Commercial Auto Insurers Post Best Results Since 2021
Commercial auto underwriting losses narrowed sharply in 2025, though auto liability claims continue to weigh on carriers.
Updated on Nov. 4, 2026 in Insurance
Commercial auto insurers narrowed their underwriting loss to $2.2 billion in 2025 from $4.9 billion in 2024, on premiums written that rose 6% to $65.8 billion. The operating ratio fell to 96.6, the strongest result since 2021.
Why it matters
Improved results signal a more stable market for fleet operators and businesses that buy commercial auto coverage. Liability costs remain elevated, however, and continued pressure there could keep premiums and carrier profitability under strain.
Commercial auto net premiums written rose 6% to $65.8 billion in 2025, while the average loss per claim climbed to $31,537 from $28,771 in 2024. Auto liability posted an underwriting loss exceeding $4.6 billion, and whether liability results will improve in coming periods remains unstated.
The players
Progressive Insurance Group
Progressive is a major U.S. property and casualty insurer known for its auto coverage and was the largest commercial auto insurer in 2025.
The details
Auto liability posted an underwriting loss of more than $4.6 billion in 2025, while physical damage coverage generated an underwriting profit exceeding $2 billion. Rising liability costs are linked to more claimants represented by attorneys, higher jury awards and rising repair costs for advanced driver-assistance systems.
Timeline
2021: Commercial auto last posted comparable underwriting performance.
2024: Commercial auto net underwriting loss reached $4.9 billion.
2025: Commercial auto underwriting results reached their best level in a decade.
Mid-year 2026: The commercial auto loss ratio hit its lowest point in five years.
Second-quarter 2026: Commercial auto pricing increases were the lowest in more than 10 years.
Market Dynamics
Liability claim costs continue to rise under social and economic inflation pressures, while physical damage results have improved through proactive fleet monitoring. Second-quarter 2026 pricing increases were the lowest in more than a decade, a pattern that suggests the market is shifting from rapid rate hikes toward stabilization.
For businesses buying commercial auto coverage, the improved market may slow premium increases, though liability-driven costs can still raise policy prices. Fleet operators with strong maintenance programs may benefit most as physical damage results have improved.
The takeaway
Commercial auto results are improving, but liability claims remain the main cost driver to watch. Businesses reviewing fleet coverage should compare liability and physical damage terms separately when renewing policies.
Further reading
For more on how these trends shape coverage costs, see the Insurance section.
Source note: This article includes information reported by Risk & Insurance.
