Auto Premiums on the Rise

21 March 2017
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Category: Auto, Blogs
21 March 2017, Comments: 0

 

According to the National Safety Council, traffic deaths increased 6% in 2016 to a total of 40,200.  There are many factors that come into play involving auto accidents.  Below are some examples in regards to why accidents are on the rise, which in turn cause auto premium rates to increase:

  • Driver distractions – Drivers continue to be distracted while using their cell phones, despite many campaigns using the “Don’t Text and Drive” message. Texting, Bluetooth, and use of applications on cell phones have all increased. Also, we now have more access to touch screen technology in our vehicles at our fingertips.
  • Inexperienced drivers – Statistics state that drivers age 16-35 are texting, speeding and causing minor infractions. Many believe it is OK to text, talk on phone, speed and disregard the road signs posted.
  • Expensive Vehicle repairs – The majority of newer vehicles on the road are now connected by a computer system. Replacing and repairing computers’ overall costs tend to be much higher. Vehicles now have cameras, navigation systems, automatic park sensors, heated seats, heated steering wheels and active blind spot monitoring systems. The method to diagnose many computer issues is by using a required scan tool to determine the thousands of manufacture trouble codes. This process can become expensive in a minor fender bender when the exterior shows minimal damage.
  • More vehicles on the road and miles driven – Reduced gas prices and strong economy.
  • Fraudulent Claims – Carriers pay out a tremendous amount of money settling and proving fraudulent claims, including false injuries.
  • Weather and road conditions – With the ongoing weather changes, including rain and snow, road conditions constantly change and the amount of accidents rise. Bad road conditions can damage vehicles.
  • Medical & Injury Costs – The cost of medical care has increased which affects all parties involved. Most accidents involve spinal and soft tissue injuries, with some treatments lasting a lifetime.   For additional information please feel free to contact our Carlsbad or Temecula Insurance offices.

 

 

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