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U.S. Auto Insurance Trends Report Highlights Increases in Driving Violations and Shifting Consumer Demographics in Insurance Shopping

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LexisNexis Risk Solutions' 2025 U.S. Auto Insurance Trends Report reveals significant shifts in the auto insurance landscape during 2024. The report highlights a 17% increase in driving violations, with major speeding up 16% and distracted driving violations surging 50%. Insurance rate increases moderated to 10% YoY in 2024, down from 15% in 2023. Industry profitability improved with direct written premiums growing 13.6% to $359 billion. Policy shopping reached record levels with over 45% of policies being shopped at least once. Notable trends include increased shopping among older consumers (66+) and long-tenured customers, while retention decreased 5 percentage points to 78%. Claims severity showed mixed trends, with bodily injury severity increasing 9.2% and property damage up 2.5%, while collision severity declined 2.5%. EV adoption introduced new risks, with drivers transitioning from ICE vehicles experiencing a 14% rise in claim frequency.
Il Rapporto sulle Tendenze dell'Assicurazione Auto negli Stati Uniti 2025 di LexisNexis Risk Solutions evidenzia cambiamenti significativi nel settore assicurativo auto durante il 2024. Il rapporto segnala un aumento del 17% delle infrazioni alla guida, con un incremento del 16% per l'eccesso di velocità e un'impennata del 50% per le violazioni dovute alla distrazione alla guida. Gli aumenti delle tariffe assicurative si sono moderati al 10% su base annua nel 2024, rispetto al 15% del 2023. La redditività del settore è migliorata con un aumento del 13,6% dei premi diretti scritti, raggiungendo i 359 miliardi di dollari. Le ricerche di polizze hanno raggiunto livelli record, con oltre il 45% delle polizze sottoposte a confronto almeno una volta. Tra le tendenze più rilevanti si evidenzia un aumento delle ricerche tra i consumatori più anziani (66+) e i clienti di lunga data, mentre la fidelizzazione è diminuita di 5 punti percentuali, scendendo al 78%. La gravità dei sinistri ha mostrato tendenze contrastanti, con un aumento del 9,2% per i danni alle persone e del 2,5% per i danni materiali, mentre la gravità dei sinistri da collisione è diminuita del 2,5%. L’adozione dei veicoli elettrici ha introdotto nuovi rischi, con un aumento del 14% della frequenza dei sinistri tra i conducenti che sono passati da veicoli a motore a combustione interna.
El Informe sobre Tendencias del Seguro de Automóviles en EE. UU. 2025 de LexisNexis Risk Solutions revela cambios significativos en el panorama del seguro de autos durante 2024. El informe destaca un aumento del 17% en las infracciones de conducción, con un incremento del 16% en exceso de velocidad y un aumento del 50% en infracciones por conducción distraída. Los aumentos en las tarifas de seguros se moderaron al 10% interanual en 2024, desde el 15% en 2023. La rentabilidad de la industria mejoró con un crecimiento del 13.6% en primas directas suscritas, alcanzando los 359 mil millones de dólares. La búsqueda de pólizas alcanzó niveles récord, con más del 45% de las pólizas siendo comparadas al menos una vez. Entre las tendencias destacadas se encuentra un aumento en la búsqueda de pólizas entre consumidores mayores (66+) y clientes de larga duración, mientras que la retención disminuyó 5 puntos porcentuales hasta el 78%. La severidad de los siniestros mostró tendencias mixtas, con un aumento del 9.2% en daños corporales y del 2.5% en daños a la propiedad, mientras que la severidad de colisiones disminuyó un 2.5%. La adopción de vehículos eléctricos introdujo nuevos riesgos, con un aumento del 14% en la frecuencia de siniestros entre conductores que cambiaron de vehículos con motor de combustión interna.
