LexisNexis® U.S. Auto Insurance Trends Report
Top 5 Auto Insurance Trends To Watch
The annual LexisNexis® Risk Solutions U.S. Auto Insurance Trends Report explores key trends from the previous year and offers insights to help insurers make more informed business decisions. This year, we identified five trends impacting U.S. consumer auto insurance shopping, claims, driving violations and more.
As U.S. auto insurers steer through the challenges of the current market, these trends offer insights to help navigate the road ahead. Insurers can leverage proprietary and industry consortium data to help gain a clearer view of performance benchmarks and plan for the road ahead.
Access the report to explore:
- High claim severities show little signs of slowing down
- Insurers take aggressive steps to address profitability challenges
- Consumers respond to market conditions by shopping and switching auto policies
- Risky driving behavior persists
- As electric vehicle sales grow, so do insurance risks
Explore each section to gain additional insights
High claim severities show little signs of slowing down
A broad range of factors impacted claims processing costs in 2023:
- Sustained rise in claims severity
- Increase in uninsured motorist and attorney-represented claims
- Total loss claims
- Length of repair times
- Rising costs of medical bills, towing services and storage costs
Trend Details
Both the severity and frequency of claims, including severe auto physical damage and bodily injury, have increased since 2020. Bodily injury severity has increased 20% in the post-pandemic years.
More than a quarter of collision claims were deemed total losses in 2023. While that percentage is the same as the previous year, total loss claims have jumped 29% since 2020.
More claimants are seeking advice from attorneys before settling. In fact, according to our 2023 survey, a majority of claimants who hired an attorney for their last claim would most likely do so again.
Consumers respond sharply to market conditions by shopping and switching auto policies
As rate increases went into effect throughout 2023, many consumers reacted by shopping for lower policy prices. Many of those who shopped for lower rates ended up switching insurers, resulting in new policy growth of 6.2% last year.
Source: LexisNexis Risk Solutions Insurance Demand Meter
These dynamics have helped fuel seven straight quarters of positive new policy growth but resulted in the industry retention level dropping three percentage points since Q1 2022.Get the latest auto insurance shopping trend data in our quarterly report.
Driving behavior continues to change dramatically
As miles driven returned to 2019 levels in 2023, moving and non-moving violations returned as well. In fact, all driving violations have increased 4% from 2022 to 2023. Speeding, distracted driving and DUIs all increased year over year, resulting in escalating risk profiles. Get additional details in this blog post.
Speeding
Both major and minor speeding violations continue to rise, consistent with the post-pandemic trend.
DUI
Unlike other violations, DUIs take longer to move through the court system, so they can be a lagging metric. Comparing the first six months of 2022 to the first six months of 2023, DUI violations increase 8%. Our latest driving violations blog dives into current unsafe driving trends.
Distracted Driving
Distracted driving violations continue to rise as people return to the roads. Younger drivers continue to be the more susceptible problematic age group when it comes to increases in distracted driving. This increase in violations, plus Gen Z’s inexperience compared to other generations, has implications for both personal lines and commercial lines insurers. Read more in our latest blog article.