Auto Insurance Statistics

05.08.2021
Milena

Nobody likes to think about car accidents. That, however, doesn’t mean that they don’t happen, and that’s when people realize the importance of having car insurance. Did you know that inexperienced drivers, married couples, and women pay more for automobile coverage in the USA? These are just some of the auto insurance statistics and facts that we will look at in this article. From average costs to market leaders, we will cover all critical aspects of the auto insurance industry that you as a driver must know about. 

Auto Insurance Statistics (Editor’s Choice)

  • In 2021, the American automobile insurance market was worth about $311 billion.
  • In 2021, the average car insurance cost in the USA was about $1,674.
  • At $2,724, Louisiana has the highest average car insurance rates by state.
  • Annual car insurance quotes offered to women are by $170 higher than offers given to men.
  • Car insurance costs for 16-year-olds go up to $6,930.

Global Auto Insurance Stats

1. In 2019, the value of total premiums written on the European market was €103 billion.

This figure has been growing year-on-year since 2013, having reached a peak in 2017 when written motor insurance premiums soared to €140 billion. 2018 saw a dip to just under €100 billion, succeeded by a recovery the following year, according to auto insurance industry statistics.

(Statista)

2. Younger drivers pay higher rates on car insurance in the United Kingdom.

A driver of about 20 years would pay an average of £851. The average premium price among UK drivers in their 30s is £639. This isn’t surprising as most countries have the same rules, where younger drivers are considered a higher risk. 

(Statista)

3. The average price for car insurance in Italy is under €400.

Italians pay an average of €350 for auto insurance. There are, however, considerable regional differences, according to car insurance facts. Residents of Campania have to fork out about €530 to insure their vehicles. Other regions where Italians pay above the national average include Tuscany and Lazio.

(Statista)

4. British Columbia is the Canadian province with the highest annual average car insurance cost.

British Columbia’s average premium in 2018 was C$1,680. Next came Ontario and Alberta with respective averages of C$1,445 and C$1,251. In 2018, the net auto insurance premiums written in Canada amounted to C$24.19 billion. One of the more curious auto insurance facts about Canada is that Co-operators and Alberta Motor Association are the highest-rated providers of automobile coverage in the country.

(Statista)

5. In Australia, the car insurance industry growth has been 1.9% between 2015 and 2020.

This marks slower growth compared to the previous five-year period. Prior to the Covid-19 pandemic, increasing congestion had boosted the car insurance market Down Under. Over the 2015-2020 period, however, the industry is projected to grow, supported by the forecast rise in vehicles on Aussie roads 

(IBISWorld)

American Car Insurance Statistics

6. The average cost of car insurance in the US has been growing ever since 2009.

In 2008 and 2009, the American auto coverage costs dropped for the last time in the period 2008-2017. Since the $786.65 average in 2009, the average price of premiums has been growing. In 2015, for instance, it hit $896.75 and recorded an annual increase of 3.2%. In 2018, the average price reached $1,056.55 and saw a record year-on-year jump of 5%.

(Insurance Information Institute)

7. Auto insurance companies charge American women more.

Business Insider concluded that gender plays a significant role in the price Americans pay for automobile coverage. Focusing on exciting car insurance myths and facts, the publication compared quotes given to men and women in various states. In Texas, the average annual quote for men was $1,069, while for women, it was $1,124. Meaning, female car owners in Texas pay about 5% more on auto insurance.

These same results appeared elsewhere in the US, most notably Ohio, Miami, and Chicago. The average price difference between annual quotes offered to men and those offered to women was $172. Six states — Hawaii, Montana, North Carolina, California, Pennsylvania, and Massachusetts — don’t allow using gender as a pricing factor for auto insurance quotes.

(Business Insider)

8. Drivers aged 16-17 pay the most expensive car insurance in the United States.

One of the best-known auto insurance facts is that inexperienced and young drivers pay more for coverage. Americans aged 16 pay the absolute highest price, and their car insurance costs are between $2,593 and $6,777. Their average quote price drops a bit ($2,179-$6,225) as soon as they turn 17.

Americans in their 20s pay significantly less for motor insurance or between $1,102-$3,816. Car owners that are 35 and 45 years old have average automobile coverage costs of $552-$1,907 and $525-$1,816, respectively. The lowest car insurance price range of $494-$1,690 applies to drivers aged 55, Business Insider’s auto insurance statistics reveal. As the drivers get older, their auto coverage expenditures start increasing. Americans aged 85 pay an average of $778-$2,416.

