If driving feels a little more chaotic lately, you’re not alone.
According to the just-released Auto Trends Report from LexisNexis Risk Solutions, America’s roads are busier, riskier, and pricier than they’ve been in years.
From a surge in collision claims to rising repair costs and shifting driver behavior, the report gives a clear snapshot of how driving has changed and why insurers, repair shops, and everyday drivers are all feeling the impact.
We’re Driving More… Meaning We’re Crashing More
First, the obvious: we’re driving more. Vehicle miles traveled in 2023 climbed back to near pre-pandemic levels, and with that came an unfortunate side effect: more crashes. The report shows that collision claims frequency rose 3.1% year over year, meaning more fender benders, more dented doors, and more time spent on hold with insurance companies.
Interestingly, the biggest jump occurred in the first quarter of 2023, suggesting that as people returned to offices and routines, the roads filled up quickly, and not everyone remembered how to merge smoothly.
It’s not just that more accidents are happening, but they’re also more expensive to fix than ever before. The average claim severity (i.e., the cost of repairing a car after a crash) is up nearly 5%, driven largely by advanced vehicle technology.
Modern cars now come equipped with a host of sensors, cameras, and safety features that make driving safer, but also make repairs trickier. Replacing a bumper isn’t just swapping plastic anymore, but now it often means recalibrating crash avoidance systems, lidar, or blind spot detection. That extra complexity just adds dollars and days to repair timelines.
High-Risk Drivers Are Returning to the Roads
The report also flagged something insurance experts have been watching closely: a return of higher-risk drivers. Data shows a rise in policies written for drivers with previous violations or lapses in coverage, which may be contributing to the uptick in accidents.
It’s a sign that the driving population is diversifying again after several years of pandemic-related patterns, when many riskier drivers were off the road altogether.
The Insurance Industry Is Watching Closely
With rising risks and costs, the pressure is on for insurers to stay agile. According to LexisNexis, insurers are leaning more on data-driven underwriting and claims tools to keep up with the pace of change. That includes real-time telematics, better risk scoring, and faster claims resolution tech.
For drivers, that might mean more personalized pricing and potentially, higher premiums for those with a riskier profile.
For everyday drivers, it’s a good time to double-check your coverage, drive a little more defensively, and hope your fancy bumper camera doesn’t end up in a body shop any time soon.