Driving Forward: Coast-to-Coast Coverage Insights

In 1980, the U.S. experienced a climate disaster that caused over $1 billion in damage about once every 83 days. By 2024, that frequency increased to roughly once every 11 days. Since 1980, there have been 417 such events, with total losses exceeding $3.1 trillion.

Climate change, extreme heat, and severe weather are impacting U.S. household budgets by an estimated $400 to $900 annually, amounting to a nationwide cost of approximately $50 to $110 billion. Insurance costs make up more than half of this total. Insurers have taken note and, in many cases, have reduced capacity in communities most vulnerable to extreme weather, leaving governments or homeowners to bear a greater financial burden.

In 2025, wildfires caused significant damage in Altadena and Pacific Palisades, while flooding affected central Texas and Raleigh, North Carolina. Severe convective storms have been among the most frequent billion-dollar events, causing an average of $38.5 billion in damage annually over the last five years (2020-2024). Later in our cross-country road trip, we’ll explore ways to mitigate these risks with our in-house Risk Advisory Leader Brad Sawyer.

We quickly accelerate and merge onto I-40, setting our sights on Flagstaff, Arizona.

Homeowner insurance

The road is dark, and the Milky Way shines brightly as we arrive in Flagstaff, an astrotourism destination and the world’s first International Dark Sky City. As we settle in for the night, we review recent news: since 2020, homeowners' insurance rates have increased each year, with the largest hikes in 2023 and 2024. This year, rates rose by 9.8%, which, while notable, is lower than the 15.4% and 15.7% increases recorded in previous years, according to Guy Carpenter.

This trend also affects high-net-worth homeowners, who have seen steady rate increases, though a slight easing is expected in 2026. Notably, California—where our road trip ends— experienced double-digit increases in 2025, with high-net-worth homeowners’ rates rising by 23.8%, per Guy Carpenter.

Auto insurance

Overall, personal auto insurance costs are nearly 20% higher on average than a decade ago, driven mainly by increased repair costs, stricter government regulations, and the impact of severe weather. While auto insurance rates are stabilizing across much of the country, storm-prone areas like Hail Alley continue to experience higher rates. States with the highest auto insurance rates include Louisiana, Florida, New York, Michigan, and California. In contrast, more rural states such as Vermont, Idaho, Maine, North Carolina, and Ohio tend to have the lowest rates in the nation.

In 2025, personal auto rates rose by 1.1% nationwide, according to Guy Carpenter. Higher increases of 4.8% were observed for high-net-worth individuals. New York and California saw significantly higher rate increases of 9.3% and 15.5%, respectively. These increases may be attributed to tight market capacity, rising claims costs, and vehicle choices.

Surprisingly, about 15% of drivers on the road are uninsured. Mississippi, New Mexico, Washington, D.C., Michigan, and Tennessee have some of the highest rates of uninsured motorists in the nation. This highlights the importance of acquiring and maintaining adequate Uninsured Motorist/Underinsured Motorist coverage limits. 

Liability insurance

We’ve arrived in the heart of the Texas Panhandle, Amarillo. Hungry, we head to The Big Texan Steak Ranch to see if our appetite can conquer the restaurant’s famous 72-ounce steak challenge. Just like this hefty meal, Texas is known for something even weightier—nuclear verdicts.

Nuclear verdicts are jury awards exceeding $10 million granted to injured parties. Between 2013 and 2022, Texas juries handed down approximately 130 nuclear verdicts, making it one of four states responsible for 50% of such awards nationwide. The other top states include California, Florida, and New York, with Georgia, Illinois, and Pennsylvania also ranking high. California and Florida are particularly notable due to their plaintiff-friendly laws and courts.

This issue is widespread. Overall, nuclear verdicts rose 52% in 2024, with verdicts over $100 million surging 81.5% during the same period. Our team expects this trend to continue, driven by factors such as anti-corporate sentiment, aggressive attorney marketing, and challenges within the legal system.

It remains uncertain whether these market trends will lead to continued underwriting challenges or if results will stabilize due to the substantial rate increases carriers have implemented in recent years.

Our insights suggest that personal and excess liability rates could generally rise in the mid- to high-single digits, with higher increases—ranging from high single digits to high teens—for individuals with prior claims or higher-risk profiles.

