AM Best reports improving trends for US commercial auto insurance

A report from AM Best indicates signs of improvement for the US commercial auto insurance sector. Although the industry recorded a $2.2 billion underwriting loss in 2025, this represents a 55% improvement compared to the previous year.

Key metrics show net premiums written increased by 6% year-over-year, while incurred losses remained largely flat. The combined ratio improved to 96.6 in 2025, down from 101.4 the prior year. The physical damage component of losses saw a $2.4 billion gain, which analysts attribute to proactive fleet monitoring and maintenance reducing preventable accidents.

However, challenges remain in the liability segment, which accounts for 77% of net premiums written. The liability underwriting loss in 2025 exceeded $4.6 billion, though this was an improvement over losses in 2023 and 2024. Liability costs continue to be impacted by social and economic inflation. For consumers, these improved financial results have led to the lowest premium increases in over 10 years during the second quarter of 2026.