Distracted Driving and Policy Shopping Reshape U.S. Auto Insurance Risk Landscape
Event summary
- Distracted driving violations surged 57% since 2022, with 70%+ increases among drivers aged 36-45 and 66+.
- Policy shopping hit historic highs in Q4 2025, with 47% of policies shopped at least once in the prior year.
- Bodily injury claims now account for 26% of total claims dollars, up from 20% in 2022.
- Insurance costs are a key factor in 56% of vehicle purchase decisions, reflecting growing price sensitivity.
- Vehicle mix complexity increases, with 15% of vehicles over 20 years old and 30% model year 2020 or newer.
The big picture
The 2026 LexisNexis U.S. Auto Insurance Trends Report highlights a market undergoing significant shifts in driving behavior, consumer price sensitivity, and claims dynamics. Insurers face increasing complexity as they navigate rising distracted driving violations, historic policy shopping levels, and evolving vehicle mix profiles. The growing share of bodily injury claims in total claims dollars presents particular challenges for underwriting and risk management strategies.
What we're watching
- Risk Assessment Evolution
- How insurers will adapt underwriting models to account for rising distracted driving violations across all age groups.
- Consumer Price Sensitivity
- Whether sustained rate increases will continue driving policy shopping and coverage adjustments.
- Claims Cost Management
- The pace at which bodily injury claims severity trends will impact insurer profitability.
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