Insurance is now a key factor in vehicle purchase decisions for 56% of consumers, reflecting its growing role in the total cost of vehicle ownership, according to the newly published 2026 LexisNexis U.S. Auto Insurance Trends Report.

Policy shopping reached historic highs in Q4 2025, with more than 47% of policies in force shopped at least once in the previous 12 months.

Published annually, the auto insurance trends report aggregates and analyzes auto insurance market data from prior years, including driving behavior, policy shopping activity, impact of changing rates, vehicle mix dynamics, and key claims metrics.

In response to four years of sustained rate increases, many policyholders adjusted their coverage to manage insurance premiums, according to LexisNexis.

“For example, the share of policies with deductibles of $1,000 or greater increased from 23% in 2022 to 33% in 2025,” a LexisNexis press release states. “Price sensitivity is carrying over to vehicle purchasing decisions, where insurance costs are capturing a larger portion of the total cost of ownership.”

A LexisNexis survey of 3,000 auto insurance customers revealed that insurance cost (56%) is second only to the importance of monthly payment (63%) in vehicle purchase decisions.

“Auto insurers continue to navigate a market that is becoming more complex across nearly every dimension,” said Jeff Batiste, LexisNexis U.S. auto and home insurance senior vice president and general manager, in the release. “Driving behavior continues to evolve, consumers are more price sensitive and increasingly willing to shop policies, and claims outcomes are being reshaped by bodily injury severity trends. Insurers must remain agile as market conditions evolve.

“They should apply more precise segmentation and pricing using richer data, such as comprehensive violations data, holistic insurance scores, as well as industry benchmarking and shopping data, to be better positioned to manage risk and identify growth opportunities.”

LexisNexis also found that the mix of vehicles on U.S. roads is becoming more complex, with 15% of the car parc now more than 20 years old. Newer vehicles (model year 2020 or newer) represent 30% of the insured population.

“The broader range of older and newer vehicles on the road can result in more complex and less predictable risk profiles,” the release states. “Newer vehicles are more likely to have advanced safety technologies, such as automatic emergency braking, contributing to more favorable insurance claim frequency trends. However, when claims do occur, these same features can increase repair complexity and material costs.”

LexisNexis notes a couple of other key findings from the report:

• • Distracted driving violations are up 57% since 2022, with increases of 70% or more among drivers aged 36-45 and 66 and older.
  • Bodily injury (BI) claims account for more than 26% of total claims dollars, up from less than 20% in 2022, as BI frequency and severity continue to rise.

Overall, LexisNexis found that traffic violations have returned to pre-pandemic levels and remain elevated, with growth now surging in minor violations. Miles driven have increased by 2%, indicating changes in driver behavior rather than in miles driven. LexisNexis says this shows that driver behavior is responsible for the increase in violations rather than miles driven, as well as changes in traffic enforcement patterns.

“Surprisingly, it’s not just younger drivers aged 16 to 25 who are driving distracted,” the release states. “Distracted driving violations are up by 57% across all age groups compared to 2022. Over the same time period, distracted driving violations increased by 70% or more among age groups 36 to 45, while those 66 and older increased to 73%.”

Claims outcomes are increasingly influenced by rising BI costs and evolving material damage trends.

“While collision frequency has declined, BI loss costs continue to rise, driven by increases in both BI frequency and severity,” the release states. “BI claims accounted for a larger share of total claims dollars, rising from 20% in 2022 to more than 26% in 2025. At the same time, the balance between BI and property damage claims shifted from 24 per 100 in 2022 to 29 in 2025, reflecting rising BI frequency. With BI becoming an increasingly larger portion of the loss, claims outcomes are becoming more complex and variable.”

J.D. Power also recently released its 2026 U.S. Insurance Digital Experience Study, which found that 47% of all new auto and home insurance policies are now purchased digitally.

Customer satisfaction with insurance websites and mobile apps has declined this year as many customers were unable to find the information they wanted, and ignored virtual assistants and chatbots designed to improve the digital experience, according to J.D. Power.

“As insurance prices have started to come down nationwide, a massive volume of active customers and new prospects are comparison shopping and hunting for information on insurer websites and mobile apps,” said Eric McCready, J.D. Power’s director of digital solutions, in a press release.

“Likewise, on the customer service side, the digital channel is quickly becoming the primary touch point between insurers and their customers. Some insurers have embraced this digital transformation by building well-thought-out, easy-to-navigate digital properties, but many are still struggling to deliver the right mix of information and resources customers can use to get the information they need.”

The U.S. Insurance Digital Experience Study evaluates the digital consumer experiences of property and casualty (P&C) insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It also examines the functional aspects of the service and shopping experiences.

The study was conducted in collaboration with Corporate Insight, a provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“As customers increasingly turn to digital channels for questions about their existing policy, policy changes, or when shopping for a new carrier, websites and apps have become a core component of the insurance customer journey,” said Justin Suter, Corporate Insight’s director of market engagement and thought leadership, in the release. “As people start using AI tools for insurance information and even quote comparisons, insurers need to get their digital formulas right to support the new ways in which customers look for information.”

The study found that the average overall satisfaction score for insurance digital customer experience in the service segment is 695 (on a 1,000-point scale), which is 4 points lower than last year. The average overall satisfaction score in the shopping segment is 523, which is 12 points lower than last year.

One-third of insurance shoppers reported they encounter comparison pricing tools that include other insurance brands, and 27% encounter price comparison tools that include other policy options from the same brand. Twenty-eight percent of insurance customers encountered no price comparison tools.

Customers are nearly two times more likely to consider purchasing a policy when provided price comparisons (39%) than when no price comparison tools are available (21%).

Overall satisfaction among insurance shoppers using a virtual assistant or chatbot on an insurer’s website is 645, which is 132 points higher than when chatbots and virtual assistants aren’t used.

“Despite the significant influence these tools have on customer experience, just 11% of customers have used them in the insurance shopping process,” the release states.

According to the study findings, J.D. Power ranked Amica highest in the service segment with a score of 730, followed by Nationwide (723) and GEICO (717).

National General ranked highest in the shopping segment with a score of 553, followed by Automobile Club Group (AAA) at 546 and Erie Insurance (545).

The U.S. Insurance Digital Experience Study is based on 11,553 evaluations and was fielded from January through March 2026.

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Featured image credit: Bill Oxford/iStock

Charts provided by LexisNexis and J.D. Power

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