Premium insurance rates continue to increase for private auto insurers nationwide, up 11% year-to-date in August 2023, according to a report by S&P Global. The report attributes the quick increase as an effort to offset historically poor underwriting skills. It also shows rate increases vary significantly from state to state.
Overall, 32 states have seen a double-digit increase from more than eight months of approved rate filings in 2023, according to S&P Global. Find out what insurers are seeing the highest increases this year and which states are seeing spikes in premiums.
- Nevada’s rate increase was the highest overall calculated at 27.9%, with Idaho coming in at the lowest at 2.5%.
- Texas has had a cumulative rate increase of 37.6% since 2022. Arizona, Illinois, Nevada, Ohio and Tennessee have also seen cumulative increases of more than 30%.
- Hawaii has seen the lowest cumulative increase since 2022 at 4.4%. California, North Carolina and Vermont have also seen increases lower than 12%.
Top 10 private auto companies’ rate changes from 2018 to 2023
Before the current insurance increase trend in the past year, private auto premiums’ annual increases remained in low single-digit increases for several years. There was an exception to this trend during the pandemic when insurers offered premium credits to compensate consumers for decreased driving, the S&P Global report stated.
From 2018 to August 2023, several auto insurers have seen cumulative percentage increases in their rates.
- Farmers increased by 30.7%, followed by Allstate by 27.3% and State Farm and USAA by 24.4% each since 2022.
- From 2018 to August 2023, Farmers Insurance cumulatively increased by 50.2%, followed by American Family Insurance by 42.6% and Geico by 38.1%.
- State Farm was the only auto insurer to increase by single-digits from 2018 to August 2023 – by 6.9%.
Find more auto insurers’ rate increases since 2018 in the chart below, including higher cumulative changes since 2022.
| Insurer | 2018 | 2019 | 2020 | 2021 | 2022 | YTD 2023 | 2022 – YTD 2023 | 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| State Farm | -3.6 | -3.5 | -10.9 | 3.7 | 9.2 | 13.9 | 24.4 | 6.9 |
| Progressive | 0.0 | -1.3 | -2.9 | 3.9 | 10.0 | 8.5 | 19.4 | 19.0 |
| GEICO corp.* | 4.9 | -0.2 | 3.1 | 1.6 | 17.1 | 7.6 | 25.9 | 38.1 |
| Allstate Corp. | 1.6 | 2.7 | 1.1 | -0.9 | 14.5 | 11.1 | 27.3 | 33.1 |
| USAA | 4.3 | 3.3 | 1.4 | -0.7 | 8.2 | 14.9 | 24.4 | 35.0 |
| Liberty Mutual | 5.9 | 2.2 | 1.1 | 2.5 | 12.8 | 8.8 | 22.7 | 37.6 |
| Farmers nsurance | 5.7 | 4.1 | 1.4 | 2.9 | 14.5 | 14.2 | 30.7 | 50.2 |
| Travelers | 4.0 | 1.1 | 0.0 | 0.1 | 8.8 | 11.9 | 21.8 | 28.2 |
| American Family Insurance | 9.3 | 8.2 | 6.0 | 0.0 | 7.5 | 11.5 | 19.9 | 42.6 |
| Nationwide | 4.7 | 0.5 | 1.8 | 1.7 | 9.3 | 8.8 | 18.9 | 29.5 |
Note:
Effective rate change – 2018, 2019, 2020, 2021, 2022, YTD 2023
Cumulative change – 2022 – YTD 2023, 2018 – YTD 2023
Data compiled Aug. 21, 2023. Year to date as of Aug. 18, 2023.
GEICO Corp. may include private auto rate filings approved for any Berkshire Hathaway Inc. subsidiary.
Source: S&P Global Market Intelligence.
Learn more about drivers switching car insurance carriers as inflation continues in 2023
Auto insurance rate changes since 2018
States across the country have seen large cumulative rate increases between 2022 and the current year to date (YTD). Texas has the highest cumulative rate increase of 37.6% since 2022. Arizona, Illinois, Nevada, Ohio, Tennessee and Utah have also seen steep increases of more than 30%.
The states with the lowest cumulative increase since 2022 are Hawaii (4.4%), Vermont (6.3%), North Carolina (8.2%) and California (11.1%), according to S&P Global’s report.
