The changing nature and frequency of risks across different industries have influenced the personal insurance claims landscape in the US in 2025. The greatest number of claims occurred because of rising car accidents, property damage and weather-related disasters. Inflation, high repair and rebuilding costs — as well as the impact of global tariffs — all substantially elevated claim values.
In this article, we explore the trends behind top personal insurance claims so far in 2025 and how they affect insurers and policyholders. Understanding these trends can help policyholders spot risks in their daily lives, make smarter coverage choices and stay prepared when it's time to file a claim.
Auto insurance claims: Seeing a new risk emerge
This year, accident- and technology-related claims have surged significantly, while traditional claims arising from theft, collisions and weather damage continued to be prevalent. The widespread use of autonomous driving systems, smart sensors and advanced safety features in vehicles has introduced new risks and responsibilities. For instance, risks associated with electric vehicles (EVs) caused a 14% spike in claim frequency, as observed throughout 2024.1
Further, the effects of newly proposed trade tariffs could reshape auto insurance policies. As almost 60% of auto replacement parts are imported from Mexico, Canada and China, the tariffs could make these parts more expensive, resulting in higher repair costs and thereby increasing premiums.2
Extreme weather and inflation impact homeowners' insurance claims
With natural catastrophes becoming more frequent and severe, homeowners' insurance has started to feel the pressure. Hurricanes, hailstorms, flooding and wildfires are the more common natural disasters driving up claims, which in turn have caused premiums to surge nationwide.
Between January and March 2025, Texas recorded over 160,000 insurance claims, accounting for nearly 20% of all claims filed nationwide during that period.3 Between 1980 and 2024, Texans experienced 190 extreme weather events, including floods and severe storms, each causing over $1 billion in damage, making Texas the most disaster-prone state in the US.4
With recent events in mind, insurance providers are heightening awareness and education among the public on the importance of having adequate flood insurance coverage, especially for those living in non-coastal areas.
Many homeowners may underestimate the risk of flooding in their area if they don't live in a high-risk area and assume their homeowners' insurance covers floods, but that's often not the case. From 2013 to 2023, one-third of National Flood Insurance Program(NFIP) flood insurance claims came from areas located outside of the current Special Flood Hazard Areas (SFHA).5
In addition, many policyholders may not fully understand the differences between private flood insurance and policies offered through the NFIP and how the two differ in coverage limits, waiting periods, pricing and other criteria. We can help guide you in making the right coverage decisions for your situation.
Inflation is another factor insurers and policyholders have to consider. To tackle the rising cost of materials and labor, insurers are re-evaluating risk models, particularly in high-exposure states. As a result, the average home insurance premium has climbed by over 20% in some parts of the country over the last few years, resulting in homeowners paying more for less coverage.6
Credit card fraud and personal cybersecurity risks drive cyber insurance claims
Cyber insurance is becoming an essential safeguard as digital threats grow more complex and frequent. Identity theft, phishing and online scams make up a large percentage of cybercrimes against individuals.
More than 365,000 cases of identity theft were reported between January and March this year in the US, setting 2025 on track to become a record-breaking year for reported identity theft.
Credit card fraud remains the most common type of cybercrime in 2025. In the first three months of 2025, the Federal Trade Commission (FTC) reported 154,480 cases of credit card fraud, a 24% increase from the previous quarter.7
With these rising digital threats, more people are opting for cyber insurance to obtain comprehensive security support and assistance with removing malware and malicious software from systems. Since we carry out many of our day-to-day activities online — such as shopping and banking — having cyber insurance offers significant peace of mind.
Insurance providers now offer this service as an add-on to homeowners' insurance, covering various cybercrimes. Premiums for personal cyber insurance for an individual in the US range between $25 and $100 monthly, depending on the coverage and insurer. These insurance policies typically include coverage for AI-generated scams, deepfake fraud and sophisticated phishing using voice and video impersonation.
While strong cyber protection can go a long way in helping to deter cybercriminals, a comprehensive cyber insurance policy is paramount to ensure robust safeguarding of your identity and finances.
What's next?
Extreme weather, inflation, rising repair costs, tariffs and cyber threats will continue to influence the personal insurance space, making expert guidance ever more crucial to ensure resilience and adaptability.
Accordingly, it's important to stay informed about emerging risks and take proactive measures to safeguard your property and finances. This could involve enhancing your homeowners' insurance coverage to account for extreme weather events or opting for a personal cyber policy to protect your financial assets.
Ensure complete protection and tailored guidance for your personal insurance needs today. Talk to a Gallagher advisor for more information.