NAIC, LexisNexis release auto insurance premium, shopping trends data
The National Association of Insurance Commissioners (NAIC) has released its 2022/2023 Auto Insurance Database Report, providing data on U.S. auto insurance costs.
NAIC found that the average incurred loss per collision claim increased 17.6% from $6,113 in 2021 to $7,191 in 2022.
The report also contains a summarization of the 2023 average expenditures and combined average premiums for each state.
Many factors affect a state’s expenditures and premiums, including underwriting costs, driving locations, accident rates, traffic density, auto theft statistics, repair costs, and state laws, according to NAIC.
NAIC notes that there are also differences in state requirements for insurance coverage, limits, and benefits.
The national average expense per insured vehicle per year was $1,281 in 2023, a 19.24% increase from 2019. The national combined average premium per issued vehicle was $1,438, a 14.42% increase from 2022 to 2023.
By the end of 2023, the District of Columbia had the highest average collision coverage premium at $663.87, while Iowa had the lowest at $312.87. The national average was $463.71.
LexisNexis Risk Solutions recently reported that Q4 2025 auto insurance shopping remained high, according to its latest U.S. Insurance Demand Meter.
The quarterly year-over-year (YoY) shopping growth registered “hot” on the meter, rising to 6.9%, as did new policy growth, increasing to 7.1%. Shopping increased by 6.4% in Q3, and YoY policy growth rose by 2.8%.
Policyholders aged 66 and older exhibited the highest growth rate among other cohorts, a trend that has continued for 12 consecutive quarters, according to the report. In Q4, the group outpaced younger shoppers with an 11% increase.
The annual shop rate reached a new all-time high since the inception of the Demand Meter. As of Q4 2025, 47.1% of policies-in-force had been shopped at least once in the past 12 months, a 1.9-point increase from Q4 2024 and a 5.9-point increase from Q4 2023.
In Q4, 25% of rate revisions were increases, with an average increase of 5.1%. Another 25% were rate-neutral filings, and 50% of rate modifications were decreases.
“This translated to an overall industry rate impact of -0.5%,” a LexisNexis press release states. “These changes somewhat mirrored the top 25 auto carrier rate activity, among which 41% of rate revisions were decreases, 35% were increases, and 23% were rate-neutral. Among this group of insurance carriers, the overall rate impact was -0.7%. Together, these declining rate trends helped contribute to increased consumer shopping activity as drivers sought more favorable pricing conditions.”
Jeff Batiste, LexisNexis Risk Solutions’ U.S. auto and home insurance senior vice president and general manager, added that 2025’s shopping trends “reminded us that we’re operating outside of a traditional insurance cycle.”
“Even as the market shifts from steep rate increases to broad-based decreases, shopping and new business remain elevated,” he said. “In this environment, cutting rates without precision can turn today’s growth into tomorrow’s volatility — especially among longer-tenured customers. Insurers that keep segmentation and discipline at the center of their strategies and enact growth with guardrails should be well positioned for whatever 2026 brings.”
LexisNexis concludes that rate increases, wallet-conscious consumers, and marketing programs that helped drive U.S. auto policy shopping and new business volumes have broken record levels and made the final quarter more active than usual.
“The industry should be watching to see if the new wave of rate adjustments seen in Q4 exercises any impact on consumers’ urge to shop or if recent shopping behavior has encouraged more frequent shopping,” the release states.
The full report can be accessed here.
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