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Claim Shift: Average severity drops 2.5%, report finds

Zogby Prewitt

Toronto, Ontario -- Canadian collision repairers may face growing pressure to adapt, as new data from LexisNexis points to shifting claim dynamics across North America. 

The 2025 U.S. Auto Insurance Trends Report from Lexis Nexus, released June 11, signals a realignment in cost drivers, claim types, and repair expectations. The headline figure — a 2.5 percent drop in collision claim severity — suggests repairers face tighter margins and increased pricing scrutiny. 

Overall, premium prices rose 13 percent last year. EV claims were up 14 percent over internal combustion vehicles. 

Driving violations surged 17 percent over 2023. Distracted driving incidences were up 50 percent, major speeding rose by 16 percent and DUIs increased eight percent. This had the effect of driving the volume of high-impact crashes that require frame, structural and diagnostic work up — core revenue areas for most well-equipped shops.

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