The District, already with some of the highest auto insurance premiums in the country, is getting hit by rising insurance rates following a surge in carjackings and other auto thefts, according to a new report.
Auto insurance policy comparison site Insurify reports D.C. residents in 2023 paid an average of $230 a month for full coverage, or $2,756 a year. That ranks D.C. 6th-highest in the nation when compared to states.
Average full-coverage auto insurance premiums in the District rose 20% in 2023.
Car thefts in the District surged in 2023, which factors into insurer risk models, according to Insurify. Police statistics from December 2024 show an 87% increase in vehicle thefts year-over-year, from 3,558 stolen cars in 2022 to 6,666 in 2023.
Insurify also notes auto insurance premiums are high in the District because it has a higher population density when compared to states, and busy streets add to the risk of collisions. Fatal collisions in D.C. increased by 49%, to 52 deaths last year.
Maryland also ranked in the top 10 for average annual full-coverage rates, at $2,645, 31% higher than the U.S. average. Insurify said a jump in car thefts in Maryland could also account for rising insurance rates.
Many insurance companies provide drivers with the opportunity for lower premiums if they join safe driver programs, some of which monitor driving behavior. There could be ways to lower premiums in high-theft areas like D.C. and Maryland.
“Many insurance companies will offer discounts to offset increasing rates. For example, if your vehicle has an anti-theft system, you may be eligible for a reduced premium,” said Betsy Stella, vice president of carrier management and operations at Insurify. “Pricing strategies are tied to loss experience, considering multiple factors such as geographic area where a vehicle is stored.”
For example, premiums could be lower for a car that is parked in a garage as opposed to on the street.
Virginia ranks much better for annual auto insurance premiums, averaging $1,716 last year.
Insurify’s report projects auto insurance premiums will increase an average of 7% nationwide this year. Its forecast does break down increases in specific states or districts.
Its full report on premiums, what is driving them, and ways to lower them is on its website.
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