LexisNexis® U.S. Auto Insurance Trends Report
The Risk Right Now: Market Shifts Shaping U.S. Auto Insurance
Multiple long-term trends reached inflection points in 2024. Due to major shifts in retention rates, policy shopping levels and attorney representation, the future of the U.S. auto insurance industry has never felt more fluid.
The annual LexisNexis® Risk Solutions U.S. Auto Insurance Trends Report presents five key trends impacting the auto insurance industry and offers insights to help insurers keep up with this dynamic landscape. Insurers can use these insights to help benchmark industry performance and identify new and shifting sources of risk.
Key takeaways:
- Claims severity continues to evolve as bodily injury severity jumped 9.2%, and property damage severity climbed 2.5% year over year (YoY). In contrast, collision severity declined by 2.5% year over year.
- All driving violations increased 17% year over year and driving violation rates across the U.S. surpassed 2019 levels.
- Rate increases are beginning to ease, rising 10% YoY in 2024 compared to a 15% hike in 2023, as market conditions soften.
- Insurer profitability is improving, with direct written premiums growing 13.6% to $359 billion and incurred loss ratios stabilizing, enabling some carriers to pursue growth strategies and file for rate decreases.1
- Policy shopping reached an all-time high, with more than 45% of policies in force shopped at least once by year-end.
- EV transitions are introducing new risks, as drivers moving from internal combustion engine (ICE) vehicles to EVs experienced a 14% rise in claim frequency.
- Older and long-tenured policyholders are leading the shopping trend, with consumers aged 66 and older shopping and switching more than any other age group. Additionally, shopping among long-tenured (10+ years) customers rose 35% year over year, with the rate of high-survivability shoppers hitting 40% by the end of 2024.
2024 NAIC Market Share Report1
Download the report to explore:
- Rate adjustments and premium growth
- Consumer auto policy shopping’s impact on retention rates
- Driving behavior trends
- Changes in household and vehicle risks
- Auto claim challenges
Explore each section to gain additional insights
Claim cycle times improve against elevated attorney representation rates
Claim severity continues to evolve, as total loss frequency rose nearly two points to 29% of all collision claims. Bodily injury (BI) severity continued to climb despite lower claim volumes, while cycle time improved.
- Bodily injury severity rose 9.2%.
- Property damage, collision and bodily injury claim frequency stayed relatively flat.
- Days to First Pay moved in a positive direction.
- Consumers reported positive experience from attorney involvement.
- Total loss claims continued to climb.
Attorney representation continues to impact the auto claims sector. Our research shows that claimants retained counsel for a variety of reasons, including recommendations from family members and friends and because an attorney contacted them during the process.
Driving violations continue to escalate
As more people returned to the office last year, the amount of miles driven returned to pre-pandemic levels. Unfortunately, risky driving habits exhibited during the pandemic persist.Driving violation rates across the U.S. surpassed 2019 levels in 2024. Major speeding, minor speeding, distracted driving, driving under the influence (DUI) and overall violations continue to rise.
- All driving violations increased 17%.
- Major speeding violations rose 16% (38% higher since 2019).
- Minor speeding violations climbed 25% (21% higher since 2019).
- DUI violations grew 8% (7% higher than 2019).
- Distracted driving violations rose 50% (21% higher than 2019).
Check out our recent distracted driving blog post to see the impact of rising distracted driving violations.
Access the Report
Download Previous LexisNexis® U.S. Auto Insurance Trends Reports
2024 Auto Insurance Trends Report
2023 Auto Insurance Trends Report
The 2023 report examines key trends from the previous year and offers insights to help insurers make better business decisions now – and into the future.
2022 Auto Insurance Trends Report
How insurance carriers can better navigate market stressors moving forward.