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Last updated: September 18, 2024

Auto Insurance Statistics and Facts

Louisiana had the highest annual car insurance costs in 2020, with rates reaching nearly $1,500.

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In all states except Virginia and New Hampshire, car insurance is a necessity for driving on public roads. Americans spent an average of $1,047 on car insurance in 2020, with rates ranging from only $692 in North Dakota up to $1,495 in Louisiana. Here are the most recent statistics you need to know about auto insurance in the United States.

The Cost of Auto Insurance in the U.S.

The good news: National average car insurance costs decreased from 2019 to 2020, the first decrease since 2011.

By Year

After multiple years of significant increases, car insurance premiums were finally on the decline in 2020, according to the most recent data available from the National Association of Insurance Commissioners (NAIC).1

Average expenditure for auto insurance

In 2020, car insurance in the U.S. cost $1,047 on average. Data for 2021 and 2022 is not yet available.

By State

While Louisiana and New York had the highest car insurance rates in 2020, North Dakota and Maine had the lowest. Learn how to get cheap car insurance in New York.

State Average annual expenditure on car insurance, 2020
Alabama $918
Alaska $970
Arizona $1,042
Arkansas $879
California $1,050
Colorado $1,172
Connecticut $1,229
Delaware $1,252
Florida $1,372
Georgia $1,255
Hawaii $810
Idaho $724
Illinois $915
Indiana $766
Iowa $708
Kansas $793
Kentucky $909
Louisiana $1,495
Maine $704
Maryland $1,201
Massachusetts $1,170
Michigan $1,419
Minnesota $881
Mississippi $979
Missouri $909
Montana $834
Nebraska $796
Nevada $1,247
New Hampshire $848
New Jersey $1,334
New Mexico $905
New York $1,436
North Carolina $753
North Dakota $692
Ohio $781
Oklahoma $888
Oregon $952
Pennsylvania $969
Rhode Island $1,391
South Carolina $1,113
South Dakota $739
Tennessee $854
Texas $1,085
Utah $937
Vermont $786
Virginia $846
Washington $1,035
Washington, D.C. $1,415
West Virginia $915
Wisconsin $753
Wyoming $770
Countrywide $1,047

By Carrier

On average, the cheapest company for car insurance in 2023 is Metromile, with average annual car insurance premiums of only $662. Metromile is a pay-per-mile insurance company, much like the second cheapest, Root. Metromile claims that on average, its drivers save 47 percent on premiums, but this type of insurance is only a good option for low-mileage drivers.

Company Average annual cost of car insurance, 2023
Metromile $662
Root $829
Erie $1,084
Clearcover $1,119
USAA $1,151
GEICO $1,194
Safeco $1,373
Gainsco $1,389
Concord $1,396
American Family Insurance Group $1,400
State Farm $1,419
Progressive $1,508
Plymouth Rock $1,513
AARP (The Hartford) $1,520
Lemonade $1,590
Nationwide $1,614
Travelers $1,620
Liberty Mutual $1,637
Kemper $1,661
Allstate $1,673
Amica $1,688
Mercury $1,706
GMAC (National General Insurance) $1,714
Esurance $1,724
Farmers $1,878
AAA $1,903
Good2Go $2,040
Dairyland $2,105
21st Century $2,112
The General $2,418
Direct $2,487
Foremost $2,897
Infinity $2,908
Bristol West $2,910

By Age

Teen drivers have the highest auto insurance costs due to their lack of driving experience and, thus, their propensity to have insurance claims. Rates tend to decline with age, as young drivers gain more experience behind the wheel.

Age Average annual auto insurance rates, 2023
16 $4,368
17 $3,925
18 $3,953
19 $2,758
20 $2,931
21 $1,910
22 $1,670
23 $1,551
24 $1,456
25 $1,728
26 $1,688
27 $1,664
28 $1,648
29 $1,630
30 $1,716
31 $1,548
32 $1,546
33 $1,540
34 $1,540
35 $1,449
36 $1,520
37 $1,518
38 $1,514
39 $1,514
40 $1,710
45 $1,366
50 $1,489
55 $1,276
60 $1,425
65 $1,321
70 $1,584
75 $1,887
80 $1,933
85 $2,416

Learn about car insurance discounts for teens you can use to save money.

