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 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.
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 Car Insurance Facts (Editor’s Choice)
- The average car insurance cost is $1,630
- In the US, the automobile insurance industry is worth $316.2 billion
- The automobile insurance industry has 296,515 employees in the United States
- In 2020, the incurred losses for car insurance were $160.42 billion
- Mississippi was the state with the highest uninsured drivers percentage (29.4%) in 2019
- After an accident, insurance rates increase by 41%
- Almost 50% of collision claims for automobiles were lower than $3,000 in 2019
- In 2019, the average auto liability claim for bodily injury cost $18,417
General Car Insurance Statistics
Fun fact: The 10 largest private automobile insurers saw their market share decline slightly in 2018.
1. The average cost of car insurance is $1,630.
(NerdWallet)
The latest data shows that the average insurance cost is approximately $1,630 a year or $136 a month.
However, 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 company costs will also rise.
2. Auto insurance industry statistics note that the automobile insurance industry in the US is worth $316.2 billion.
(IBIS World)
In fact, the car insurance industry’s worth has increased by 1.7% from 2021’s $310.9 billion. Now, the auto insurance market is valued at $316.2 billion.
What’s also worth mentioning is that the US automobile insurance industry market size has increased faster than the overall economy in the last five years.
3. Commercial auto insurance statistics confirm that the US commercial auto industry is worth $52.2 billion.
(IBIS World)
That represents a 1.3% increase from 2021, when the market was worth around $51.5 billion. As a matter of fact, in the last five years, the size of this market has increased 4.4% per year on average.
4. By adding gap coverage to a policy with collision and comprehensive insurance, your premium rises by $40–$60 annually.
(MarketWatch)
Gap insurance statistics reveal that the gap coverage cost can vary, but it is typically inexpensive. That said, if you buy it from the dealership, it can set you back hundreds of dollars annually.
5. The US automobile insurance industry has 296,515 employees.
(IBIS World)
The number of automobile insurance industry employees has increased by 2.1% since 2021. In other words, that number was 290,295 last year. Moreover, the average car insurance business in the United States has around 37.2 employees.
Auto Insurance Statistics by Year
Did you know?: The global auto insurance market grew by 2.9% from 2010 to 2014, when it reached $669.7 billion. Source
6. In 2019, one in eight drivers in the US was uninsured.
(Insurance Research)
Insurance Research Council (IRC) revealed that about one in eight drivers didn’t have any automobile insurance that year. In fact, the overall uninsured motorist rate in the country was 12.6% in 2019.
7. In 2019, 82% of uninsured motorists stated they couldn’t afford insurance.
(Tork Law)
Most motorists don’t have insurance because they can’t afford it — car insurance facts confirm. So, for responsible drivers who abide by the law, paying for an uninsured driver can be a problem. Some states require uninsured motorist or underinsured motorist 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.
8. In 2019, 70% of the vehicle crashes in the US involved property damage.
(Statista)
Car insurance data highlight speeding, distracted driving, and tailgating as the top causes of vehicle crashes. Consequently, 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.
9. In 2019, private passenger auto insurance had the largest direct premiums of over $253.2 billion.
(Agency Checklists)
This data shows that private passenger car insurance represented approximately 36% of reported written premiums. Moreover, the amount showed a rise of $7.1 million in direct written premiums from the year before.
10. The incurred losses for car insurance were $160.42 billion in 2020.
(Statista, III)
Statistics on car insurance reveal that between 2011 and 2019, the incurred losses for auto insurance were increasing. For instance, in 2019, millions of car crashes in the US made up $184.67 billion of auto insurance losses.
However, that changed in 2020, which showed a decrease of $24.24 billion.
11. By 2025, vehicle subscriptions could comprise nearly 10% of new car sales in the US and Europe.
(Fleetonomy, LMP Motors)
The auto insurance industry trends of vehicle subscription will continue to sweep the market and possibly become mainstream in the following years. Namely, over 16 million vehicles in Europe and the US could be a part of vehicle subscription services by 2025.
12. By 2026, the usage-based insurance market will reach $66.8 billion.
(Markets and Markets)
In 2021, the user-based insurance market was estimated at $19.6 billion, as per auto insurance statistics from 2021. In addition, between 2021 and 2026, it is projected to increase at a CAGR of around 27.7%.
Namely, factors expected to drive the demand for this market are lower insurance premiums compared to regular insurance, high adoption of connected car services, government telematic regulations, and rising on-road vehicles.
Furthermore, North America is expected to be the largest market because of the growing demand for usage-based insurance and the increasing number of companies that offer packages.
Auto Insurance Statistics by State
Did you know?: Car insurance pricing based on credit history is banned by law in Massachusetts, California, and Hawaii.
13. 16 states currently require a minimum amount of personal injury protection (PIP).
(ValuePenguin)
Auto insurance policies vary depending on the state. At the moment, for example, the data lists 16 states that demand drivers to purchase personal injury protection (PIP). This is a part of the car insurance policy covering the cost incurred for driver and passengers’ injuries.
Following the latest statistics on car insurance rates per states, PIP is indispensable in the following states:
- Florida
- Delaware
- North Dakota
- Minnesota
- New Jersey
- Kansas
- New York
- Pennsylvania
- Oregon
- Massachusetts
- Michigan
- Utah
- Hawaii
- Kentucky
- Main
- Maryland
14. In 2019, the state with the highest percentage of uninsured drivers was Mississippi — 29.4%.
(Insurance Research)
Some other states with a high percentage of uninsured drivers that year were Michigan (25.5%), Tennessee (23.7%), and New Mexico (21.8%).
