Automobile Insurance in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD4765Revenue
$364.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
269k
Businesses
1,399
Wages
$XX.Xbn
Automobile Insurance in the US industry analysis
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 because of the pandemic 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.
Trends and Insights
- Operators seek to gain online dominance. Insurers operating online can invest heavily in marketing campaigns and reduce spending on wages for sale.
- Investment activities are one way insurance operators generate revenue. As interest rates rise, yields for fixed-income securities also jump.
- The distribution of establishments closely follows domestic population trends, particularly urbanization trends. Providers charge higher premiums in locations with more cars on the road because this increases the likelihood of accidents.
- Price is the primary form of competition in the industry. The price of automobile insurance represents the value perceptions of consumers and businesses.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 0.5 % over the past five years, to reach an estimated $364.9bn in 2024.
Trends and Insights
Renewals and periods of market cycles play a part in the industry
- Automobile insurers encounter stable demand, as private and commercial vehicles require insurance regardless of market conditions. As a result, the industry does not encounter large swings in either direction due to the steady demand for automobile insurance.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Motor vehicle registrations are set to jump
- Operators are expected to benefit from a rising number of motor vehicle registrations over the next five years. A climb in motor vehicle registrations will drive demand for automobile insurance.
Biggest companies in the Automobile Insurance in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Progressive Corp | 45,115.6 | 5,241.0 | 11.6 | |
State Farm Mutual Automobile Insurance Co | 44,238.9 | 3,036.8 | 6.9 | |
Berkshire Hathaway Inc. | 40,916.0 | 5,175.0 | 12.6 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Personal liability insurance, Personal collision/comprehensive insurance and Commercial liability insurance. Personal liability insurance is the largest segment of the Automobile Insurance in the US.
Trends and Insights
Personal and commercial liability insurance declined slightly caused by reduced travel during the pandemic
- Liability insurance products offered to downstream consumers and corporate customers account for the most significant portion of revenue for the automobile insurance industry.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Property, Casualty and Direct Insurance in the US
Complementors
- Life Insurance & Annuities in the US
- Health & Medical Insurance in the US
- Reinsurance Carriers in the US
International industries
- Global Direct General Insurance Carriers
- Property, Casualty and Direct Insurance in Canada
- General Insurance in Australia
- General Insurance in New Zealand
- General Insurance in the UK
Table of Contents
About this industry
Industry definition
This industry underwrites or assumes the risk and assigns premiums for auto insurance policies. Car insurance provides financial protection against physical damage to automobiles and bodily injuries resulting from traffic incidents. Automobile insurance can also protect against resulting liability.
What's included in this industry?
Directly underwriting private passenger liability insuranceDirectly underwriting private passenger collision/comprehensive insuranceDirectly underwriting commercial liability insuranceDirectly underwriting commercial collision/comprehensive insuranceCompanies
Progressive CorpState Farm Mutual Automobile Insurance CoBerkshire Hathaway Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
UNDERWRITINGINSURANCE PREMIUMDEDUCTIBLELIABILITYHARD MARKETSOFT MARKETIndustry Code
NAICS 52412 - Automobile Insurance in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Operators seek to gain online dominance. Insurers operating online can invest heavily in marketing campaigns and reduce spending on wages for sale.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Investment activities are one way insurance operators generate revenue. As interest rates rise, yields for fixed-income securities also jump.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The distribution of establishments closely follows domestic population trends, particularly urbanization trends. Providers charge higher premiums in locations with more cars ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price is the primary form of competition in the industry. The price of automobile insurance represents the value perceptions of consumers and businesses.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The top three companies account for over one-third of revenue. Larger companies have explored acquiring smaller insurers to expand their market share.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Progressive Corp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of State Farm Mutual Automobile Insurance Co's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Berkshire Hathaway Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Progressive Corp, and factors influencing its performance in the industry
- Description and key data for State Farm Mutual Automobile Insurance Co, and factors influencing its performance in the industry
- Description and key data for Berkshire Hathaway Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Uniform Certificate of Authority Application assists insurers in filing copies of the same applications in numerous states. Each uniform state performs an independent rev...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Operators have benefited from rising interest rates as fixed-income assets yield more return. Although, fears of an economic recession can lead investors to seek safer invest...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Automobile Insurance in the US industry in United States in 2024?
The market size of the Automobile Insurance in the US industry in United States is $364.9bn in 2024.
How many businesses are there in the Automobile Insurance in the US industry in 2024?
There are 1,399 businesses in the Automobile Insurance in the US industry in United States, which has grown at a CAGR of 0.4 % between 2019 and 2024.
Has the Automobile Insurance in the US industry in United States grown or declined over the past 5 years?
The market size of the Automobile Insurance in the US industry in United States has been declining at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Automobile Insurance in the US industry in United States over the next 5 years?
Over the next five years, the Automobile Insurance in the US industry in United States is expected to grow.
What are the biggest companies in the Automobile Insurance in the US market in United States?
The biggest companies operating in the Automobile Insurance market in United States are Progressive Corp, State Farm Mutual Automobile Insurance Co and Berkshire Hathaway Inc.
What does the Automobile Insurance in the US in United States include?
Directly underwriting private passenger liability insurance and Directly underwriting private passenger collision/comprehensive insurance are part of the Automobile Insurance in the US industry.
Which companies have the highest market share in the Automobile Insurance in the US in United States?
The company holding the most market share in United States is Progressive Corp.
How competitive is the Automobile Insurance in the US industry in United States?
The level of competition is high and steady in the Automobile Insurance in the US industry in United States.
