69
Miles Driven and Vehicle Service Contracts
Annual Miles Driven, 2007–2017
(Percent Change from Previous Year)
Annual Miles Driven, 2007–2017 (Trillions of Miles)
Note: Historical data have been revised.
Sources: Auto Care Industry, U.S. Department of Transportation / Federal Highway Administration, December 2017 1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0.5%
-1.9%
2.4%
1.2% 1.3%
-0.6% -0.6%
0.6% 0.7%
1.2%
2.3%
0.4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Americans drove 3.21 trillion miles in 2017,
another record year. Vehicle miles traveled (VMT)
on U.S. roads increased by 1.2 percent, 39.3
billion more miles than were travelled last year.
This also marks the sixth consecutive year that
miles traveled experienced an increase since
its 0.6 percent drop in 2011. Steady job growth,
increased productivity, falling unemployment
numbers, business investments and low
gasoline prices contributed to the increase in
miles driven over the past three years.
The nationwide average price per gallon of
gasoline (page 70) for all grades in 2017 was
$2.53, up 12.4 percent from $2.25 in 2016. As
of March 2018, the average price per gallon
was $2.72. For the 2018 summer driving season
(April-September), the U.S. Department of
Energy is forecasting regular gasoline retail
prices to average $2.60 per gallon. Given the
projected low gasoline price, some experts are
predicting a banner year again on the road for
Americans this summer, leading to increased
vehicle miles traveled in 2018.
U.S. Service Contract Market Estimates, 2010–2017
Premiums Paid by Consumers ($Billion)
2010 2011 2012 2013 2014 2015 2016 2017
% Change
2016-2017
% Change
2010-2017
Vehicle Service Contract (VSC)$11.2$12.4$14.0$15.0$15.9$16.8$17.0$16.5-2.7%48.0%
Mobile Phone Insurance$3.8$4.6$5.7$7.8$9.1$9.3$9.5$8.5-10.5%126.1%
Retail Consumer Electronics$5.4$6.2$7.0$6.5$6.6$7.0$6.7$6.7-0.1%23.3%
Computer OEMs$5.1$5.2$5.2$4.7$4.6$4.5$4.4$4.51.8%-11.5%
Home Warranty$1.6$1.6$1.7$1.7$1.8$2.0$2.2$2.516.4%63.3%
Retail Appliance Service Contract$1.1$1.2$1.2$1.3$1.5$1.5$1.6$1.5-6.2%35.3%
Furniture na na na na na na na $1.1 na na
Jewelry na na na na na na na $3.3 na na
Total $28.1 $31.2 $34.8 $37.0 $39.5 $41.1 $41.4 $44.7 7.9% 59.0%
Source: Warranty Week, http://www.warrantyweek.com/archive/ww20180201.html
According to estimates by the Warranty
Management Professionals, the size of the U.S.
extended warranty market was $44.7 billion in
2017 . Since 2010, the industry has grown 59
percent from $28.1 billion reaching $44.7 billion
i n 2017.
Vehicle Service Contracts (VSC) comprise a
major portion of the industry, with a market
share of 37 percent, followed by mobile phones
(19 percent). Consumers paid $16.5 billion in premium for VSC in 2017. VSC or an extended auto warranty is an agreement between
an administrator and a vehicle owner under which the administrator agrees to replace or repair, for a specific coverage period,
designated vehicle parts in the event of a mechanical failure.
VMT 3.03 2.97 2.96 2.97 2.95 2.97 2.99 3.03 3.10 3.17 3.21
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