By Vehicle Type

According to a 2022 study from AAA, the cheapest type of vehicle to insure is a compact SUV with front-wheel drive (FWD). Medium-sized sedans are most expensive to insure due to poor safety ratings.2

Vehicle type Average annual cost of full coverage car insurance, 2022
Compact SUV (FWD) $1,515
Subcompact SUV $1,527
Medium SUV (4WD) $1,529
Midsize pickup $1,537
Small sedan $1,618
Hybrid vehicle $1,619
Electric vehicle (EV) $1,619
1/2 ton/crew cab pickup $1,630
Medium sedan $1,694
2022 weighted average $1,588

By Gender

Is it a myth that men pay more for car insurance than women? Unfortunately for males, the answer is no. Generally, men have higher insurance rates because they are more likely to get into accidents and file claims than women.

Average annual cost of car insurance

By Coverage Type

Liability coverage, composed of bodily injury and property damage coverage, is required in most states and accounts for the bulk of most people’s premiums, much more than collision/comprehensive coverage. Here are the NAIC averages nationwide.

Coverage Average annual cost of car insurance, 2020
Liability coverage $613
Collision coverage $371
Comprehensive coverage $174

Premiums vs. Household Income

As of 2018, Iowa and North Dakota residents spent the least on car insurance when compared to their income while Louisiana and Florida residents spent the most.3

State Car insurance expenditures as share of income, 2018
Iowa 1%
North Dakota 1%
Hawaii 1%
New Hampshire 1%
Virginia 1%
Vermont 1%
Maine 1%
Nebraska 1%
Wisconsin 1%
South Dakota 1%
Minnesota 1%
Utah 1%
Wyoming 1%
Idaho 1%
Kansas 1%
Indiana 1%
Ohio 1%
Washington 1%
Illinois 1%
Massachusetts 1%
North Carolina 1%
Alaska 1%
Maryland 1%
Oregon 1%
Montana 1%
California 1%
Missouri 1%
Tennessee 2%
Pennsylvania 2%
Colorado 2%
Washington, D.C. 2%
Connecticut 2%
Arizona 2%
Oklahoma 2%
Kentucky 2%
Arkansas 2%
Alabama 2%
West Virginia 2%
New Jersey 2%
New Mexico 2%
South Carolina 2%
Texas 2%
Delaware 2%
Nevada 2%
New York 2%
Rhode Island 2%
Georgia 2%
Mississippi 2%
Michigan 2%
Florida 3%
Louisiana 3%

Why are the average costs of car insurance in Florida and Louisiana so high? Part of the reason may be the frequency of hurricanes in these states, the damage of which comprehensive coverage is responsible for covering. Comprehensive coverage applies to all the insured’s property damages from events other than collisions, including inclement weather, theft, vandalism, etc.

Car Insurance vs. Other Expenses

According to the U.S. Bureau of Labor Statistics’ (BLS’s) Consumer Price Index, the cost of medical care is the expenditure that’s increased the most in the past decade, not the cost of car insurance.4 However, the two are related, as car insurance covers claims related to bodily injuries. The below chart shows weighted representations of price changes compared to prices in the U.S. from 1982 to 1984 (represented as 100). Therefore, a data point of 147 means that the category increased by 47 percent in price since the early 1980s.

Consumer price index for urban U.S. consumers, annual averages Private passenger auto insurance Food Housing Apparel Transportation Medical Care Recreation Education and communication
2013 147 237 227 127 217 425 115 136
2014 150 243 233 128 216 435 116 138
2015 155 247 238 126 199 447 116 138
2016 162 248 244 126 195 464 117 139
2017 172 250 251 126 202 475 118 137
2018 180 254 258 126 211 485 119 137
2019 183 258 266 124 210 498 121 138
2020 185 267 272 118 202 519 122 140
2021 180 278 281 121 231 525 125 143
2022 188 305 301 127 266 547 131 144
January 2023 197 320 314 129 263 552 134 145

Factors That Affect Rates

Take the average costs highlighted above with a grain of salt as there are many other factors that affect car insurance rates. These include:

  • Deductible amounts
  • Vehicle make, model and year
  • Mileage
  • Mailing address
  • Driving record
  • Credit scores in every state except Michigan, Massachusetts, Hawaii and California
  • Homeownership status

Is Car Insurance Affordable?

