Digital Auto Care Factbook 2019 - 69

Miles Driven and Vehicle Service Contracts
Americans drove 3.21 trillion miles in 2017,
another record year. Vehicle miles traveled
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.

Annual Miles Driven, 2007-2017 (Trillions of Miles)
3.4
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8
1.6

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.
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
in 2017.

1.4
1.2
VMT

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

3.03

2.97

2.96

2.97

2.95

2.97

2.99

3.03

3.10

3.17

3.21

2.3%

2.4%

Annual Miles Driven, 2007-2017
(Percent Change from Previous Year)
4%
3%
2%
1%

0.5%

0.6%

0.7%

1.2%

2012

2013

2014

1.3%

1.2%

0.4%

0%
-0.6%

-1%
-2%
-3%
Note:

-0.6%

-1.9%

2007

2008

2009

2010

2011

2015

2016

2017

Historical data have been revised.

Sources: Auto Care Industry, U.S. Department of Transportation /
Vehicle Service Contracts (VSC) comprise a
Federal Highway Administration, December 2017
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.

U.S. Service Contract Market Estimates, 2010-2017
Premiums Paid by Consumers ($Billion)

Vehicle Service Contract (VSC)

2010

2011

2012

2013

2014

2015

2016

2017

% Change
2016-2017

% Change
2010-2017

$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

$4.5

1.8%

-11.5%

Home Warranty

$1.6

$1.6

$1.7

$1.7

$1.8

$2.0

$2.2

$2.5

16.4%

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

$28.1

$31.2

$34.8

$37.0

$39.5

$41.1

$41.4

$44.7

7.9%

59.0%

Total

Source: Warranty Week, http://www.warrantyweek.com/archive/ww20180201.html

The 2019 Digital Factbook is Copyright © 2019 Auto Care Association and/or its licensor. 
All other rights reserved.  Use of the 2019 Digital Factbook is subject to compliance with the Legal Terms and Conditions found on page 119 of this report.

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