Facts + Statistics: Auto insurance

Costs and expenditures

The countrywide average auto insurance expenditure rose 5.0  percent to $1,056.55 in 2018 from $1,006.33 in 2017 according to the National Association of Insurance Commissioners. In 2018 (the latest data available), the average expenditure was highest in Louisiana ($1,545.82) followed by Michigan ($1,469.73), and the District of Columbia ($1,429.43).

To calculate average expenditures the National Association of Insurance Commissioners (NAIC) assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages. The average expenditure measures what consumers actually spend for insurance.

AAA’s 2020 Your Driving Costs study found that the average cost to own and operate a 2020 model vehicle was $9,561 in 2020. The average insurance cost for medium sedans was $1,245, down from $1,251 in 2019. AAA insurance cost estimates are based on a full coverage policy for a driver who is under 65 years of age, has more than six years of driving experience, has had no accidents and lives in a suburban/urban location. The coverage is for a policy with $100,000/$300,000 personal liability, $25,000 medical, $100,000 property and $25,000/$50,000 uninsured/underinsured motorist coverage, with a $500 deductible for collision and comprehensive claims. These figures are not comparable with the National Association of Insurance Commissioners’ auto expenditures data, below.

Average Expenditures For Auto Insurance, 2009-2018

 

Year Average expenditure Percent change
2009 $786.65 -0.5%
2010 789.29 0.3
2011 795.01 0.7
2012 812.40 2.2
2013 841.06 3.5
2014 869.47 3.4
2015 896.66 3.1
2016 945.02 5.4
2017 1,006.33 6.5
2018 1,056.55 5.0

Source: © 2021 National Association of Insurance Commissioners (NAIC).

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  • 78 percent of insured drivers purchase comprehensive coverage in addition to liability insurance, and 74 percent buy collision coverage, based on a Triple-I analysis of 2018 NAIC data.

Auto insurance expenditures, by state

The tables below show estimated average expenditures for private passenger automobile insurance by state from 2014 to 2018 and provide approximate measures of the relative cost of automobile insurance to consumers in each state. To calculate average expenditures, the National Association of Insurance Commissioners (NAIC) assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance.

Expenditures are affected by the coverages purchased as well as other factors. The NAIC does not account for policyholder classifications, vehicle characteristics or the amount of deductibles selected by the policyholder, differences in state auto and tort laws, rate filing laws, traffic conditions and other demographic variables, all of which can significantly affect the cost of coverage. The NAIC notes that three variables—urban population, miles driven per number of highway miles, and disposable income per capita—are correlated with the state auto insurance premiums. It also notes that high-premium states tend to also be highly urban, with higher wage and price levels, and greater traffic density. Many other factors can also affect auto insurance prices.

Top 10 Most Expensive And Least Expensive States For Auto Insurance, 2018 (1)

 

Rank Most expensive states Average expenditure Rank Least expensive states Average expenditure
1 Louisiana $1,545.82 1 North Dakota $686.08
2 Michigan 1,469.73 2 Maine 686.25
3 District of Columbia 1,429.43 3 Iowa 700.71
4 Florida 1,426.46 4 South Dakota 721.67
5 New York 1,425.00 5 Idaho 722.06
6 New Jersey 1,385.61 6 North Carolina 734.06
7 Rhode Island 1,333.12 7 Wisconsin 755.97
8 Delaware 1,291.39 8 Wyoming 765.81
9 Nevada 1,260.43 9 Indiana 767.72
10 Connecticut 1,216.55 10 Vermont 778.29

(1) Based on average automobile insurance expenditures.

Source: © 2021 National Association of Insurance Commissioners (NAIC).

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Average Expenditures For Auto Insurance By State, 2014-2018

 

