Auto insurance costs jump 8.4% this year: motorists with tickets and Teslas among the worst hit


Motor insurance premiums are climbing by 8.4 percent to reach an average of $1,780 this year — the biggest increase in six years, nudged up by rising costs of replacement parts and repairs, a study says.

According to the report, motorists in Michigan, Florida, and Rhode Island will pay well above-average costs, as will those with a record of driving violations and owners of Teslas and other fancy electric vehicles.

Divya Sangameshwar, an insurance expert at ValuePenguin.com, the consumer spending site that released its findings on Monday, said insurers had kept rates low for the past two year, but that 2023 was a different story.

‘This year’s auto insurance rate increase is the highest rate increase since 2017,’ said Sangameshwar.

Motorists across 45 states will see at least a 1 percent jump in premiums. The biggest hikes will affect Illinois, Arizona, and New Hampshire

Motorists across 45 states will see at least a 1 percent jump in premiums. The biggest hikes will affect Illinois, Arizona, and New Hampshire

Motor insurance premiums are set to rise by 8.4 percent to reach an average of $1,780 this year — the biggest increase in six years

Motor insurance premiums are set to rise by 8.4 percent to reach an average of $1,780 this year — the biggest increase in six years

The average American motorist will pay $1,780 this year, but those in some states will be hurt much more.

Those in Michigan will fork out on average $4,788, well above the national average due to the state’s stringent minimum insurance requirements. Floridians will pay $2,856 and those in Rhode Island $2,748.

Motorists across 45 states will see at least a 1 percent jump in premiums. The biggest hike will affect Illinois (17 percent), followed by Arizona (15.6 percent) and New Hampshire (13.6 percent).

Those with records for traffic violations and accidents will see premiums grow by more than half, researchers say. Those with speeding tickets will see an average hike of $2,194, while those with DUIs will pay $3,281 extra.

Folks driving crossover SUVs, such as Honda’s CR-V or Toyota’s RAV4, get among the best deals, as they are typically cheaper to repair and replace than other cars. Pickups and larger SUVs cost more.

Still, owners of top-end electric cars are among the worst hit. Drivers of Porsche Taycans will pay on average $3,576 for the premiums this year, while those driving the Tesla Model Y will pay $3,110.

Those with records for traffic violations and accidents will see premiums grow by more than half, researchers say.

Those with records for traffic violations and accidents will see premiums grow by more than half, researchers say.

Firefighters using a glass cutter to cut a car windshield after an accident. Motorists with records for traffic violations and accidents will see their premiums grow by more than half

Firefighters using a glass cutter to cut a car windshield after an accident. Motorists with records for traffic violations and accidents will see their premiums grow by more than half

Those driving crossover SUVs, such as Honda’s CR-V or Toyota’s RAV4, get among the best deals, as they are typically cheaper to repair and replace than other cars

Those driving crossover SUVs, such as Honda’s CR-V or Toyota’s RAV4, get among the best deals, as they are typically cheaper to repair and replace than other cars

Drivers of the Tesla Model Y will be hit by high premiums, paying on average $3,110 this year

Drivers of the Tesla Model Y will be hit by high premiums, paying on average $3,110 this year

The study comes on the heels of research from Quotewizard, an insurance comparison website, which found that drivers in Utah are the worst in the nation and those in Connecticut are the safest

The group’s study of accidents, speeding tickets, DUIs and citations from 10 million insurance quotes last month, found that Utah scored poorly in all categories of dangerous driving, including the number of crashes, drunk drivers on the roads and police tickets.

Utah was followed by California, Iowa, Wisconsin, and Ohio as the five states with the country’s worst drivers. California, which ranked lowest in last year’s survey, still had ‘more DUIs over the last year than any other state’, researchers said.

Connecticut’s drivers were singled out as the ‘best in the nation’ by a ‘wide margin’ by researchers, for having among the lowest rates of citations, DUIs, speeding tickets and pile ups in the nation.

Michigan, West Virginia, Delaware, and Arkansas rounded out the top five safest motoring states in the country.

Nationwide, researchers found that eastern states generally saw better drivers than western states, and that states with a high number of drunk drivers were also likely to see more crashes and speeding than elsewhere.

Drivers in Utah are the worst in the nation and those in Connecticut are the safest, according to a study of 10 million insurance quotes released this week

Drivers in Utah are the worst in the nation and those in Connecticut are the safest, according to a study of 10 million insurance quotes released this week



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