GITNUXREPORT 2025

Auto Insurance Industry Statistics

Auto insurance industry grows amid digital innovation, rising premiums, and emerging risks.

Jannik Lindner

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Key Statistics

Statistic 1

About 13% of drivers in the US are underinsured, leading to significant coverage gaps

Statistic 2

Young drivers (ages 16-24) pay on average 2.5 times more for auto insurance than older, experienced drivers

Statistic 3

The common causes of auto accidents are distracted driving (30%), speeding (26%), and alcohol impairment (24%)

Statistic 4

Women drivers are less likely to be involved in accidents compared to male drivers, leading to lower insurance premiums

Statistic 5

According to surveys, 75% of drivers consider price the most important factor when choosing an auto insurance provider

Statistic 6

In the US, drivers with a clean driving record pay on average 30% less for auto insurance than those with violations

Statistic 7

Around 45% of auto insurance policyholders opt for roadside assistance add-ons, increasing their premiums slightly

Statistic 8

The average age of drivers involved in fatal accidents in the US has increased to 48 years, impacting insurance risk assessments

Statistic 9

Approximately 65% of drivers in the US pay for full coverage, which includes liability, collision, and comprehensive insurance

Statistic 10

Young drivers are 3 times more likely to be involved in a fatal crash than older drivers, influencing youthful driver premiums

Statistic 11

The average age of first auto insurance purchase in the US is around 18 years, corresponding with new drivers entering the market

Statistic 12

Auto insurance discounts for good students can be as high as 25%, encouraging safer driving among young drivers

Statistic 13

Fraudulent auto insurance claims account for roughly 10% of all claims filed, costing insurers billions annually

Statistic 14

Auto insurance theft claims represent roughly 2% of total claims filed annually, with theft-related claims costing insurers around $1 billion yearly

Statistic 15

The typical auto insurance policy in the US covers damages up to $50,000 per accident for bodily injury liability

Statistic 16

In the US, about 7% of drivers are involved in a collision each year, influencing the risk pool for insurers

Statistic 17

The average number of claims per driver per year in the US is around 0.21, indicating the typical frequency of claims filed

Statistic 18

Drivers with multiple violations pay up to 3 times more for auto insurance compared to those with a clean record, depending on the violation type

Statistic 19

In 2022, the average payment for a bodily injury claim was approximately $20,000, highlighting injury-related risks for insurers

Statistic 20

The average number of miles driven per year in the US is around 13,500 miles, influencing premium calculations and risk assessments

Statistic 21

The adoption of telematics devices has increased auto insurance premiums for high-risk drivers by 35%

Statistic 22

In 2023, motorcycle insurance rates increased by an average of 4% due to rising accident claims

Statistic 23

The average claim settlement time for auto insurers is approximately 10 days

Statistic 24

Electric vehicles account for about 5% of new car sales globally, impacting auto insurance premiums and coverage options

Statistic 25

In 2022, the most common auto insurance coverage in the US was liability coverage, held by approximately 90% of drivers

Statistic 26

Usage-based insurance policies increased by 15% worldwide in 2023 due to digital innovation

Statistic 27

More than 60% of auto insurance policies now include some form of usage-based or telematics component

Statistic 28

In 2023, the average cost of a deductible for collision coverage was about $500, while for comprehensive coverage it was approximately $300

Statistic 29

The adoption of autonomous vehicles is expected to reduce accident rates by up to 90%, significantly impacting auto insurance claims and premiums

Statistic 30

The average premium for insuring an SUV is about 20% higher than for a sedan, due to higher repair costs

Statistic 31

The rise of ride-sharing services has led to a 15% increase in auto insurance premiums for drivers operating in this space

Statistic 32

The average length of an auto insurance policy in the US is approximately 6 to 12 months, depending on state laws

Statistic 33

Increased adoption of electric vehicles has prompted insurance companies to develop specialized policies, with premiums typically 10-15% higher than traditional cars

Statistic 34

The use of artificial intelligence and machine learning in auto claims processing has increased efficiency by up to 40%

Statistic 35

The number of policies utilizing artificial intelligence for underwriting increased by 22% in 2023, indicating a shift towards digital transformation

Statistic 36

Flooding and natural disasters caused over $10 billion in auto damage claims globally in 2022, influencing coverage and premiums

Statistic 37

35% of auto insurance claims are settled without going to court, due to efficient negotiation and digital claims processing

Statistic 38

80% of auto insurance companies use customer data analytics to set premiums, ensuring more personalized pricing

