Auto insurance is an essential part of our lives, regardless of whether we like it or not. An average American spends $1,674 per year or $140 per month on auto insurance. According to IBISWorld, nearly 215 million Americans have car insurance. The industry in America is valued at $311 billion.
Important statistics about auto insurance
What is the cost of auto insurance?
- The average premium for auto insurance is $1674 per year, or approximately $140 per month.
- Auto insurance accounts for approximately 2.44% on the average household income.
- The rise in auto insurance rates is a sign of things to come. The NAIC reported that saw a 5% increase between 2017-2018.
- Review42 estimates that nearly 215 million Americans have car insurance.
- According to the Insurance Research Council, 12.6% of motorists are not insured.
- According to 2019 IBISWorld data, the auto insurance industry is valued at $311 billion.
- According to NHTSA 2010, motor vehicle crashes result in nearly $1 trillion in losses per year, data .
- According to the NHTSA, 10 million crashes are not reported each year.
What factors affect auto insurance rates
Bankrate’s study on the average annual cost for auto insurance in America shows that the rate is $1,674 per annum for full coverage. This accounts for approximately 2.44% of the U.S. household income. The following is a report.
- Your premium could increase by $1,351 if your credit score falls. This is an average annual premium of $3,000.
- Speeding tickets can raise your premium by $355, for an average premium of $2,000.29 per year.
- Your insurance premium could increase by $731 if you are in a car accident, which would amount to $2,405 annually.
- An average annual premium of $1861 can result in a $187 loss of coverage.
- DUI convictions can result in a $1662 increase in your policy premium, which could add up to $3,336 per annum.
- You can add a teen driver on average to your policy for an annual premium of $3.5557.
What type of claims can you make against auto insurance?
There are four types of auto insurance claims: bodily Injury; Property Damage; Collision; and Comprehensive. Property damage and bodily injury claims refer to liability, or the policyholder’s responsibility for other people’s property damage or injury. Collision, comprehensive and theft coverages for the policyholder’s vehicle.
What are the most expensive auto insurance claims?
The most costly claim is for bodily injury at $15,862 per loss. Property damage costs $3,630 and collision cost $3,247. Comprehensive insurance costs $1,659.
State-by-state percentage of drivers without insurance
While insurance premiums vary by state, one factor that can often impact auto insurance costs is the number of uninsured motorists. IRC attributes the leading cause of uninsured drivers to the economic downturn. According to the American Association of Motor Vehicle Administrators, 82% of uninsured motorists cannot afford insurance or don’t have a vehicle that can be used.
Uninsured drivers can cause serious injuries, damages and damage. Uninsured drivers are common in the U.S.
The IRC estimates that one eighth of drivers were uninsured in 2014. According to the IRC, about 27% of Florida drivers were not insured in 2015. According to the iii. Mississippi has the highest proportion of uninsured drivers at nearly 30%.
Costs of auto insurance vary by state
Drivers in 49 states require auto insurance. Washington, D.C., is the only other state that does not have a mandatory insurance liability law. New Hampshire is the exception. Drivers who meet the minimum financial requirements in New Hampshire may drive without having to have an active auto policy.
The cost of car insurance will depend on where you live. Below is a table that shows the average car insurance rates per state, for full coverage.
Maine and Ohio are well below the national average based on their average annual rates. Florida, New York, and Louisiana have the highest rates, respectively.
Statistics about auto insurance by age
Car insurance companies have used age to determine their insurance costs for years. Research continues to demonstrate that age plays a significant role in many motor vehicle accident deaths, injuries and damages. Here are some statistics about less-experienced and younger drivers.
- Three times as likely as older drivers is a teenager to be in a fatal car crash. There are many factors that can contribute to teen drivers getting into a fatal car accident, including inexperience behind the wheel and distracted driving.
- Drivers aged 16-24 are the most likely to use a handheld cell phone.
- To offset higher risks, teens drivers are often subject to higher premiums.
Statistics on auto insurance by gender
Gender can have an impact on auto insurance premiums. However, not all states allow you to use your gender in calculating your insurance rates. It is illegal for auto insurers in states like California or Michigan to use your gender when determining your insurance rate.
Research shows that gender is a factor in driver behavior.
- Men tend to engage in riskier behaviors behind the wheel than women, according to Teen drivers car insurance can be expensive, but it is more costly for male drivers (16-year-olds), who typically pay $500 more than their female counterparts. As you can see, male drivers still pay marginally more for car insurance than their female counterparts, even as they get older.Experts recommend that you shop for affordable car insurance and then compare them. You may be able to save quite a bit each month by getting different coverage from your car insurance company.