Consumers in the United States increased their spending on auto insurance by roughly 75 percent between 2013 and 2023. In 2023, the average expenditure on vehicle insurance in the U.S. amounted to 1,775 U.S. dollars per consumer unit, up from 1,013 U.S. dollars 10 years earlier.

Dataset

This dataset was created by Bunty Shah

Contents

The frequency of private passenger comprehensive auto insurance claims for physical damage in the United States rose to 4.06 per 100 car years in 2023, compared to 2.9 in 2020. This was the highest frequency recorded over the past 15 years.

The data is formatted as a spreadsheet, encompassing the primary activities over a span of three full years (November 2015 to December 2018) concerning non-life motor insurance portfolio. This dataset comprises 105,555 rows and 30 columns. Each row signifies a policy transaction, while each column represents a distinct variable.

Men typically face higher automotive insurance costs in the United States than women, this was apparent across the majority of leading auto insurance providers in the United States. This was particularly prevalent in the 17-year-old age category, with the average insurance rate for young males being over **** U.S. dollars more expensive with *** out of 11 of the leading insurers. American Family had the largest price difference at **** U.S. dollars, with the average 17-year-old female receiving an annual rate of ***** U.S. dollars and the average 17-year-old age males receiving an annual rate of ***** U.S. dollars. What factors into the cost of motor insurance? Requirements regarding auto insurance in the U.S. differ from state to state, but in most states some form of minimum insurance coverage is compulsory. The cost of insurance is determined by a variety of factors, including location, gender, age, type of vehicle, and personal factors such as how many accidents the driver has had and their credit score. These factors can create major price differences, with average insurance costs of the most expensive state (Michigan) being over *** times higher than the cheapest state (Iowa). Why is there such a large motor insurance market in the U.S.? There ******** of ******** of motor vehicles registered in the United States, creating an enormous market for auto insurance. However, there is a reason that most states require a minimum level of insurance – each year millions of vehicle crashes occur, which lead to incurred losses for auto insurers.

Louisiana was the second most expensive state for full coverage motorbike insurance in the United States, with an average annual rate of 966 U.S. dollars, coming behind Arazonia, which had an average full coverage rate of 1,035 U.S. dollars. Virginia had the highest average annual minimum coverage rate at 327 U.S. dollars, making it seven U.S. dollars more expensive than California.

Graph and download economic data for Producer Price Index by Industry: Direct Property and Casualty Insurers: Private Passenger Auto Insurance (PCU5241265241261) from Jun 1998 to Jun 2025 about property-casualty, passenger, insurance, vehicles, private, PPI, industry, inflation, price index, indexes, price, and USA.

The United States Car Insurance Market is Segmented by Coverage Type (Liability, Collision, Comprehensive, and More), Application (Personal Vehicles, Commercial Fleet), Distribution Channel (Direct-To-Customer, Intermediated, Embedded), and Region (Northeast, Midwest, South and West). The Market Forecasts are Provided in Terms of Value (USD)

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Motor Vehicle Insurance Market Size 2024-2028

The motor vehicle insurance market size is forecast to increase by USD 545.9 billion, at a CAGR of 10.44% between 2023 and 2028.

The market is experiencing significant shifts driven by increasing government regulations on mandatory insurance coverage in developing countries and the digitalization of the industry. These factors are shaping the market's strategic landscape, presenting both opportunities and challenges for insurance players. Government regulations in developing countries are pushing for mandatory insurance coverage, expanding the potential customer base for motor vehicle insurers. This trend is particularly noticeable in Asia Pacific and Latin America, where economic growth and urbanization are leading to increased car ownership. However, this regulatory environment also tightens the competitive landscape, as more players enter the market and compliance becomes a priority.
Simultaneously, the digitalization of the motor vehicle insurance industry is transforming the way insurers engage with customers and manage risk. Digital platforms enable real-time underwriting, claims processing, and customer service, enhancing the overall customer experience. However, this digital shift also brings challenges, such as data security concerns and the need for robust IT infrastructure. To capitalize on opportunities and navigate challenges effectively, insurers must stay abreast of regulatory changes and invest in digital capabilities.