Statistic 39

The trend towards electric and hybrid vehicles is expected to increase the average auto insurance premium by 5-10% in the next decade, due to repair costs and technology premiums

Statistic 40

The number of policies with added roadside assistance increased by 10% in 2023, as consumers seek more comprehensive coverage

Statistic 41

The use of blockchain technology in insurance claims processing is emerging, with pilot programs showing 25% faster settlement times

Statistic 42

The percentage of autonomous vehicle insurance policies purchased worldwide is expected to reach 25% by 2030, reflecting rapid technological adoption

Statistic 43

The insurance claim commenting process has become 30% faster after implementation of digital claims platforms

Statistic 44

The percentage of drivers opting for multi-policy discounts (bundling auto with home or renters insurance) increased by 12% in 2023, leading to savings for consumers

Statistic 45

A significant growth area in auto insurance is coverage for autonomous and semi-autonomous vehicles, projected to reach $10 billion globally by 2025

Statistic 46

Over 85% of auto insurance claims payments are now processed digitally, reducing processing times significantly

Statistic 47

Auto insurance premiums are generally higher in urban areas due to increased accident and theft rates, with some cities exceeding $2,500 per year

Statistic 48

The number of hours drivers spend distracted while driving has decreased by 5% in 2023, thanks to awareness campaigns, affecting accident rates

Statistic 49

The average annual increase in auto insurance premiums over the past 10 years has been approximately 3%, driven by inflation and accident costs

Statistic 50

The global demand for auto insurance is expected to grow faster in emerging markets, with CAGR exceeding 6% between 2023-2030

Statistic 51

The adoption of collision avoidance systems in new cars is expected to reduce certain types of accidents by up to 40%, impacting future claims

Statistic 52

About 10% of auto insurance claims involve some element of a hit-and-run incident, with total costs surpassing $2 billion annually

Statistic 53

Customized auto insurance policies, tailored to individual driver behavior and vehicle usage, increased by 18% in 2023, reflecting personalization trends

Statistic 54

Digital-only auto insurance providers now represent approximately 20% of the market share in certain regions, emphasizing the shift towards virtual services

Statistic 55

The percentage of auto insurance claims related to teen drivers has decreased slightly over 2022, due to increased driver education programs

Statistic 56

Insurers are increasingly offering pay-per-mile insurance plans, with some coverage rates dropping by as much as 30% for low-mileage drivers

Statistic 57

Car-sharing and peer-to-peer vehicle rental platforms are beginning to influence traditional auto insurance models, creating new liability coverage needs

Statistic 58

The US auto insurance industry generated over $290 billion in premiums in 2022

Statistic 59

The average annual car insurance premium in the United States was approximately $1,400 in 2023

Statistic 60

The number of active auto insurance policies in the US surpassed 220 million in 2023

Statistic 61

The global auto insurance market is projected to grow at a CAGR of 5.5% from 2023 to 2030

Statistic 62

The total number of auto insurance claims filed in the US in 2022 was over 50 million

Statistic 63

The median car insurance premium in California is approximately $1,200, which is higher than the national average

Statistic 64

State Farm, GEICO, and Progressive are the top three auto insurers in the US by market share, together accounting for over 50% of the market

Statistic 65

The state of Florida has the highest average auto insurance premium in the US, averaging around $2,400 annually

Statistic 66

The average monthly auto insurance premium in Canada was approximately CAD 150 in 2023, reflecting regional differences

Statistic 67

The total premiums collected in the European auto insurance market reached €90 billion in 2022, with a forecast to grow annually by 4%

Statistic 68

The average auto insurance policy in Australia costs about AUD 1,200 per year, varying by state and coverage type

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Key Highlights

  • The US auto insurance industry generated over $290 billion in premiums in 2022
  • The average annual car insurance premium in the United States was approximately $1,400 in 2023
  • About 13% of drivers in the US are underinsured, leading to significant coverage gaps
  • The number of active auto insurance policies in the US surpassed 220 million in 2023
  • Fraudulent auto insurance claims account for roughly 10% of all claims filed, costing insurers billions annually
  • Young drivers (ages 16-24) pay on average 2.5 times more for auto insurance than older, experienced drivers
  • The adoption of telematics devices has increased auto insurance premiums for high-risk drivers by 35%
  • In 2023, motorcycle insurance rates increased by an average of 4% due to rising accident claims
  • The average claim settlement time for auto insurers is approximately 10 days
  • The common causes of auto accidents are distracted driving (30%), speeding (26%), and alcohol impairment (24%)
  • Electric vehicles account for about 5% of new car sales globally, impacting auto insurance premiums and coverage options
  • The global auto insurance market is projected to grow at a CAGR of 5.5% from 2023 to 2030
  • In 2022, the most common auto insurance coverage in the US was liability coverage, held by approximately 90% of drivers

The auto insurance industry in the United States is experiencing a dynamic transformation driven by technological innovation, rising premiums, and evolving risk factors, with over $290 billion in premiums generated in 2022 and new trends shaping its future landscape.

