Drivers around the United States have been dealing with rapidly increasing car insurance prices as average costs jumped by a staggering 26 per cent from the previous year.
According to new data, the average annual premium of full coverage car insurance for a driver in the US rose to £2,091 ($2,543) in 2024.
The research, from Bankrate and CNBC, found that the average American spends a significant 3.41 per cent of their total income on full auto coverage.
However, this differs from state to state. Motorists in Louisiana spend 6.53 per cent of their income on their insurance, followed by Florida (5.69 per cent) and Michigan (5.01 per cent).
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Some drivers in the United States saw their car insurance prices rise by more than 40 per cent
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The report stated that the national average cost for full coverage car insurance is £168 ($212) per month.
This is compared to just £49 – or $62 – per month for minimum coverage as an average across the nation.
Drivers in Missouri are the hardest hit when it comes to full coverage motor insurance, seeing a huge 44 per cent increase in prices in 2023.
Many states will see insurance providers consider a person’s credit score when issuing quotes, in addition to their driving record, their vehicle, driving habits and age.
US states where full coverage insurance costs increased the most in 2023
Missouri – £691 ($858) (£1,541 to £2,224) – 44.16 per cent
New Jersey – £636 ($801) (£1,393 to £2,029) – 45.69 per cent
Rhode Island – £633 ($797) (£1,498 to £2,131) – 42.29 per cent
Colorado – £620 ($781) (£1,684 to £2,305) – 36.83 per cent
Nevada – £612 ($771) (£2,207 to £2,818) – 27.73 per cent
Some drivers in the UK are facing similar prices as their American counterparts with average prices for coverage costing £1,607 in Inner London.
People driving around the capital will see an annual change of almost £600, with an annual change of 590 per cent, according to Confused.com.
Those living outside the capital don’t fare much better as seen by drivers in Northern Ireland paying more than £1,050 following a £383 annual increase.
Recently qualified drivers face the biggest car insurance quotes with 17-year-olds set to pay £2,877 and 18-year-olds being hit with charges of £3,162.
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Drivers in Inner London pay the highest rates for car insurance
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Tom Banks, motor insurance expert at Go.Compare, said: “This updated report shows that car insurance premiums, whilst changing each quarter, have been steadily increasing since the start of 2022, and between Q3 and Q4 2023 alone, premiums jumped by 10 per cent.
“The increasing costs of premiums are being attributed to the rising costs of replacements and repair costs, as well as inflation.
“We are now seeing these costs being passed onto the policyholder, who is having to foot the bill for these increases.”