New data from the LexisNexis US Auto Insurance Trends Report shows significant changes in the auto insurance market. Released on June 13, 2025, the report reveals a rise in driving violations, shifting consumer behaviors, and a slow recovery in profitability for insurance companies.
Driving violations have surged by 17% compared to last year, exceeding levels seen in 2019. Major speeding violations increased by 16%, while minor speeding infractions rose by 25%. Distracted driving incidents have spiked alarmingly, with a 50% increase from 2023 to 2024. DUI cases also saw an 8% rise, particularly among older drivers aged 66 to 90, although the highest number of DUI incidents still comes from those aged 26 to 35.
Despite these rising risks, the auto insurance market is softening. After a steep 15% rate hike in 2023, the increase in rates has slowed to 10% year-over-year in 2024. This change, combined with a 13.6% growth in direct written premiums, which reached $359 billion, has helped improve profitability for insurers. Some companies are now looking to grow and even consider lowering their rates.
Consumer behavior is also shifting. By the end of 2024, over 45% of active policyholders had shopped for insurance at least once. Notably, older consumers and those with long-term policies (over ten years) are leading this trend, with a 35% increase in shopping activity among these groups.
Jeff Batiste, a senior vice president at LexisNexis Risk Solutions, commented on the situation, saying that insurers are facing a market that is both challenging and full of opportunities. The combination of a softening market and improved profitability could signal a new phase for the industry, especially as more consumers are eager to find better deals.
The report also highlights new risks associated with the growing adoption of electric vehicles (EVs). Drivers switching from traditional gasoline vehicles to EVs have experienced a 14% increase in claim frequency, prompting insurers to rethink their pricing models to adapt to these changes and meet the expectations of more discerning customers.
As the auto insurance landscape continues to evolve, companies must remain vigilant and responsive to these trends to thrive in a competitive market.