The State of Auto Insurance Industry - 2019

32 Incredible Car Insurance Statistics

The digital age has brought change and disruption to almost every aspect of the world we know. U.S. car insurance statistics demonstrate that even old-style businesses are not immune. Since its inception in 1930 when the UK was the world’s first country to make vehicle insurance policies compulsory, the auto insurance industry has never faced the major challenges and rapid evolution that confront it today. Autonomous vehicles, ridesharing services, Internet-connected cars, and other emerging technologies are rapidly changing the game.

With big challenges come major opportunities for those willing to adapt. Car insurance companies will increasingly be pushed to innovate in the next decade, or they face a great risk of being left behind. 

To paint a clearer picture of the changing landscape of the automobile insurance industry, we have compiled this list of interesting and significant data points.

Must Know Auto Insurance Industry Statistics

  • Almost 87% of U.S. drivers have some type of car insurance.
  • The nation’s top 2019 insurance rate – recorded in Michigan – is $2,611 per year.
  • This year’s average insurance price in Louisiana is $2,298.
  • The average car insurance rate in California is $1,518.
  • The minimum annual insurance cost in Wyoming is just $315.
  • The U.S. average automobile insurance premium is $1,426 per year.  
  • The average national price for full coverage insurance is $1,621.
  • The average monthly car insurance installment payment is $118.63.
  • There are 32 million uninsured motorists in the U.S.
  • About 26.7% of vehicles in Florida are uninsured.
  • Only 4.5% of drivers from Maine don’t have any kind of insurance policy. 
  • The car insurance market is growing at about 3.3 percent per year.

Did you know?: Car insurance pricing based on credit history is banned by law in Massachusetts, California, and Hawaii.

Growth of the Auto Insurance Industry

Gross written premiums in US dollar billions. Source

The global auto insurance market grew by 2.9% from 2010 to 2014, when it reached $669.7 billion. Source

Value of premiums by motor vehicle insurance companies 2009-2019

(In billions of US dollars)

Average Annual Car Insurance Premium (US)

Average Cost Of Automobile Insurance (Globally)

Growth of Car Insurance Premium

The total percentage change since 2011 is 23.12%.

Auto Insurance Industry Revenue growth

  • Australian auto insurance industry generated revenue of $21 billion in 2018. Source
  • The automobile insurance industry is projected to generate revenue of $285.2 billion in 2019. Source
  • The U.S. auto insurance market grew by 1.2% in 2019. Source
  • From 2014 to 2019, the U.S. auto insurance market grew by 3.3%. Source
  • The global auto insurance market grew by 2.9% from 2010 to 2014, when it reached $669.7 billion. Source

Car Insurance Market Share (US)

Fun fact: The 10 largest private automobile insurers saw their market share decline slightly in 2018.

Biggest Car Insurance Companies (by Subscribers)

  • The auto insurance industry in the US consists of 8,701 businesses. Source
  • The top 10 auto insurance companies in the US hold 72% of the market. Source

In 2016, the global auto insurance industry’s worth was estimated at $200 billion. Source

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.

General Car Insurance Statistics

  1. More than 770,000 cars are stolen in the U.S. each year, which adds up to more than one per minute.

(National Highway Traffic Safety Administration)

Auto insurance statistics from 2019 show that while theft has been declining since the early 2000s, there has been a spike in recent years. However, theft rates can vary depending on your location, among many other factors.

  1. About $6 billion was lost to motor vehicle theft in 2017. The average dollar loss per theft was $7,708.

(Insurance Information Institute)

The American auto insurance industry cautions drivers about new methods thieves are using for car theft. Some of these include creating smart keys or stealing identities to take expensive loans on vehicles. 

  1. There are more than 283 million registered vehicles in the U.S.

(Hedges & Company)

This statistic represents an increase of over 33 million compared to 2012 car insurance data. There are now 120 million households that own a registered automobile.

  1. The average American drives approximately 13,500 miles per year.

(FHWA)

Males in America drive about 16,550 mile every year, while women drive 10,142. The average American will drive over 1,000 miles per month.