Consumer Demographics and Behavior

  • About 13% of drivers in the US are underinsured, leading to significant coverage gaps
  • Young drivers (ages 16-24) pay on average 2.5 times more for auto insurance than older, experienced drivers
  • The common causes of auto accidents are distracted driving (30%), speeding (26%), and alcohol impairment (24%)
  • Women drivers are less likely to be involved in accidents compared to male drivers, leading to lower insurance premiums
  • According to surveys, 75% of drivers consider price the most important factor when choosing an auto insurance provider
  • In the US, drivers with a clean driving record pay on average 30% less for auto insurance than those with violations
  • Around 45% of auto insurance policyholders opt for roadside assistance add-ons, increasing their premiums slightly
  • The average age of drivers involved in fatal accidents in the US has increased to 48 years, impacting insurance risk assessments
  • Approximately 65% of drivers in the US pay for full coverage, which includes liability, collision, and comprehensive insurance
  • Young drivers are 3 times more likely to be involved in a fatal crash than older drivers, influencing youthful driver premiums
  • The average age of first auto insurance purchase in the US is around 18 years, corresponding with new drivers entering the market
  • Auto insurance discounts for good students can be as high as 25%, encouraging safer driving among young drivers

Consumer Demographics and Behavior Interpretation

Despite drivers paying ever-increasing premiums—especially the youth and those with violations—over 13% remain underinsured, while widespread distracted driving, speeding, and alcohol use continue to fuel accident risks, underscoring the urgent need for better coverage, targeted safety initiatives, and smarter policy choices beyond just the cheapest quote.

Fraud and Risk Management

  • Fraudulent auto insurance claims account for roughly 10% of all claims filed, costing insurers billions annually
  • Auto insurance theft claims represent roughly 2% of total claims filed annually, with theft-related claims costing insurers around $1 billion yearly
  • The typical auto insurance policy in the US covers damages up to $50,000 per accident for bodily injury liability
  • In the US, about 7% of drivers are involved in a collision each year, influencing the risk pool for insurers
  • The average number of claims per driver per year in the US is around 0.21, indicating the typical frequency of claims filed
  • Drivers with multiple violations pay up to 3 times more for auto insurance compared to those with a clean record, depending on the violation type
  • In 2022, the average payment for a bodily injury claim was approximately $20,000, highlighting injury-related risks for insurers
  • The average number of miles driven per year in the US is around 13,500 miles, influencing premium calculations and risk assessments

Fraud and Risk Management Interpretation

With auto insurance fraud siphoning billions and theft claims costing a billion annually, alongside average injuries costing $20,000, the industry's delicate balance hinges on our miles driven, record clean or not, as insurers navigate a landscape where nearly 1 in 14 drivers are involved in a collision each year.

