How many Americans own a car?
The roadways of the United States tell a story of a nation that is deeply invested in car ownership. There were a staggering 278,063,737 personal and commercial vehicles registered in 2021.
The U.S. witnessed a 3.66% increase in vehicle registrations between 2017 and 2021. It signifies a resolute upward trend in car ownership.
Trucks emerge as the preferred vehicle type, boasting 166,079,082 registrations compared to 101,601,344 for cars.
Notably, 91.7% of households had at least one vehicle in 2021. This emphasizes the ubiquitous presence of cars in American homes.
Forbes Advisor’s exploration into car ownership extends to state-specific data. It reveals that Idaho and Wyoming lead the nation with 96.2% of households reporting access to at least one vehicle in 2021.
Car ownership is not just a trend in American culture—it’s a way of life. A mere 8.3% of households found themselves without a vehicle in 2021.
The majority of households, 91.7%, possessed at least one vehicle in 2021, which was a slight increase from 91.2% in 2017.
The data reveals a nuanced landscape. 37.1% of households sports two vehicles and a notable 22.1% have three or more vehicles.
Electric vehicle ownership is also on the rise. It constituted 12.3% of all new vehicle sales in 2022. California leads the charge with 1.61% of total registered vehicles being electric.
Why are car insurance premiums rising?
In 2023, car insurance costs experienced a notable surge due to a confluence of factors. Inflation, supply chain disruptions, and the resurgence of expensive car accidents all contributed to this spike.
The Consumer Price Index (CPI) registers a 6% increase for the 12-month period ending in February 2023. It encompasses the rising costs of essentials, including car insurance.
The American Property Casualty Insurance Association (APCIA) sheds light on insurers grappling with inflation, where claim costs outpace rate increases.
Insurers still play catch-up. We can therefore still expect car insurance rate increases as they navigate this challenging terrain.
Understanding the intricacies of car ownership and insurance becomes paramount. Americans need to navigate a dynamic landscape where their vehicles, safety, and financial well-being intersect.
What are the biggest cost factors for car insurance?
As car insurance costs surge, it becomes imperative to understand the key factors influencing this financial burden.
Your driving record, credit history, coverage choices, deductible amount, vehicle’s make and model, driving experience, age, and even your location play pivotal roles in determining insurance rates.
States play a significant role in car insurance costs. Rural areas, for example, are generally experiencing lower costs compared to their urban counterparts.
The ongoing struggle with uninsured drivers poses an additional layer of concern. Over 20% of drivers in certain states hit the road without insurance.
Uninsured Motorist Coverage (UM) is therefore a mandatory requirement in certain states. It offers financial protection in case of accidents involving uninsured drivers or hit-and-run incidents.
This coverage extends to cover medical expenses, lost wages, pain and suffering, and funeral costs for you and your passengers.
Additionally, it includes Uninsured Motorist Property Damage (UMPD). This provides funds for repairing your vehicle if it’s damaged by an uninsured driver or one with insufficient liability coverage.