  1. With no high school diploma, drivers only pay $39 more per year than if they have a Ph.D.

(Zebra)

National car insurance rates for drivers across the nation are only 2.6% different between people having no diploma and those who earned a doctorate.

  1. In 2017, 22.2% of households had at least one auto insurance claim, while 20.5% had one in 2014.

(ValuePenguin)

More disasters and more accidents are leading to increased numbers of claims, which leads to more payouts from the insurers. The data projects that by 2022, the percentage of households that will have at least one claim will be 22.5%.

  1. The percentage of uninsured drivers on the road has been on a steady decline, dropping to just 13% in 2015.

(Carsurance)

The state with the most uninsured drivers remains Florida, where 26.7% of all motorists have no insurance. Maine, on the other hand, has just 4.5% uninsured motorists.

  1. With 18% market share and almost $42 million in direct premiums, State Farm is the largest automobile insurer.

(Insurance Information Institute)

Founded in Bloomington, Illinois, State Farm Insurance is the largest auto and home insurer and the eighth largest life insurance company in the United States. The company offers more than 100 products and services to clients, it employs 65,000 workers, and it has over 44 million customer auto policies.

  1. The Honda Odyssey minivan was the least expensive car to insure in 2019.

(Insure.com)

The yearly cost of insurance for the Odyssey minivan is $1,298, which is $514 less than the national average car price of $1,812.

  1. Crashes are up by as much as 6% in Nevada, Oregon, Colorado, and Washington since these states legalized marijuana for recreational use.

(Insurance Institute for Highway Safety/Highway Loss Data Institute)

This difference between states with legal marijuana and neighbouring states that haven’t legalized pot yet is consistent with the 6% increase in auto insurance claims statistics.

  1. You are more likely to hit a deer while driving in West Virginia than in any other state.

(StateFarm)

West Virginia has been the No. 1 spot on this list for a long time, but the likelihood of having an insurance claim involving a deer in 2019 was down three points from last year.  

  1. Up to 1 million cars were destroyed by Hurricane Harvey, more than any event in the history of America.

(Car and Driver)

Auto insurance industry statistics show that 50% of all cars destroyed by the hurricane were from Houston, America’s fourth most populated city. 

  1. Drivers can save up to 15% on premiums if they switch from driving more than 15,000 miles per year to driving half that amount.

(Carsurance)

Your annual mileage has the biggest impact in California where you can save 26%, or more than $400 yearly, for halving the mileage.

  1. Rideshare coverage raises car insurance rates by 13%.

(Zebra)

Companies like Uber and Lyft cover their employees when they are driving “on the job”, but when drivers are looking for passengers they need an additional rideshare endorsement, which is added to their personal auto insurance policies.

  1. The average auto insurance cost has increased over 20% since 2011.

(Zebra)

Insurance statistics by state show that over the years rates increased more than 60% for some and as little as 1% for others, but no state had a net decrease in rates.

  1. Purchasing your policy in advance, paying in full, or paying online can save you 10% on car insurance.

(Carsurance)

Most insurance providers, such as AAA, Safeco, or Allstate, offer you a discount when you choose to pay the entire cost up front, rather than making payments each month.

  1. About 40% of vehicle accidents that cause physical loss or damage happen during parking or maneuvering.

(Allianz Group)

According to insurance claim statistics, the vast majority of incidents happen when reversing the vehicle. This amounts to more than 70% of auto liability claims and about  85% of full physical damage claims.

  1. A report by Morgan Stanley predicted that disruptors could grab 20% of the auto insurance market.

(Investor’s Business Daily)

The analysis of U.S. automobile insurance statistics shows that 26% of people would be willing to purchase auto insurance from Google, Apple, AT&T, or Verizon.

  1. About 36% of U.S. adults say they have used a ride-hailing service such as Uber or Lyft, compared to 15% in 2015.

(Pew Research Center)

Adoption figures still vary by age and educational and income levels. Some 51% of Americans aged 18-29 say they have used a ride-hailing service before, while this number drops to 24% for those 50 and older.