LexisNexis Risk Solutions의 2025년 미국 자동차 보험 트렌드 보고서는 2024년 자동차 보험 시장에서의 중요한 변화를 보여줍니다. 보고서에 따르면 운전 위반이 17% 증가했으며, 과속 위반은 16%, 주의 산만 운전 위반은 50% 급증했습니다. 보험료 인상률은 2023년 15%에서 2024년에는 10%로 완화되었습니다. 업계 수익성은 직접 보험료가 13.6% 증가하여 3,590억 달러에 달하면서 개선되었습니다. 보험 상품 비교 구매는 45% 이상의 정책이 최소 한 번 이상 비교되는 기록적인 수준에 도달했습니다. 주요 트렌드로는 66세 이상 고령자와 장기 고객의 비교 구매 증가가 있으며, 유지율은 5%포인트 하락하여 78%를 기록했습니다. 청구 심각도는 혼재된 경향을 보였는데, 신체 상해 심각도는 9.2%, 재산 피해는 2.5% 증가한 반면 충돌 심각도는 2.5% 감소했습니다. 전기차 도입은 새로운 위험을 가져왔으며, 내연기관 차량에서 전기차로 전환한 운전자의 청구 빈도가 14% 증가했습니다.
Le Rapport sur les Tendances de l'Assurance Auto aux États-Unis 2025 de LexisNexis Risk Solutions révèle des changements importants dans le secteur de l'assurance automobile en 2024. Le rapport souligne une augmentation de 17 % des infractions au volant, avec une hausse de 16 % des excès de vitesse et une flambée de 50 % des infractions liées à la distraction au volant. Les hausses des tarifs d'assurance ont été modérées à 10 % en glissement annuel en 2024, contre 15 % en 2023. La rentabilité du secteur s'est améliorée grâce à une croissance de 13,6 % des primes directes souscrites, atteignant 359 milliards de dollars. Les recherches de polices ont atteint des niveaux records, plus de 45 % des polices ayant été comparées au moins une fois. Parmi les tendances notables, on observe une augmentation des recherches chez les consommateurs âgés (66 ans et plus) et les clients de longue date, tandis que la fidélisation a diminué de 5 points de pourcentage pour atteindre 78 %. La gravité des sinistres a montré des tendances contrastées, avec une augmentation de 9,2 % de la gravité des blessures corporelles et de 2,5 % des dommages matériels, tandis que la gravité des collisions a diminué de 2,5 %. L'adoption des véhicules électriques a introduit de nouveaux risques, avec une hausse de 14 % de la fréquence des sinistres chez les conducteurs passant des véhicules à moteur thermique.
Der LexisNexis Risk Solutions Bericht zu den Trends in der US-Autoversicherung 2025 zeigt bedeutende Veränderungen in der Autoversicherungslandschaft im Jahr 2024. Der Bericht hebt einen Anstieg der Verkehrsverstöße um 17 % hervor, wobei Geschwindigkeitsüberschreitungen um 16 % und Ablenkungsverstöße um 50 % zugenommen haben. Die Versicherungsprämienanstiege haben sich im Jahresvergleich 2024 auf 10 % abgeschwächt, nach 15 % im Jahr 2023. Die Rentabilität der Branche verbesserte sich durch ein Wachstum der direkt gezeichneten Prämien um 13,6 % auf 359 Milliarden Dollar. Das Wechselverhalten bei Policen erreichte Rekordwerte, mit über 45 % der Policen, die mindestens einmal verglichen wurden. Bemerkenswerte Trends sind ein verstärktes Wechselverhalten bei älteren Verbrauchern (66+) und langjährigen Kunden, während die Kundenbindung um 5 Prozentpunkte auf 78 % sank. Die Schadensschwere zeigte gemischte Trends: Die Schwere bei Personenschäden stieg um 9,2 %, bei Sachschäden um 2,5 %, während die Kollisionsschwere um 2,5 % zurückging. Die Einführung von Elektrofahrzeugen brachte neue Risiken mit sich, wobei bei Fahrern, die von Verbrennungsmotorfahrzeugen wechselten, die Schadenhäufigkeit um 14 % zunahm.
Positive
  • Direct written premiums grew 13.6% to $359 billion in 2024
  • Insurance rate increases moderated to 10% YoY in 2024, down from 15% in 2023
  • Incurred loss ratios improved steadily throughout 2024
  • Some carriers are now able to file for rate decreases due to improved profitability
Negative
  • All driving violations increased 17% YoY, surpassing 2019 levels
  • Distracted driving violations increased by 50% from 2023 to 2024
  • EV transitions led to 14% rise in claim frequency compared to ICE vehicles
  • Policy retention decreased 5 percentage points to 78%, resulting in 22% higher policy churn