What will be the Size of the Motor Vehicle Insurance Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, shaped by dynamic market forces and advancements in technology. AI-powered claims processing streamlines underwriting and settlement negotiations, while digital insurance platforms offer convenience and personalized pricing. Data analytics and credit scoring inform risk assessment and customer segmentation, shaping insurance regulations and product offerings. Collision coverage and liability limits are subject to ongoing adjustments, influenced by factors such as driving record and insurable interest. Third-party administrators (TPAs) and legal counsel facilitate dispute resolution, ensuring regulatory compliance and comparative negligence assessments. Fraud detection and independent verification are essential components of claims processing, with advanced predictive modeling and accident reconstruction techniques aiding in claims investigation and policy administration.

How is this Motor Vehicle Insurance Industry segmented?

The motor vehicle insurance industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Personal
  Commercial


Distribution Channel

  Brokers
  Direct
  Banks
  Others


Vehicle Age

  New Vehicles
  Old Vehicles
  New Vehicles
  Old Vehicles


Coverage Type

  Liability Insurance
  Collision Insurance
  Comprehensive Insurance


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The personal segment is estimated to witness significant growth during the forecast period.

Motor vehicle insurance is a crucial financial protection for vehicle owners and drivers. The insurance policy, which is a compulsory requirement under the Motor Policy, offers coverage for both comprehensive and third-party liability packages. Personal insurance, an optional add-on cover, safeguards the owner or driver against accidental injuries. Insurance agents and brokers play a significant role in advising clients on coverage limits and policy options. Actuarial modeling and predictive analytics are used to assess risk and determine personalized pricing. Liability coverage, including property damage and bodily injury, is a key component of motor vehicle insurance. Fraud detection and independent verification are essential for dispute resolution and maintaining regulatory compliance.

Digital insurance platforms and ai-powered claims processing streamline the claims management process. Data analytics and customer segmentation help insurers tailor policies to individual needs. Usage-based insurance and mobile apps provide real-time data for risk assessment and customer retention. Insurance regulations mandate coverage for medical payments and accident reconstruction, as well as policy administration and claims processing. Policy cancellatio

Australia's Car Insurance industry has demonstrated resilience and responsiveness to changing consumer demands and technological advancements. Despite facing challenges like fluctuating vehicle usage patterns and economic uncertainties at the height of the pandemic, the industry has continued to evolve. Insurers have focused on offering more personalised and flexible plans to meet drivers’ diverse needs. Companies that’ve embraced digital transformation and customer-centric strategies have shown particular strength, laying a foundation for future growth in a competitive landscape. Industry revenue is anticipated to have grown at an annualised 1.5% over the past five years and is expected to total $29.9 billion in 2024-25, when revenue is set to climb 0.4%. Evolving technology and consumer behaviours have influenced significant shifts in the Australian car insurance market. Traditional insurance giants have had to grapple with regulatory changes and disruptive insurtech start-ups. Companies like Huddle, which leverage AI and machine learning for efficient claims processing and risk assessment, are setting new benchmarks for the industry. Customisable insurance products have made a notable impact, catering to niche markets like occasional drivers or EV owners. Telematics and usage-based insurance models have also grown, reflecting a more data-driven approach to coverage. Despite ongoing challenges, profitability has managed to climb, largely thanks to insurers passing on cost increases to consumers. Looking ahead, the industry is set to exhibit more growth, with revenue forecast to expand at an annualised 2.6% through the end of 2029-30 to total $34.1 billion. With more insurers adopting AI-powered platforms and automation, the industry’s traditional processes will become more streamlined, allowing firms to assess risks and process claims in real time. As these technologies mature, insurers are set to minimise their operational costs and deliver quicker, more accurate services, thereby enhancing customer satisfaction. Demand for personalised insurance products will continue to climb, pushing companies to develop more flexible and tailored solutions. This shift will likely attract niche markets and cater to specific consumer needs, like EV owners or drivers who prefer usage-based insurance.

