Auto insurance statistics and facts
Like it or not, auto insurance is a fact of life. The average American pays $1,771 a year or about $148 a month on auto insurance. Nearly 215 million drivers carry car insurance in the U.S, and the industry as a whole is worth about $316 billion as of 2022, according to IBISWorld.
Key auto insurance statistics
- The average auto insurance premium is $1,771 per year, or about $148 per month.
- About 2.57% of the average household income is spent on auto insurance.
- Auto insurance rates are on the rise. According to the NAIC, a 5% increase was observed between 2017 and 2018, and a 1% increase from 2018 to 2019.
- Nearly 215 million drivers carry car insurance in the U.S., according to Review42.
- 6% of drivers on the road are uninsured, according to the Insurance Research Council.
- The auto insurance industry is worth about $316 billion, as of 2022 data from IBISWorld.
- Motor vehicle crashes cost almost $1 trillion in losses a year, according to NHTSA 2010 data.
- 10 million or more crashes go unreported each year, according to the NHTSA.
What impacts auto insurance rates?
Bankrate’s study of the average annual cost of auto insurance in the U.S. shows a rate of $1,771 per year for full coverage, accounting for about 2.57% of the average U.S. annual household income. Based on the report:
- If your credit score decreases from good to poor, your premium can increase by $1,231 for an average annual premium of $3,002.
- A speeding ticket can increase your premium by $367 for a total average premium of $2,138 per year.
- If you cause a car crash, your annual insurance premium can increase by $750, for a total full coverage policy cost of $2,521 per year.
- A lapse in coverage can cost you $178 a year, for an average annual premium of $1,949.
- A DUI conviction can increase your annual full coverage policy premium by $1,650, for a total policy cost of $3,421 per year.
- If you add a teen driver to your policy, expect to add an average of $2,081 to your policy premium, for a total annual premium of $3,852.
What types of auto insurance claims are filed?
The four categories of auto insurance claims are bodily injury, property damage, collision and comprehensive. Bodily injury and property damage claims are about liability or the policyholder’s responsibility to others for property damage or bodily injury. Collision and comprehensive cover damage and theft to the policyholder’s car.
Which auto insurance claims are most expensive?
Unsurprisingly, bodily injury claims are the most expensive, at an average of $16,260 per loss, followed by property damage at $3,729, collision at $3,278, and comprehensive at least expensive at $1,690.
Cost of auto insurance claims by type
| Year | Bodily injury | Property damage | Collision | Comprehensive |
|---|---|---|---|---|
| 2010 | $14,406 | $2,881 | $2,778 | $1,476 |
| 2011 | $14,848 | $2,958 | $2,861 | $1,490 |
| 2012 | $14,690 | $3,073 | $2,950 | $1,585 |
| 2013 | $15,441 | $3,231 | $3,144 | $1,621 |
| 2014 | $15,384 | $3,516 | $3,169 | $1,572 |
| 2015 | $17,014 | $3,628 | $3,377 | $1,679 |
| 2016 | $16,913 | $3,843 | $3,442 | $1,747 |
| 2017 | $16,761 | $3,933 | $3,423 | $1,811 |
| 2018 | $17,596 | $4,165 | $3,578 | $1,832 |
| 2019 | $18,680 | $4,331 | 3,752 | 1,777 |
| 2020 | $20,235 | $4,711 | $3,588 | $1,995 |
| Average | $16,543 | $3,661 | $3,278 | $1,690 |
Source: Triple-I
Which auto insurance claims are most common?
From a frequency standpoint, collision claims are most commonly filed, at an average of 5.8 claims per 100 years of insured coverage on a vehicle. The second most frequent claims are property damage at 3.7, comprehensive at 2.8, and, least frequent, bodily injury at .95 claims per 100 car years.
