The auto insurance industry plays a crucial role in protecting drivers, vehicles, and personal finances from unexpected losses. Understanding auto insurance industry statistics is essential for policymakers, insurers, and consumers alike, as it provides insight into premiums, claims, market growth, and regional variations.
In this article, we explore key auto insurance industry statistics, trends, and data that define the global and U.S. auto insurance landscape.
Global Market Size & Growth
Globally, the motor vehicle insurance market is projected to reach $993.43 billion USD in gross written premium by the end of 2025, according to the latest auto insurance industry statistics. According to the forecast, the market is expected to grow at a CAGR of 2.88% between 2025 and 2030, reaching about $1.15 trillion USD by 2030. [1]
On a per‑capita basis, individuals are spending approximately $127.16 USD on motor vehicle insurance in 2025. These figures underline the vast scale and steady growth of the global segment, providing a major opportunity for insurers to expand and adapt. [1]
Despite macroeconomic headwinds, emerging markets (notably India with its increasing vehicle ownership and dense traffic) continue to fuel demand for motor vehicle insurance coverage. [1]
U.S. Market & Premium Expenditure Trends
In the United States, average expenditure per vehicle has steadily climbed. By 2022 the countrywide average auto insurance expenditure had reached $1,127, up 6.1 % from $1,062 in 2021. [2]
At the state level, Florida recorded the highest average expenditure of $1,624.77 in 2022, followed by Louisiana at $1,557.85 and New York at $1,548.58. [2]
These figures highlight that while national averages provide context, state‑specific dynamics matter significantly, for both consumers comparing costs and agencies crafting messaging around savings or policy review. [2]
State‑by‑State Premium & Affordability Variations
Auto insurance industry statistics show that costs vary dramatically across the U.S. In 2022, Florida, Louisiana, and New York topped the list of the most expensive states, while North Dakota, Maine, and Idaho were the cheapest. The share of median household income spent on insurance ranged from 1.02% in Iowa to 3.09% in Louisiana, compared with the U.S. average of 1.67%.
Here’s a closer look at the top 10 most and least expensive states in terms of average annual expenditure: [2]
| Rank | Most Expensive States | Average Expenditure ($) | Rank | Least Expensive States | Average Expenditure ($) |
| 1 | Florida | 1,624.77 | 1 | North Dakota | 728.89 |
| 2 | Louisiana | 1,557.85 | 2 | Maine | 757.65 |
| 3 | New York | 1,548.58 | 3 | Idaho | 772.31 |
| 4 | District of Columbia | 1,501.94 | 4 | Iowa | 776.25 |
| 5 | Rhode Island | 1,428.12 | 5 | Vermont | 793.38 |
| 6 | New Jersey | 1,413.04 | 6 | Wisconsin | 809.42 |
| 7 | Georgia | 1,344.62 | 7 | Indiana | 814.21 |
| 8 | Michigan | 1,319.15 | 8 | South Dakota | 822.14 |
| 9 | Nevada | 1,299.66 | 9 | Ohio | 832.34 |
| 10 | Delaware | 1,296.13 | 10 | North Carolina | 840.24 |
Automobile Insurance Premium Trends & Coverage Insights
Between 2015 and 2024, private passenger car insurance premiums experienced significant growth. Liability coverage increased from about $116.3 billion to $193.4 billion, while collision and comprehensive coverage rose from $76.5 billion to $152.4 billion. [2]
These trends highlight rising repair costs, medical expenses, and litigation payouts, all of which directly impact what drivers pay for their auto policies. The combined ratio for these coverage types also moved, reflecting changing risk and cost structures. This upward movement signals that insurers are absorbing higher repair, medical and litigation costs, which in turn influences what policyholders pay. [2]
Claims Frequency, Severity & Losses
As per the auto insurance industry statistics in 2023, the main figures for auto claims are:
- Bodily injury liability claim frequency: 0.77%, average loss: $26,501
- Property damage liability claim frequency: 2.58%, average loss: $6,551
- Collision claims frequency: 4.54%, average payout: $5,470
- Comprehensive claims frequency: 4.06%, average payout: $2,306
These numbers underline that even infrequent claims can significantly affect cost and underwriting. [2]
Vehicle Type, Consumer Demographics & Risk Segments
Per the latest auto insurance industry statistics, different vehicle types and drivers incur markedly different premiums. For instance, in 2023 the most expensive car to insure was the Maserati Quattroporte at an average of $419 per month, 239% more than the national average for auto insurance.
Sedans averaged $2,275 annually, vans $1,688 and eco‑hybrid vehicles $2,110. Younger drivers pay dramatically more, a 16‑year‑old with full coverage would average about $6,000/year [4], more than three times the national average for drivers ages 23–85.
Credit score, marital status and employment affect rates too: drivers with poor credit paid 114% ($1,546) more than those with excellent credit. Married drivers saved approximately 6% ($98/year) compared to single. These pieces of data reveal high‑risk segments and potential messaging angles for insurers or content creators. [3]
The Emerging Role of Usage‑Based Insurance
Technology is altering the auto insurance industry statistics landscape. Usage‑based insurance (UBI) policies show that motorists save about 3% on their premiums when they participate. [3]
Vehicles equipped with electronic stability control (ESC) qualify drivers for modest savings — approximately $8/year on average. While these amounts may appear small in isolation, they represent the broader shift toward risk‑based pricing and data‑driven underwriting. [3]
As insurers deploy telematics, AI algorithms and connected‑vehicle data, we can expect more refined pricing, personalized offers, and potentially greater differentiation across driver profiles.
Conclusion
The auto insurance industry statistics we’ve examined reflect a complex, dynamic market—driven by global expansion, state‑specific disparities, individual risk factors and technological innovation. For insurers the challenge is balancing rising costs with buyer expectations. For drivers the takeaway is that price can vary widely based on state, vehicle, age and coverage type. And for anyone crafting content intended to attract backlinks, these numbers provide a credible foundation to inform, engage and rank.
Providers like Insurance Back Office Hub assist insurers with auto claims processing and back-office support to keep operations efficient and compliant. In a market where premiums exceed a thousand dollars per year, claims cost tens of thousands, and one state’s average can be double another’s, understanding the data is not optional—it’s essential.
Sources:
[2] https://www.iii.org/fact-statistic/facts-statistics-auto-insurance
[3] https://www.thezebra.com/resources/research/insurance-statistics
[4] https://www.thezebra.com/auto-insurance/driver/age/car-insurance-16-year-olds
