What independent agencies can do now: telematics, litigation risk controls, and smarter renewal strategies.
After two years of sharp premium hikes, personal auto rate increases have moderated in 2025—with several states settling for mid-single-digit adjustments. But commercial auto remains stressed by social inflation and “nuclear verdicts,” keeping underwriting results negative despite years of rate action. Agents who pair usage-based insurance (UBI)/telematics with litigation-exposure management will defend renewals and win BORs.
Where the market sits right now
- Personal auto: Industry commentary points to stabilizing 2025 premiums after outsized increases in 2023–2024, with some state settlements landing near ~5% rather than double-digits. Repair-cost inflation still matters, but the surge has cooled.
- Commercial auto: The line continues to post underwriting losses despite 55 consecutive quarters of rate increases; liability claim severity is up ~64% since 2015, driven in part by nuclear verdicts.
- Verdict severity: Trucking and commercial auto see escalating jury awards, now including “thermonuclear” verdicts (>$100M). (IA Magazine)
- Macro watch-items: Parts/repair costs and trade policies can still nudge premiums; some analyses suggest tariffs could add pressure to auto repair and therefore rates.
Producer talk tracks you can use this week
- “Stabilization ≠ status quo.” For personal auto, use calmer 2025 pricing to right-size deductibles, add UM/UIM and OEM parts endorsements where available, and reinforce repair-shop choice.
- “Commercial auto is won in operations, not just in pricing.” Lead with driver selection + coaching, dashcams, cell-phone policies, and claims triage to affect loss severity—not just quote and hope. Persistent loss ratios require operational levers.
- “Verdict defense starts pre-loss.” Offer clients a litigation-readiness checklist (incident documentation, counsel-on-call, media plan) to curb social-inflation exposure. Use this to justify coverage breadth and rate actions.
Telematics/UBI: your differentiator for both books
- Adoption tailwind: The insurance telematics market is expanding rapidly into 2025–2033, creating more carrier options and fleet analytics for your clients.
- How to position it:
- Personal: “Drive-to-discount” programs to ease renewal pain; set expectations on data use and score volatility.
- Commercial: Pair dashcams + telematics with monthly driver scorecards and coaching; present loss-trend reports at renewal. (Use vendor portals to export simple charts.)
Fast client checklists you can drop into email
Personal Auto (15-minute review):
- Confirm miles driven, garaging, drivers listed
- Evaluate deductible vs. cash reserves
- Ask about OEM parts, gap, rental reimbursement
- Offer a UBI trial for discount eligibility.
Commercial Auto (30-minute ops huddle):
- Current loss runs and top 3 drivers of severity
- Dashcam and cellphone policy in writing?
- MVR cadence and driver coaching logs?
- Accident kit in each vehicle; post-crash reporting SOP
- Broker-prepared litigation-readiness plan (contacts, preservation of evidence, spokesperson).
Renewal packaging that wins underwriters
- One-pager on controls: Telematics penetration, coaching completion %, dashcam rate, MVR cadence.
- Loss narrative: What happened, what changed, and measured results (e.g., harsh-braking events ↓ 34% since June).
- Driver roster hygiene: Terminations/retraining dates + updated hiring criteria.
- Fleet profile: Vehicle safety tech, service intervals, route characteristics. These show trend correction, not just rate-shopping.
Bottom line for independent agents
Lean into stabilizing personal auto to rebuild protection—and attack commercial auto with an operations-first story: telematics, documented policies, and pre-loss litigation planning. That’s how you protect renewal profitability and stand out when markets are still skeptical.
