Jennifer Rudden
Research Lead Financial Services & Real estate
Motor insurance in the U.S. - statistics & facts
As the population of the United States grows, so too does the number of drivers on the road and thus the customer base for motor insurance. In 2022, there were over 280 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. Road traffic fatalities in the U.S. peaked in 2021. So while many individuals feel secure in their vehicles, the statistics indicate the importance of automobile insurance and in most cases, auto insurance is required by law. Auto insurance is important because it not only covers any physical damage that may occur in an accident, but also any damage or injury that might be caused because of a vehicular accident or which may be done upon oneself or one’s vehicle by another vehicle or accident – a falling tree for example.
How much does car insurance cost in the U.S.?
Of course, auto insurance comes at a cost to the car owner and the younger the owner the more expensive car insurance typically is. In 2023, the average cost of car insurance for a 20-year-old man was around 142 U.S. dollars, and for a 20-year-old woman it was around 126 U.S. dollars. The price of car insurance drops significantly as people get older, and the gap in price between the genders also levels out. There are also geographical differences when it comes to the price of auto insurance. For instance, the most expensive state for auto insurance in the United States was Michigan. In Michigan, the average cost of auto insurance was 2,352 U.S. dollars in 2023.Does embedded insurance have a future?
There are also generational differences in how people buy their auto insurance coverage. For instance, Gen Z and millennials were significantly more interested in receiving embedded insurance offers for auto insurance than Gen X or baby boomers. This suggests that embedded insurance will grow in popularity in the future when current young people will make up a larger share of the consumer base. Allstate and State Farm were the most popular car insurance brands in 2022.