  1. The car-sharing market is projected to reach $2.4 billion in 2019.

(VisionGain)

With the increased investment in car sharing, especially the peer-to-peer model, the industry is set to have a huge effect on the way people use vehicles in the future.

  1. About 60% of U.S.A auto insurance customers are willing to share their car’s data with the manufacturer.

(McKinsey)

Some 60% of all new car owners in the U.S. agree that the data their car collects can be sent back to the manufacturer for analysis. The number of connected devices is so vast that car producers are constantly approached by advertisers who want to gain insight into the data.

  1. Insurance-rate penalties for distracted-driving violations range from $86 to $763.

(Carsurance)

Car insurers will charge you penalties for getting a distracted-driving ticket. These insurance rate penalties can range from $86 to $763, depending on the state.

Auto Insurance Claims Statistics

  1. In 2017, auto insurance data showed that losses in the U.S. amounted to approximately $167.94 billion.

(Statista)

This number has been on a steady rise over the years, but the trend has been slowing down due to the increased use of ADAS systems and other safety measures. The average loss per claim is about $4,100.

  1. Wildfires and other massive natural disasters lead to a big increase in costly claims.

(Zebra)

Auto insurance statistics from 2018 show that insured property losses were 32% lower than in the first half of 2017. However, insurance companies in Massachusets, Hawaii, and California are prohibited from looking into your credit history.

  1. The average injury-related claims costs in Michigan were $75,600 in 2013.

(Carsurance)

For comparison, the next most expensive state was New Jersey, with an average of $13,630. Claims expenses in Michigan are that high due to the state’s limitless PIP system.

  1. Student drivers sometimes pay from $3,600 to $7,000 more annually for car insurance, which is triple the average rate for those between 23 and 85.

(Carsurance)

Car insurance stats show that teens and students are statistically much more likely to get in accidents and file claims than any other age group due to their lack of driving experience – so they pay the highest car insurance rates.

  1. Getting married can drop your car insurance rates by about 6%.

(Zebra)

National auto insurance companies believe that married couples pose a lower risk when it comes to filing claims than single, divorced, or widowed drivers. Some states, including Montana, Massachusetts, and Hawaii, don’t allow the use of marital status in determining rates.

  1. Automobile insurance cost for drivers with poor credit is 90% more expensive than for those with exceptional credit.

(Carsurance)

Drivers with low credit ratings are statistically more likely to file a claim, almost doubling the dollar amount of claims filed by people with higher credit scores. However, insurance companies in Massachusets, Hawaii, and California are prohibited from inquiring in your credit history.

  1. Artificial Intelligence leads to faster customized claim settlements.

(Emerj)

Insurance stats show that online interfaces and virtual claims adjusters will create more efficient claims and settlements while simultaneously decreasing the likelihood of fraud. 

Raise of Autonomous Cars is Fall of Car Insurance industry 

  1. Sixteen percent of drivers think autonomous vehicles will eliminate the need for car insurance.

(KPMG)

The future of self-driving technology will prove to be a significant threat to the auto insurance industry. A rising number of people believe that there won’t be much need to pay for it if the computer-powered system is almost completely safe. 

  1. About $81 billion in new insurance revenues will be generated by autonomous vehicles between 2020 and 2025 in the U.S.

(Accenture)

Addressing self-driving vehicles should prove to be a great advantage for both the automotive manufacturers and businesses that are providing Internet-based services. 

  1. Insurance companies may experience a $25 billion loss by 2026 due to autonomous vehicles.

(Harvard Business Journal)

The drop in individual premiums, due both to decreased private ownership vehicles and to safer vehicles, is projected to begin around 2026. This will prove to be a painful hit for a $200 billion U.S. auto insurance industry. 

Conclusion

The statistics and trends we have researched all point to an industry that is quickly shifting and evolving into something new. Insurers are adapting to changes in modern human behavior and to emerging technologies that threaten old ways of doing business. Tech giants like Google and Apple threaten to challenge norms with reinvented insurance solutions and self-driving vehicles. All in all, the car insurance statistics of 2019 paint a picture of exciting prospects and even bigger possibilities.

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