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.
Some states were considered healthier and closer to profitability, while states like New Jersey, New York, and California were expected to see continued rate and underwriting activity due to poor performance.
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.
Auto insurers implemented record-high rate increases in 2023 to address profitability issues, but it appears that these rate hikes were not sufficient.
ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