For many, car insurance is affordable, especially if the customer:

  • Has good credit
  • Has a clean driving record
  • Lives in a state like North Dakota where average costs of car insurance are low
  • Is married
  • Owns a home
  • Has high deductibles
  • Has good credit
  • Lives in a suburban or rural area
  • Has a vehicle with high safety ratings
  • Has no gaps in insurance
  • Is a woman
  • Is over the age of 25
  • Does not have a teen driver on their policy
  • Stores their vehicle in a garage

However, your car insurance will be expensive if you:

  • Have bad credit in states that allow companies to use credit scores when determining rates
  • Rent your home
  • Have a bad driving record with at-fault accidents, tickets, and/or DUIs
  • Require an SR-22
  • Have a lapse in coverage
  • Live in a state where insurance is expensive, on average
  • Live in a city with high rates of auto theft and car vandalism
  • Are single, divorced or widowed
  • Are a teen driver or someone with no driving history
  • Have a vehicle with poor safety ratings
  • Have high mileage
  • Don’t garage your car and instead park it on the street

If you can’t find rates you can afford, check out our recommendations for the best cheap auto insurance.

Claims

Here are the most important, up-to-date statistics surrounding auto insurance claims.

Types of Claims Filed

In 2021, insurance customers filed collision claims the most, according to the latest data from the Insurance Services Office, a subsidiary of Verisk Analytics. Collision insurance pays for the insured’s property damage, whether they caused it. However, the most severe claims that year were bodily injury claims, meaning they had the highest number of incurred losses per claim.

Claim type Claim frequency in 2021 (incurred claims times 100 earned exposures) Claim severity in 2021 (incurred losses divided by incurred claims)
Bodily injury 0.78 22,734
Property damage 2.28 5,314
Collision 4.2 5,010
Comprehensive 3.15 2,042

Losses

When insurance companies pay out claims, they lose money (ideally for them, the amount is less than they collected in premiums). Let’s take a look at how much money insurance companies lost in 2021.

Incurred Losses

Private auto insurance companies lost nearly $170 billion in 2021, 57 percent of which was due to liability claims and 43 percent of which was due to physical damage, meaning collision or comprehensive claims.

Private passenger auto incurred losses Liability Physical damage Total
2021 $96,104,094 $73,846,463 $169,950,557

Collision Losses

Most collision claims involve passenger cars, although accidents with SUVs are the most severe. Across all types of passenger vehicles, insurance companies lose an average of $447 a year per insured vehicle.

Collision coverage insurance losses by vehicle, 2019-2021 model years Claim frequency per 100 insured vehicle years Claim severity Average loss payment per insured vehicle year
Passenger cars 7.1 7,556 $535
Pickups 5.5 7,571 $413
SUVs 5.3 7,591 $405
All passenger vehicles 5.9 7,579 $447

Loss Ratios by Year

Loss ratios are incurred losses times 100, divided by earned premiums. In 2019, bodily injury claims had the highest loss ratio of 77, meaning companies lost 77 percent of their bodily injury premium earnings.

Loss ratios by coverage, total business nationwide 2017 2018 2019
Bodily injury liability 77 75 77
Physical damage liability 76 73 74
Personal injury protection 78 75 74
Medical payments 72 71 72
Uninsured/underinsured motorist 5 5 5
Collision 68 68 69
Comprehensive 83 71 72

For 2017-2019, the car insurance coverage with the best loss ratio was uninsured/underinsured motorist coverage, which covers accidents with people driving who have no or insufficient insurance. These types of claims are much less common than regular liability claims, as most people who drive have car insurance (although not all, as we’ll see below).

Loss Ratios by State

No wonder car insurance rates in Florida, New Jersey and New York are so high — these states have the highest bodily injury loss ratios of any state in the U.S., with ratios of 96, 94 and 94, respectively. Read more about no-fault auto insurance in Florida.

