DESPITE FEWER CLAIMS, PERSONAL AUTO INSURANCE PAYOUTS INCREASE
Summary
- Climbing Claims Costs: Average claim payment per insured personal vehicle rose between 2002 and 2022, with higher payments more than offsetting declines in frequency.
- Roller Coaster Ride: A fun decline and rise in insurer loss costs made the period from 2002 to 2022 look like Wall Street’s favorite roller coaster.
- Drop it Like It’s Hot: COVID-19 dropped frequency sharply, but claim severity took a steroid shot and skyrocketed.
- State to State Disparity: Florida leads the “costly claim” charts, while North Dakota enjoys the economy seat.
- Pandemic Party: Insurers threw $14 billion back at consumers during COVID-19, but risky driving behaviors crashed the party and increased traffic fatalities.
- 2021-2022: The Return of the Risk: Traffic resumed and claim severity worsened. Traffic fatalities even hit their highest levels in 15 years, marking the best statistical increase since 1975 (if you’re into that sort of thing).
Hot Take
So, what’s the deal with these auto insurance payouts? It’s like a bad relationship – just when you think things are going well, the other party surprises you with demands! COVID-19 may have emptied the roads, but it filled up the claim files faster than you can say “speeding ticket.” While Florida might be soaking up the sun with higher costs, North Dakota is chilling in the frugal lane. Keep your eyes on the road, dear readers, because between traffic fatalities, risky driving behaviors, and auto insurance payments, it’s a wild ride out there. Buckle up!
Keywords
Auto Insurance, Personal Vehicle Insurance, Insurance Research Council, Claim Payment, COVID-19, Traffic Fatalities, Claim Severity, Florida, North Dakota, Risky Driving Behavior.
ORIGINAL ARITICLE – https://www.iii.org/insuranceindustryblog/despite-fewer-claims-personal-auto-insurance-payouts-increase/
