The car insurance industry in the USA is constantly evolving to adapt to new challenges and trends. Here are some of the latest trends in the car insurance industry:
- Rising Premiums: Premiums in the auto insurance market are expected to rise by 8.4%. This increase can be attributed to various factors such as an increasing number of severe weather events, labor shortages, and inflation.
- Miles Driven and Violations: The number of miles driven and violations are closely related. In 2022, both miles driven and violations returned to near pre-pandemic levels. Major speeding violations were more than 20% above 2019 rates, and minor speeding violations also increased. DUI levels in 2022 were closely aligned with 2019 levels, while distracted driving violations have shown a steady uptick post-pandemic.
- Autonomous Mobility: The future of auto insurance is being influenced by the development of autonomous vehicles (AVs) and electric vehicles (EVs). Regulators are showing growing support for AV and EV technology, and automakers are shifting production towards EVs. These changes may require new types of insurance products and a shift in liability from drivers to automakers and software companies responsible for autonomous-driving technologies.
- Overhaul of Insurance Products: As autonomous-mobility technologies advance, the auto insurance industry may undergo a fundamental overhaul. Insurers may need to establish relationships with software-as-a-service (SaaS) companies and mobility businesses to develop new insurance products that cover new types of risk, including the operation of fleets of driverless cars.