Frequency of auto insurance claims by type
| Year | Bodily injury | Property damage | Collision | Comprehensive |
|---|---|---|---|---|
| 2010 | 0.91 | 3.53 | 5.69 | 2.62 |
| 2011 | 0.92 | 3.56 | 5.75 | 2.79 |
| 2012 | 0.95 | 3.50 | 5.57 | 2.62 |
| 2013 | 0.95 | 3.55 | 5.71 | 2.57 |
| 2014 | 0.97 | 3.41 | 5.93 | 2.79 |
| 2015 | 0.89 | 3.45 | 6.01 | 2.72 |
| 2016 | 0.95 | 3.45 | 6.13 | 2.76 |
| 2017 | 1 | 3.45 | 6.14 | 2.86 |
| 2018 | 1.02 | 3.33 | 6.13 | 3.02 |
| 2019 | 1.01 | 3.27 | 6.07 | 3.23 |
| 2020 | 4.63 | $3,588 | 2.94 | $1,995 |
| Average | 0.95 | 3.36 | 5.80 | 2.81 |
Source: Triple-I
Why do people get in collisions?
Car insurance claims are commonly the result of several factors, as indicated by the Triple-I:
Risk factors in 2019 fatal crashes
| Risk factor | Number of fatal crashes | Percentage of fatal crashes |
|---|---|---|
| Speeding or racing | 8,746 | 17.2% |
| Influence of alcohol, drugs, or medication | 5,164 | 10.1% |
| Distracted driving | 3,008 | 5.9% |
| Drowsy, asleep, fatigued, ill or blacked out | 1,240 | 2.4% |
| No reason reported | 9,196 | 18.1 |
| Unknown | 15,423 | 30.0 |
Source: Triple-I
How common are collisions?
Furthermore, the Insurance Research Council (IRC) reports that 79% of all claimed economic losses in auto claims in 2017 covered a multitude of medical expenses.
On the bright side, data indicates the number of injuries is gradually declining over time.
| Total Crashes | Fatal Crashes | Injury Crashes | Property Damage Only Crashes | |
|---|---|---|---|---|
| 2017 | 6,452,000 | 34,247 | 1,889,000 | 4,530,000 |
| 2018 | 6,735,000 | 33,919 | 1,894,000 | 4,807,000 |
| 2019 | 6,756,000 | 33,224 | 1,916,000 | 4,806,000 |
Who pays for insurance claims?
Numbers like these raise the question of who is paying for these losses, especially when considering the issue from an insurance perspective. Data from the NHTSA suggests that it is not an even split.
Who pays for insurance claims?
| Responsible Party | Percentage of all motor vehicle crash costs |
|---|---|
| Private insurers | 50% |
| Individual crash victims | 26% |
| Third parties, charities, and health care providers | 14% |
| Federal revenues | 6% |
| State and local municipalities | 3% |
Source: NHTSA
With insurance providers covering the bulk of these expenses, U.S. drivers have seen insurance premiums slowly creep up in keeping with the ongoing costs associated with these accidents. This is evident with historical data from the Triple-I below and a glimpse at rates from this year.
Average annual cost of auto insurance
| Year | Percent change, year-to-year |
|---|---|
| 2009 | -0.5% |
| 2010 | 0.3% |
| 2011 | 0.7% |
| 2012 | 2.2% |
| 2013 | 3.5% |
| 2014 | 3.4% |
| 2015 | 3.1% |
| 2016 | 5.4% |
| 2017 | 6.7% |
| 2018 | 5.0% |
| 2019 | 1.0% |
Source: Triple-I
According to rate data from Quadrant Information Services, today, in 2022, the average cost of car insurance is $1,771 per year for full coverage.
Percentage of uninsured drivers by state
Insurance premiums can vary from state to state for several reasons, but one major factor that often contributes to auto insurance costs is uninsured drivers. The IRC credits the economic downturn as a leading reason for uninsured drivers. The Financial Responsibility and Insurance Committee of the American Association of Motor Vehicle Administrators reports that 82% of uninsured drivers either cannot afford insurance or do not have a vehicle that is operable or in use.
An accident with an uninsured driver can be especially detrimental because of the potential unaffordability of out-of-pocket costs for repairs, injuries or damages. Yet, uninsured drivers are prevalent throughout the U.S.
According to the IRC, about one in eight drivers were uninsured in 2019. About 20% of Florida drivers were uninsured in 2019, according to the Triple-I, although the highest percentage is observed in Mississippi — nearly 30% of drivers in this state are uninsured.
Auto insurance costs by state
Auto insurance is required for drivers in 48 states and Washington, D.C. New Hampshire and Virginia are the only states without compulsory insurance liability law, although drivers in both states must meet other requirements to drive legally.