Learn more about the rate increases in your state in the chart below.
| State | 2018 | 2019 | 2020 | 2021 | 2022 | YTD 2023 | 2022 – YTD 2023 | 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| Countrywide | 2.3 | 0.7 | -1.6 | 1.8 | 11.1 | 11.0 | 23.3 | 27.2 |
| Alabama | 0.6 | 0.2 | -2.6 | 1.2 | 6.1 | 9.7 | 16.3 | 15.6 |
| Alaska | 3.6 | 1.0 | -2.8 | 1.0 | 5.2 | 6.2 | 11.8 | 14.9 |
| Arizona | 3.0 | 0.5 | -1.3 | 3.5 | 16.7 | 12.3 | 31.0 | 38.7 |
| Arkansas | 1.4 | -0.7 | -4.3 | 1.2 | 8.4 | 12.4 | 21.9 | 18.9 |
| California | 3.5 | 2.2 | -0.7 | 0.0 | 1.3 | 9.7 | 11.1 | 16.6 |
| Colorado | 5.5 | 3.0 | -0.4 | 4.0 | 10.8 | 2.9 | 14.0 | 28.4 |
| Connecticut | 2.9 | -1.0 | -0.7 | 0.3 | 8.9 | 8.3 | 17.9 | 20.7 |
| Delaware | 3.5 | -0.1 | -2.6 | 2.4 | 14.0 | 11.0 | 26.5 | 30.5 |
| District of Columbia | 2.3 | 0.2 | -2.4 | 0.3 | 12.6 | 4.5 | 17.6 | 17.9 |
| Florida | 2.9 | -0.2 | 1.4 | 5.6 | 12.5 | 11.0 | 24.9 | 37.5 |
| Georgia | 4.0 | 2.4 | -1.8 | 1.6 | 14.3 | 13.6 | 29.8 | 37.8 |
| Hawaii | -0.3 | -0.2 | -2.9 | -2.9 | 0.6 | 3.8 | 4.4 | -2.0 |
| Idaho | 3.7 | 0.7 | -0.8 | 1.4 | 9.0 | 2.5 | 11.7 | 17.4 |
| Illinois | 1.2 | 1.4 | -4.4 | 1.9 | 17.8 | 14.4 | 34.7 | 34.6 |
| Indiana | -0.8 | -0.3 | -4.3 | 1.7 | 12.1 | 10.9 | 24.3 | 19.7 |
| Iowa | 0.4 | 4.0 | -1.3 | 3.0 | 10.3 | 7.2 | 18.2 | 21.2 |
| Kansas | 1.2 | 1.0 | -1.4 | 1.7 | 13.2 | 10.2 | 24.8 | 27.9 |
| Kentucky | 0.9 | -1.4 | -3.5 | 1.7 | 8.5 | 11.4 | 20.8 | 17.9 |
| Louisiana | 5.5 | -1.3 | -3.8 | 0.7 | 9.0 | 15.0 | 25.3 | 26.5 |
| Maine | 0.2 | -0.3 | -1.2 | 2.1 | 14.2 | 10.1 | 25.7 | 26.7 |
| Maryland | 3.3 | 1.0 | -2.4 | -2.3 | 17.4 | 9.4 | 28.4 | 27.8 |
| Massachusetts | 3.3 | 1.0 | 1.1 | 0.1 | 4.8 | 7.9 | 13.1 | 19.4 |
| Michigan | 3.0 | 2.8 | -3.8 | 0.8 | 6.8 | 10.5 | 17.9 | 21 .1 |
| Minnesota | 1.6 | 0.9 | -2.5 | 2.9 | 13.4 | 10.6 | 25.4 | 28.9 |
| Mississippi | 1.0 | -0.3 | -1.5 | 1.5 | 8.6 | 10.9 | 20.4 | 20.1 |
| Missouri | 2.3 | 1.0 | -3.6 | 3.6 | 15.7 | 9.9 | 27.1 | 31.3 |
| Montana | 0.9 | -1.4 | -1.6 | 0.5 | 5.4 | 8.4 | 14.3 | 12.4 |
| Nebraska | 1.4 | -0.4 | -1.9 | 5.0 | 9.2 | 12.9 | 23.3 | 28.4 |
| Nevada | 4.6 | 2.1 | -2.4 | -0.4 | 4.9 | 27.9 | 34.2 | 39.4 |
| New Hampshire | 0.6 | -0.4 | -2.3 | -0.6 | 15.6 | 7.3 | 24.0 | 20.7 |
| New Jersey | 2.6 | 1.7 | -0.7 | 0.1 | 6.0 | 10.5 | 17.2 | 21.4 |
| New Mexico | 3.2 | -0.5 | -3.2 | -1.2 | 13.7 | 8.7 | 23.6 | 21.4 |
| New York | 3.8 | 2.4 | 1.5 | 1.8 | 6.3 | 14.2 | 21.4 | 33.3 |
| North Carolina | -0.8 | 0.7 | -1.3 | -0.3 | 3.7 | 4.3 | 8.2 | 6.3 |
| North Dakota | 0.8 | -0.4 | -2.3 | 1.6 | 10.0 | 10.7 | 21.8 | 21.2 |
| Ohio | 0.7 | -1.4 | -4.1 | 3.1 | 18.9 | 11.5 | 32.6 | 30.3 |
| Oklahoma | -1.7 | -2.0 | -4.3 | 2.8 | 13.9 | 12.3 | 27.8 | 21.1 |
