Injury Claims Now Drive Auto Insurance Payouts

Bodily injury claims made up 52% of personal auto insurance category payouts in 2025, according to CCC.

Updated on Nov. 7, 2026 in Insurance

Isometric editorial illustration of a cracked automotive headlamp lens resting on a plain concrete plinth in flat, even light. — Insurers paid more for bodily injury claims than vehicle damage claims in 2025, with injury payouts reaching 52% of personal auto category costs, per CCC. AI Illustration. Upload story photo >

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In 2025, insurers paid more for bodily injury claims than for vehicle damage claims for the first time. Bodily injury claims accounted for 52% of category payouts, up from 44% in 2022.

Why it matters

Rising injury claim costs can push up car insurance premiums for all drivers, not just those involved in claims. CCC attributes the trend to medical inflation, shifting treatment patterns, greater attorney involvement, and artificial intelligence.

Bodily injury claims accounted for 52% of personal auto insurance category payouts in 2025, up from 44% in 2022, while the average personal auto bodily injury payout rose more than 30% over four years to exceed $30,000. Medical expenses per injured person climbed from about $24,300 in early 2023 to $32,300 in Q1 2026, and the extent to which artificial intelligence contributed to that rise has not been isolated.

The players

CCC

CCC is a provider of software and data analytics for the auto insurance and collision repair industries, whose claims research is cited in this report.

The details

Injury claims occur about one quarter as often as vehicle damage claims, yet they now generate a larger share of payouts. Medical expenses on third-party auto injury claims rose sharply after generative AI tools became widely available in late 2022, and attorneys increasingly use AI to review records, build treatment timelines, and draft settlement demands. Forty-one percent of law firms surveyed by Thomson Reuters in 2026 reported using generative AI, up from 28% a year earlier.

Late 2022: Generative AI tools become widely available, and submitted medical expenses begin rising soon after.
Early 2023: Medical expenses per injured person are about $24,300.
2025: Bodily injury claims first exceed vehicle damage payouts.
Q1 2026: Medical expenses per injured person reach $32,300.

Industry Trend

CCC's reporting has tracked social inflation, the rise in claim costs driven by greater attorney involvement and litigation, as a key pressure on auto insurers. The 2025 crossover, in which bodily injury payouts surpassed vehicle damage payouts, marks a point where that pressure became the larger share of the category.

Higher bodily injury claim costs can translate into higher car insurance premiums for drivers across the board, even those who never file a claim. Drivers may want to review their coverage limits and compare quotes as insurers adjust pricing to reflect rising medical expenses.

The takeaway

Rising injury claim costs are a factor insurers cannot ignore, and they can ripple into premiums for every policyholder. Reviewing your auto coverage periodically helps you understand how these pressures may affect your costs.