Report: Minnesota could see largest car insurance price jump in the country

Minnesota car insurance rates could jump 61% this year due to inflation and the soaring prices of new cars.

Higher prices are poised for states like California and Washington, but a new report from Insurify shows Minnesota will likely see the steepest price increase.

Deputy Commissioner of Insurance at the Minnesota Department of Commerce Julia Dreier says climate-driven natural disasters play a role in the increase. That means issues like the flooding and hail storms seen in Minnesota earlier this year can drive up prices.

"We're certainly seeing more extreme weather events and so that causes more damage and it's just a sign of how climate change is really impacting things here in Minnesota," Dreier explains.

This increase comes after 24% price increase nationwide in 2023.

The move is expected to be beneficial for insurers however. They've seen profits surge over the last four years. But Dreier says costs for insurers have also gone up.

"There are higher losses and costs for insurers, and so if they're having to pay higher claims, it upsets their balance and their books as well," Dreier said. "And then economic factors are also driving a lot of this."

Another report released this month showed that four in 10 insured drivers who have been in an auto accident have skipped filling out a claim due to sky-high premiums after filing.

Minnesota

2023 Cost: $1,492

Estimated 2024 Cost: $2,315

Year-over-year Increase: 55%

Total Projected Increase in 2024: 61%