  2018 2017   Average expenditure
State Liability Collision Compre-
hensive
Average
expenditure
Rank (1) Average
expenditure
Rank (1) Average
expenditure
percent change,
2017-2018
2016 2015 2014
Alabama  $511.13 $380.51 $175.28 $904.56 31 $857.56 31 5.5% $791.39 $739.93 $710.66
Alaska  576.09 387.12 147.87 965.44 23 931.43 22 3.7 911.37 915.59 924.71
Arizona  646.75 326.28 208.25 1,046.40 17 995.62 17 5.1 926.76 877.11 858.12
Arkansas  486.72 375.25 235.36 898.89 32 849.37 32 5.8 781.00 742.44 736.74
California  616.51 483.60 94.72 1,034.05 19 965.05 19 7.1 898.84 840.65 807.58
Colorado  687.40 330.50 272.44 1,132.81 15 1,052.50 15 7.6 945.59 869.84 823.88
Connecticut  784.70 407.54 133.86 1,216.55 10 1,168.80 9 4.1 1,108.67 1074.96 1,054.23
Delaware  900.32 352.86 140.52 1,291.39 8 1,224.84 8 5.4 1,173.97 1,146.45 1,125.78
D.C. 809.41 535.96 228.71 1,429.43 3 1,336.71 6 6.9 1,258.46 1,206.03 1,187.96
Florida  1,009.94 361.79 149.26 1,426.46 4 1,353.03 3 5.4 1,262.25 1,190.50 1,145.36
Georgia  797.80 408.41 176.31 1,212.04 11 1,128.78 13 7.4 1,006.28 929.72 869.82
Hawaii 479.27 357.78 107.66 829.15 37 804.04 37 3.1 780.42 761.06 751.10
Idaho  425.89 262.67 139.75 722.06 47 679.28 48 6.3 633.40 599.02 581.01
Illinois  515.94 339.04 140.57 916.49 27 897.49 25 2.1 852.81 811.40 781.31
Indiana  442.69 286.49 135.63 767.72 43 745.27 43 3.0 705.52 671.16 645.30
Iowa  348.87 252.65 214.65 700.71 49 674.93 49 3.8 635.99 608.94 587.80
Kansas  421.78 287.24 276.33 805.15 39 767.34 41 4.9 719.73 708.98 692.06
Kentucky  611.54 312.51 164.68 936.91 26 897.43 26 4.4 840.04 801.75 780.79
Louisiana  1,015.36 487.44 248.57 1,545.82 1 1,447.05 1 6.8 1,328.80 1,254.37 1,209.77
Maine  374.59 294.80 113.33 686.25 50 668.06 50 2.7 646.64 619.16 598.32
Maryland 737.73 422.06 167.61 1,211.83 12 1,150.92 10 5.3 1,081.93 1020.82 998.70
Massachusetts  658.47 440.55 147.06 1,167.16 13 1,136.60 12 2.7 1,096.53 1058.50 1,035.52
Michigan 952.15 479.11 159.08 1,469.73 2 1,361.64 2 7.9 1,304.11 1,268.10 1,232.29
Minnesota  499.48 265.74 206.45 872.65 33 841.12 33 3.7 809.56 791.72 771.73
Mississippi 538.35 372.17 239.34 971.19 22 931.30 23 4.3 879.13 840.48 806.79
Missouri  520.45 315.49 216.92 913.81 30 870.28 30 5.0 807.52 758.33 730.43
Montana  435.81 283.65 306.00 825.87 38 784.77 38 5.2 730.99 704.70 700.33
Nebraska  429.35 272.48 260.97 796.87 40 768.22 40 3.7 722.68 693.87 664.80
Nevada  900.40 366.54 119.28 1,260.43 9 1,142.92 11 10.3 1,062.42 1012.70 983.98
New Hampshire  436.76 327.30 118.58 847.58 36 824.76 34 2.8 801.96 775.17 749.70
New Jersey  955.93 414.39 130.26 1,385.61 6 1,350.97 4 2.6 1,306.73 1,274.30 1,267.08
New Mexico  576.81 311.24 214.10 915.62 28 871.03 29 5.1 819.68 794.54 778.93
New York  920.25 457.77 180.64 1,425.00 5 1,350.51 5 5.5 1,303.15 1,245.32 1,210.36
North Carolina  391.29 342.13 137.45 734.06 46 703.88 46 4.3 666.37 639.01 643.84
North Dakota  307.97 279.45 256.76 686.08 51 662.32 51 3.6 639.13 637.24 628.60
Ohio  448.59 302.57 130.74 794.91 41 778.51 39 2.1 743.12 714.47 691.60
Oklahoma  508.89 346.73 267.99 915.49 29 896.49 27 2.1 854.78 826.43 806.68
Oregon  689.74 280.61 106.87 990.21 21 962.41 20 2.9 889.03 831.80 816.92
Pennsylvania  555.42 376.21 169.21 991.23 20 962.27 21 3.0 915.96 881.13 858.84
Rhode Island  885.33 474.58 140.40 1,333.12 7 1,300.61 7 2.5 1,230.90 1,170.98 1,126.10
South Carolina  702.37 318.08 207.09 1,093.97 16 1,021.90 16 7.1 930.76 870.57 827.30
South Dakota  333.44 244.47 327.11 721.67 48 696.09 47 3.7 652.30 624.52 599.12
Tennessee  477.07 355.01 163.83 855.78 34 821.49 35 4.2 778.80 753.73 739.21
Texas  659.47 442.88 269.90 1,152.25 14 1,096.82 14 5.1 1,008.91 934.22 905.64
Utah  601.77 309.20 127.53 941.14 24 891.08 28 5.6 829.39 792.20 764.44
Vermont  376.99 329.47 147.81 778.29 42 762.54 42 2.1 732.96 700.46 674.08
Virginia  492.68 316.05 148.25 853.78 35 820.58 36 4.0 785.59 756.46 743.72
Washington  689.18 312.65 118.19 1,035.34 18 994.89 18 4.1 935.35 890.18 872.91
West Virginia  521.74 350.20 224.86 938.71 25 914.16 24 2.7 897.94 883.34 876.13
Wisconsin  422.28 247.95 159.82 755.97 45 731.84 45 3.3 701.47 670.98 649.36
Wyoming  356.25 297.61 317.22 765.81 44 744.50 44 2.9 714.17 692.05 676.84
United States $644.11 $377.62 $167.91 $1,056.55   $1,006.33   5.0% $945.02 $896.66 $869.47

