LexisNexis® Risk Solutions has released its 2024 U.S. Auto Insurance Trends Report, revealing new generational risks and vehicle trends contributing to higher claim frequencies.
Key findings include a 24% increase in distracted driving violations among Gen Z drivers from 2022 and a 66% rise since 2019. High claim severities persist due to parts shortages and rising attorney involvement, with 93% of claimants retaining legal counsel likely to do so again.
Electric vehicles (EVs) show 17% higher claim frequencies and 34% higher severity compared to traditional vehicles. Additionally, consumer dissatisfaction remains high, with 46% frustrated by lengthy claims processes.
In response to profitability challenges, auto insurers raised rates by 14% in 2023, leading to increased shopping and switching, with new policies up by 6.2%. The report provides insights for insurers to refine rating decisions and navigate profitability challenges.
“Balancing acquisition and retention with rate adequacy is crucial for insurers,” said Adam Pichon, senior VP at LexisNexis Risk Solutions.
For more information, visit LexisNexis Risk Solutions.