Where you live has a significant impact on what you will pay for car insurance. The table below shows average annual car insurance rates by state for full coverage. Based on average annual full coverage rates, Maine and Ohio fall well below the national average. Comparatively, Florida, New York and Louisiana tend to see the highest rates.
Average annual full coverage rates by state
| State | Average annual cost |
|---|---|
| Alabama | $1,760 |
| Alaska | $1,770 |
| Arizona | $1,743 |
| Arkansas | $1,806 |
| California | $2,190 |
| Colorado | $2,019 |
| Connecticut | $1,533 |
| Delaware | $1,963 |
| Florida | $2,762 |
| Georgia | $1,985 |
| Hawaii | $1,206 |
| Idaho | $1,065 |
| Illinois | $1,548 |
| Indiana | $1,242 |
| Iowa | $1,254 |
| Kansas | $1,802 |
| Kentucky | $1,954 |
| Louisiana | $2,864 |
| Maine | $876 |
| Maryland | $1,931 |
| Massachusetts | $1,296 |
| Michigan | $2,345 |
| Minnesota | $1,692 |
| Mississippi | $1,701 |
| Missouri | $1,861 |
| Montana | $1,795 |
| Nebraska | $1,538 |
| Nevada | $2,426 |
| New Hampshire | $1,182 |
| New Jersey | $1,891 |
| New Mexico | $1,489 |
| New York | $2,996 |
| North Carolina | $1,392 |
| North Dakota | $1,225 |
| Ohio | $1,200 |
| Oklahoma | $1,902 |
| Oregon | $1,371 |
| Pennsylvania | $2,002 |
| Rhode Island | $1,847 |
| South Carolina | $1,464 |
| South Dakota | $1,542 |
| Tennessee | $1,383 |
| Texas | $1,868 |
| Utah | $1,449 |
| Vermont | $1,000 |
| Virginia | $1,340 |
| Washington | $1,313 |
| Washington, D.C. | $1,948 |
| West Virginia | $1,527 |
| Wisconsin | $1,249 |
| Wyoming | $1,510 |
Source: Bankrate.com
Most expensive states for auto insurance
New York has the highest premiums among the costliest states in Bankrate’s report, with an average annual cost of $2,996 per year for full coverage. Car insurance rates within New York City are even higher, with an average premium of $3,180 per year.
| Rank | State | Average annual premium |
|---|---|---|
| 1. | New York | $2,996 |
| 2. | Louisiana | $2,864 |
| 3. | Florida | $2,762 |
| 4. | Nevada | $2,426 |
| 5. | Michigan | $2,345 |
Least expensive states for auto insurance
Some states offer more affordable average annual rates for full coverage car insurance. Maine has the cheapest average premium at $876 per year, followed closely by Vermont, Idaho, New Hampshire and Ohio.
| Rank | State | Average annual premium |
|---|---|---|
| 50. | Maine | $876 |
| 49. | Vermont | $1,000 |
| 48. | Idaho | $1,065 |
| 47. | New Hampshire | $1,182 |
| 46. | Ohio | $1,200 |
Auto insurance industry statistics
Given various risk factors and average annual claim costs, you might wonder what the impact is to auto insurance providers. These statistics reflect the state of the auto insurance industry:
- The CDC reports that 2017 costs for medical care and productivity losses accounted for almost $75 billion.
- Between 2008 and 2017, insurance payments increased by 31% for bodily injury claims and 26% for personal injury protection (PIP) no-fault claims.
- According to the NAIC’s 2018/2019 Auto Insurance Database report, there were 2.83 vehicle thefts for every 1,000 vehicles, down from 2.93 thefts for every 1,000 vehicles in the previous year. When determining rates for comprehensive coverage, car thefts are an important consideration for insurance providers.
- IBISWorld found that the market size of the car insurance industry has grown every year by 2.3% since 2017.
- The growth of the insurance industry has been faster than the sectors of advisory and financial services, as reported by IBISWorld.