On the other hand, stats on auto insurance rates by states find that New Jersey had the lowest percentage of uninsured drivers in 2019 — somewhere around 3.1%.
15. California is one of the states with the lowest ($5,000) coverage requirement on property damage liability per accident.
(NerdWallet)
In fact, the highest coverage for property damage liability per accident in most states is $25,000, while the lowest is $5,000.
Namely, facts about car insurance disclose that apart from California, Massachusetts, New Jersey, and Pennsylvania are the other states that impose $5,000 for property damage coverage.
16. In 2021, the average rate in Louisiana was $2,893 — the most expensive insurance premium in the country.
(Forbes)
That was twice the national average and a 19% increase compared to 2020. That’s why it comes in handy to know Louisiana’s best car insurance companies.
Furthermore, insurance facts from 2021 reveal that after Louisiana, Michigan was the state with the highest average insurance costs ($2,112). The third place belonged to Florida, which in 2021 had average insurance costs of $2,082.
17. The average rate in California was $1,966 in 2021.
(Forbes)
Apart from Louisiana, Michigan, Florida, and California, another state with a relatively high average insurance rate ($1,895) was Missouri in 2021. In fact, we have prepared a separate article on the cheapest car insurance companies in Missouri.
At the same time, the states with the lowest insurance rates were Maine, New Hampshire, Wisconsin, Idaho, and Ohio. However, Maine had the lowest average premium — $858.
Average Auto Insurance Rate by Age, Record & Accident
Did you know? There are approximately 279,001 people employed in the car insurance industry.
(IBIS World)
In the last five years, the number of people working in the automotive insurance industry has increased by 3.1%, reaching nearly 300,000 employees. Professions in the industry include brokers, agents, and service workers.
18. An 18-year-old driver pays more than double for auto insurance than a 25-year-old driver.
(ValuePenguin)
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. Namely, teens are responsible for 500,000 car accidents in the US annually.
Car insurance statistics for the US uncover that, on average, an 18-year-old driver pays $7,396 for full auto coverage, while a 25-year-old driver pays only $3,348.
19. Insurance rates increase by 41% after an accident.
(Forbes)
Even though a car crash might only last several moments, its financial aftermath may last for years.
Even in the case of a minor crash without any injuries or severe car damage, your insurance rates can increase, according to auto insurance facts. As a matter of fact, a crash can impact your rates for up to five years.
20. Drivers with a DUI record pay 88% more for car insurance than those with a clean record.
(Value Penguin)
Applied to the national average, drivers with a DUI pay $1,723 more annually for car insurance. Let’s not forget that the US has costs of $132 billion annually because of drunk drivers.
However, when looking at the car insurance rates by state, we can see that they differ. North Carolina imposed the highest premiums for drivers with DUI records, increasing up to 300%.
21. A multi-car policy will save policyholders between 10% and 25% on premiums.
(Car and Driver)
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
22. 49.4% of collision claims for automobiles were lower than $3,000 in 2019.
(IIHS)
Let’s delve deeper into this interesting data on the collision claims distribution. Namely, almost half of the collision claims for automobiles cost less than $3,000.
Auto claims worth between $1,000 and $1,999 comprised almost 18%, and claims that cost more than $25,000 constituted nearly 2% of collision claims. This data comes from the auto insurance claims statistics from 2019.
Furthermore, even if the law doesn’t require collision insurance, it’s a wise 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.
23. In 2020, the amount spent on claims decreased to 56.1 cents per dollar of the total premium reported.
(CFA)
Car insurance claim statistics reveal that between 2016 and 2019, insurers paid 67.4 cents of every premium dollar for claims. However, in 2020, insurers paid $33.6 billion less than they would, had they kept on paying 67.4 cents in claims per dollar in premium.
In other words, a decrease in claim payments of $33.6 billion is a per-vehicle decrease in claims of around $150.
24. In the UK, the number of motor insurance claims settled at 2.1 million in 2020.
(ABI)
Stats on the number of insurance claims per year show that in 2020, there was a 19% decrease from 2019. Moreover, total payouts amounted to £8.3 billion. Compared to 2019, that represented a 6% drop.
25. The average auto liability claim for bodily injury cost $18,417 in 2019.
(ValuePenguin)
In comparison, bodily injury claims cost $17,164 the previous year and even less in the years before. Moreover, these claims are relatively infrequent. For instance, only 1.1% of policies experienced such claims in 2019.
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 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, promising a highly safe and comfortable ride.
Generally speaking, if technology continues to do its magic, road accidents will immensely decrease, thereby creating a stir in the auto insurance industry.
People Also Ask
There isn’t official data to answer this question.
However, that doesn’t stop us from doing the math by ourselves, given that there are 228 million drivers in the United States, and around 215 million drivers have car insurance. That equates to approximately 94% of car drivers being insured.
That’s reassuring, as it means people are conscious and think ahead.
The youngest drivers have the highest car insurance rates. In fact, that refers to drivers between 16 and 19 years of age. This is because this demographic tends to have the highest number of crashes.
It goes without saying that insurance reflects risk, and young drivers represent a high risk. They also have less experience, and they break the law more frequently while driving. In fact, teen drivers are responsible for 500,000 crashes yearly.
In many states, having car insurance is required by law. Nevertheless, it is vital since it protects you financialy if you get into a car crash and injure someone or damage someone else’s vehicle.
Overall, in the United States, there are 228 million drivers. Car insurance statistics suggest that out of that number, around 215 million drivers have insurance, meaning that only 13 million people aren’t insured.
