American Property Casualty Insurance Association Releases White Paper Highlighting Recent Significant Cost Increases Affecting Auto Insurance

0


Chicago, Illinois, September 18 (TNSRes) – The American P&C Insurance Association issued the following press release:

Increase in the frequency and severity of automobile accidents in the we Auto insurance market, combined with challenges of balancing supply and demand for vehicles and vehicle parts in the wake of COVID-19, are driving up costs and claims delays, new book says white of American P&C Insurance Association (APCIA).

“This new study highlights recent trends in we auto insurance market which leads to increased claims costs and an impact on consumers, ”said Karen collins, Assistant Vice-President, Personal Lines for APCIA. . “There has been a rapid increase in the number of car crashes and the severity of accidents. At the start of the pandemic, there was an initial drop in the number of kilometers driven. However, this quickly changed as we were getting out of the living room. –home drives and Americans are now driving more. In fact, driving is back to near pre-pandemic levels. “

The National Road Safety Administration (NHTSA) recently released the first estimates for 2020, noting that more than 38,000 people died in road crashes last year, which is an increase of around 7% from the previous year and the highest number of fatalities expected since 2007. This shows that driving behavior is becoming increasingly risky and our roads more dangerous, despite better vehicle technology and a temporary decrease in traffic congestion.

“Insurers are increasingly concerned that since the start of the pandemic, Americans have adopted riskier driving behaviors, such as impaired driving, speeding and not wearing the seat belt, ”Collins said. “This is leading to more accidents at a time when the cost of medical care and vehicle repairs is rising. Safety is the main concern. However, these trends are also impacting consumers’ auto insurance costs.”

Along with the increase in the number of accidents, the severity of car accidents remains high, largely due to the rising cost of medical care. The ongoing pandemic has also resulted in significant vehicle shortages and significant delays in auto repairs across the industry. This is due to labor shortages and supply chain constraints for critical auto parts needed to repair and build new vehicles. These supply chain issues could continue to exacerbate costs next year.

In addition, the data from National Insurance Crime Bureau shows that auto theft also peaked in a decade in 2020, while catalytic converter thefts were more than four times higher in 2020 than the previous year. These issues along with emerging trends combine to put pressure on auto insurance costs through 2022.

“With data showing a sharp increase in the cost of auto insurance claims in 2021, this is having a direct impact on families, individuals and businesses,” Collins said. “The intersection of an improving economy, an increase in more dangerous driving behaviors, an increasing number of injuries, an increase in vehicle costs due to severe imbalances in supply and demand, and the global shipping challenges related to COVID-19 are together creating significant upward pressure on auto insurance pricing. “

Insurers strongly encourage drivers to minimize their risks by avoiding risky driving behavior that could lead to an accident. Insurers will continue to advocate for better infrastructure, including reliable supply chains for critical auto parts and safer roads to help keep insurance premiums affordable for consumers. APCIA remains dedicated to additional measures to help control consumer costs, such as reforms to abuse lawsuits, auto body repair and medical billing.

White paper: https://www.apci.org/attachment/static/4805


Leave A Reply

Your email address will not be published.