Car Insurance Rate Increases: How Much Will Auto Insurance Cost This Year?
Let's dissect the data to predict how much car insurance will cost moving forward.
Looking at car insurance rates by region shows discrepancies based on geography. Some regions enjoyed rate decreases, while others endured significant premium increases. It all comes down to location.
From 2011 to 2018, Oklahoma saw the greatest decline in auto insurance rates, with 2018 rates 19.6% lower than they were in 2011.
Colorado saw the greatest rate hike from 2011 to 2018, with auto insurance premiums 78% higher in 2018 than they were in 2011. 2017 to 2018 saw a nearly 20% increase alone.
West Virginia saw the smallest change, with no net change between 2011 and 2018. The state did experience considerable year-to-year rate fluctuations during this period.
On a national level, rates only increased by 2.3% from 2017 to 2018 — a $33 increase in yearly auto insurance premiums.
Montana saw rates decrease the most from 2017 to 2018 by nearly 21%, a $360 decrease year-over-year.
Ten states enjoyed rate decreases from 2017 to 2018. Only eight states saw decreases between 2016 and 2017.
The Rocky Mountains saw the largest rate hikes from 2011 to 2018 at 52%. New England saw the smallest increases from 2011 to 2018, at only 6.3%.
The largest change in rate hikes from 2017 to 2018 was seen in New England with a 5.1% increase.
The Great Lakes region is the only area that saw a decrease in rates from 2017 to 2018, though rates only dropped by 1%.
2011 vs 2018 % Change
Looking at geography alone only paints a portion of the picture. Because car insurance is regulated at the state level and rated on a ZIP-by-ZIP basis, it's highly unique. As there are more 50,000 zip codes in the US, our analysis sticks to specific states for the sake of brevity.
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Average auto insurance rate increases by state
At the state level, the past eight years have brought significant insurance cost changes. Colorado experienced a rate hike of nearly 20% — most likely due to the wildfires in the area.
Which car insurance companies increased rates recently?
While it’s nearly impossible to track down specific rate changes for every insurance company, most major insurers factor rate increases into their premium calculations. Since rate increases aren't consistent across the industry, it's important to find the company that will increase your rates the least. The only real way to do this is to shop around for an insurance policy with the cheapest rates. Remember, the rate increase is dependent on the previous year’s return-on-investment — you'll need to consistently shop for car insurance every six months to ensure the cost of your car insurance premium doesn't go up.
If you've experienced a rate increase and are now looking for a new company, enter your zip code below to find a cheaper rate. If you'd like more information on car insurance, see our related topics below.