(1) Ranked highest to lowest by average expenditure.

Note: Average expenditure=Total written premium/liability car years. A car year is equal to 365 days of insured coverage for a single vehicle. The NAIC does not rank state average expenditures and does not endorse any conclusion drawn from these data.

Source: © 2021 National Association of Insurance Commissioners (NAIC).

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Premiums

Private Passenger Automobile Insurance, 2011-2020

($000)

  Liability Collision/comprehensive
Year Net
premiums
written (1)
Annual
percent
change
Combined
ratio (2)
Annual
point
change (3)
Net
premiums
written (1)
Annual
percent
change
Combined
ratio (2)
Annual
point
change (3)
2011 $100,369,441 2.8% 103.8 -2.1 pts. $62,948,280 0.6% 99.6 0.4 pts.
2012 103,429,677 3.0 103.2 -0.6 64,619,667 2.7 100.2 6.3
2013 107,446,382 3.9 103.6 0.4 67,452,663 4.4 98.7 0.6
2014 112,354,903 4.6 103.8 0.2 71,096,640 5.4 100.2 -1.5
2015 116,305,809 3.5 107.9 4.2 76,486,433 7.6 99.4 1.5
2016 124,439,721 7.0 109.4 1.5 82,931,826 8.4 101.5 -0.8
2017 133,745,174 7.5 105.5 -3.9 88,489,745 6.7 98.3 2.1
2018 144,450,175 8.0 100.5 -5.0 96,475,072 9.0 93.7 -3.2
2019 147,302,499 2.0 101.6 1.1 100,443,264 4.1 94.6 -4.6
2020 144,110,581 -2.2 94.8 -6.7 99,606,206 -0.8 89.2 0.9

(1) After reinsurance transactions, excludes state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded numbers.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance By Direct Premiums Written, 2020

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm $40,397,656 16.2%
2 Berkshire Hathaway Inc. 33,926,566 13.6
3 Progressive Corp. 33,171,941 13.3
4 Allstate Corp. 25,878,688 10.4
5 USAA Insurance Group 15,772,993 6.3
6 Liberty Mutual 11,847,079 4.7
7 Farmers Insurance Group of Companies 9,936,840 4.0
8 Nationwide Mutual Group 5,778,149 2.3
9 American Family Insurance Group 5,168,252 2.1
10 Travelers Companies Inc. 4,890,393 2.0

(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Auto claims

Liability insurance pays for the policyholder’s legal responsibility to others for bodily injury or property damage. Collision and comprehensive insurance cover property damage and theft to the policyholder’s car.

Private Passenger Auto Insurance Losses, 2010-2019 (1)

 

  Liability
  Bodily injury (2) Property damage (3)
Year Claim frequency (4) Claim severity (5), (6) Claim frequency (4) Claim severity (5), (6)
2010 0.91 $14,406 3.53 $2,881
2011 0.92 14,848 3.56 2,958
2012 0.95 14,690 3.50 3,073
2013 0.95 15,441 3.55 3,231
2014 0.97 15,384 3.41 3,516
2015 1.00 16,046 3.41 3,791
2016 1.05 16,149 3.44 3,969
2017 1.11 16,075 3.46 4,064
2018 1.10 17,164 3.32 4,295
2019 1.07 18,417 3.18 4,525
  Physical damage (7)
  Collision Comprehensive (8)
Year Claim frequency (4) Claim severity (5) Claim frequency (4), (9) Claim severity (5), (9)
2010 5.69 $2,778 2.62 $1,476
2011 5.75 2,861 2.79 1,490
2012 5.57 2,950 2.62 1,585
2013 5.71 3,144 2.57 1,621
2014 5.93 3,169 2.79 1,572
2015 6.01 3,377 2.72 1,679
2016 6.13 3,442 2.76 1,747
2017 6.14 3,423 2.86 1,811
2018 6.13 3,578 3.02 1,832
2019 6.13 3,750 3.25 1,780

