After rising by 18% over the previous two years, auto insurance coverage charges in Connecticut are projected to extend by 6% in 2025, in line with a brand new report.
Insurify.com, an insurance coverage comparability purchasing web site headquartered in Cambridge, Massachusetts, lately issued a report that initiatives automotive insurance coverage charges nationwide will enhance 5% this 12 months.
“Automotive insurance coverage charges elevated by 15% in 2024, including to the rising price of automotive 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 reveals.”
In Connecticut, the common annual price for full protection final 12 months was $2,443, Insurify mentioned. The projected 6% enhance this 12 months would enhance the price of full protection to $2,600.
Insurify mentioned its information science workforce analyzed automotive insurance coverage charges throughout the U.S. to find out the place full-coverage premiums are rising quickest, which elements drove charge hikes and what drivers can count on in 2025.
“Rising car restore prices, linked to high-tech and electrical automobiles (EVs), fueled charge hikes in 2024,” the report states. It provides that auto insurance coverage firms are additionally “more and more factoring local weather threat 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 business has recovered, nonetheless, charge will increase have slowed. Common premiums decreased in 21 states within the second half of the 12 months, in line with Insurify information.
Eric George, president of the Hartford-based Insurance coverage Affiliation of Connecticut, which represents property and casualty insurers within the state, mentioned he’s “heartened” that auto insurance coverage prices within the state “are close to the common.”
“It makes me very pleased that Connecticut’s aggressive market is so vigorous,” George mentioned, including that not many states profit from as many insurance coverage carriers competing for enterprise,
He additionally burdened that some observers of rising insurance coverage prices, together with some state legislators, get it improper once they counsel that insurers increase charges in Connecticut to assist cowl losses elsewhere.
“Plenty of of us have been erroneously saying Connecticut is paying for these different states and that’s completely incorrect,” he mentioned. “If a service had been to attempt to increase its charges in Connecticut primarily based upon experiences from different states, that may be disregarded proper out of flip by the (state) Division of Insurance coverage. You can’t ‘charge hunt’ in Connecticut.”
Maryland now has the very best automotive insurance coverage prices within the U.S., Insurify mentioned, with a mean annual full-coverage premium of $4,060. Insurance coverage prices in that state soared 53% in 2024, partly attributable to a 63% surge in stolen car claims. New York, with common full-coverage price of $3,804, is the second-highest, and is projected to see prices rise 10% this 12 months.
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 charge declined by 1% over the previous two years, and is projected to say no in 2025 by 2%.
