The car insurance industry is worth $316 billion in 2022 alone. About 215 million Americans currently pay car insurance. More than one-third of them have had an accident in the past three years leading up to their current policy.
The data and statistics gathered in this article are taken from the National Association for Insurance Commissioners, Insurance Information Institute, Insurance Research Council, and the U.S. Bureau of Labor Statistics.
Table of context:
- Car insurance cost statistics
- What impacts auto insurance rates?
- Auto insurance rate statistics by state
- Percentage of uninsured drivers
- Auto insurance statistics by age
- Auto insurance statistics by gender
- Biggest car insurance companies in the US
Car insurance cost statistics
Car insurance is required by law in 48 states in the U.S. The only states that do not have a compulsory insurance liability law are Washington D.C. Virginia and New Hampshire. Drivers in these three states, however, must meet other requirements to be able to drive legally.
The average driver expects to pay around $1,770 annually and around $148 a month on full coverage auto insurance. The most expensive car insurance coverages are bodily injury claims at an average of $16,000 per loss. This is followed by property damage at about $4000 per loss, and collision at $3,300. The least expensive on the list is comprehensive claims at $1,700.
Car insurance rates have gone up by almost 5% between 2016 – 2020.
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 |
What impacts auto insurance rates?
- Policy premiums may increase by $1,200 if credit score drops from good to poor.
- Speeding tickets might increase premiums by $367.
- Causing a car crash can increase premiums by $750.
- DUI convictions may increase annual full coverage policy premiums by $1,650.
- Adding a teenage driver as part of the policy can averagely add up to $2,100 to policy premiums.
- Lapse coverage’s can add up to $178 annually to premiums.
Auto insurance rate statistics by state
Car insurance rates have only been on the rise in all 50 states. Georgia had the highest increase in liability coverage rates with a rise of 59% between 2016 and 2020. The most stable rates were seen in Hawaii, with approved rate changes summing up to 2.5%.
Physical damage rates have slightly dropped in a few states from 2016 to 2020. These states include New Jersey, Hawaii, West Virginia, New Hampshire, and North Carolina.
| 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 |
Percentage of uninsured drivers by state
Auto insurance premiums are different for each state. The main reason for this is due to car insurance costs of uninsured drivers. The International Rescue Committee gives credit to the economic downturn as the main cause of the rise of uninsured drivers.
According to statistics, 82% of uninsured drivers are unable to afford auto insurance or don’t currently have a vehicle in use. Getting involved in an accident with an uninsured driver is very unfortunate for most drivers mainly because of the out-of-pocket costs in repairs that it requires. The average payout on a car accident claim is $26,000, according to the National Association of Insurance Commissioner.
In 2019, one in every eight drivers was uninsured. Nearly 30% of drivers are uninsured in Mississippi, which is the highest percentage in all 50 states. Florida comes in second place, with more than 20% of drivers being uninsured.
Auto insurance statistics by age
Age is an important measure that auto insurance providers use to determine the costs one has to pay. The only states that do not use age as a car insurance rating factor are Massachusetts and Hawaii.
Car insurance premiums usually trend higher the younger the driver is. Research suggests that young age plays a significant role in damages and fatalities and therefore should pay higher premiums.
Although premiums become cheaper with older age, seniors typically see a rise in premium costs due to age-related conditions such as delayed reaction time and decreased vision.
Auto insurance statistics by gender
Gender can predict driver behavior in many cases. Because of this, some U.S states consider gender when calculating auto insurance rates. In some states, however, it is illegal to use gender as a factor to calculate insurance rates. These states include Massachusetts, Hawaii, Pennsylvania, North Carolina, and California.
On average, teen male drivers tend to pay $500 more than teen female drivers.
The average cost of collision and comprehensive coverage for a young adult male driver is $1,270 annually. This includes both physical damage coverage for theft or damage to the car from vandalism and natural disasters such as hail or fire damage from an electrical surge or lightning strike (collision), as well as other types of physical damage such as water damage caused by flooding (comprehensive). The average cost of collision and comprehensive coverage for a young adult female driver is $1,153 annually.
Some of the reasons why gender is taken into consideration when calculating auto insurance rates are:
- Men are more likely to participate in risky behavior when driving than women.
- Men have a higher chance to get into a car accident.
- Accidents that are caused by men tend to be more severe than those caused by women.
- Men are more prone to drunk driving when compared to women.
| 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 |
Biggest car insurance companies in the US
The biggest car insurance provider in the U.S. is State Farm. It is larger by both premiums written for liability policies and market share. State Farm has written more than $16 billion in premiums in 2020 alone and has a market share of 16.5%.
All top 10 biggest car insurance providers have increased the cost of their direct written premiums between 2018 to 2022. Progressive insurance providers had the highest increase in premiums written, with a rise that totaled $2.2 billion.
| Rank | Company | Direct premiums written | Market share |
|---|---|---|---|
| 1. | State Farm | $41,665,754 | 16.00% |
| 2. | Geico | 37,422,558 | 14.4 |
| 3. | Progressive | 35,852,921 | 13.8 |
| 4. | Allstate | 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 | 12,441,182 | 4.8 |
| 8. | Nationwide | 5,565,737 | 2.1 |
| 9. | American Family Insurance | 5,488,677 | 2.1 |
| 10. | Travelers | 5,328,115 | 2 |
Final thoughts
While it’s true that Americans spend a pretty penny on their cars each year, it’s also true that there are an incredible number of variables at play in calculating auto insurance premiums and that there isn’t always a direct relationship between the cost of an accident and the premium you pay.