(1) For all limits combined. Data are for paid claims.
(2) Excludes Massachusetts and most states with no-fault automobile insurance laws.
(3) Excludes Massachusetts, Michigan and New Jersey.
(4) Claim frequency is claims per 100 earned car years. A car year is equal to 365 days of insured coverage for one vehicle.
(5) Claim severity is the size of the loss.
(6) Includes loss adjustment expenses.
(7) Excludes Massachusetts, Michigan and Puerto Rico. Based on coverage with a $500 deductible.
(8) Excludes wind and water losses.
(9) Includes glass losses.

Source: ISO®, a Verisk Analytics® business.

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  • In 2018, 1.1 percent of people with liability insurance had a bodily injury liability claim, while 3.9 percent of those with liability insurance had a property damage liability claim, according to ISO.
  • In 2018, 6.1 percent of collision insurance policyholders had a claim, while 3.0 percent of people with comprehensive coverage had a claim.
  • In 2018 the average auto liability claim for property damage was $3,841; the average auto liability claim for bodily injury was $15,785.
  • In 2018 the average collision claim was $3,574; the average comprehensive claim was $1,833.

Incurred Losses For Auto Insurance, 2016-2020 (1)

($000)

  2016 2017 2018 2019 2020
Private passenger auto          
     Liability $88,249,238 $90,495,835 $91,736,331 $96,191,310 $81,618,462
     Physical damage 55,738,221 57,052,411 58,766,743 62,638,267 54,683,622
Commercial auto          
     Liability 14,987,073 15,528,570 17,810,709 20,435,099 19,313,224
     Physical damage 4,279,414 4,874,748 4,999,100 5,407,130 4,813,211
Total $163,253,946 $167,951,564 $173,312,883 $184,671,806 $160,428,519

(1) Losses occurring within a fixed period, whether or not adjusted or paid during the same period, after reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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The shared/residual market and nonstandard markets

All states and the District of Columbia use special systems to guarantee that auto insurance is available to those who cannot obtain it in the private market. These systems are commonly known as assigned risk plans. Assigned risk and other plans are known in the insurance industry as the shared, or residual, market. In assigned risk plans, high-risk policyholders are proportionally assigned to insurance companies doing business in the state. In the voluntary, or regular, market, auto insurers are free to select policyholders.

Motorists can also obtain auto insurance from the nonstandard portion of the private market. The nonstandard market is a niche market for drivers who have a worse than average driving record or drive specialized vehicles such as high-powered sports cars or custom-built cars. It is made up of both small specialty companies, whose only business is the nonstandard market, and well-known auto insurance companies with nonstandard divisions. AM Best estimates that the nonstandard auto market generated $16.9 billion in direct premiums in 2019. The market consists of about 130 mostly small- to medium-sized insurers whose nonstandard auto premiums account for more than 50 percent of their total net premiums written.

Insured Vehicles

In 2015, 203 million private passenger vehicles were insured in the United States excluding Texas, up from 198 million in 2014, according to latest data available from AIPSO. The figures include cars insured by private auto insurers in the voluntary market as well as those insured in the so-called shared or residual markets set up by states to cover hard-to-insure risks. In 2015 California had the most insured private passenger cars (26.3 million), followed by Florida (12.7 million) and New York (9.6 million), including vehicles in the voluntary and residual markets.

Collision losses

The chart below shows the claim frequency and average loss payment per claim and average loss payment per insured vehicle year under collision coverage for recent model vehicles. The claim frequency is expressed as a rate per 100 insured vehicle years. A vehicle year is equal to 365 days of insurance coverage for a single vehicle.

Passenger Vehicle Collision Coverage Insurance Losses, 2017-2019 Model Years

 

  Claim frequency (1) Claim severity Overall loss (2)
Passenger cars  8.4 $6,305 $527
Pickups 6.2 6,463 398
SUVs 6.5 6,384 414
All passenger vehicles (3) 7.2 $6,360 $457

(1) Per 100 insured vehicle years.
(2) Represents the average loss payment per insured vehicle year.
(3) Includes claims from cargo/passenger vans.

Source: Highway Loss Data Institute.

