Car insurance rates surged 26% nationwide in the past year and are expected to remain elevated until 2025.
That's according to the “True Cost of Auto Insurance” report from Bankrate, an independent comparison service company.
The report used the most recent median income data from the U.S. Census Bureau to calculate 2024 percentage of income spent on auto insurance. Previously, it used average income data. Bankrate switched to using median income data in 2024 because it said it was more representative “of what people earn in a given geographic area.”
Bankrate’s insurance editorial team also analyzed the average total percentage of household income spent on car insurance to determine the its true cost and assigned a true cost ranking to each state and 25 metro areas in the country. The higher the ranking, the higher the true cost of car insurance, it notes.