Auto Insurance Claims Shift Toward Higher Severity as Total Loss Frequency Hits Record High
Event summary
- Total loss frequency reached 23.1% of claims, a new industry high.
- Average paid bodily injury claim severity increased 10.3% year-over-year and 32% over four years.
- There are 12 million fewer vehicles 6 years old or newer in operation as of Q3 2025 relative to 2020.
- 28.3% of repairable estimates now include calibrations, reflecting increasing vehicle technology complexity.
- Crash Course report transitions from quarterly to annual publication, with monthly Trends Report reintroduced.
The big picture
The 2026 Crash Course Report highlights a significant shift in the auto insurance claims landscape, driven by an aging vehicle fleet, rising repair costs, and economic volatility. These trends underscore the need for insurers to adapt their underwriting and pricing models to accommodate higher-severity claims. The transition of the Crash Course report to an annual format, complemented by a monthly Trends Report, suggests a strategic pivot toward deeper, long-term industry analysis.
What we're watching
- Claims Severity
- How rising total loss frequency and bodily injury claim severity will impact insurer underwriting and pricing strategies.
- Vehicle Technology
- The pace at which advancing vehicle technology and repair complexity will strain the collision repair ecosystem.
- Economic Pressures
- Whether affordability pressures will continue to influence insurance participation and claim-filing behavior.