LexisNexis Risk Solutions said US auto insurers are operating in a market that is "more complex across nearlt every dimension," as new data pointed to sharp increases in distracted driving, heightened price sensitivity, a more polarized vehicle fleet and rising bodily injury costs.
The report showed that overall traffic violations have returned to and remain above pre-pandemic levels, even though miles driven have risesn by only about 2% since 2022.
That suggests changes in behavior and enforcement, rather than pure exposure, are driving the increase.
Distracted driving is a key factor. Violations linked to distraction are up 57% across all age groups since 2022. While younger drivers remain heavily represented, the steepest growth is now among older cohorts: violations are up 70% or more for drivers aged 36–45, and 73% for those 66 and over.
That pattern challenges long‑standing assumptions embedded in rating plans. Age bands that have historically carried more favorable factors may no longer be as benign if mid‑life and senior drivers are increasingly engaging in distracted behavior. Carriers that rely heavily on legacy scoring without fresher behavioral indicators risk mispricing loss costs by segment.
After four years of sustained rate increases, the report also found that consumers are adjusting coverage and shopping more aggressively. The share of policies with deductibles of $1,000 or higher climbed from 23% in 2022 to 33% in 2025, indicating that many households are taking on greater risk retention to keep premiums affordable.
Shopping activity reached a record level in the fourth quarter of 2025, with more than 47% of policies in force shopped at least once in the previous 12 months. That churn creates both risk and opportunity: retention is harder to secure on price alone, but there is more displacement for carriers with competitive offerings and refined segmentation.
The LexisNexis consumer survey also showed that insurance is now firmly part of vehicle purchase decisions. Fifty‑six percent (56%) of respondents said insurance cost is a key factor when buying a vehicle, second only to the importance of the monthly payment at 63%.
That link between vehicle choice and insurance cost has implications for rating changes, manufacturer partnerships and lender programs.
The report also highlighted growing polarization in the vehicle fleet.
About 15% of insured vehicles are now more than 20 years old, while model‑year 2020 or newer vehicles account for roughly 30% of the insured population.
Late‑model vehicles are more likely to carry advanced driver‑assistance systems, which have been associated with reductions in certain collision frequencies. Those same systems, however, can increase repair complexity and parts costs when losses occur, driving severity higher. Older vehicles, by contrast, may lack modern safety features and exhibit different repair and total‑loss patterns.
Claims outcomes are also being reshaped by liability trends. According to the report, bodily injury claims now account for more than 26% of total claims dollars, up from less than 20% in 2022, as both frequency and severity increase.
The ratio of bodily injury to property damage claims has risen from 24 per 100 property damage claims in 2022 to 29 per 100 in 2025.
The shift is occurring even as collision frequency has eased, a pattern consistent with broader market experience in which physical damage results have improved faster than liability. A higher bodily injury share in the loss mix brings greater volatility and tail risk in reserves, and heightens sensitivity to legal and medical cost inflation and social inflation trends.
Carriers may need to re‑evaluate how they allocate capital between physical damage and liability lines, how they structure reinsurance protections for liability layers and how they manage limits, claim triage and fraud controls.
Jeff Batiste, senior vice president and general manager for US auto and home insurance at LexisNexis Risk Solutions, said the data portray a market in which driving behavior continues to evolve, consumers are more price sensitive and claims outcomes are being reshaped by bodily injury severity.
Brokers and agents face a customer base that is both more cost‑conscious and more willing to move. The ability to explain how coverage changes, such as higher deductibles, affect risk, and to position markets that invest in data and analytics as better equipped to manage emerging trends, will be central to retention and new‑business conversations.
Against the backdrop of improving but still fragile profitability in personal auto, the 2026 LexisNexis report suggests that carriers able to combine richer behavioral and vehicle data with disciplined pricing may be best placed to shift from rate catch‑up to sustainable, risk‑adjusted growth in the next phase of the U.S. auto cycle.
