After rising by 18% over the previous two years, auto insurance coverage charges in Connecticut are projected to extend by 6% in 2025, in accordance with a brand new report.
Insurify.com, an insurance coverage comparability buying web site headquartered in Cambridge, Massachusetts, just lately issued a report that tasks automobile insurance coverage charges nationwide will enhance 5% this yr.
“Automobile insurance coverage charges elevated by 15% in 2024, including to the rising price of automobile possession and additional straining drivers’ budgets,” the report states. “American drivers now pay a mean of $2,313 yearly for full protection, however charges in six states exceed $3,000 yearly, Insurify information exhibits.”
In Connecticut, the common annual price for full protection final yr was $2,443, Insurify stated. The projected 6% enhance this yr would enhance the price of full protection to $2,600.
Insurify stated its information science group analyzed automobile insurance coverage charges throughout the U.S. to find out the place full-coverage premiums are rising quickest, which elements drove price hikes and what drivers can anticipate in 2025.
“Rising automobile restore prices, linked to high-tech and electrical automobiles (EVs), fueled price hikes in 2024,” the report states. It provides that auto insurance coverage firms are additionally “more and more factoring local weather danger into their charges as insurers can incur vital losses from extreme climate occasions.”
The report famous that the price of full-coverage insurance policies nationwide surged by 24% in 2023 in response to file underwriting losses of $33.1 billion in 2022. Because the trade has recovered, nevertheless, price will increase have slowed. Common premiums decreased in 21 states within the second half of the yr, in accordance with Insurify information.
Eric George, president of the Hartford-based Insurance coverage Affiliation of Connecticut, which represents property and casualty insurers within the state, stated he’s “heartened” that auto insurance coverage prices within the state “are close to the common.”
“It makes me very joyful that Connecticut’s aggressive market is so vigorous,” George stated, including that not many states profit from as many insurance coverage carriers competing for enterprise,
He additionally careworn that some observers of rising insurance coverage prices, together with some state legislators, get it incorrect after they counsel that insurers increase charges in Connecticut to assist cowl losses elsewhere.
“A number of people have been erroneously saying Connecticut is paying for these different states and that’s completely incorrect,” he stated. “If a service had been to attempt to increase its charges in Connecticut based mostly upon experiences from different states, that may be disregarded proper out of flip by the (state) Division of Insurance coverage. You can’t ‘price hunt’ in Connecticut.”
Maryland now has the best automobile insurance coverage prices within the U.S., Insurify stated, with a mean annual full-coverage premium of $4,060. Insurance coverage prices in that state soared 53% in 2024, partially on account of a 63% surge in stolen automobile claims. New York, with common full-coverage price of $3,804, is the second-highest, and is projected to see prices rise 10% this yr.
The opposite 4 states with full-coverage prices over $3,000 are Washington, D.C., South Carolina, Florida and Delaware.
New Hampshire boasts the bottom auto insurance coverage prices within the nation, with the common annual full-coverage price of simply $997. That price declined by 1% over the previous two years, and is projected to say no in 2025 by 2%.