Loss ratios by state in 2019, total business Bodily injury liability Physical damage liability Personal injury protection (PIP) Medical payments Uninsured/underinsured motorist Collision Comprehensive
Alabama 74 76 N/A 58 0 68 67
Alaska 80 74 N/A 77 11 65 62
Arizona 75 74 N/A 64 0 77 78
Arkansas 70 73 0 77 25 71 62
Colorado 73 65 N/A 72 2 64 69
Colorado 77 78 N/A 70 1 81 87
Connecticut 73 81 87 68 0 68 72
Delaware 87 81 72 30 10 78 78
Florida 96 73 75 78 0 71 67
Georgia 83 73 N/A 74 12 66 66
Hawaii 58 88 59 73 0 74 55
Idaho 70 75 N/A 65 2 69 65
Illinois 71 83 0 71 2 73 83
Indiana 68 77 N/A 76 14 74 71
Iowa 67 79 0 72 0 76 70
Kansas 76 74 62 85 0 75 71
Kentucky 78 79 69 65 0 70 64
Louisiana 76 73 N/A 72 1 67 68
Maine 80 85 N/A 69 0 67 77
Maryland 86 77 72 81 23 72 72
Massachusetts 55 69 63 N/A N/A 59 61
Michigan 62 46 78 26 0 76 82
Minnesota 62 82 69 69 0 80 86
Mississippi 78 76 N/A 72 22 71 65
Missouri 74 75 N/A 71 0 80 65
Montana 68 77 N/A 64 1 78 113
Nebraska 59 81 N/A 66 0 79 91
Nevada 81 76 N/A 72 0 74 63
New Hampshire 74 81 N/A 65 1 68 66
New Jersey 94 78 62 106 5 71 72
New Mexico 65 68 N/A 69 15 77 66
New York 94 82 86 76 0 71 73
North Carolina 86 94 N/A 75 6 65 76
North Dakota 57 80 63 533 0 71 78
Ohio 67 76 N/A 80 2 69 76
Oklahoma 65 76 N/A 61 0 76 54
Oregon 69 76 62 95 9 72 73
Pennsylvania 74 76 67 26 0 72 89
Rhode Island 74 87 N/A 84 9 71 83
South Carolina 73 77 N/A 69 11 70 63
South Dakota 56 84 0 64 0 84 73
Tennessee 72 78 N/A 65 27 74 64
Texas 76 63 64 52 0 61 66
Utah 78 76 65 153 1 76 68
Vermont 65 79 N/A 66 17 63 68
Virginia 78 79 N/A 70 16 70 74
Washington 59 73 81 87 16 72 67
Washington, D.C. 80 74 77 59 36 74 65
West Virginia 73 75 N/A 70 8 67 75
Wisconsin 66 80 0 69 1 77 73
Wyoming 78 75 N/A 77 0 74 119
Nationwide 77 74 74 72 5 69 72

Industry Statistics

Let’s zoom out and take a look at the auto insurance industry as a whole.

Market Share

In terms of direct premiums written, State Farm is the largest car insurance provider in the U.S. As of 2022, it held 16 percent of the market share, followed by GEICO and Progressive, which held 14 percent each.

Company name Number of direct premiums written, 2022
State Farm 41,665,754,230
Berkshire Hathaway (GEICO) 37,422,557,592
Progressive 35,852,921,113
Allstate 27,221,928,278
USAA 15,731,646,068
Liberty Mutual 12,774,289,952
Farmers 12,441,182,108
Nationwide 5,565,737,353
American Family 5,488,676,661
Travelers 5,328,114,931
Kemper 4,084,493,187
Auto Club 3,724,620,422
Erie 3,384,615,752
Auto Owners 3,328,108,487
CSAA 2,905,119,316
Mercury 2,613,420,137
Hartford 1,864,696,499
Automobile Club 1,798,242,315
MAPFRE 1,302,753,084
The Hanover 1,264,350,218
Sentry 1,235,209,587
Country 1,209,560,632
Amica 1,173,901,381
New Jersey Manufacturers Group 1,070,343,924
Southern Farm Bureau 1,070,294,201
Industry total 261,593,847,230

Segments

Marketing, or lead generation, is a huge component of the car insurance industry. Insurers market their services to different segments of the population. According to Equifax’s Data-Driven Marketing service, 87 percent of U.S. households are “attractive auto insurance prospects” based on their financial and credit data. However, only 1 percent are optimum or “preferred” customers who are more likely to have lower loss ratios. Similarly, only 14 percent have a higher than average “lifetime value” based on their credit reports, ages and incomes.

Segment title Percent of U.S. households
Auto insurance target 87%
Life stage changes leading to new auto insurance 75%
Multiple policy prospects 29%
Likely to respond to auto insurance offer 17%
High lifetime value households 14%
Millennials ― multiple insurance policy prospects 11%
Optimum auto insurance target 1%

For three-quarters of U.S. households, life events and changes in credit profiles lead them to get new car insurance, like when adding a teen driver to a policy or moving.5

The Future of Car Insurance

Where is car insurance headed? According to multiple reports from McKinsey, the future of car insurance will be greatly affected by autonomous vehicles, artificial intelligence (AI) and EVs.

  • Self-driving cars: While drivers will still be held responsible for losses they cause when they’re in control of a vehicle, when a vehicle is in autonomous mode, the liability will shift to the manufacturer. Learn more about insurance for self-driving cars.
  • AI: AI is taking over industries all over the world and car insurance is no exception. With cameras built into cars, AI can determine if an accident requires repairs, how to handle claims and which towing and repair companies to use.6
  • EVs: Given U.S. President Joe Biden’s target of having half of all new cars sold be EVs by 2030, EVs will replace internal-combustion-engine (ICE) vehicles in terms of the types of cars insured.

