Nonstandard Auto Insurance U.S. Market Shows Profit Growth in H1 2025

The nonstandard auto insurance sector in the U.S. showed marked financial improvement in the first half of 2025, with underwriting profits reaching $65.2 million compared to $16.6 million in the same period last year. This positive shift was driven by improved rate adequacy and increased use of technology in underwriting, claims processing, and distribution, leading to a better combined ratio of 96.6 versus 98 previously. Despite these gains, some ongoing cost pressures remain, including rising auto physical damage claims and liability costs influenced by legal factors and tariff uncertainties.