Car insurance statistics cite that liability, collision, and personal injury protection coverages can help protect you, your vehicle, or passengers in case of an accident.
Currently, 48 out of 50 US states require car insurance. Unless you’re from Virginia or New Hampshire, you don’t have any choice but to reach out to your pocket and take some cash out for auto insurance coverage.
Like other commodities, the cost of auto insurance also increases. It’s an expensive financial obligation related to owning a vehicle.
However, you can’t ignore the fact that having auto insurance is useful since, on the road, you can’t be in control all the time.
If you want to know what else auto insurance can do for you, you can find the latest statistics and trends below.
Informative Auto Insurance Statistics (Editor’s Choice)
- 12 no-fault states require Personal Injury Protection (PIP)
- One in eight drivers is uninsured
- 82% of uninsured people say they can’t afford insurance or their car is inoperable
- Michigan’s auto insurance cost of $2,878 is the most expensive nationwide
- A DUI record results in a 115% increase in insurance price
- Vehicle owners save 10% to 25% on multi-car policy
- By 2023, usage-based insurance will have over 140 million worldwide subscribers
- Car subscriptions could make up almost 10% of car sales in the US and Europe
Latest Data About the Average Cost of Automobile Insurance
1. The average cost of car insurance is $2,388.
The latest data shows that the average insurance cost is approximately $2,388 a year or $199 a month. The price depends on your state of residence, the level of coverage, gender, age, and driving history.
Moreover, medical expenses associated with road accidents are increasing, so it’s only natural that car insurance costs will also rise.
2. Most recent info suggests that over 6.7 million vehicle crashes happened in the US.
Out of that number, around 1.9 million involved injury crashes. Moreover, about 70%, or roughly 5 million, included property damage.
Auto insurance data highlight speeding, distracted driving, and tailgating as the top causes of vehicle crashes. All this translates to expensive hospital or car repair bills. While you can’t dictate how other people behave on the road, you can minimize the car crash cost by getting auto insurance.
3. The incurred losses for car insurance were $184.67 billion in 2019.
Since 2011, the incurred losses for auto insurance have been increasing. In 2018, millions of car crashes in the US made up $173.31 billion of auto insurance losses.
Moreover, auto insurance statistics of 2019 recorded a yearly increase of $11 billion in incurred losses, which amounted to $184.67 billion.
4. The automobile insurance industry in the US is worth $311.02 billion.
The car insurance industry’s worth has dropped by $2.2 billion from 2019’s $313.22 billion.
Now, the auto insurance market is valued at $311.02 billion. Despite the decline in 2019, the automobile insurance market has been growing since 2011, with a modest growth rate of 2.3%.
Fascinating Auto Insurance Stats Everyone Should Know
5. The automobile insurance industry has 312,435 employees.
Since 2010, the number of automobile insurance workers has been increasing. This also shows the increasing demand for insurance coverage. The industry’s employment growth this year is 2.2%, while the annual growth from 2015 to 2020 had a rate of 5%.
6. A comprehensive car insurance policy covers a stolen car’s value.
One of the most amazing auto insurance facts is that if your auto has fallen victim to some burglars, either they broke its windows, vandalized, or worse, took it away, there’s a chance you can recover at least its value. But that is if you have a comprehensive auto insurance.
Moreover, car theft statistics show that a new car can be broken into as little as 10 seconds. So if you’re planning on buying a new car, you might as well want to consider getting a comprehensive car insurance coverage.
7. The private passenger auto insurance has the largest direct premiums of over $222.5 billion in property and casualty lines of business.
NAIC auto insurance database report from 2019 shows that property and casualty market data share report recorded over $623.6 billion of direct premiums written.
This cumulative figure includes personal auto, commercial auto, medical professional liability, worker’s compensation, homeowners, and other liability insurance, excluding auto liability.
The most recent data shows that private passenger car insurance represented approximately 36% of reported written premiums.
Let’s take a look at a few stats regarding insurance by states:
Auto Insurance Statistics by State
8. California, Massachusetts, New Jersey, and Pennsylvania have the lowest coverage requirement on property damage liability per accident.
