Key takeaways from the NAIC’s 2022/2023 Auto Insurance Database Report
The National Association of Insurance Commissioners (NAIC) has released its 2022/2023 Auto Insurance Database Report, providing the most recent compilation of personal automobile insurance cost data across the United States based on information reported through year-end 2022 and 2023. The report compiles insurance and economic data from multiple statistical agents and state insurance departments to help regulators and policymakers evaluate automobile insurance markets nationwide.
The report also summarizes 2023 average expenditures and combined average premiums for each state, offering a snapshot of what consumers paid for auto insurance coverage across the country.
Below are several key findings from this year’s report.
1. The Combined Average Premium Reached $1,438 in 2023
The NAIC reports that the national combined average premium per insured vehicle reached $1,438 in 2023, representing a 14.42% increase from 2022 to 2023.
The combined average premium reflects the average cost of a policy containing liability, collision, and comprehensive coverage.
2. Consumers Spent an Average of $1,281 per Vehicle on Auto Insurance
The report also measures average expenditure, which reflects the amount consumers spend on automobile insurance per insured vehicle. Average expenditure is calculated using written premiums for liability, collision, and comprehensive coverages divided by the number of insured vehicle exposures.
In 2023, the national average expenditure per vehicle was $1,281, representing a 19.24% increase from 2019.
3. Liability Premiums Increased Over the Five-Year Period
According to the report, liability premiums increased significantly between 2019 and 2023, while the number of insured vehicles grew at a slower pace.
Over that period:
- Liability premiums grew 19%, while
- the number of insured vehicles increased 5.5%.
These figures reflect rising costs affecting liability coverage during the period covered by the report.
4. Collision Claim Costs Increased Significantly
The NAIC database also shows rising claim costs for physical damage coverages.
The average incurred loss per collision claim increased 17.6%, rising from $6,113 per claim in 2021 to $7,191 per claim in 2022.
These increases reflect changes in the underlying costs insurers face when paying claims.
5. Liability Losses Reached $120.5 Billion in 2022
The report also documents growth in overall liability losses across the auto insurance market.
According to the NAIC data, national total liability incurred losses reached $120.5 billion in 2022, representing a 9.4% increase from 2021.
More about the NAIC’s Auto Insurance Database Report
The NAIC Auto Insurance Database was developed by the Casualty Actuarial and Statistical Task Force under the direction of the NAIC Property and Casualty Insurance Committee to provide regulators and the public with detailed information about automobile insurance markets and the factors that influence insurance costs nationwide.
The report notes that many factors influence automobile insurance expenditures and premiums across states, including underwriting costs, driving locations, accident rates, traffic density, auto theft statistics, repair costs, and differences in state insurance laws and coverage requirements.
Because these conditions vary across jurisdictions, the NAIC cautions that comparisons between states should be interpreted carefully.
