Premium insurance rates continue to increase for private auto insurers nationwide, up 14% year-to-date by January 2024, 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, 43 states and the District of Columbia saw a double-digit increase 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 28.3%.
- Texas has had a rate increase of 16.9%.
- Hawaii has seen the lowest increase 3.8%
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 December 2023, several auto insurers have seen cumulative percentage increases in their rates.
- Farmers increased by 34.7%, followed by Allstate at 30%, and Liberty Mutual at 31.1% since 2022.
- From 2018 to August 2023, Farmers Insurance cumulatively increased by 54.8%, followed by American Family Insurance at 50.3%, and Liberty Mutual at 47.1%.
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 | Cumulative Change 2022 – YTD 2023 | Cumulative Change 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| State Farm | -3.6 | -3.5 | -10.9 | 3.8 | 9.9 | 16.0 | 27.5 | 9.6 |
| Progressive | 0.0 | -1.3 | -2.9 | 3.9 | 10.1 | 11.5 | 22.8 | 22.4 |
| GEICO Corp. * | 4.9 | -0.2 | 3.1 | 1.6 | 17.2 | 10.1 | 29.1 | 41.7 |
| Allstate Corp. | 1.6 | 2.7 | 1.1 | -0.9 | 14.5 | 13.5 | 30.0 | 35.9 |
| USAA | 4.3 | 3.3 | 1.4 | -0.7 | 8.2 | 16.9 | 26.5 | 37.4 |
| Liberty Mutual | 5.9 | 2.2 | 1.1 | 2.5 | 12.9 | 16.1 | 31.1 | 47.1 |
| Farmers Insurance | 5.7 | 4.1 | 1.4 | 2.9 | 14.5 | 17.6 | 34.7 | 54.8 |
| Travelers | 4.0 | 1.1 | 0.0 | 0.1 | 10.0 | 13.1 | 24.4 | 31.0 |
| American Family Insurance | 9.3 | 8.2 | 0.6 | 0.0 | 7.5 | 17.5 | 26.4 | 50.3 |
| Nationwide | 4.7 | 0.5 | 1.8 | 1.7 | 9.4 | 16.8 | 27.8 | 39.1 |
Note:
Effective rate change – 2018, 2019, 2020, 2021, 2022, YTD 2023
Cumulative change – 2022 – YTD 2023, 2018 – YTD 2023
Data compiled January 6, 2024. Year to date as of December 29, 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 45.5% since 2022. Arizona, Georgia, Illinois, Kansas, Maryland, Minnesota, Missouri, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Utah, and Virginia 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 (12.9%), 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 | Cumulative Change 2022 – YTD 2023 | Cumulative Change 2018 – YTD 2023 |
|---|---|---|---|---|---|---|---|---|
| National average | 2.3 | 0.7 | -1.6 | 1.8 | 11.4 | 14.0 | 26.9 | 30.9 |
| Alabama | 0.6 | 0.2 | -2.6 | 1.2 | 8.5 | 10.3 | 19.7 | 18.9 |
| Alaska | 3.6 | 1.0 | -2.8 | 1.0 | 5.2 | 10.7 | 16.4 | 19.7 |
| Arizona | 3.0 | 0.5 | -1.3 | 3.5 | 16.7 | 18.4 | 38.1 | 46.1 |
| Arkansas | 1.4 | -0.7 | -4.3 | 1.2 | 8.4 | 14.4 | 24.0 | 20.9 |
| California | 3.5 | 2.2 | -0.7 | 0.0 | 1.3 | 11.5 | 12.9 | 18.5 |
| Colorado | 5.5 | 3.0 | -0.4 | 4.0 | 13.1 | 4.5 | 18.2 | 33.2 |
| Connecticut | 2.9 | -0.1 | -0.7 | 0.3 | 8.9 | 16.7 | 27.1 | 30.1 |
| Delaware | 3.5 | -0.1 | -2.6 | 2.4 | 14.0 | 11.1 | 26.7 | 30.7 |
| District of Columbia | 2.3 | 0.2 | -2.4 | 0.3 | 12.9 | 14.8 | 29.6 | 30.0 |
| Florida | 2.9 | -0.2 | 1.4 | 5.6 | 13.1 | 11.3 | 25.9 | 38.6 |
| Georgia | 4.0 | 2.4 | -1.8 | 1.6 | 14.3 | 17.5 | 34.3 | 42.6 |