The highest coverage for property damage liability per accident in most states is $25,000, while the lowest is $5,000. A few states that impose $25,000 for property damage coverage are Alabama, Alaska, and Arkansas.
Apart from the property damage liability insurance, according to these car insurance rates by state the additional minimum coverage requirements are bodily injury liability per person and accident. The minimum coverage for them depends on the state you live in.
9. The average rate in Michigan is $2,878 — the most expensive insurance premium in the country.
Michigan has expensive car insurance premiums for two significant reasons. First, Michigan has no-fault laws.
This means that a driver has to file a claim after an accident, regardless of whose fault it was. Second, the state imposes unlimited personal injury protection (PIP) coverage.
Therefore, if you have poor driving records, according to the average auto insurance rate by state it will cost you more to get car insurance in Michigan. So keep this in mind the next time you need to insure your vehicle.
10. Louisiana’s rate is just below Michigan’s at $2,389.
Following Michigan is Louisiana, with an average auto insurance premium of $2,389, and Florida with $2,239. On another end, the top three states with the lowest premiums are Maine ($912), New Hampshire ($985), and Ohio ($1,034).
Car Insurance Facts Not To Ignore
11. 12 no-fault states currently require personal injury protection (PIP) as a part of an auto insurance policy.
Auto insurance policies vary depending on the state. At the moment, the data lists 12 states that demand drivers to purchase personal injury protection (PIP).
This is a part of the car insurance policy covering the cost incurred for injuries of both a driver and passengers. The benefits of no-fault insurance apply to anyone involved in a car accident if it’s a driver‘s fault.
Following the latest auto insurance rates by states, PIP is indispensable in the following states:
- North Dakota
- New Jersey
- New York
12. The last accessible data shows that about one in eight drivers in the US is uninsured.
(Insurance Research Council)
Insurance Research Council (IRC) revealed that about one in eight drivers doesn’t have any automobile insurance. For seven consecutive years, the uninsured motorist rates had been slowly falling, from 14.9% in 2003 to 12.3% in 2010.
But the figure didn’t continue its downtrend because. In 2015, it climbed to 13% which was an amazing feat.
According to the average car insurance rate by state, Florida has the highest uninsured motorist rate of 26.7%. On the other hand, Maine has the lowest uninsured motorist rate of only 4.5%.
13. 82% of uninsured motorists stated they couldn’t afford insurance or their vehicle is unused.
Most motorists don’t have insurance because of two reasons — they can’t afford it, or the vehicle is inoperable. This is evident by the most recent automobile insurance statistics. For responsible drivers who abide by the law, paying for an uninsured driver can be a problem.
Some states require uninsured motorist (UM) or underinsured motorist (UIM) coverage. This is used to cover costs if the car collides with an uninsured or underinsured driver. So, depending on where you live, you may not have any choice but to pay for it on top of your monthly auto insurance premiums.
Average Auto Insurance Rate by Age, Record & Accident
14. An 18-year-old driver pays more than double for auto insurance than a 25-year-old driver.
Shockingly, teen drivers are charged more for car insurance than drivers in their mid-20s. The reason points toward the lack of driving experience of teenage drivers.
In general, they tend to be more aggressive, careless, distracted, and irresponsible behind the wheel, so they have a higher risk of car crashes.
However, as they get better at driving, their premiums also reduce, evident by this car insurance data.
On average, an 18-year-old driver pays $7,179 for full auto coverage, while a 25-year-old driver pays only $3,207.
15. Insurance rates increase by 41% after an accident.
If you’ve been in an accident or have violated traffic rules before applying for car insurance, you can expect to get higher rates. Increasing the rates is a way for insurers to negate the risks for people with poor driving records.
Statistics for insurance rising after car accidents unveil that drivers involved in a crash pay about $335 more for their insurance. Moreover, if the driver makes a second claim that year, rates can increase by 93%.
16. Drivers with a DUI record pay 72% more for car insurance.
Motorists with driving under the influence (DUI) history pay almost double the average cost of car insurance.
