As cooling inflation offers consumers much-needed relief, many car owners are in for a rude awakening when insurance renewal arrives this year, a new report found.

Car insurance rates are expected to increase by 8.4% across the U.S. in 2023, the largest rate increase in six years, according to the report from research firm ValuePenguin.

The average cost of full coverage car insurance is expected to be $1,780 per year, but rates will vary dramatically between states, the report found.

In Michigan, the state with the highest average price, car insurance will cost $4,788 a year. In Vermont, the state with the lowest average price, car insurance will cost $1,104, the report said.

Vehicle owners in 45 states will see their rates increase by at least 1%, with rates jumping the most in Illinois, Arizona and New Hampshire, the report said. The states that will experience a rate increase below 1% include California, Hawaii, Vermont and Wyoming.

Car insurance companies Geico, Progressive and State Farm did not immediately respond to a request for comment.