29 Insurance Industry Facts You Probably Never Heard Of

1. Travelers is known to write the first liability car insurance policy in 1897.

2. The first known car insurance policy was written in the UK in 1895.

3. Prior to 1997 car insurance was pricier because people could not access the internet for better rates and had to rely on their local brokers.

4. The Internet changed everything on how people shop for insurance.

5. At first, every person was paying almost the same for insurance. Then companies made changes to the $ they pay depending how they drive and this way they can get more customers by lowering their rates because they are better drivers.

6. Farmers only sold car insurance to farmers for quite some time before branching out to other kinds of auto insurance.

7. Insurance generates more than $1 trillion.

8. Property and Casualty (P&C) insurance is a $420+ billion industry.

9. Personal auto insurance is a $160 billion industry sector.

10. Life/health (L/H) insurance is a $500+ billion industry.

11. In 2009, insurance carriers and related activities totaled 3% of the GDP.

12. In 2009, there were 2,737 P&C and 1,106 L/H insurance companies.

13. In 2010, more than 2.2 million people worked in the insurance industry.

14. Twenty P&C insurance companies are listed on the 2010 Fortune 500 annual ranking of America’s largest corporations.

15. There are over 3,000,000 new drivers a year, in the United States.

16. Paying Semi-Annually or annualy for insurance rather than monthly can save you a great deal on money.

17. Higher deductable lowers your premium.

18. Your credit score can affect the rate for your insurance.

19. 15% of husbands and 28% of wives in America have no life insurance.

20. Statistics show that married drivers average fewer accidents than the rest of the population so policy owners who are married often receive lower premiums than single persons.

21. Some companies have lower premiums for people who drive less and can provide annual milage reports.

22. If your car has a GPS than you can receive a discount from many insurance companies.

23. Rates may increase for senior drivers over the age of 65.

24. The top executives at the five largest for-profit health insurance companies in the United States combined to receive nearly $200 million in total compensation in 2009.

25. The chairman of Aetna, the third largest health insurance company in the United States, brought in a staggering $68.7 million during 2010.

26. Over the last decade, the number of Americans without health insurance has risen from about 38 million to about 52 million.

27. According to one survey, approximately 1 out of every 4 Californians under the age of 65 has absolutely no health insurance.

28. After a disaster, insurance companies may raise every one’s rates. By not filing your claim, your personal rate increase is paying for every one else’s damage except yours.

29. Most states prohibit insurance companies from cancelling policies for filing claims arising from severe weather related events.

Average cost of insurance

When shopping for any type of insurance policy, finding the "average cost" may be the first thing that comes to mind. While such a number may be useful in some respects, especially if you are comparing rates, it is not the most accurate method of gauging an appropriate price.
The average cost of insurance reflects what all consumers actually spend on insurance, meaning those with the cheapest rates are pooled with those with the most expensive premiums, and those who buy minimum coverage are included with those who buy extensive protection.
If you decide to compare the rates you've gathered with average costs, it may be more useful to look at the average cost within your state. Comparing your rates with the nationwide average, or with the average price from a different state, could be misleading due to varying risk factors. Insurance rates are determined by looking at several risk factors, which include (but are not limited to) where you live, your age and your claims record. Factors affecting rates for group health insurance policies include the health and ages of members within the group.

Car Insurance: Expenditure by State
According to data from the National Association of Insurance Commissioners (NAIC), the average cost of car insurance in the U.S. was $795 in 2007. When compared to average costs by state, however, it's clear that location can make a big difference. For example:
New York: $1,047
Florida: $1,043
Pennsylvania: $820
Texas: $808
California: $800
The average car insurance price assumes that all insured vehicles include liability coverage, the minimum auto insurance requirement in most states, but does not reflect the total of liability as well as collision and comprehensive coverage -- because not all auto policies include all three coverage types.
The NAIC reports that states with greater premiums tend to be highly urban -- with higher wages and price levels -- and possess a higher traffic density. Other factors that affect the cost of insurance include: auto insurance laws, labor costs for repairs, car-theft rates and liability coverage requirements.

Home Insurance: Average Premiums
The cost of a home insurance policy is based on several factors, including the amount of insurance you purchase, the perils covered by your policy, the type of property you insure, and the limits and deductibles you choose as a policyholder.
Homeowners insurance rates, which are influenced by local construction costs, vary widely around the country. Your degree of exposure to natural disasters, such as tornadoes and forest fires, also affect your premium price.
According to the NAIC, the national average for home insurance coverage for a single family home, was $822 in 2007. As with auto insurance, average home insurance prices vary widely from state to state:


Florida: $1,534
Texas: $1,448
New York: $936
California:$925
Pennsylvania: $689
The mean insurance rate for home insurance represented the most commonly purchased coverage, the HO-3 policy, which provides coverage for buildings, personal property (contents) and liability.

Renters Insurance
If you rent, you should consider purchasing renters insurance. The average premium price differences are less dramatic in state-to-state comparisons for renters insurance. For instance, average annual premiums for renters insurance in 2007 include:
California:$231
Texas: $226
New York: $218
Florida: $202
Pennsylvania: $144


Group Health Insurance: For Individuals and Families
According to the Kaiser Family Foundation's Survey of Employer-Sponsored Health Benefits for 1999 to 2009, the average annual cost of health insurance coverage, as part of a group plan, is:
Individual: $4,824
Family: $13,375
The survey included 3,188 randomly selected, public and private companies having three or more employees. The average cost for family coverage reflected a 5% increase from 2008 to 2009; however, the individual premium price did not indicate a significant jump. Factors such as the the group's location, industry, and health and ages of the group's members affect group health insurance premiums.