Car Insurance Costs Skyrocket in 2024

Save on car insurance costs as rates rise.

Image of a red car and a stack of coins on a white background.
(Image credit: Getty Images)

This year, expect to pay more for your car insurance. Even though inflation has been slowing down, car insurance costs have gone up. Since 2023, car insurance rates have surged 26%, and they’ll likely remain elevated until 2025, according to Bankrate’s True Cost of Auto Insurance Report. The report determined the annual cost for full coverage car insurance in 2024 to be $2,543, compared to $2,014 in 2023 and $1,771 in 2022. For someone earning the median household income of $74,580, that’s 3.41% of their entire income. 

Insurers raise costs in response to your risk as a driver, such as where you live and whether you have a teenager on the policy. They also raise rates based on risks beyond your control, like inflation.

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Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.