The 2026 LexisNexis U.S. Auto Insurance Trends Report highlights five key trends impacting the current market, stating that “auto insurers who incorporate these trends into their long-term growth strategy should be better prepared for more profitable growth when the market shifts again.”
The white paper report, headlined “Growth Through Precision in a Changing U.S. Auto Insurance Market,” claims that risk signals are becoming more complex despite the softening U.S. market, as affordability issues, shifts in driving behaviour, shopping behaviour, vehicle mix and claims outcomes make sustaining profitability challenging.
The following five trends are shaping the U.S. auto insurance in 2026:
- Bodily injury costs dominate claims outcomes
- Consumers continue strong policy shopping activity
- Insurance costs influence vehicle purchase decisions
- Vehicle mix complexity expands risk variability
- Violations remain elevated, driven by rapid growth in distracted driving
Body-injury loss costs are continuing to rise, and the decrease in collision claims reduces “visibility into prior vehicle damage, creating underwriting and downstream claims challenges,” the report stated. Automation and early injury intelligence increase in value as claims tilt toward complex, injury-related losses.
Long-tenured policy shoppers are now actively considering options, not just short-tenured or high-risk consumers, stated the report. Consumers who begin shopping are more likely to continue shopping in future cycles, even if they do not switch immediately; therefore, insurers should consider placing greater emphasis on retention.
U.S. auto insurance rates have consecutively increased for the last four years, leading consumers to change their behaviour. Policy shopping hit record highs in 2025 and remains active, notes LexisNexis, and nearly half of in-force policies were shopped at least once in the past year, not merely during typically high-churn segments.
Owning a vehicle is expensive — the price of gas, loan amounts and loan durations have increased for new and used vehicles. According to a recent study by LexisNexis, “56% of consumers say insurance is a key factor in vehicle purchase decisions.” Therefore, the report theorizes that drivers are keeping their cars longer due to rising costs, making the composition of vehicles on U.S. roads more complex as older vehicles lack the standard safety features included in newer models.
Miles driven have increased by 2% over the last few years, while total driving violations have increased by 13%. The report states that distracted driving is now “one of the most pervasive and difficult to detect risks in the market,” as distracted driving is magnified by infotainment systems and in-vehicle technology.
Less visible risk signals mean that insurers must rely on greater data, and will be more successful in maintaining risk assessment and sustaining profitable growth by investing in advanced modeling technologies.
