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Wednesday’s Post 1.4.12 - Yes it’s true; car insurance accident claims are at an all time high and will continue to climb through 2012. Reports show this Car Accident Claims trend really started in late 2010 and will continue through 2015. Industry reports examines information from several state and local agencies and uses these results to figure trends in the payment of accident claims both state-by-state and nationally. Even though the severity of claims had risen in the past few years, the occurrence of these claims had been on a downturn, and so balanced out the high costs of the severe claims increases. Despite these findings, there has been a change in the recent trend of auto insurance claims frequency. In cases of Auto Insurance Personal Injury Claims (PIP) claims, the up tick in claims severity is now being irritated by the increase in the volume of car insurance claims being received. Because of these two factors, the PIP cost per covered car has jumped nearly 20% . Previous industry reports show much better numbers for the first time since the mid 1990′s. Auto Accident Bodily injury (BI) claims frequency was not decreased for the year 2010.
Florida, Michigan, and the State of New York all showed changes in Car Insurance PIP Cost. For example, Florida’s average PIP claim cost per insured car jumped over sixty percent since 2008. In Michigan State, PIP costs per car have been on the increase for the past several years, with increases of over 120% in the last ten. New York has experienced severe fluctuations in their costs. Many of these costs are associated with suspected rises in fraud claims cases in the state. Increased Auto Insurance Claims Costs mean drivers will be paying more for their car insurance premiums. There is a possibility the increase insurance claims and severity is simply a temporary trend. As an insurance agent for the last 20 years, don’t count on it. Customers have enjoyed the longest soft auto insurance market in the last 25 years. Meaning, Car Insurance Rates have never been lower. Trends don’t last forever and I believe the change is finally here.
-Mike
Michael E. Dortch
President & Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 602
