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More Accidents, Costlier Claims Prompt Rise in Premiums

 

Most major insurers are raising auto rates as the number of claims from accidents caused by distracted driving booms.   The number of claims AND the severity of claims is increasing. Most major insurers are raising their auto insurance rates due to a sudden escalation in the cost of claims.

The driving force that's led to the boom in accidents is distracted driving.  A report by the AAA Foundation for Traffic Safety found that about 87% of young drivers had engaged in at least one risky behavior while behind the wheel within the past month of being surveyed.

These dangerous behaviors include texting while driving, red-light running and speeding.

Other Factors leading to rate increases

  • Higher repair costs – vehicles have become more “high tech”
  • Higher costs for replacement parts.
  • Higher medical costs.
  • More vehicles on the road.

The percentage of drivers who reported engaging in speeding, red-light running or texting behind the wheel in the past 30 days includes:

% of Drivers Reporting Speeding, Running Red Lights or Texting in the Last 30 Days

More importantly, a severe accident can be devastating.  Cars can be fixed, but people often can’t.

 
Frances Zettl