(Business Insider)

9. New drivers, married drivers, and those with accidents on their records pay more for car insurance.

New drivers pay 73% more expensive rates than those with 16 years of driving experience. Married drivers also pay more for car coverage. Their expenditures are 42% higher than those of single drivers. What you have on your record affects the price you pay for car coverage, too.

Auto insurance stats previous accidents and DUIs increase the average costs by 30% and 63%, respectively. In some states, like Michigan, Ohio, and Texas, even the credit score is a pricing factor. Drivers with poor credit scores may be charged $2,400, $500, or $1,500 more than drivers with excellent FICO ratings. That’s why Americans need to maintain a good credit score, as it affects various aspects of their everyday lives.

(Business Insider)

How Auto Insurance Prices Vary by Driver Profile and History

10. In 2021, Louisiana had the highest average auto insurance rates by state.

Car owners in Louisiana paid an average of $2,724 on car coverage, according to auto insurance statistics by state. This amount earned the state the first position when rating states from worst to best. The top-three list was rounded up by Florida and New York, whose average auto insurance expenditures were $2,364 and $2,321, respectively. 

(Bankrate)

Average Cost of Car Insurance by State

11. Florida, D.C., and South Dakota had the highest average costs for the three most common types of car insurance.

In 2018, the average expenditures for liability, collision, and comprehensive auto coverage in the US were $611.12, $363.08, and $159.72, respectively. Louisiana recorded the highest liability motor insurance average cost of $1,015.36. Car owners in D.C. paid the highest average for collision automobile insurance of $535.46. Finally, South Dakota had the highest average comprehensive car insurance of $327.11, according to official auto insurance rate(s) statistics.

(Insurance Information Institute)

12. In 2019, the total amount of liability net premiums written nearly hit $147.3 billion.

This figure was up by 2% from the amount recorded in 2018. If we shift the focus to collision/comprehensive private passenger net premiums written, the improvement is even more significant. According to automobile insurance statistics, the net premiums written in this category totaled $100.44 billion in 2019, which represented a y-o-y improvement of 4.1%. 

(Insurance Information Institute)

13. Liability insurance on bodily injuries has the highest private passenger auto insurance claim severity.

In 2019, the frequency for these claims was 1.07, while the claim severity was $18,417. The claim frequency, in contrast, for property damages was higher at 3.18, but the claim severity was much lower at $4,525. Physical damage insurance had even lower claim severities, as suggested by auto insurance claims statistics. 

(Insurance Information Institute)

14. Incurred losses for car insurance have been on the rise ever since 2014.

In 2019, the total incurred losses for this type of coverage in the US was $184.6 billion.  This figure has been growing ever since 2014 when it was $132 billion. These total incurred losses come from the combined losses of private passenger and commercial auto insurance.

The total private passenger car incurred losses totaled about $158.81 billion, much more than the $25.83 billion from commercial auto incurred losses. That’s another of the many car insurance fun facts. Most of the $158.81 billion came from liability coverage ($96.18 billion), while the rest came from physical damage coverage ($62.63 billion). As for the $25.83 billion of total commercial auto losses, liability and physical damage contributed with $20.43 billion and $5.40 billion, respectively.

(Insurance Information Institute)

15. Pickups have the highest average claim severity compared to cars, minivans, and SUVs.

The following data focuses on new model vehicles manufactured between 2017 and 2019. The passenger vehicle collision coverage losses are the highest for cars and minivans. Their overall loss is about $527, while for pickups and SUVs it’s $398 and $414, respectively. 

Still, these auto insurance stats show that the average claim severity is the highest ($6,305) for pickups. SUVs come in next with $6,384. Finally, we have passenger cars and minivans whose claim severity is $6,305. Meaning, while the claim severity isn’t too different among these vehicle categories, the claim frequency, and overall loss is much higher for passenger cars and minivans.

(Insurance Information Institute)

16. The motor vehicle insurance cost for 2011-2020 rose by 40.1%.

In 2011, motor vehicle insurance had a price index of 388.7, which represented a year-over-year growth of 3.6%. This segment just kept increasing in the next ten years only to reach a price index of 544.6 in 2020. According to the US auto insurance industry statistics, the 10-year growth was soaring 40.1%. The only other sector whose price index grew at a similar pace was hospital services. This price index went from 227.2 in 2010 up to 353 in 2020. Its 10-year growth was by 46.3%. So, it’s not that surprising why the US has the highest healthcare costs by country. As for the price index of all living costs, it jumped by 15.1% in the 2011-2020 period.

