Toronto, Ontario -- Increasing repair costs aren't the only thing pushing auto insurance rates up across North America, a new report has found.
In its 2025 Driver Risk Report, SambaSafety, a risk management software provider, concluded auto insurance premiums, which are rising at about 11.1 percent year-over year, are being forced up by the increasing expense of repairing vehicles as well as by riskier driving habits and costly legal verdicts.
“Risk isn’t random -- it’s behavioral and, overwhelmingly, predictable,” said Matt Scheuing, chief executive officer at SambaSafety. “The volatility in commercial auto insurance reflects the systemic risk that builds when unsafe behaviors go unaddressed. That’s why the opportunity for real improvement starts upstream, with better visibility, targeted intervention and sustained behavior change.”
The report based its results on an extensive array of sources, including telematics, motor vehicle records and court records. It concluded that today's younger drivers are receiving more violations while behind the wheel across North America.
It isn't just young people who are causing mayhem on the roads, however. The report also noted that there has been an increase in the frequency of speeding violations, which accounted for close to 40 percent of major traffic violations in 2024, up from less than 35 percent in 2022.
The number of traffic incidence related to distracted driving is also increasing. More than one-in-eight (13 percent) of crashes reported to police related to distracted driving. According to a survey cited in the report, about 40 percent of American drivers admitted to reading texts or emails while behind the wheel.
The report also noted a significant increase in the awards handed out by juries against auto insurers in recent years. This rise has been driven by aggressive plaintiff attorney advertising as well as an increase in third-party litigation funding and legislative changes that have expanded the damages available in automotive lawsuits.
While human behaviour, both behind the wheel and inside the jury box, is having an impact on auto insurance prices, SambaSafety concluded repair prices were also playing a significant role. This was attributed to the inclusion of more and more ADAS technology in vehocles. The report estimated it is adding between US$300 and US$800 to the cost of each claim on newer vehicles.