However, this also depends on the state, as these car insurance cost statistics reveal. North Carolina imposed the highest premiums for drivers with DUI records, increasing up to 300%. On the other hand, Florida penalized drivers by raising rates to only 27%.
17. A multi-car policy will save policyholders between 10% and 25% on premiums.
People who own multiple cars can get a multi-car policy. Typically, a driver can list four to five cars under a single insurance policy using the same address, instead of getting insurance for each vehicle and paying significantly more. With this, they can save around 10% to 25%.
Auto Insurance Claims Statistics
18. 47% of collision claims for automobiles are lower than $3,000.
Let’s delve deeper into this interesting data on the collision claims distribution. Almost half of collision claims for automobiles cost less than $3,000.
Auto claims worth between $1,000 and $1,999 comprised 18%, and claims that cost more than $25,000 constituted only 2% of collision claims. This data comes from the latest car insurance claims statistics.
Furthermore, even if the law doesn’t require collision insurance, it’s a smart choice to get one. It covers vehicular damages caused by accidents with objects, like a phone pole or another car. So you might want to consider this option before you hit the road.
19. Regarding vehicle type, very large vans have a relative claim frequency of 64 — the lowest figure regarding 2017–19 model year cars.
Car insurance claim statistics found out how often claims are filed according to vehicle class and size. It’s worth noting that the data use 2017–19 model year cars insured under private passenger auto plans.
Very large vans have the lowest frequency claim of only 64. Meanwhile, the highest relative frequency claims by the vehicle of 151 go to four-door microcars.
20. According to the latest III auto insurance statistics, the average auto liability claim for bodily injury costs $18,417, while the claim for property damage is $4,525.
(Insurance Information Institute)
Insurance Information Institute’s data reveal that 1.07% of people with auto liability insurance claim a bodily injury that costs approximately $18,417.
Additionally, 3.18% file a claim for property damage that costs around a whopping $4,525.
Auto Insurance Industry Trends
21. 20% of Gen X and boomers and nearly 26% of Gen Z and millennials consider purchasing a vehicle subscription.
A vehicle or car subscription is a rising trend in the US, and experts say this fad is here to stay. It’s a type of subscription model where customers pay a monthly recurring fee for using one or more vehicles. The fixed fee includes auto insurance, maintenance, and roadside assistance, as these car insurance statistics indicate.
It’s similar to leasing a car, but there’s no personal ownership involved, and the terms are shorter and more flexible.
For instance, you can drive your Volvo during weekdays and switch to a Boxster for a weekend trip. Now that would be an interesting and fun thing to be doing, especially for long-mile weekend trips.
And if this is not enough, numerous facts about car insurance highlight the impact of the car subscription model on the insurance market. As vehicle subscriptions become more popular, car insurers will have to shift their market focus into commercial auto insurance coverage.
That said, we’ll see a decrease in the demand for individual auto coverage.
22. Vehicle subscriptions could comprise nearly 10% of new car sales in the US and Europe in the next five years.
(The One Brief)
The trend of vehicle subscription will continue to sweep the market and possibly become the mainstream in the following years. Auto insurance industry statistics stated that over 16 million vehicles in Europe and the US could be a part of vehicle subscription services by 2025.
23. Usage-based insurance will have over 140 million worldwide subscribers by 2023.
The emerging type of auto coverage is usage-based insurance (UBI) or connected car insurance. With this type of car insurance, the price depends on the vehicle and not the driver.
The latest auto insurance statistics show that unlike traditional auto insurance where “safe” drivers are rewarded with low premium rates, UBI focuses on when, where, and how the vehicle is driven.
It works via automotive telematics that enables insurers to measure parameters like acceleration, speed, and breaking events that will determine the insurance price. Therefore, it leans more on monitoring the vehicle rather than the person behind the wheel.
Several facts confirm that Big Data will play an important role in the growing auto insurance market in the coming years. Additional information reveals that UBI hardware and software will become universal.
