Car Insurance Markets - Colorado, Kansas, Tennessee

Goals

Identify unique differences in the car insurance industries between Kansas, Colorado, and Tennessee. Differences can be found within the shoppers, utilization, or brands that are present in each state. This information will be used to help a new insurance client break into a new market in these areas.

Early Findings

Colorado Car Insurance Market

  • According to the NAIC 2018 Market Share Report, the top 5 car insurance providers in Colorado based on total direct premiums earned are:
    • 1) State Farm Group — 928,164,000 premiums earned, 18.32% of the market
    • 2) Progressive Group — 522,867,000 premiums earned, 10.95% of the market
    • 3) United Service Automobile Association Group — 516,237,000 premiums earned, 10.51% of the market
    • 4) Berkshire Hathaway Group — 489,299,000 premiums earned, 9.75% of the market
    • 5) Allstate Insurance Group — 428,299,000 premiums earned, 8.83% of the market
  • The average premiums in Colorado for auto insurance liability coverage increased from $472.21 in 2013 to $639.99 in 2017.
  • In the state of Colorado, the minimum requirements for liability insurance are 25/50/15. However, the following components are not required to be written into a car insurance premium in this state:

Kansas Car Insurance Market

  • The NAIC 2018 Market Share Report indicates that the top 5 car insurance providers for private passenger auto in Colorado based on total direct premiums earned are:
    • 1) State Farm Group — 379,073,000 premiums earned, 19.21% of the market
    • 2) American Family Insurance Group — 236,060,000 premiums earned, 12.37% of the market
    • 3) Progressive Group — 216,667 premiums earned, 11.55% of the market
    • 4) Iowa Farm Bureau Group — 142,905,000 premiums earned, 7.45% of the market
    • 5) Farmers Insurance Group — 117,275,000 premiums earned, 5.96% of the market
  • Kansas is a no-fault state for car insurance, meaning that car insurance helps to cover the cost of medical bills if injured in an accident, regardless of who was found to be at-fault.
  • The average premiums in Kansas for auto insurance liability coverage increased from $342.15 in 2013 to $399.96 in 2017.
  • In Kansas state, the minimum requirements for car insurance premiums are as follows:
    • 25/50 minimum for bodily injury (BI)
    • $10,000 minimum for property damage liability (PD)
    • 25/50 for uninsured/underinsured motorists (UM/UIMBI)
    • $4,500 minimum for personal injury protection (PIP)

Tennessee Car Insurance Market

  • The NAIC 2018 Market Share Report also found that the top 5 car insurance providers in Tennessee based on total direct premiums earned are:
  • The average premiums in Tennessee for auto insurance liability coverage increased from $406.95 in 2013 to $456.05 in 2017.
  • The minimum car insurance liability coverage requirements in Tennessee are 25/50/15. However, the following coverage are all considered to be optional:

Proposed next steps:

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