(Insurance Information Institute)

17. The consumer price index for insurance on new vehicles increased, auto insurance facts show.

The consumer price indices for insurance of new vehicles, new cars, and new trucks increased by 4.0%, 1.2%, and 7.2%, respectively. This auto insurance data is for the period between 2011-2020. In 2020, the respective price indexes for these categories were 147.6, 144, and 157.1. The insurance for used cars and trucks, in contrast, had a price index of 144.2 and dropped by 3.2% in the same nine-year period. These auto insurance facts establish that owners of used cars spend much less on car coverage.

(Insurance Information Institute)

18. The US auto insurance market was over $300 billion in 2021.

Its exact worth in 2021 was $311 billion, meaning the industry grew by 0.7%, up from about $308 billion in 2020. In 2019, the car insurance market in the USA was over $313 billion, noting a record-high since 2010. In fact, the sector has been gradually increasing year over year until it decreased in 2020. Back in 2010, the market for auto insurances in the United States was only $240 billion.

(IBISWorld)

US Auto Insurance Market Size Growth Over the Years

19. In 2021, there were nearly 1,961 auto insurance businesses in the US.

This marks a 5.2% rise from 2020. Ever since 2012, the number of American automobile insurance businesses has been growing year-on-year. In 2012, there were 1,344 such businesses, according to the IBISWorld auto insurance statistics. In the following years, this number kept growing to reach 1,886 in 2020. In 2019-2020, the number of auto insurance businesses jumped by 2.9%. The annualized growth between 2015-2020, on the other hand, was even higher at 5.2%.

(IBISWorld)

20. State Farm Group holds the highest total private passenger auto insurance market share.

The auto insurance market share of this provider was 16.19% in 2020. Warren Buffett’s Berkshire Hathaway came in next on the list with a market share of 13.54%. Progressive Group rounded up the top-three list with a car insurance market share of 13.30%. 

(NAIC)

21. Progressive Group leads the way for commercial auto insurances.

Progressive Group is a top choice for commercial auto insurance. Facts about car insurance further show that Progressive Group had a market share of 12.17% and direct premiums written worth $5.57 billion. Another surprise was the brand that held the second-highest market share – Travelers Group. This company held 6.25% of the lucrative commercial auto insurance market and noted $2.83 billion in direct premiums written. Liberty Mutual Group was the third most popular choice with a market share of 4.11% and direct premiums written worth $1.76 billion.

(NAIC)

Auto Insurance Fraud and Uninsured Driving Stats

22. Nearly 60% of insurers predict a rise in personal auto insurance fraud.

About 58% of car coverage providers believe that the number of auto insurance-related fraud will increase in the upcoming years. Insurance Fraud’s auto insurance fraud statistics reveal that insurers expect car insurance fraud by organized rings to rise too.

(Insurance Fraud)

23. Bodily injury claims and auto glass claims are the most common types of car insurance fraud.

Reports show that every year providers lose about $29 billion in premium leakage. Among these, $10 billion goes to unrecognized drivers, $5.4 billion to underestimated mileage, $3.4 billion to violations, and $2.9 billion to false garaging.

False car glass claims are the main issue for insurers in Arizona, where 10% of all claims happen. These include repairing or replacing windshields that don’t need any work.

(Insurance Fraud)

24. Over 7% of false auto insurance claims were identified within 125 days.

Auto insurance statistics show that about 7.4% of such claims were detected in four months or so. In about 21.5% of the cases, insurers couldn’t identify the policyholder or place them at the provided garaging address. The car insurance fraud rates, however, dropped by 13.6% after 2012 when the no-fault auto-insurance reforms (HB 119) were enacted. 

(Insurance Fraud)

Final Thoughts

Single middle-aged men without any accidents or DUIs on the record get the best car insurance rates in the US. That’s one of the major takeaways from this list of international and American auto insurance statistics. We also established that the average cost of automobile coverage has been increasing year over year. Meaning, drivers can expect this upwards trend to continue in the upcoming years too.

References: Statista, Statista, Statista, Statista, Statista, IBISWorld, Insurance Information Institute, Business Insider, Business Insider, Business Insider, Bankrate, IBISWorld, IBISWorld, NAIC, Insurance Fraud, Insurance Journal

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