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.

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.

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.

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.

The United States Motor Insurance Market is Segmented by Coverage Type (Liability, Collision, Comprehensive, Personal Injury Protection (PIP) and More), Vehicle Type (Passenger Cars, Light Commercial Vehicles, Motorcycles, and More), Policy Type (Commercial, Personal), Distribution Channel (Agency, Direct, Bancassurance, and More), and Region. The Market Forecasts are Provided in Terms of Value (USD).

Dataset

This dataset was created by Bunty Shah

Contents

The Automobile Insurance industry provides individuals and businesses with various lines of insurance needed to operate an automobile legally and invests a portion of underwritten premiums in financial instruments. The industry has experienced rising premium prices as operators have contended with higher claims volumes because of renewed traffic activity and higher costs to repair or replace a vehicle. Despite premium growth during most of the period, dropping consumer confidence and investment income in 2020 due to government lockdowns and the low interest rate environment pressured insurance providers. Overall, revenue has been falling at a CAGR of 0.5% to $364.9 billion over the past five years, including an expected jump of 0.8% in 2024. While industry product segments typically do not fluctuate as a share of revenue on a year-to-year basis, individual lines of insurance can outpace the larger market. For example, plans for commercial entities outpaced personal auto policies as commercial automotive usage increased in the latter part of the period. Yearly fluctuations in each line of auto insurance's portion of industry premiums are expected to continue as “pay as you drive” pricing schemes, which provide quotes based on consumer-specific driving habits, grow in popularity. The industry is expected to continue experiencing a hardening price cycle over the next five years as profit is expected to remain high. During a hardening price cycle, insurers focus on shoring up their financial positions and increasing premium rates. High interest rates and an improving economic landscape are expected to benefit investment conditions for auto insurers. Overall, revenue is forecast to grow at a CAGR of 1.2% to $387.5 billion over the five years to 2029.

An expanding commercial auto insurance market has been instrumental to the growth of the commercial auto insurance industry's revenue over the past five years. Insurers directly underwrite commercial liability, collision and comprehensive insurance policies, covering medical and property damage expenses resulting from business clients' vehicle accidents. A steady increase in e-commerce and transportation network company demand and a growing economy and vehicle fleet bolstered industry revenue. In 2020, because of the pandemic, expanded e-commerce and shipping activity increased demand for commercial auto insurance and thereby maintained premium rates, limiting the volatility the industry experienced that year. Overall, over the past five years, revenue has grown at a CAGR of 3.9% to $71.6 billion, including an expected 0.8% increase in 2024. Over the next five years, the economic expansion following the pandemic is expected to continue, in addition to a rise in premium rates and continued high levels of e-commerce, shipping and transportation network company activity are all expected to continue bolstering revenue. Also, insurers are expected to be better able to price the new risks associated with commercial auto insurance, helping to boost profitability. Due to increased levels of natural disasters and weather-related events, demand for collision and comprehensive insurance is expected to increase. Insurers who are most successful in pricing these policies and accessing the reinsurance market to safeguard their balance sheets from extraordinary risk will likely be the most successful going forward. Additionally, insurers who make the best and most extensive use of novel data collection, pricing and predictive modeling techniques enabled by the pervasive spread of smartphones and machine learning will retain a competitive advantage. Overall, revenue is forecast to grow at a CAGR of 1.9% to $78.6 billion over the five years to 2029.

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Forecast: Total Gross Direct Insurance Premiums in the US 2024 - 2028 Discover more data with ReportLinker!

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Total Gross Insurance Premiums in the US, 2021 Discover more data with ReportLinker!

Number of Businesses statistics on the Property, Casualty and Direct Insurance industry in the US

Total Vehicle Sales in the United States decreased to 15.30 Million in June from 15.70 Million in May of 2025. This dataset provides the latest reported value for - United States Total Vehicle Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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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

As of 2023, UnitedHealth Group had a share of ** percent in the U.S. health insurance market. Elevance health (Anthem) had the second-largest health insurance market share, covering ** percent of the market. The top five largest insurance companies represented around ** percent of the total U.S. market share in the health insurance industry. Health insurance market in the U.S. The United States does not have a universal healthcare system for its citizens. In the U.S. most individuals depend on employer-sponsored health coverage for their healthcare needs. Private health insurance dominates the market as it provides group and non-group policies. Public health insurance offers coverage under federal programs, Medicare and Medicaid/CHIP are the most popular ones. The U.S. health insurance industry has witnessed significant changes in the last decade, with increased spending by private insurance, expanded coverage through the ACA, and a growing Medicare Advantage market. Medicare Advantage market Medicare Advantage plans give Medicare beneficiaries the option of receiving benefits from private plans rather than from the traditional Medicare program. UnitedHealthcare, part of UnitedHealth Group, is the largest U.S. health insurance company by total membership. In 2023, Medicare Advantage provided coverage to ** million Americans, among which some *** million Medicare Advantage (MA) beneficiaries were enrolled in a plan from the UnitedHealth Group Inc.

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