Summary of the NAIC 2020/2021 Auto Insurance Database Report
The NAIC 2020/2021 Auto Insurance Database Report provides comprehensive data on auto insurance across states from 2017 to 2021. Key metrics include average premiums, expenditures, loss ratios, and claim frequencies for various coverages such as bodily injury, property damage, collision, comprehensive, and uninsured motorist. The report highlights state-specific factors affecting insurance costs, including economic conditions, traffic density, and legal requirements. Data sources include major insurance statistical agencies and state departments. The report aids regulators and policymakers in monitoring and analyzing insurance markets.
Key Points:
- Average Premiums & Expenditures: Detailed statistics by state, showing trends over five years.
- Coverage Types: Bodily injury, property damage, collision, comprehensive, etc.
- State-Specific Factors: Influences such as economic conditions, traffic density, and state laws.
- Data Sources: Compiled from various insurance statistical agencies and state departments.
Notable Tables:
- Average Premiums and Expenditures: Breakdown by state and coverage type.
- Collision and Comprehensive Data: Detailed written premiums and exposures.
- Traffic Conditions and Crime: Impact on insurance costs.
- Economic/Demographic Data: Correlation with auto insurance premium
Key Points:
- Premium Trends for Older Vehicles: Older vehicles often have lower insurance premiums due to their lower market value and replacement costs.
- Coverage Types:
- Liability Coverage: Premiums for older vehicles are generally lower as they may not require as extensive coverage.
- Collision and Comprehensive Coverage: Many owners of older vehicles may opt for liability-only coverage, reducing overall premiums. For those who keep collision and comprehensive coverage, the premiums are typically lower compared to newer vehicles.
- Factors Affecting Premiums:
- Vehicle Age: Older vehicles depreciate in value, leading to lower premiums.
- Repair Costs: While repair costs for older vehicles might be higher due to parts availability, the overall replacement cost is lower, balancing the premiums.
- Risk Assessment: Insurers consider older vehicles less risky in terms of total loss compared to newer, more expensive vehicles.
Data Insights:
- Premium Averages: Tables showing average premiums and expenditures highlight that states with a higher proportion of older vehicles have lower average premiums.
- State-Specific Trends: Certain states with older vehicle populations show significantly lower average premiums and expenditures.