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ferrantraite/Getty Images June 28, 2022 June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies. Maggie Kempken is an insurance editor for Bankrate. She helps manage the creation of insurance content that meets the highest quality standards for accuracy and clarity to help Bankrate readers navigate complex information about home, auto and life insurance. She also focuses on ensuring that Bankrate’s insurance content represents and adheres to the Bankrate brand. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Like it or not, auto insurance is a fact of life. The average American . Nearly 215 million drivers carry car insurance in the U.S, and the industry as a whole is worth about $316 billion as of 2022, according to . Key auto insurance statistics
Info The average auto insurance premium is $1,771 per year, or about $148 per month. About is spent on auto insurance. Auto insurance rates are on the rise. According to the NAIC, was observed between 2017 and 2018, and a 1% increase from 2018 to 2019. Nearly 215 million drivers carry car insurance in the U.S., according to . 6% of drivers on the road are uninsured, according to the Insurance Research Council. The auto insurance industry is worth about $316 billion, as of 2022 data from . Motor vehicle crashes cost almost $1 trillion in losses a year, according to . 10 million or more crashes go unreported each year, according to the NHTSA. What impacts auto insurance rates
Bankrate’s study of the in the U.S. shows a rate of $1,771 per year for full coverage, accounting for about 2.57% of the average U.S. annual household income. Based on the report: If your decreases from good to poor, your premium can increase by $1,231 for an average annual premium of $3,002. A speeding ticket can increase your premium by $367 for a total average premium of $2,138 per year. If you cause a , your annual insurance premium can increase by $750, for a total full coverage policy cost of $2,521 per year. A can cost you $178 a year, for an average annual premium of $1,949. A can increase your annual full coverage policy premium by $1,650, for a total policy cost of $3,421 per year. If you add a to your policy, expect to add an average of $2,081 to your policy premium, for a total annual premium of $3,852. What types of auto insurance claims are filed
The four categories of auto insurance claims are , , and . Bodily injury and property damage claims are about liability or the policyholder’s responsibility to others for property damage or bodily injury. Collision and comprehensive cover damage and theft to the policyholder’s car. Which auto insurance claims are most expensive
Unsurprisingly, bodily injury claims are the most expensive, at an average of $16,260 per loss, followed by property damage at $3,729, collision at $3,278, and comprehensive at least expensive at $1,690. 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 Average $16,543 $3,661 $3,278 $1,690 Source: Triple-I Which auto insurance claims are most common
From a frequency standpoint, collision claims are most commonly filed, at an average of 5.8 claims per 100 years of insured coverage on a vehicle. The second most frequent claims are property damage at 3.7, comprehensive at 2.8, and, least frequent, bodily injury at .95 claims per 100 car years. Frequency of auto insurance claims by type
Year Bodily injury Property damage Collision Comprehensive 2010 0.91 3.53 5.69 2.62 2011 0.92 3.56 5.75 2.79 2012 0.95 3.50 5.57 2.62 2013 0.95 3.55 5.71 2.57 2014 0.97 3.41 5.93 2.79 2015 0.89 3.45 6.01 2.72 2016 0.95 3.45 6.13 2.76 2017 1 3.45 6.14 2.86 2018 1.02 3.33 6.13 3.02 2019 1.01 3.27 6.07 3.23 2020 4.63 $3,588 2.94 $1,995 Average 0.95 3.36 5.80 2.81 Source: Triple-I Why do people get in collisions
Car insurance claims are commonly the result of several factors, as indicated by the Triple-I: Risk factors in 2019 fatal crashes
Risk factor Number of fatal crashes Percentage of fatal crashes Speeding or racing 8,746 17.2% , drugs, or medication 5,164 10.1% 3,008 5.9% , asleep, fatigued, ill or blacked out 1,240 2.4% No reason reported 9,196 18.1 Unknown 15,423 30.0 Source: How common are collisions
Furthermore, the Insurance Research Council (IRC) reports that 79% of all claimed economic losses in auto claims in 2017 covered a multitude of medical expenses. On the bright side, data indicates the number of injuries is gradually declining over time. Total Crashes Fatal Crashes Injury Crashes Property Damage Only Crashes 2017 6,452,000 34,247 1,889,000 4,530,000 2018 6,735,000 33,919 1,894,000 4,807,000 2019 6,756,000 33,224 1,916,000 4,806,000 Who pays for insurance claims