Uninsured Drivers by State

Driving without insurance is illegal in 48 states and Washington, D.C. Despite that, nearly a third of drivers in Mississippi chose to ignore the law and drive uninsured in 2019. On the other end of the spectrum, only 3 percent of New Jersey drivers were without insurance that year, possibly due to the state’s low minimum insurance requirements — only $5,000 of property damage liability and $15,000 of medical payments coverage.7

State Estimated percentage of uninsured drivers, 2019
Alabama 20%
Alaska 16%
Arizona 12%
Arkansas 19%
California 17%
Colorado 16%
Connecticut 6%
Delaware 9%
Florida 20%
Georgia 12%
Hawaii 9%
Idaho 13%
Illinois 12%
Indiana 16%
Iowa 11%
Kansas 11%
Kentucky 14%
Louisiana 12%
Maine 5%
Maryland 14%
Massachusetts 4%
Michigan 26%
Minnesota 10%
Mississippi 29%
Missouri 16%
Montana 9%
Nebraska 9%
Nevada 10%
New Hampshire 6%
New Jersey 3%
New Mexico 22%
New York 4%
North Carolina 7%
North Dakota 13%
Ohio 13%
Oklahoma 13%
Oregon 11%
Pennsylvania 6%
Rhode Island 17%
South Carolina 11%
South Dakota 7%
Tennessee 24%
Texas 8%
Utah 7%
Vermont 9%
Virginia 11%
Washington 22%
Washington, D.C. 19%
West Virginia 9%
Wisconsin 13%
Wyoming 6%
Average 12%

Conclusion

Although from 2019 to 2020, the average cost of auto insurance decreased for the first time since 2011, we expect insurance rates to increase in a post-pandemic world thanks to the rise of inflation and, thus, higher gas prices, repair prices and car prices — all of which can affect the cost of insurance. Explore more of our auto insurance research or read our frequently asked questions below for even more information.

Methodology

To compile this report, we analyzed data from the following third parties:

  • Experian
  • Insurance Research Council
  • McKinsey
  • NAIC
  • BLS

We also used our proprietary data on auto insurance prices stemming from over 20 years of connecting customers with car insurance providers.

Frequently Asked Questions

What are two important facts about auto insurance?

Two important facts about auto insurance are:

  1. Every state requires auto insurance except New Hampshire and Virginia.
  2. Liability insurance covers the other party’s damages and injuries, not yours or your passengers’. For that, you’d need collision and comprehensive coverage, plus medical payments coverage or personal injury protection, depending on your state’s fault system.

What is the 80/20 rule in car insurance?

The 80/20 rule in car insurance is that the insurance company will pay for 80 percent of your damages while you, the insured, will pay the remaining 20 percent. This agreement lets both parties resolve disputes quickly and without a legal process, saving everyone time and money.

What is the 21-day rule for car insurance?

The 21-day rule for car insurance, a concept popularized by financial journalist Martin Lewis, means that if someone is 21 days from renewing their auto insurance policy, that is the best time for them to obtain a new quote to ensure there is no gap in coverage and get the best prices. Insurance companies will see you as lower risk and thus will give you lower rates.

What is a good rule of thumb for car insurance?

A good rule of thumb for car insurance is having liability limits of 100/300/100, meaning:

  • Bodily injury per person: $100,000
  • Bodily injury per accident: $300,000
  • Property damage per accident: $100,000

Citations

  1. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
    https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf

  2. Your Driving Costs. AAA. (2022).
    https://newsroom.aaa.com/wp-content/uploads/2022/08/2022-YDC-Costs-Break-Out-by-Category.pdf

  3. Auto Insurance Affordability: Countrywide Trends and State Comparisons. Insurance Research Council. (2021, Sep 28).
    https://www.insuranceresearch.org/sites/default/files/news_releases/IRC%20Auto%20Affordability%20Research%20Brief_0.pdf

  4. Economic News Release. (U.S. Bureau of Labor Statistics). (2023, Jan).
    https://www.bls.gov/news.release/cpi.t01.htm

  5. Insurance. Equifax. (2023).
    https://datadrivenmarketing.equifax.com/digital-targeting-segments/insurance/

  6. Connected revolution: The future of US auto insurance. McKinsey & Company. (2022, Sep 15).
    https://www.mckinsey.com/industries/financial-services/our-insights/connected-revolution-the-future-of-us-auto-insurance

  7. Get Legal with New Jersey’s Basic Auto Insurance Policy. State of New Jersey Department of Banking & Insurance. (2023).
    https://www.state.nj.us/dobi/division_consumers/insurance/basicpolicy.shtml