Iowa's car insurance rates dip 5%, buck national trend
Add Axios as your preferred source to
see more of our stories on Google.
Iowa was one of just five states where car insurance costs recently decreased, a new report finds.
Why it matters: Nationally, rising insurance costs and other car-related expenses are creating an affordability crisis.
- Iowa is doing better than most, but our inflationary reprieve is still projected to be short-lived.
Driving the news: The average annual cost of full auto coverage increased 15% nationwide between 2023 and 2024, per a new report from Insurify, which helps drivers compare quotes from multiple providers.
- Rates skyrocketed 58% in Minnesota, 53% in Maryland and 48% in California.
- Iowa and North Dakota had the most significant declines at 5%. Wyoming, New Hampshire and Rhode Island decreased 3% or less.
Yes, but: Iowa's full coverage rates are projected to increase 4% this year, from $1,582 to $1,640.
- Nationally, the rate will likely increase 5%, per Insurify.
What they're saying: Accident and theft rates, extreme weather and claims are factors driving premium costs, Chase Gardner, a data insights manager at Insurify, tells Axios.
The intrigue: Electric vehicles (EV) are now almost 25% more expensive to insure than their gas-powered brethren, partly because they're more expensive to repair after accidents, Insurify found.
- Iowa lags much of the country in EV adoption.
The fine print: Insurify's report is based on more than 97 million rates quoted to drivers using the platform and reflects median insurance costs for drivers between 20 and 70 years old with clean records and at least average credit.
- The report uses two-year rolling medians for yearly prices "to manage extreme market volatility over the past few years."
What's next: States hit hardest by things like climate risks and insurance fraud should prepare for more significant increases, Insurify says.