Most Expensive Car Insurance (2024) (2024)

FAQs

Most Expensive Car Insurance (2024)? ›

Recent estimates indicate that auto insurance premiums will increase by 7% in 2024, which is nearly double the median annual increase. Annually, a full-coverage policy costs an average of $2,019 at the national level, which is equivalent to 2.6% of the median household income.

Recent estimates indicate that auto insurance premiums will increase by 7% in 2024, which is nearly double the median annual increase. Annually, a full-coverage policy costs an average of $2,019 at the national level, which is equivalent to 2.6% of the median household income.

According to our rate averages, the most expensive car insurance often comes from The Hanover Insurance Group. The company's average rates for both liability and full-coverage insurance can be more than 400% higher than the national average.

With insurance groups ranging from 1 to 50, vehicles in group 50 are the most expensive to insure. The cars that fall into this group usually have high market values and expensive parts and repairs.

Comparing Allstate vs. Geico, we found that Geico offers cheaper auto insurance on average. We gave Geico 9.1 out of 10.0 points in the cost category in our industry-wide insurance review, while Allstate earned 7.4 points.

Your particular driver profile, which includes factors like where you live, your age and your driving record, influences what you pay for car insurance. But rising car repair costs and an increase in disaster-related claims are significant reasons why car insurance rates are surging for many drivers.

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.

Allstate is so expensive because car insurance is expensive in general, due to rising costs for insurers. Allstate's premiums may also reflect how competitively Allstate agents are paid, but at $781 per year, the average Allstate car insurance policy is actually cheaper than coverage from most competitors.

The top 10 cheapest car insurance companies are Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers and USAA.

If you buy directly from a Progressive company, your car insurance price reflects the cost of staffing and maintaining the sales centers, and a larger portion of our marketing costs.

Is Allstate the most expensive car insurance? ›

Allstate's premiums may also reflect how competitively Allstate agents are paid, but at $781 per year, the average Allstate car insurance policy is actually cheaper than coverage from most competitors. In fact, Allstate is one of the cheapest car insurance companies nationally.

Geico has some of the lowest rates on average nationwide. It is a financially stable insurer that earns high marks for customer satisfaction, according to its ratings from AM Best and the BBB.

In fact, Geico is one of the cheapest car insurance companies nationally. Even though Geico offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics.

In terms of car insurance costs, Allstate is more expensive than other top competitors like Progressive, Geico and State Farm.

Our verdict. Both Geico and Progressive offer competitive average premiums for drivers, but if cost is your primary consideration, Geico has the edge. Its average rates tend to be lower than the average rates offered by Progressive, and the company's extensive discount list may help you save even more.

State Farm is the largest auto insurance company in the U.S., with 17% of the market. Other big car insurance companies include Progressive, Geico and Allstate.

Nationally, the average cost of full coverage car insurance rose to $2,543 in 2024, an increase of 26 percent over last year.

Over the next five years (2024‒28), we forecast that total insurance premiums will grow by 7.1% in real terms, well above the global (2.4%), emerging (5.1%) and advanced (1.7%) market averages. At this rate, India will have the fastest growing insurance sector of the G20 countries.

The big insurance companies have been relatively quiet about what's driving rates up. Inflation is definitely a big part of the equation. Everything now costs more, including cars and car repairs, and insurance companies are passing those costs on to consumers.

Unfortunately, it's normal for car insurance rates to increase most years. However, companies do cut insurance rates from time to time. Some companies offer loyalty discounts, so you may see your rate decline after a number of years with the same provider.