2025 Auto Insurance Industry Retrospective

A variety of events over the past 12 months have had significant impacts on the auto insurance market, including: 2026 AUTO INSURANCE MARKETPLACE TREND PREDICTIONS The following are some auto insurance trends to monitor this year: For more information about these trends, please contact us today. Market Stability and Profitability • Premium increases began to slow after years of sharp climbs. • Insurers returned to profitability, enabling renewed focus on customer experience. • Consumer dissatisfaction remained high, with 38% reporting poor interactions. Claims and Cost Drivers • Accident frequency declined, but repair costs rose due to advanced materials and specialized labor. • EVs contributed to higher claim severity; some Tesla, Rivian, Polestar, Lucid and Fisker models were even classified as higher risk