Louisiana had the most expensive annual car insurance premiums at ***** U.S. dollars for full coverage. Alaska ranked in first place, having the highest annual cost for minimum car insurance coverage at *** U.S. dollars.Why it varies state by state The huge variance in premiums between states is due to the difference in state laws, the percentage of uninsured drivers in the state, the frequency of natural disasters, and claim rates. For instance, Michigan has a no-fault car insurance system, which means that claims are more common. This drives up the cost of insurance for all drivers because insurers need to pay out more money in claims. Male drivers also pay more There is also a difference between premiums among different age groups. In 2025, 25-year-old male drivers paid more per month than 25-year-old female drivers did. This is due to the higher incidence of accidents among young male drivers. This means that young drivers in states that already have higher premiums must pay a lot for car insurance.

Graph and download economic data for Producer Price Index by Industry: Direct Property and Casualty Insurers: Commercial Auto Insurance (PCU5241265241263) from Jun 1998 to Jun 2025 about property-casualty, insurance, vehicles, commercial, PPI, industry, inflation, price index, indexes, price, and USA.

The Global Car Insurance Market is Segmented by Policy Coverage (Third Party, Comprehensive, Collision and More), Vehicle Type (Passenger Cars, Light Commercial Vehicles and More), Distribution Channel (Direct To Customer, Intermediated, and Embedded), and Region (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

India's Car Insurance Market is Segmented by Coverage (third-Party Liability Coverage, Collision/comprehensive/other Optional Coverage), Application (personal Vehicles, Commercial Vehicles), and Distribution Channels (direct Sales, Individual Agents, Brokers, Banks, Online, and Other Distribution Channels). The Report Offers Market Size and Forecasts for the Indian Car Insurance Market in Value (USD) for all the Above Segments.

Recent five years property insurance market any motor vehicle insurance premium income statistics - Self-use large passenger car (Bao Fa Center)

16-year-olds paid the highest average monthly amount for car insurance in the United States. It was found that 16-year-old drivers in the U.S. had to pay approximately *** U.S. dollars per month for car insurance, whereas their 21-year-old counterparts paid *** U.S. dollars for the same coverage.

Graph and download economic data for Expenditures: Vehicle Insurance: All Consumer Units (CXU500110LB0101M) from 1984 to 2023 about consumer unit, insurance, vehicles, expenditures, and USA.

Recent three years of property insurance market statistics for motor vehicle insurance claims ratio - (annual)(CIRC)

The data are real automobile insurance data from a Norwegian company in the late 1980's and early 1990's. The source is confidential. The example comes from a Norwegian insurance company, was shared with Erik Bølviken and consists of n=6446 claims of cost due to personal injuries in motor insurance with the deductible subtracted. They include cost due to personal injuries. They have mean and standard deviation 23.9 and 28.9 in 1000 NOK, and are heavy-tailed with skewness 5.6 and kurtosis 71.2.

Germany Vehicle Cost Index: Vehicle Insurance data was reported at 98.200 2000=100 in 2007. This records an increase from the previous number of 96.500 2000=100 for 2006. Germany Vehicle Cost Index: Vehicle Insurance data is updated yearly, averaging 100.450 2000=100 from Dec 2002 (Median) to 2007, with 6 observations. The data reached an all-time high of 104.500 2000=100 in 2002 and a record low of 96.500 2000=100 in 2006. Germany Vehicle Cost Index: Vehicle Insurance data remains active status in CEIC and is reported by German Association of the Automotive Industry. The data is categorized under Global Database’s Germany – Table DE.RA015: Vehicle Cost Index (2000=100).