Explaining Personal Insurance Auto Premium Increases
Auto accidents – and their severity – have been on the increase in recent years, with insurance companies paying more in claims and policyholders paying more for insurance. Consider these factors:
- Technology Usage – At any given daylight moment across America, approximately 660,000 drivers are using cell phones or using electronic devices while driving.
- Distracted Driving – Every day there are 9 deaths and more than 1,000 injuries due to distracted driving – that’s more than 3,000 deaths and almost 400,000 injuries a year.
- Rising Medical Costs – Medical costs in the United States have risen at an average annual rate of 3.0% for the past five years.
- Inexperienced Drivers – Motor vehicle crashes are the leading cause of teenager deaths, and in 2015, 9% of all drivers in that age group involved in fatal crashes were distracted at the time of the crash.
- Auto Repair Costs – The cost of repairing a vehicle has increased every year since 2010. Average collision
claims are almost 24% higher than they were in 2010.
- More Cars On the Road – 3.22 trillion miles were driven on the nation’s roads in 2016, up 2.8% from the year before. The more people drive, the more frequently they get into accidents.
- Severe Weather – Weather disasters like hurricanes, hail and flood end up costing billions in damages, which auto insurers cover through comprehensive insurance.
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Source: Explaining Personal Auto Premium Increases Infographic