Numbers like these raise the question of who is paying for these losses, especially when considering the issue from an insurance perspective. Data from the NHTSA suggests that it is not an even split. Who pays for insurance claims
Responsible Party Percentage of all motor vehicle crash costs Private insurers 50% Individual crash victims 26% Third parties, charities, and health care providers 14% Federal revenues 6% State and local municipalities 3% Source: NHTSA With insurance providers covering the bulk of these expenses, U.S. drivers have seen insurance premiums slowly creep up in keeping with the ongoing costs associated with these accidents. This is evident with historical data from the Triple-I below and a glimpse at rates from this year. Average annual cost of auto insurance
Year Percent change, year-to-year 2009 -0.5% 2010 0.3% 2011 0.7% 2012 2.2% 2013 3.5% 2014 3.4% 2015 3.1% 2016 5.4% 2017 6.7% 2018 5.0% 2019 1.0% Source: Triple-I According to rate data from Quadrant Information Services, today, in 2022, the average cost of car insurance is $1,771 per year for full coverage. Percentage of uninsured drivers by state
Insurance premiums can vary from state to state for several reasons, but one major factor that often contributes to auto insurance costs is . The IRC credits the as a leading reason for uninsured drivers. The Financial Responsibility and Insurance Committee of the American Association of Motor Vehicle Administrators reports that either cannot afford insurance or do not have a vehicle that is operable or in use. An accident with an uninsured driver can be especially detrimental because of the potential unaffordability of out-of-pocket costs for repairs, injuries or damages. Yet, uninsured drivers are prevalent throughout the U.S. According to the , about one in eight drivers were uninsured in 2019. About 20% of were uninsured in 2019, , although the highest percentage is observed in Mississippi — nearly 30% of drivers in this state are uninsured. Auto insurance costs by state
Auto insurance is required for drivers in 48 states and Washington, D.C. New Hampshire and Virginia are the only states without compulsory insurance liability law, although drivers in both states must meet other requirements to drive legally. Where you live has a significant impact on what you will pay for car insurance. The table below shows average annual by state for full coverage. Based on average annual full coverage rates, Maine and Ohio fall well below the national average. Comparatively, Florida, New York and Louisiana tend to see the highest rates. Average annual full coverage rates by state
State Average annual cost $1,760 $1,770 $1,743 $1,806 $2,190 $2,019 $1,533 $1,963 $2,762 $1,985 $1,206 $1,065 $1,548 $1,242 $1,254 $1,802 $1,954 $2,864 $876 $1,931 $1,296 $2,345 $1,692 $1,701 $1,861 $1,795 $1,538 $2,426 $1,182 $1,891 $1,489 $2,996 $1,392 $1,225 $1,200 $1,902 $1,371 $2,002 $1,847 $1,464 $1,542 $1,383 $1,868 $1,449 $1,000 $1,340 $1,313 $1,948 $1,527 $1,249 $1,510 Source: Most expensive states for auto insurance
New York has the highest premiums among the costliest states in Bankrate’s report, with an average annual cost of $2,996 per year for full coverage. Car insurance rates within New York City are even higher, with an average premium of $3,180 per year. Rank State Average annual premium 1. New York $2,996 2. Louisiana $2,864 3. Florida $2,762 4. Nevada $2,426 5. Michigan $2,345 Least expensive states for auto insurance
Some states offer more affordable average annual rates for full coverage car insurance. Maine has the cheapest average premium at $876 per year, followed closely by Vermont, Idaho, New Hampshire and Ohio. Rank State Average annual premium 50. Maine $876 49. Vermont $1,000 48. Idaho $1,065 47. New Hampshire $1,182 46. Ohio $1,200 Auto insurance industry statistics
Given various risk factors and average annual claim costs, you might wonder what the impact is to auto insurance providers. These statistics reflect the state of the auto insurance industry: Info The CDC reports that 2017 costs for medical care and productivity losses accounted for almost $75 billion. Between 2008 and 2017, by 31% for bodily injury claims and 26% for personal injury protection (PIP) no-fault claims. According to the NAIC’s 2018/2019 Auto Insurance Database report, there were 2.83 vehicle thefts for every 1,000 vehicles, down from 2.93 thefts for every 1,000 vehicles in the previous year. When determining rates for comprehensive coverage, car thefts are an important consideration for insurance providers. IBISWorld found that the market size of the car insurance industry has grown every year by 2.3% since 2017. The growth of the insurance industry has been faster than the sectors of advisory and financial services, as reported by IBISWorld. Insurance market trends millions
