24 Auto Insurance Statistics & Facts

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)

  • Germany, France, and the UK dominate the European motor insurance market.
  • In 2020, the American automobile insurance market was worth about $310 billion.
  • American policyholders received $173 billion in incurred losses in 2018.
  • In 2017, the average car insurance cost in the USA was about $1,005.
  • At $1,443, 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 $6,777.

 

Auto Insurance Stats and Facts

 

1. In 2018, the value of total premiums written on the European market was €144 billion.

This figure has been growing year-on-year since 2013. The largest shares from that amount came from three European auto insurance markets – Germany, France, and the UK. Germany contributed with total premiums written worth €27.92 billion. France and the UK had total motor insurance gross written premiums of €22.11 billion and €20.72 billion, respectively. The remaining €72.79 billion came from all other European countries combined, 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 £850. 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 a bit over €400.

Italians pay an average of €414 for auto insurance. About 22% of them pay under €300 and 28% pay between €300 and €400 for car coverage. There are 39.3 million insured vehicles in Italy, according to car insurance facts. Italian auto insurance providers recorded €16.2 billion in motor insurance gross written premiums. There were 3.5 million motor claims notified and €12.9 billion motor claims paid in this European country.

(Statista)

 

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

Ontario’s average premium in 2018 was C$1,445. Next came British Columbia and Alberta with respective averages of C$1,368 and C$1,251. In 2018, the net auto insurance premiums written in Canada amounted to C$23.89 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 2.5% between 2014 and 2019.

This figure is expected to drop to 1.9% over the next five years. The main reasons for the slower growth are natural disasters alongside the soaring costs of auto repairs. IBISWorld’s forecasts expect the car insurance market Down Under to hit $21.6 billion in 2020. 

(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 2017, the average price reached $1,004.58 and saw a record year-on-year jump of 6.4%.

(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 by 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)

 

10. In 2017, Louisiana had the highest average auto insurance rates by state.

Car owners in Louisiana paid an average of $1,443.72 on car coverage, according to the 2017 auto insurance statistics by state. This amount earned the state the first position when rating state from worst to best. The top-three list was rounded up by Michigan and Florida, whose average auto insurance expenditures were $1,358.62 and $1,356.90, respectively. 

(Insurance Information Institute)

 

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

In 2017, the average expenditures for liability, collision, and comprehensive auto coverage in the US were $611.12, $363.08, and $159.72, respectively. Florida recorded the highest liability motor insurance average cost of $964.28. Car owners in D.C. paid the highest average for collision automobile insurance of $497.81. Finally, South Dakota had the highest average comprehensive car insurance of $308.71, according to official auto insurance rate(s) statistics.

(Insurance Information Institute)

 

12. In 2018, the total amount of liability net premiums written nearly hit $145 billion.

The total amount of this type of premiums written totaled $144.43 billion. This figure was by 8% higher than the $133.74 billion recorded in 2017. This segment has been on the rise since 2009 when it was only $94.76 billion. If we shift the focus to collision/comprehensive private passenger net premiums written, the improvement is even more significant. According to the automobile insurance statistics, the net premiums written totaled $96.46 billion in 2018, which represented a y-o-y improvement of 9%. 

(Insurance Information Institute)

 

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

In 2018, the frequency for these claims was 1.11, while the claim severity was $15,785. The claim frequency, in contrast, for property damages was higher 3.89, but the claim severity was much lower at $3,849. 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 2018, the total incurred losses for this type of coverage in the US was $173 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 $150 billion, much more than the $22.76 billion from commercial auto incurred losses. That’s another of the many car insurance fun facts. Most of the $150 billion came from liability coverage ($91.72 billion), while the rest came from physical damage coverage ($58.76 billion). As for the $22.76 billion of total commercial auto losses, liability and physical damage contributed with $17.77 billion and $4.99 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 2016 and 2018. The passenger vehicle collision coverage losses are the highest for cars and minivans. Their overall loss is about $501, while for pickups and SUVs it’s $380 and $393, respectively. 

Still, these auto insurance stats show that the average claim severity is the highest ($6,100) for pickups. SUVs come in next with $6,045. Finally, we have passenger cars and minivans whose claim severity is $5,949. 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 2010-2019 rose by 52.2%.

In 2010, the motor vehicle insurance had a price index of 375.2, which represented a year over year growth by 5.1%. This segment just kept increasing in the next ten years only to reach a price index of 571.0 in 2019. According to the US auto insurance industry statistics, the 10-year growth was soaring 52.2%. 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 338.8 in 2019. Its 10-year growth was by 49.1%. So, it’s not that surprising why the US has the highest health cost by country. As for the price index of all living costs, it jumped by 17.2% in the 2009-2019 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 6.4%, 3.4%, and 9.5%, respectively. This auto insurance data is for the period between 2010-2019. In 2019, the respective price indexes for these categories were 146.8, 142.8, and 156.3. The insurance for used cars and trucks, in contrast, had a price index of 139.8 and dropped by 2.4% 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 nearly $310 billion in 2020.

Its exact worth in 2020 was $308.8 billion, meaning the industry dropped by 1.4%. 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)

 

19. In 2020, there were nearly 1,900 auto insurance businesses in the US.

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 17.05% in 2019. Warren Buffett’s Berkshire Hathaway came in next on the list with a market share of 13.44%. Progressive Group rounded up the top-three list with a car insurance market share of 10.99%. 

(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 10.88% and direct premiums written worth $4.40 billion. Another surprise was the brand that held the second-highest market share – Travelers Group. This company held 6.34% of the lucrative commercial auto insurance market and noted $2.56 billion in direct premiums written. Liberty Mutual Group was the third most popular choice with a market share of 4.44% and direct premiums written worth $1.79 billion.

(NAIC)

 

Auto Insurance Fraud and Uninsured Driving Stats

 

22. Nearly 60% of insurers predict rice 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 cases 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, Statista, IBISWorld, Insurance Information Institute, Business Insider, IBISWorld, NAIC, Insurance Fraud, Insurance Journal

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