Industry Trends and Innovations

  • The adoption of telematics devices has increased auto insurance premiums for high-risk drivers by 35%
  • In 2023, motorcycle insurance rates increased by an average of 4% due to rising accident claims
  • The average claim settlement time for auto insurers is approximately 10 days
  • Electric vehicles account for about 5% of new car sales globally, impacting auto insurance premiums and coverage options
  • In 2022, the most common auto insurance coverage in the US was liability coverage, held by approximately 90% of drivers
  • Usage-based insurance policies increased by 15% worldwide in 2023 due to digital innovation
  • More than 60% of auto insurance policies now include some form of usage-based or telematics component
  • In 2023, the average cost of a deductible for collision coverage was about $500, while for comprehensive coverage it was approximately $300
  • The adoption of autonomous vehicles is expected to reduce accident rates by up to 90%, significantly impacting auto insurance claims and premiums
  • The average premium for insuring an SUV is about 20% higher than for a sedan, due to higher repair costs
  • The rise of ride-sharing services has led to a 15% increase in auto insurance premiums for drivers operating in this space
  • The average length of an auto insurance policy in the US is approximately 6 to 12 months, depending on state laws
  • Increased adoption of electric vehicles has prompted insurance companies to develop specialized policies, with premiums typically 10-15% higher than traditional cars
  • The use of artificial intelligence and machine learning in auto claims processing has increased efficiency by up to 40%
  • The number of policies utilizing artificial intelligence for underwriting increased by 22% in 2023, indicating a shift towards digital transformation
  • Flooding and natural disasters caused over $10 billion in auto damage claims globally in 2022, influencing coverage and premiums
  • 35% of auto insurance claims are settled without going to court, due to efficient negotiation and digital claims processing
  • 80% of auto insurance companies use customer data analytics to set premiums, ensuring more personalized pricing
  • The trend towards electric and hybrid vehicles is expected to increase the average auto insurance premium by 5-10% in the next decade, due to repair costs and technology premiums
  • The number of policies with added roadside assistance increased by 10% in 2023, as consumers seek more comprehensive coverage
  • The use of blockchain technology in insurance claims processing is emerging, with pilot programs showing 25% faster settlement times
  • The percentage of autonomous vehicle insurance policies purchased worldwide is expected to reach 25% by 2030, reflecting rapid technological adoption
  • The insurance claim commenting process has become 30% faster after implementation of digital claims platforms
  • The percentage of drivers opting for multi-policy discounts (bundling auto with home or renters insurance) increased by 12% in 2023, leading to savings for consumers
  • A significant growth area in auto insurance is coverage for autonomous and semi-autonomous vehicles, projected to reach $10 billion globally by 2025
  • Over 85% of auto insurance claims payments are now processed digitally, reducing processing times significantly
  • Auto insurance premiums are generally higher in urban areas due to increased accident and theft rates, with some cities exceeding $2,500 per year
  • The number of hours drivers spend distracted while driving has decreased by 5% in 2023, thanks to awareness campaigns, affecting accident rates
  • The average annual increase in auto insurance premiums over the past 10 years has been approximately 3%, driven by inflation and accident costs
  • The global demand for auto insurance is expected to grow faster in emerging markets, with CAGR exceeding 6% between 2023-2030
  • The adoption of collision avoidance systems in new cars is expected to reduce certain types of accidents by up to 40%, impacting future claims
  • About 10% of auto insurance claims involve some element of a hit-and-run incident, with total costs surpassing $2 billion annually
  • Customized auto insurance policies, tailored to individual driver behavior and vehicle usage, increased by 18% in 2023, reflecting personalization trends
  • Digital-only auto insurance providers now represent approximately 20% of the market share in certain regions, emphasizing the shift towards virtual services
  • The percentage of auto insurance claims related to teen drivers has decreased slightly over 2022, due to increased driver education programs
  • Insurers are increasingly offering pay-per-mile insurance plans, with some coverage rates dropping by as much as 30% for low-mileage drivers
  • Car-sharing and peer-to-peer vehicle rental platforms are beginning to influence traditional auto insurance models, creating new liability coverage needs

Industry Trends and Innovations Interpretation

As auto insurance shifts toward smarter, faster, and more personalized solutions—driven by AI, telematics, and evolving vehicle technology—it’s clear that staying insured in the modern age means adapting swiftly or paying a premium, whether it's a 35% bump for high-risk drivers or a 6- to 12-month lease on peace of mind.

Market Size and Revenue

  • The US auto insurance industry generated over $290 billion in premiums in 2022
  • The average annual car insurance premium in the United States was approximately $1,400 in 2023
  • The number of active auto insurance policies in the US surpassed 220 million in 2023
  • The global auto insurance market is projected to grow at a CAGR of 5.5% from 2023 to 2030
  • The total number of auto insurance claims filed in the US in 2022 was over 50 million
  • The median car insurance premium in California is approximately $1,200, which is higher than the national average
  • State Farm, GEICO, and Progressive are the top three auto insurers in the US by market share, together accounting for over 50% of the market
  • The state of Florida has the highest average auto insurance premium in the US, averaging around $2,400 annually
  • The average monthly auto insurance premium in Canada was approximately CAD 150 in 2023, reflecting regional differences
  • The total premiums collected in the European auto insurance market reached €90 billion in 2022, with a forecast to grow annually by 4%
  • The average auto insurance policy in Australia costs about AUD 1,200 per year, varying by state and coverage type

Market Size and Revenue Interpretation

With over $290 billion in premiums and more than 220 million policies, the U.S. auto insurance industry is fueling a global growth trend—yet, amid rising costs in places like Florida and California, drivers are paying more than ever for peace of mind, proving that in this business, safety isn't cheap but the market sure is expansive.

Sources & References