2026 Auto Trends Predictions

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. Telematics and Usage-based Insurance

• Connected-vehicle data is expected to accelerate usage-based insurance adoption. • Real-time driving behavior may play a larger role in pricing.

Changing Risk Models • EVs are expected to continue driving higher repair costs tied to batteries, weight and specialized labor requirements. • Advanced driver assistance systems reduce crashes but increase repair complexity. • Liability questions may need to be addressed as vehicles become more softwaredependent.

Integrated Purchasing Options • Growth in embedded insurance options at a vehicle’s point-of-sale is anticipated. • Automaker–insurer partnerships are expanding, with some manufacturers underwriting their own policies.

Regulatory Considerations • States will continue balancing affordability with rising claims costs. • Rate-setting limits may challenge insurer profitability. • Increased scrutiny is expected around data privacy and fairness in telematics and AI-based pricing