Insights

LexisNexis report shows auto insurers returning to profitability amid record policy shopping and increasing driving violations, positioning RELX's data services favorably.

The release of LexisNexis' 2025 U.S. Auto Insurance Trends Report reveals several significant shifts in the insurance landscape that highlight the increasing value of data analytics in the industry. The report documents a 17% year-over-year increase in all driving violations, with distracted driving violations surging by a remarkable 50% and major speeding violations now 38% higher than pre-pandemic levels.

From a financial perspective, the industry shows signs of stabilization after years of turmoil. Rate increases have moderated to 10% in 2024 versus 15% in 2023, while direct written premiums grew 13.6% to $359 billion. This improved financial position has allowed some carriers to file for rate decreases for the first time in years, signaling a potential inflection point in the market cycle.

The most revealing consumer trend is the unprecedented level of policy shopping, with over 45% of policies being shopped at least once in 2024—the highest level ever recorded. Particularly noteworthy is the surge in shopping among older consumers (66+) and long-tenured policyholders, groups traditionally considered stable. This shift has contributed to industry retention falling 5 percentage points to 78% since 2021.

For RELX, LexisNexis' parent company, these trends underscore the critical importance of their data analytics services as insurers navigate increasingly complex risk assessment challenges. The identified 14% rise in claim frequency for drivers transitioning from internal combustion engines to electric vehicles represents exactly the type of emerging risk pattern that requires sophisticated data analysis. As market complexity increases and consumer loyalty decreases, insurance carriers will likely place greater value on predictive analytics and risk assessment tools—core offerings in RELX's LexisNexis portfolio.

The 2025 LexisNexis® U.S. Auto Insurance Trends Report shares insights to help insurers make more informed future rating decisions with today's trend data, evolve to address new risk segments and navigate the road to continued profitability.

ATLANTA, June 12, 2025 /PRNewswire/ -- Today, LexisNexis® Risk Solutions released its 2025 U.S Auto Insurance Trends Report, which aggregates and analyzes annual market data from calendar year 2024 about consumer driving patterns, auto insurance shopping trends, claim frequency and severity, and consumer responses to rate increases to help insurance carriers better understand the changing trends impacting the U.S. auto insurance industry.

  • 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.

"Auto insurers continue to navigate a dynamic market. The combination of the market softening and a return to profitability presents a potential new chapter for the industry as insurers encounter a consumer base that is more willing than ever to shop for deals," said Jeff Batiste, senior vice president and general manager, U.S. auto and home insurance, LexisNexis Risk Solutions. "However, this is the market as we understand it now, and we might be seeing a different picture in a couple of months. Insurers who can quickly evaluate shifting trends and adapt pricing models should have a competitive advantage, enabling them to price risk more accurately and quickly, which should also set themselves up for more success as these trends impacting the industry persist."

All driving violations are on the rise

  • Major speeding violations rose 16% YoY (38% higher since 2019), and minor speeding violations increased 25% YoY (21% higher since 2019).
  • Driving under the influence increased by 8% over 2023 levels, with drivers aged 66-90 experiencing the largest jump in DUI violations. However, these drivers do not make up the largest percentage of overall DUI violation volumes, which is drivers aged 26-35.
  • The number of drivers with distracted driving violations has increased by 50% from 2023 to 2024 (comparing the first three quarters of each year).

Profitability returns even as policy shopping and switching hits record levels

  • U.S. auto insurance rate adjustments slowed in 2024 as the market softened with a 10% YoY increase, compared to a 15% increase in 2023. However, overall industry rate levels increased by 35% from January 2022 to the end of 2024.
  • These rate increases helped U.S. insurers address profitability issues, as direct written premiums grew 13.6% to $359 billion in 2024, slightly less than the 14% growth in 20232. Incurred loss ratios also improved steadily throughout 2024. The combination of these two elements allowed those insurers who returned to profitability to take a more surgical and balanced approach to rate changes, with many filing for rate decreases for the first time in years.
  • At the end of 2024, more than 45% of policies in force were shopped at least once – the highest shopping rate ever recorded.
  • 2024 also saw the rise of shopping among two key demographics: consumers aged 66 and older along with long-tenured customers. In Q1, consumers aged 66 and older experienced the highest growth rate in shopping among their counterparts. Additionally, in Q1, consumers most likely to be retained grew to 24% of total shoppers, well outpacing the shopping growth of their moderate and low survivability counterparts. These customers were also switching insurance policies at a faster pace.
  • As long-tenured consumers continue to shop and potentially switch their insurance policies, insurers may want to focus on their retention strategies. Since 2021, retention has decreased 5 percentage points to 78%, resulting in a 22% increase in policy churn.

Download the 2025 LexisNexis Risk Solutions Auto Insurance Trends Report.

About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.

Media Contact:
Annalysce Baker
LexisNexis Risk Solutions
Phone: +1 678.436.1579
annalysce.baker@lexisnexisrisk.com

_____________________________________

1 2024 NAIC Market Share Report
2 2024 NAIC Market Share Report

 

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SOURCE LexisNexis Risk Solutions

FAQ

What are the key findings from LexisNexis 2025 Auto Insurance Trends Report?

The report shows a 17% increase in driving violations, 10% rise in insurance rates, 13.6% growth in premiums to $359 billion, and record-high policy shopping with 45% of policies shopped at least once in 2024.

How much did auto insurance rates increase in 2024 according to LexisNexis?

Auto insurance rates increased by 10% year-over-year in 2024, down from a 15% increase in 2023.

What is the trend in driving violations according to the 2025 LexisNexis report?

All driving violations increased 17% YoY, with major speeding up 16%, minor speeding up 25%, DUI up 8%, and distracted driving violations up 50%.

How has EV adoption affected auto insurance claims according to LexisNexis?

Drivers transitioning from internal combustion engine vehicles to EVs experienced a 14% increase in claim frequency.

What are the trends in auto insurance shopping behavior in 2024?

Policy shopping reached an all-time high with 45% of policies shopped at least once, with consumers aged 66+ and long-tenured customers showing increased shopping activity.
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