| Oregon | 0.7 | -1.8 | -3.3 | 1.2 | 15.5 | 11.2 | 28.5 | 24.4 |
| PennsyVania | 0.0 | 4.0 | -3.7 | 1.7 | 15.3 | 10.5 | 27.5 | 25.4 |
| Rhode Island | 3.0 | 1.0 | 0.9 | -0.5 | 7.1 | 8.7 | 16.4 | 21.5 |
| South Carolina | 2.4 | 0.4 | -0.4 | 1.6 | 13.3 | 10.7 | 25.4 | 30.5 |
| South Dakota | 0.5 | 0.7 | -1.7 | 1.8 | 7.5 | 12.2 | 20.6 | 22.2 |
| Tennessee | 1.3 | -1.0 | -2.0 | 0.8 | 17.3 | 12.7 | 32.2 | 31.0 |
| Texas | 1.4 | -1.8 | -2.1 | 3.3 | 23.4 | 11.5 | 37.6 | 38.6 |
| Utah | 2.5 | 2.9 | -1.3 | 3.8 | 15.2 | 12.8 | 30.0 | 40.4 |
| Vermont | -1.0 | -1.0 | -2.6 | -0.7 | 2.1 | 4.1 | 6.3 | 2.6 |
| Virginia | 1.0 | 0.2 | -1.2 | 3.2 | 14.4 | 11.9 | 28.0 | 32.0 |
| Washington | 2.0 | 1.7 | 2.1 | -1.0 | 2.9 | 12.5 | 15.8 | 17.5 |
| WestVirginia | -0.7 | -1.6 | -3.5 | 1.3 | 8.3 | 12.1 | 21.5 | 16.1 |
| Wisconsin | 1.3 | 4.0 | -2.7 | 1.3 | 12.6 | 13.0 | 27.2 | 27.6 |
Note:
Effective rate change – 2018, 2019, 2020, 2021, 2022, YTD 2023
Cumulative change – 2022 – YTD 2023, 2018 – YTD 2023
Data compiled Aug. 21, 2023. Year to date as of Aug. 18, 2023.
Source: S&P Global Market Intelligence.
Car insurance rates are rising in 2023: Here’s what to do when car insurance rates go up
Final thoughts: 2023 trend outlook
Insurance premiums have been on an upward trend since 2022, according to S&P Global’s report and the U.S. Bureau of Labor Statistics consumer price index. The BLS index reports a 17.1% increase in auto insurance over the past year. The S&P reports an 11% increase from private auto insurers in 2023 alone.
These increases can be attributed to inflation and supply shortages, but also costlier claims and seven consecutive quarters of roadway fatality increases that started in the third quarter of 2020. As more than half the country has seen increases in their premiums, it’s likely the trend is not going to change any time soon.
However, drivers may be able to save in other ways. By quote-shopping various car insurance companies and discussing potential discounts, there may be opportunities to save on car insurance even with pricier premiums.
Read more about 2023 LexisNexis Demand Meter: Car insurance shopping at all-time high
Resources & Methodology
Sources
- National Highway Traffic Safety Administration. “NHTSA Estimates for 2022 Show Roadway Fatalities Remain Flat After Two Years of Dramatic Increases.” Accessed September 2023.
- S&P Global Market Intelligence. “US private auto insurance rates see a double-digit jump in 2023.” Accessed September 2023.
- U.S. Bureau of Labor Statistics. “Consumer Price Index for All Urban Consumers (CPI-U): U.S. city average, by expenditure category, 12-month analysis table.” Accessed September 2023.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
