The U.S. personal auto insurance industry saw a significant turnaround in 2024, achieving its best underwriting result since the pandemic began. In fact, with a net combined ratio of 95.3, personal auto insurance has outperformed the broader property and casualty insurance industry in terms of underwriting profitability for 10 out of the last 20 years. While the overall P/C industry outpaced personal auto in premium growth from 2018 to 2022, personal auto saw a strong rebound in 2023 and 2024, with double-digit premium growth rates of 14.4 percent and 12.8 percent, respectively.

Record-breaking distracted driving has created a great deal of alarm on the roadways, with more frequent and dangerous crashes – many of which are caused by cell phone use – becoming part of the norm in the U.S. While the coronavirus pandemic upended traffic patterns, these trends have continued long past the height of the health crisis and pose a significant risk to both the wellbeing of drivers and the viability of personal auto lines. Progress is needed, and telematics may be a necessary facet in improving the safety of roadways, as well as helping lower premiums for motorists.

Driving without full attention on the road has become increasingly problematic on US roadways. Policyholders can proactively increase safety and reduce insurance costs as the government, insurers, and technology companies confront this growing threat. The first step is understanding the issue.

As you strive to find the best rates for your homeowners and auto coverage, you might think shopping around is the way to manage affordability. However, costs are increasing for everything–groceries, gasoline, and other household expenses–and so are costs for insurers that impact your premiums. Before changing your policy or carrier, consider some factors that can affect your rates and learn how an annual insurance checkup can position you to get the coverage right for you.

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As plaintiff trial attorneys continue to exploit and manipulate the insurance industry for their own financial gain, it is important to understand the facts of how auto insurance is working for the benefit of consumers.

Auto insurers price their policies based on a number of factors. Sometimes these cost factors go up, and sometimes they go down. In most states, costs are currently rising. Your actions, as a policyholder, can affect what you pay, too. For instance, if you add another car, or a teenaged driver to your policy, your costs will increase. Alternatively, your costs will decrease if you drop either a car or a driver from your policy.