Facts + Statistics: Auto insurance

Costs and expenditures

The countrywide average auto insurance expenditure increased 14.0 percent to $1,282 in 2023 from $1,127 in 2022, according to the National Association of Insurance Commissioners. In 2023 (the latest data available), the average expenditure was highest in Florida ($1,865), followed by Louisiana ($1,754), and New York ($1,753).

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 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.

Your Driving Costs, a 2026 study from AAA, found that the average cost to own and operate a new vehicle was $12,863 in 2026 when it is driven 15,000 miles per year. The average full-coverage insurance cost for all vehicles was $2,098. These cost estimates are based on a full-coverage policy for a driver under 65 years of age with more than six years of driving experience, no record of accidents, and residency in a suburban or urban location.

80 percent of insured drivers purchase comprehensive coverage in addition to liability insurance, and 77 percent buy collision coverage, based on a Triple-I analysis of 2023 NAIC data.

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.

Auto insurance expenditures, by state

The tables below show estimated average expenditures for private passenger automobile insurance by state from 2018 to 2022 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 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.

Auto Insurance Affordability

Premiums

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.

• In 2024, 0.80 percent of people with liability insurance had a bodily injury liability claim, while 2.50 percent of those with liability insurance had a property damage liability claim, according to ISO.

• In 2024, 4.16 percent of collision insurance policyholders had a claim, while 3.95 percent of people with comprehensive coverage had a claim.

• In 2024, the average auto liability claim for property damage was $6,770; the average auto liability claim for bodily injury was $28,278.
• In 2024, the average collision claim was $5,489; the average comprehensive claim was $2,306. 

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.

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.

Consumer prices

To shed light on inflation, the Bureau of Labor Statistics maintains a consumer price index (CPI) which tracks monthly and annual changes in the average prices paid by urban consumers for a representative basket of goods and services. The Consumer Price Index for All Urban Consumers (CPI-U) represents data for 93 percent of the U.S. population not living in remote rural areas, institutions, or on military bases. The CPI-U rose 2.6 percent in 2025. The cost of motor vehicle insurance for these consumers increased 6.0 percent in 2025.