Car Insurance Quotes Gone Up

READ ALSO; Car Insurance Quotes Over 80

Why is Car Insurance so Expensive For new Drivers?

Because they are statistically more likely to file a claim, young and inexperienced drivers usually pay higher rates for auto insurance than older, more seasoned drivers. Less experienced drivers are seen by insurance companies as a high risk.

Age groups Annual premium
Young driver……………17-24 £1,495
Older drivers……………over 60s £366

With March 2025 data from Compare the Market, 51% of young drivers aged 17 to 24 could obtain a price for their car insurance of up to £1494.62.

51% of those over 60 could get a price for their auto insurance of up to £365.10.

Car Insurance Rate Increases by Year

Our examination of national averages shows that over the past four years, auto insurance costs have increased. In comparison to 2021, the average annual cost of auto insurance increased by 33% in 2024.

This includes uninsured car coverage, collision and comprehensive insurance with a $500 deductible, and coverage of $100,000 for one person’s injuries, $300,000 for injuries sustained in each accident, and $100,000 for property damage.

Year Amount

2024……..$2,149
2023……..$2,026
2022……..$1,972
2021……..$1,615

Highest Rate Increases by State

These are the top 10 states with increase rate, based on our data, with New York having the most dollar amount rise (more than $750 year over year) and Wyoming having the largest rate increase by state (39%) when comparing rates from 2024 to 2023.

State Avg Annual Costs In 2023. Avg Annual Costs In 2024 $ Difference In Annual Cost In 2024 % Differences In Cost For 2024

Wyoming…………….$1,241…………………………………….$1,720……………………………………$479…………………………………………………………..39%
New York…………….$2,141…………………………………….$2,898…………………………………..$757……………………………………………………………35%
New Jersey………….$2,061…………………………………….$2,687…………………………………..$626…………………………………………………………..30%
Hawaii………………..$1,314…………………………………….$1,655…………………………………….$341…………………………………………………………..26%
Maryland…………….$1,825…………………………………….$2,290…………………………………..$465…………………………………………………………..25%
Connecticut…………$1,892…………………………………….$2,310……………………………………$418…………………………………………………………..22%
Rhode Island……….$2,038……………………………………$2,414……………………………………$376…………………………………………………………..18%
Georgia……………….$2,056……………………………………$2,410……………………………………$354…………………………………………………………..17%
Vermont……………..$1,071…………………………………….$1,237…………………………………….$166……………………………………………………………15%
Alaska………………..$1,946…………………………………….$2,217…………………………………….$271……………………………………………………………14%

Why Did My Car Insurance Rise after Auto-renewal?

If you allow your Car insurance to renew automatically, there are several reasons why the cost may increase.

However, if you’ve been in an accident, filed a claim, or accrued points on your license, it’s more likely to increase. Inflation and other market and economic variables may also have an impact.
Or it might just be that when your auto insurance automatically renews, you’re getting a bad deal. Because of this, it’s always worthwhile to compare prices to see if you can find a better offer elsewhere.
In the past, insurance companies were permitted to raise renewal costs to fund low initial rates for prospective clients. But you should no longer be penalised for sticking with the same provider after the practice of ‘price walking’ was banned by the Financial Conduct Authority (FCA)

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Frank Oduro