Safer Roads Are Not Producing Cheaper Auto Claims, APCIA Report Finds

Vehicle damage severity rose more than 42% from 2020 to the third quarter of 2025.

Traffic deaths have fallen and personal auto insurers have returned to underwriting profitability, but the cost of the claims that remain continues to climb, according to a report released Oct. 2 by the American Property Casualty Insurance Association (APCIA). In “A New Road Ahead for Auto Insurance: Safer Vehicles, Higher Claim Costs?” the association attributes that pressure to repair complexity, longer-tail injury claims and litigation, and argues the shift is structural rather than cyclical.

The repair side of the equation falls squarely on collision repair