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February 11, 2025

Insurance shopping website Insurify projects 6% rate hike in CT in 2025

Contributed
By David Krechevsky

After rising by 18% over the past two years, auto insurance rates in Connecticut are projected to increase by 6% in 2025, according to a new report.

Insurify.com, an insurance comparison shopping website headquartered in Cambridge, Massachusetts, recently issued a report that projects car insurance rates nationwide will increase 5% this year.

“Car insurance rates increased by 15% in 2024, adding to the rising cost of car ownership and further straining drivers’ budgets,” the report states. “American drivers now pay an average of $2,313 annually for full coverage, but rates in six states exceed $3,000 annually, Insurify data shows.”

In Connecticut, the average annual cost for full coverage last year was $2,443, Insurify said. The projected 6% increase this year would increase the cost of full coverage to $2,600.

Insurify said its data science team analyzed car insurance rates across the U.S. to determine where full-coverage premiums are rising fastest, which factors drove rate hikes and what drivers can expect in 2025.

“Rising vehicle repair costs, linked to high-tech and electric vehicles (EVs), fueled rate hikes in 2024,” the report states. It adds that auto insurance companies are also “increasingly factoring climate risk into their rates as insurers can incur significant losses from severe weather events.”

The report noted that the cost of full-coverage policies nationwide surged by 24% in 2023 in response to record underwriting losses of $33.1 billion in 2022. As the industry has recovered, however, rate increases have slowed. Average premiums decreased in 21 states in the second half of the year, according to Insurify data.

Eric George, president of the Hartford-based Insurance Association of Connecticut, which represents property and casualty insurers in the state, said he is “heartened” that auto insurance costs in the state “are near the average.” 

“It makes me very happy that Connecticut's competitive marketplace is so vigorous,” George said, adding that not many states benefit from as many insurance carriers competing for business,

He also stressed that some observers of rising insurance costs, including some state legislators, get it wrong when they suggest that insurers raise rates in Connecticut to help cover losses elsewhere.

“A lot of folks have been erroneously saying Connecticut is paying for these other states and that is absolutely incorrect,” he said. “If a carrier were to try to raise its rates in Connecticut based upon experiences from other states, that would be disregarded right out of turn by the (state) Department of Insurance. You cannot ‘rate hunt’ in Connecticut.”

Maryland now has the highest car insurance costs in the U.S., Insurify said, with an average annual full-coverage premium of $4,060. Insurance costs in that state soared 53% in 2024, in part due to a 63% surge in stolen vehicle claims. New York, with average full-coverage cost of $3,804, is the second-highest, and is projected to see costs rise 10% this year.

The other four states with full-coverage costs over $3,000 are Washington, D.C., South Carolina, Florida and Delaware.

New Hampshire boasts the lowest auto insurance costs in the nation, with the average annual full-coverage cost of just $997. That rate declined by 1% over the past two years, and is projected to decline in 2025 by 2%.

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