Key Insights for the Road Ahead: Top 5 Auto Insurance Trends of 2023
ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
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.
Auto insurers implemented record-high rate increases in 2023 to address profitability issues, but it appears that these rate hikes were not sufficient.
Insurers should be prepared for UIM coverages to be accessed more frequently, as not-at-fault carriers will increasingly see limits exhausted with the at-fault party's carrier, and the claim will come back to them to handle the rest.
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.