Cyber insurance

To put cyber threats in perspective, when the FBI launched its Internet Crime Complaint Center (IC3) 25 years ago, it received about 2,000 complaints per month. Today, that number exceeds 2,000 complaints every day, resulting in approximately $16.6 billion in annual financial losses.

It's important to note that states with large urban centers and high levels of high-tech adoption—like California, New York, and parts of the Northeast—are facing significant challenges with cyber insurance for individuals. California and New York reported financial losses from cybercrime exceeding $2.5 billion and $904 million, respectively, and both rank among the highest nationwide for cybercrime incidents. With elevated rates of cybercrime, including identity theft and ransomware targeting consumers, residents in these areas need to remain especially vigilant.

“As cyber threats against individuals grow more sophisticated, especially with AI-driven scams, the personal cyber insurance market is evolving to offer tailored protections that help consumers better safeguard their digital lives. Prevention will always be the priority; it’s not if, it’s when...”
—Tamara Stephens, National Client Executive, CCIC

Looking ahead to 2026, cyber threats are expected to evolve, particularly as AI technology advances. This evolution is driving demand for more personalized insurance options and is likely to increase calls for stronger regulatory protections.

Reinsurance is essentially insurance for insurance companies. When insurers face significant claims, such as those following natural disasters, reinsurance helps cover the costs. The expenses associated with reinsurance are reflected in the premiums consumers pay.

Guy Carpenter recently reported that reinsurance capacity has expanded and prices have softened across many lines. In 2025, total insurance claims for large-scale disasters like hurricanes and wildfires are expected to be approximately $121 billion, about 18% below the inflation-adjusted average over the past five years.

Reinsurers were in a strong position in 2025, as they covered only about 11% of these disaster losses, compared with roughly 20% before 2023. This reduced exposure has made reinsurers more willing to take on additional business. 

However, while reinsurers are currently willing to assume more risk, the fact that they covered fewer losses in 2025 means primary insurers bore a larger share of the losses. This shift is likely to influence insurance rates going forward. In recent years, primary insurers have retained more risk that might otherwise have been transferred to reinsurers, often due to cost or availability. As a result, the coming year may see reinsurers de-risking, adjusting pricing, and enforcing more stringent contract terms.

Explore how states across the country are navigating their own insurance challenges. From coast to coast, legislation is steering the way to tackle regional risks and rising rates. 

When it comes to protecting a home, resilience starts right at your doorstep. Resilience is more than just a buzzword—it’s essential for safeguarding your family, preserving your memories, and protecting your investments from natural disasters, cyberattacks, and legal risks. A recent study shows that every $1 communities invest in resilience saves $13 in damages, cleanup costs, and economic impact.

Resilience is a key part of ensuring your home, assets, and community are prepared. This focus guides how our agency operates and supports clients. Read Pete Walther’s thoughts on five essential commitments to resilience on LinkedIn, and share how you plan to make your home more resilient in the comments. You may also explore cutting-edge research and strategies for peril-proofing homes and communities by watching our on-demand Risk & Resiliency Symposium.

Life’s journey can throw unexpected detours your way — whether it’s your home, car, or peace of mind that’s been disrupted. But just like a trusty co-pilot on a cross-country road trip, the Marsh McLennan Agency Private Client Services (MMA PCS) team is with you every mile of the way. From coastlines to the heartland, our dedicated team navigates the twists and turns of the claims process, so you don’t have to travel it alone. Our claims team provides personalized, proactive support and champions your best interests to ensure a smooth, transparent ride toward a timely resolution. 

Check out our regional blogs to discover specific insurance insights in your home state and examples from our claims team working hard in your neck of the woods.

“In today’s evolving risk landscape, claims are becoming increasingly complex and multifaceted. Our team’s expertise in navigating these challenges ensures clients receive not only timely settlements, but also strategic insights that protect their long-term interests.”
- Robert Clemmons, National Claims Advocacy Leader

Our claims advisory team is led by Robert Clemmons. His team provides claims advocacy and expertise to help you achieve the best possible settlement with your insurer. If you should ever suffer a covered loss, a dedicated claims analyst will be available to file a claim with your insurer on your behalf and provide support and guidance throughout the entire claims settlement process. Learn more about our claims process.