Cosmic Prices: Car Insurance Surges to Over $1,700 Per Year, According to AAA

Car Insurance Rates Soar to Record Highs

Car insurance rates have jumped nearly 20% in the past year, making the average annual cost over $1,700 and increasingly pushing vehicle ownership out of reach for middle-class Americans.

The High Cost of Car Ownership

Aside from depreciation, car insurance is typically the second-largest driving-related expense for the typical driver, according to a new report from the auto club AAA on ownership and operation costs.

Car Insurance Costs Account for 16% of Vehicle Ownership

Car insurance accounts for over 16% of the total cost of driving a new vehicle in 2024, which comes out to $10,642, assuming you drive 10,000 miles per year, according to the report.

Other Major Costs of Vehicle Ownership

Some of the other major costs of vehicle ownership include depreciation (about $4,280), fuel ($1,490), finance charges (about $1,330), maintenance (about $1,010), and license/registration/taxes ($815).

Auto Insurance Costs Soar

Auto insurance costs have been soaring since 2022 due to high vehicle prices and more expensive car repairs. Insurers have also cited an increase in dangerous driving, which has led to more claims. In many cases, car insurance companies are trying to pass these higher costs of fixing and replacing vehicles along to their customers.

How Much Does Car Insurance Cost?

According to AAA, the average annual cost of car insurance is $1,715 in 2024, which represents an increase of more than $500 since 2019.

Cost of Car Insurance by Vehicle Type

The cost of car insurance depends on what type of car you drive, along with other factors like your driving record, age and location.

• Small sedan: $1,510
• Medium sedan: $1,583
• Subcompact SUV: $1,684
• Compact SUV (FWD): $1,723
• Medium SUV (4WD): $1,831
• Midsize pickup: $1,527
• 1/2 ton/crew cab pickup: $1,764
• Hybrid vehicle: $1,643
• Electric vehicle: $2,059

Shopping Around for Car Insurance

Knowing how much other drivers pay for car insurance can help you tell if you’re overpaying.

It’s recommended to shop around at least once per year. And don’t hesitate to switch if you find a better deal. You can also bundle insurance policies and raise your premium to get a lower car insurance premium.