2017 2018 2019 Direct property and casualty insurers 467,724 460,038 466,170 Source: Some car insurance companies are more popular than others due to market share and availability, competitive rates or higher customer satisfaction. According to the Triple-I, companies like State Farm, Berkshire Hathaway (parent company of and others), and Progressive all represent the most significant market share, with Allstate and USAA in close pursuit. Largest auto insurance providers by market share
Rank Company Direct premiums written Market share 1. $41,665,754 16.00% 2. Berkshire Hathaway Inc. 37,422,558 14.4 3. 35,852,921 13.8 4. 27,221,928 10.4 5. 15,738,749 6 6. 13,257,306 5.1 7. 12,441,182 4.8 8. 5,565,737 2.1 9. 5,488,677 2.1 10. 5,328,115 2 Source: Auto insurance statistics by age
Age has historically been one of the most significant that car insurance providers use to determine insurance costs, although Massachusetts and Hawaii do not allow age to be used as a rating factor. Research continues to show that age is a driving factor in many fatalities, losses and damages associated with motor vehicle accidents. Below are common statistics associated with : Teen drivers are three times more likely than older drivers to get into a fatal car accident. Factors include inexperience behind the wheel, distracted driving, lack of seatbelt use and risky behaviors behind the wheel. Handheld cell phone use is highest among drivers aged 16 to 24. Teen drivers typically face more expensive premiums to offset the higher risk. The crash risk for 16-year-old drivers was almost 1.5 times higher than the rate for 18-19 year old drivers, according to the . Although the legal drinking age is 21 years of age, the CDC reported that in 2019, 24% of young drivers aged 15-20 years old who were killed in fatal car accidents had a BAC of .08 or higher, which is illegal even for adults over 21. Although car insurance premiums generally trend cheaper as drivers get older, typically see an increase due to age-related factors like decreased vision and delayed reaction time. Auto insurance statistics by gender
Auto insurance premiums can also be affected by gender. Not all states can use your gender when calculating insurance rates, however. In states like California, Hawaii, Massachusetts, North Carolina, Pennsylvania and Michigan, it is illegal for auto insurance companies to use your gender as a factor when determining your insurance rates. However, research shows that gender can be a predictor of driver behavior. Men tend to engage in riskier behaviors behind the wheel than women, according to . Men are typically involved in more motor accidents than women. Accidents involving male drivers tend to be more serious than accidents with female drivers. Speeding is a factor in involving male drivers between 15 and 25. Men in every age group were involved in more accidents compared to the same group of women, as shown in IIHS data. Male drivers with higher blood alcohol concentrations (BACs) were involved in more accidents with fatally injured passengers compared to female drivers. can be costly, but it is even more so for male 16-year-old drivers, who pay about $500 more than their female counterparts. Even as male drivers get older, they still have marginally higher car insurance premiums than women, on average, as shown below. Average annual full coverage premium by gender and age
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 *Young driver on their parents’ car insurance policy. Source: Experts suggest that one of the best things you can do is to obtain affordable car insurance. Each car insurance company may have different coverage and discounts options for your policy that can save you quite a bit on your premium each month. SHARE: June Sham is an insurance writer for Bankrate. Before joining the team, she worked for nearly three years as a licensed producer writing auto, property, umbrella and earthquake policies. Maggie Kempken is an insurance editor for Bankrate. She helps manage the creation of insurance content that meets the highest quality standards for accuracy and clarity to help Bankrate readers navigate complex information about home, auto and life insurance. She also focuses on ensuring that Bankrate’s insurance content represents and adheres to the Bankrate brand. Related Articles