Insurance market trends (millions)
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Direct property and casualty insurers | 467,724 | 460,038 | 466,170 |
Source: NAIC
Some car insurance companies are more popular than others due to market share and availability, competitive rates or higher customer satisfaction. According to the Triple-I, companies like State Farm, Berkshire Hathaway (parent company of Geico and others), and Progressive all represent the most significant market share, with Allstate and USAA in close pursuit.
Largest auto insurance providers, by market share
| Rank | Company | Direct premiums written | Market share |
|---|---|---|---|
| 1. | State Farm Mutual Automobile Insurance | $41,665,754 | 16.00% |
| 2. | Berkshire Hathaway Inc. | 37,422,558 | 14.4 |
| 3. | Progressive Corporation | 35,852,921 | 13.8 |
| 4. | Allstate Corporation | 27,221,928 | 10.4 |
| 5. | USAA Insurance Group | 15,738,749 | 6 |
| 6. | Liberty Mutual | 13,257,306 | 5.1 |
| 7. | Farmers Insurance Group of Companies | 12,441,182 | 4.8 |
| 8. | Nationwide Mutual Group | 5,565,737 | 2.1 |
| 9. | American Family Insurance Group | 5,488,677 | 2.1 |
| 10. | Travelers Companies Inc. | 5,328,115 | 2 |
Source: Triple-I
Auto insurance statistics by age
Age has historically been one of the most significant factors that car insurance providers use to determine insurance costs, although Massachusetts and Hawaii do not allow age to be used as a rating factor. Research continues to show that age is a driving factor in many fatalities, losses and damages associated with motor vehicle accidents. Below are common statistics associated with younger, less-experienced drivers:
- Teen drivers are three times more likely than older drivers to get into a fatal car accident. Factors include inexperience behind the wheel, distracted driving, lack of seatbelt use and risky behaviors behind the wheel.
- Handheld cell phone use is highest among drivers aged 16 to 24.
- Teen drivers typically face more expensive premiums to offset the higher risk.
- The crash risk for 16-year-old drivers was almost 1.5 times higher than the rate for 18-19 year old drivers, according to the CDC.
- Although the legal drinking age is 21 years of age, the CDC reported that in 2019, 24% of young drivers aged 15-20 years old who were killed in fatal car accidents had a BAC of .08 or higher, which is illegal even for adults over 21.
- Although car insurance premiums generally trend cheaper as drivers get older, senior drivers typically see an increase due to age-related factors like decreased vision and delayed reaction time.
Auto insurance statistics by gender
Auto insurance premiums can also be affected by gender. Not all states can use your gender when calculating insurance rates, however. In states like California, Hawaii, Massachusetts, North Carolina, Pennsylvania and Michigan, it is illegal for auto insurance companies to use your gender as a factor when determining your insurance rates.
However, research shows that gender can be a predictor of driver behavior.
- Men tend to engage in riskier behaviors behind the wheel than women, according to IIHS research.
- Men are typically involved in more motor accidents than women.
- Accidents involving male drivers tend to be more serious than accidents with female drivers.
- Speeding is a factor in 35% of all fatal accidents involving male drivers between 15 and 25.
- Men in every age group were involved in more accidents compared to the same group of women, as shown in IIHS data.
- Male drivers with higher blood alcohol concentrations (BACs) were involved in more accidents with fatally injured passengers compared to female drivers.
Car insurance for teen drivers can be costly, but it is even more so for male 16-year-old drivers, who pay about $500 more than their female counterparts. Even as male drivers get older, they still have marginally higher car insurance premiums than women, on average, as shown below.
Average annual full coverage premium by gender and age
| Age | Males | Females |
|---|---|---|
| 18-year old* | $3,506 | $3,198 |
| 19-year old* | $3,069 | $2,789 |
| 20-year old* | $2,884 | $2,631 |
| 21-year old* | $2,543 | $2,309 |
| 22-year old* | $2,596 | $2,336 |
| 25-year old | $2,247 | $2,106 |
| 40-year-old | $1,778 | $1,764 |
| 60-year old | $1,612 | $1,597 |
| 70-year old | $1,755 | $1,729 |
*Young driver on their parents’ car insurance policy.
Source: Bankrate.com
Experts suggest that one of the best things you can do is shop and compare quotes to obtain affordable car insurance. Each car insurance company may have different coverage and discounts options for your policy that can save you quite a bit on your premium each month.
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