Understanding the Growing Complexity of Vehicle Configurations in U.S. Insurance Markets
- The number of unique vehicle configurations sold in the United States has surpassed 600,000 for the 2025 model year, according to a new report from J.D.
- This surge in complexity stems from automakers offering an expanding array of factory-installed options, packages, and custom features, meaning that two vehicles with the same year, make, model,...
- Many insurers rely on shortened vehicle identification numbers (VINs), often referred to as “squish VINs,” when building underwriting models or quoting policies.
The number of unique vehicle configurations sold in the United States has surpassed 600,000 for the 2025 model year, according to a new report from J.D. Power, creating mounting challenges for auto insurers seeking to accurately assess vehicle replacement values.
This surge in complexity stems from automakers offering an expanding array of factory-installed options, packages, and custom features, meaning that two vehicles with the same year, make, model, and trim can have substantially different original values. J.D. Power cited the example of a 2024 Ford F-150 Lariat 4WD SuperCrew with a 5.5-foot bed, which could sell for $69,630 with standard options but reach $84,465 when fully optioned.
Many insurers rely on shortened vehicle identification numbers (VINs), often referred to as “squish VINs,” when building underwriting models or quoting policies. However, these truncated identifiers lack the detailed configuration data necessary to determine a vehicle’s full replacement value, creating what J.D. Power describes as a consequential underwriting blind spot.
Without access to the full 17-digit VIN and corresponding original equipment manufacturer (OEM) build data, insurers may not know the exact configuration of the vehicle they are covering, increasing the risk of a gap between the value assumed during underwriting and the actual cost incurred when repairing or replacing a vehicle after a claim.
The issue is compounded by persistently high used vehicle prices, which J.D. Power reported have reached an average retail price of $29,488 — an increase of more than 20% over the past five years. This rise is attributed to supply shortages stemming from pandemic-era production disruptions, which limited the flow of late-model used vehicles into the market.
J.D. Power warned that the combination of rising vehicle complexity and elevated used vehicle prices is widening the gap between the values insurers assume during underwriting and the costs they ultimately face during claims processing, urging carriers to adopt full VIN data and OEM build information for more accurate risk assessment.