Key Insights for the Road Ahead: Top 5 Auto Insurance Trends of 2023
Insurers can also re-underwrite policies based on prior loss history and other factors.
Auto insurers implemented record-high rate increases in 2023 to address profitability issues, but it appears that these rate hikes were not sufficient.
The rise in risky driving behavior may be attributed to less congested roadways, which create opportunities for drivers to drive faster and more aggressively than they used to.
Unlike in a normal market where shopping increases but new policy purchases don't grow at the same rate, consumers in 2023 were more likely to switch policies when shopping for insurance.
ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
