. Rhode Island: $797 ($1,886 to $2,683) – 42.29%
4. Colorado: $781 ($2,121 to $2,902) – 36.83%
5. Nevada: $771 ($2,779 to $3,549) – 27.73%

The national average of how much of their income a driver spends on full auto coverage is 3.41%. But in many states, drivers devote far more of their income towards car insurance. For instance, Floridian drivers spend 5.69% of their income on full coverage auto insurance, Michigan drivers spend 5.01% of their income, and those in Nevada — 4.91%. Louisiana, however, is the state where drivers spend the most of their income, putting 6.53% toward full coverage insurance.

When auto insurance costs become a problem for your budget, a knee-jerk reaction may be to switch to minimum coverage. After all, the savings can be significant. According to the report, the national average cost for full coverage car insurance is $212 per month, compared to just $62 per month for minimum coverage.

Still, minimum coverage can leave you financially vulnerable if you're found at fault in an accident. It's best to get the coverage you need and explore other money-saving tactics.

To bring down car insurance costs, you want to make sure you're getting the best deal you can. That might require switching car insurance providers. Call around and gather some quotes to see if a different company might offer lower rates for the amount of coverage you need.

CNBC Select recommends Geico which offers highly rated customer service as well as competitive rates. According to our research, it also provides the most affordable full coverage of the companies we analyzed for our list of the best cheap auto insurance companies.

You can also consider bundling insurance policies to potentially save more by sticking with one provider for different types of insurance.

What affects auto insurance rate

If you're looking for other opportunities to lower your car insurance premiums, the following factors play a big role in determining what you pay according to the Insurance Information Institute:

• Your credit score. In many states, insurance providers can consider your credit history when they determine your auto insurance rates. For that reason, improving your credit score can have a positive effect on your car insurance bills.
• Your driving record. You want to avoid high-risk driving behavior and ensure you avoid any lapse in coverage. If you already have DUIs, speeding tickets or other negative marks on your driving record, it's especially helpful to shop around for a provider that can give you a lower rate. Our list of the best car insurance for high-risk drivers may be a good place to start.
• Your vehicle. What you drive also matters. According to Allstate, some types of cars are more expensive to insure. On the other hand, certain built-in security features can qualify you for a car insurance discount.
• Your driving habits. The more you drive, the higher you can expect your premiums to be.
• Your demographic information. Your gender and age are also considered when an insurance provider determines your premiums.

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