Car Insurance Statistics – Wrapping Up
If there’s one thing people will be happy to hear regarding auto insurance, it’s the reduced price. Hopefully, the emerging trends in vehicle subscription and usage-based insurance can help attain this goal.
So far, features like automatic braking, line assist, and automatic transmission have made the road safer. Fewer car crashes can mean lower insurance costs.
Further facts predict that the automobile industry will make a remarkable shift. Car manufacturers will make autonomous or self-driving vehicles available to more people, with a promise of an extremely safe and comfortable ride.
If technology continues to do its magic, the number of road accidents will immensely decrease, thereby creating a stir in the auto insurance industry.
Frequently Asked Questions (FAQ)
What cars have the lowest insurance rates?
Minivans and small pickup trucks have the lowest yearly insurance rates. In particular, the Honda CR-V is the cheapest car to insure, with an annual auto insurance cost of only $2,346.
The average insurance rate depends on several factors, such as the brand and the vehicle’s value. The Tesla Model S that costs around $69,000 has an annual insurance cost of $4,743. Meanwhile, insurance costs for small SUVs and Minivans, like the Honda CR-V and Chrysler Pacifica, are only $2,400.
What state has the cheapest car insurance?
The state of Maine has the lowest car insurance price, with an average annual premium of $912. Moreover, MetLife is the auto insurance company that offers the best rates — only $364 for the minimum coverage.
Other car insurance providers that offer the best rates are GEICO, StateFarm, and Concord Group.
The top five states with the cheapest average car insurance rate are the following:
- New Hampshire ($985)
- Ohio ($1,034)
- Wisconsin ($1,049)
- Idaho ($1,062)
What state has no car insurance?
Car insurance currently isn’t mandatory in two states: Virginia and New Hampshire. Drivers in Virginia can bypass paying for car insurance if they pay $500 as proof of financial responsibility.
Similarly, vehicle owners in New Hampshire have the option to deposit cash bonds. Some of them may believe they don’t need car insurance.
However, no matter how good a driver one is, having auto insurance certainly makes a difference.
Who is the most expensive insurance company?
The most expensive car insurer is Allstate, with a rate of $1,880 per month.
The company imposes high rates for 35- to 60-year-old motorists. Plus, it enforces expensive fines to drivers with poor or fair driving records.
When shopping for car insurance, a cheaper rate may be tempting, but cost shouldn’t be the only factor that affects your decision. Regardless of the price, it’s best to weigh the pros and cons of each policy to get the best option.
Can I keep my out-of-state car insurance?
Taking car insurance in a state other than the one you live in just to save money is considered a fraud. It’s generally illegal to register and buy auto insurance out of your state.
If you intentionally committed fraud and you were caught, your insurer would probably cancel your plan and wouldn’t pay any pending claims.
If you live in two states, it’s best to get advice from your agent or insurer to avoid getting in trouble.
What happens if you don’t change the address on car insurance?
If you don’t change your address and you get into a car accident, your insurer may deny your request for a claim.
And if you move to another city within the state, you must notify your auto insurance company about changes within 30 days. Otherwise, you’ll be accused of fraud.
Some car insurers operate in multiple states.
Therefore, if you’re moving out of state, you must check with your insurance agent to see if the company covers your new home state. If it does, there’s no need to cancel your current insurance policy.
How many cars are insured in the US?
Traffic is one of the most pressing issues in America. That’s because most families own at least two cars, so it’s not surprising that main roads are never empty. Statista’s latest stats showed that almost 203 million passenger cars are insured in the US.
The worsening traffic and escalating car accident rate in the country prove that having auto insurance is critical, even in states like Virginia and New Hampshire, where auto insurance coverage isn’t obligatory.
Will my car insurance cover me if I move to another state?
This depends on your car insurance company and the insurance requirements in a new state. Some companies offer policies that cover multiple states, while others will give you short-term coverage as you travel. In most cases, you’ll be required to purchase a new auto insurance plan.
If you need to purchase a new policy, car insurance statistics recommend working with an independent broker to determine which companies offer the best coverage for your money in your new state.