| 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 | 5.6 | 15.1 | 20.9 |
| Illinois | 1.2 | 1.4 | -4.4 | 1.9 | 17.9 | 16.8 | 37.7 | 37.6 |
| Indiana | -0.8 | -0.3 | -4.3 | 1.7 | 12.1 | 15.2 | 29.2 | 24.3 |
| lowa | 0.4 | 0.4 | -1.3 | 3.0 | 10.3 | 8.9 | 20.1 | 23.1 |
| Kansas | 1.2 | 1.0 | -1.4 | 1.7 | 13.2 | 15.4 | 30.6 | 33.9 |
| Kentucky | 0.9 | -1.4 | -3.5 | 1.7 | 8.5 | 15.5 | 25.3 | 22.3 |
| Louisiana | 5.5 | -1.3 | -3.8 | 0.7 | 9.3 | 17.0 | 27.9 | 29.1 |
| Maine | 0.2 | -0.3 | -1.2 | 2.1 | 14.2 | 12.4 | 28.3 | 29.4 |
| Maryland | 3.3 | 1.0 | -2.4 | -2.3 | 17.4 | 13.7 | 33.6 | 33.0 |
| Massachusetts | 3.3 | 1.0 | 1.1 | 0.0 | 5.2 | 12.5 | 18.4 | 25.0 |
| Michigan | 3.0 | 2.8 | -3.8 | 0.8 | 6.8 | 12.1 | 19.7 | 22.9 |
| Minnesota | 1.6 | 0.9 | -2.5 | 2.9 | 13.6 | 19.8 | 36.0 | 39.8 |
| Mississippi | 01 | -0.3 | -1.5 | 1.5 | 8.6 | 13.9 | 23.6 | 23.3 |
| Missouri | 2.3 | 1.0 | -3.6 | 3.6 | 15.7 | 14.2 | 32.0 | 36.4 |
| Montana | 0.9 | -1.4 | -1.6 | 1.4 | 6.6 | 11.7 | 19.1 | 18.3 |
| Nebraska | 1.4 | -0.4 | -1.9 | 5.0 | 9.2 | 17.9 | 28.7 | 34.0 |
| Nevada | 4.6 | 2.1 | -2.4 | -0.4 | 4.9 | 28.3 | 34.6 | 39.8 |
| New Hampshire | 0.6 | -0.4 | -2.3 | -0.6 | 15.6 | 10.8 | 28.1 | 24.7 |
| New Jersey | 2.6 | 1.7 | -0.7 | 0.1 | 6.0 | 10.6 | 17.3 | 21.5 |
| New Mexico | 3.2 | -0.5 | -3.2 | -1.2 | 13.7 | 9.6 | 24.6 | 22.4 |
| New York | 3.8 | 2.4 | 1.5 | 1.8 | 6.3 | 16.8 | 24.2 | 36.4 |
| 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 | 14.1 | 25.4 | 24.9 |
| Ohio | 0.7 | -1.4 | -4.1 | 3.1 | 18.9 | 16.8 | 38.9 | 36.5 |
| Oklahoma | -1.7 | -2.0 | -4.3 | 2.8 | 13.9 | 15.9 | 31.9 | 25.0 |
| Oregon | 0.7 | -1.8 | -3.3 | 1.2 | 15.5 | 17.0 | 35.2 | 30.8 |
| Pennsylvania | 0.0 | 0.4 | -3.7 | 1.7 | 15.3 | 12.9 | 30.2 | 28.0 |
| Rhode Island | 3.0 | 1.0 | 0.9 | -0.5 | 7.1 | 11.6 | 19.5 | 24.7 |
| South Carolina | 2.4 | 0.4 | -0.4 | 1.6 | 13.3 | 14.0 | 29.1 | 34.4 |
| South Dakota | 0.5 | 0.7 | -1.7 | 1.8 | 7.5 | 15.8 | 24.5 | 26.1 |
| Tennessee | 1.3 | -1.0 | -2.0 | 0.8 | 17.3 | 16.8 | 37.0 | 35.7 |
| Texas | 1.4 | -1.8 | -2.1 | 3.3 | 24.5 | 16.9 | 45.5 | 46.5 |
| Utah | 2.5 | 2.9 | -1.3 | 3.8 | 15.2 | 16.1 | 33.7 | 44.4 |
| Vermont | -0.1 | -0.1 | -2.6 | -0.7 | 5.9 | 12.9 | 19.6 | 15.4 |
| Virginia | 1.0 | 0.2 | -1.2 | 3.2 | 14.4 | 15.4 | 32.0 | 36.2 |
| Washington | 2.0 | 1.7 | -2.1 | -0.1 | 2.9 | 19.7 | 23.11 | 24.9 |
| West Virginia | -0.7 | -1.6 | -3.5 | 1.3 | 8.3 | 13.0 | 22.4 | 16.9 |
| Wisconsin | 1.3 | 0.4 | -2.7 | 1.3 | 12.6 | 15.1 | 29.6 | 30.0 |
Note:
Effective rate change – 2018, 2019, 2020, 2021, 2022, YTD 2023
Cumulative change – 2022 – YTD 2023, 2018 – YTD 2023
Data compiled January 6, 2024. Year to date as of December 29, 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 20.3% increase in auto insurance over the past year. The S&P reports a 14% 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 January 2024.
- S&P Global Market Intelligence. “US private auto insurance rates see a double-digit jump in 2023.” Accessed January 2024.
- 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 January 2024.
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