Indiana's car insurance rates rise
Add Axios as your preferred source to
see more of our stories on Google.
Car insurance costs increased in all but a smattering of states between 2023 and 2024, a new report finds.
Why it matters: Indiana was not one of the states that avoided the price hikes, but our annual insurance rates are still among the nation's lowest.
The big picture: Rising insurance costs and other car-related expenses are creating an affordability crisis with little room to maneuver, as Axios' Courtenay Brown writes.
Driving the news: The average annual cost of full auto coverage increased 15% nationwide in 2024, per a new report from Insurify, which helps drivers compare quotes from multiple providers.
- Americans broadly are paying an average of $2,313 for full annual coverage.
By the numbers: Indiana drivers are paying an average of $1,654 for full coverage annually as of 2024, the 11th lowest in the U.S., despite increasing by 24% year-over-year.
- Insurify predicts Indiana's rates will increase another 2% in 2025 and reach $1,691.
Zoom out: Drivers in some states got hit much worse. Rates skyrocketed 58% in Minnesota, 53% in Maryland and 48% in California, for example.
- Iowa and North Dakota had the most significant declines at 5%.
What they're saying: Insurance costs are driven by several factors, Insurify's Chase Gardner tells Axios.
- First is the likelihood that drivers will file a claim, and how much those claims will cost to pay out. Accident and theft rates, plus the cost of repair work and parts, all have an impact.
- Extreme weather plays a role too, Gardner says, with natural disasters like hail and wind leading to a spike in claims in several states.
Stunning stat: Electric vehicles are now 24% more expensive to insure than their comparable internal-combustion brethren, Insurify found, in part because they're more expensive to repair after accidents.
Yes, but: EV owners may still come out on top when factoring in fuel and regular maintenance savings — not to mention tax credits and incentives.
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."