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Consumer prices

The Bureau of Labor Statistics consumer price index (CPI) tracks changes in the prices paid by consumers for a representative basket of goods and services. The cost of living (all items) rose 1.2 percent in 2020. The cost of motor vehicle insurance declined significantly, down 4.6 percent, as insurers nationwide returned over $14 billion to their customers in response to reduced driving during the Covid-19 pandemic. The cost of tenants and household insurance declined slightly, down 0.5. percent. Hospital services rose faster than overall inflation, up 4.2 percent, and total medical care rose 4.1 percent.

Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2011-2020

(Base: 1982-84=100)

  Cost of living (all items) Motor vehicle insurance Medical care items Physicians' services Hospital services (1)
Year Index Percent change Index Percent change Index Percent change Index Percent change Index Percent change
2011 224.9 3.2% 388.7 3.6% 400.3 3.0% 340.3 2.7% 241.2 6.2%
2012 229.6 2.1 402.5 3.6 414.9 3.7 347.3 2.1 253.6 5.1
2013 233.0 1.5 419.4 4.2 425.1 2.5 354.2 2.0 265.4 4.7
2014 236.7 1.6 437.2 4.2 435.3 2.4 359.1 1.4 278.8 5.0
2015 237.0 0.1 460.6 5.4 446.8 2.6 366.1 1.9 290.1 4.1
2016 240.0 1.3 489.1 6.2 463.7 3.8 378.1 3.3 303.3 4.5
2017 245.1 2.1 526.9 7.7 475.3 2.5 380.1 0.5 318.2 4.9
2018 251.1 2.4 566.0 7.4 484.7 2.0 380.5 0.1 332.2 4.4
2019 255.7 1.8 571.0 0.9 498.4 2.8 383.2 0.7 338.8 2.0
2020 258.8 1.2 544.6 -4.6 518.9 4.1 389.9 1.7 353.0 4.2
Percent change,
2011-2020
  15.1%   40.1%   29.6%   14.6%   46.3%

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Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2011-2020 (Cont'd)

(Base: 1982-84=100)

  Motor vehicle body work New vehicles New cars New trucks (2)
Year Index Percent change Index Percent change Index Percent change Index Percent change
2011 259.9 2.2% 141.9 2.8% 142.2 3.0% 146.5 2.7%
2012 264.9 1.9 144.2 1.7 144.2 1.4 149.4 1.9
2013 271.0 2.3 145.8 1.1 144.9 0.5 151.8 1.6
2014 278.0 2.6 146.3 0.3 144.5 -0.3 153.6 1.1
2015 280.8 1.0 147.1 0.6 144.4 -0.1 155.4 1.2
2016 287.6 2.4 147.4 0.2 143.7 -0.5 156.4 0.6
2017 294.5 2.4 147.0 -0.2 142.7 -0.7 156.6 0.1
2018 302.7 2.8 146.3 -0.5 142.0 -0.5 155.8 -0.5
2019 313.5 3.5 146.8 0.4 142.8 0.6 156.3 0.3
2020 324.7 3.6 147.6 0.5 144.0 0.8 157.1 0.5
Percent change,
2011-2020
  24.9%   4.0%   1.2%   7.2%

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Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2011-2020 (Cont'd)

(Base: 1982-84=100)

  Used cars and trucks Tenants and
household insurance (3), (4)
Repair of
household items (3), (5)
Legal services Existing single-
family homes
Year Index Percent change Index Percent change Index Percent change Index Percent change Median price ($000) Percent change
2011 149.0 4.1% 127.4 1.4% NA NA 297.4 3.2% $166 -4.0%
2012 150.3 0.9 131.3 3.1 198.7 NA 303.5 2.0 177 6.5
2013 149.9 -0.3 135.4 3.1 206.7 4.0% 311.8 2.8 197 11.4
2014 149.1 -0.5 141.9 4.8 212.4 2.8 318.5 2.1 208 5.7
2015 147.1 -1.3 146.4 3.2 220.1 3.6 323.6 1.6 224 7.5
2016 143.5 -2.5 147.7 0.9 226.3 2.8 334.5 3.4 236 5.2
2017 138.3 -3.6 148.8 0.7 239.3 5.8 346.4 3.6 247 4.7
2018 138.4 0.1 150.7 1.3 253.7 6.0 361.2 4.3 259 4.9
2019 139.8 1.0 151.8 0.7 268.7 5.9 364.8 1.0 272 5.0
2020 144.2 3.2 151.1 -0.5 270.0 0.5 368.721 1.1 NA NA
Percent change,
2011-2020
  -3.2%   18.6%   35.9% (6)   24.0%   NA

(1) December 1996=100.
(2) December 1983=100.
(3) December 1997=100.
(4) Only includes insurance covering rental properties.
(5) Includes appliances, reupholstery and inside home maintenance.
(6) 2012-2020.

Note: Percent changes are calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

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