Your personal driving record counts, but not when it comes to the overall rate level that has to be charged. Deadly crashes are up 8% in 2015 alone. 38,000 people lost their lives. That's just the death toll. Cost of injury claims is up also: liability for bodily injury was up 32.1%, PIP (personal injury protection, also called no-fault ins.) cost per claim was up 38.2% (this for 2005 to 2013, data from Insurance Research Council). Overall crashes are up to about 2.7 per million miles driven in 2014, it was just at 2 per million in 2013. Loss costs increased in excess of 7% in just one quarter of 2015 and the line of on the graph is heading up from the bottom of a downward trend that ended in the 1st quarter of 2014. Blame health care costs and higher crash repair costs.
Companies are facing low premium growth, higher claim counts and higher per claim payments, and these costs are inflating so fast that they can't get enough increase in premium to break even, let alone make any profit. My own company in just commercial insurance is paying out about $1.30 - 1.40 on every dollar of premium we take in on auto ins. and it gets worse every quarter. Remember that insurance, especially auto insurance, is one of the most highly regulated types of business in this country and states don't move fast on rate requests and are generally loath to grant increases unless thoroughly justified.
Until the crash rate comes down and health care costs moderate auto insurance premiums will not stop increasing. Best to find the best rate out there and mind your own driving habits so you aren't contributing to the problems.
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Today's Featured Article - Listening to Your Tractor - by Curtis Von Fange. Years ago there was a TV show about a talking car. Unless you are from another planet, physically or otherwise, I don’t think our internal combustion buddies will talk and tell us their problems. But, on the other hand, there is a secret language that our mechanical companions readily do speak. It is an interesting form of communication that involves all the senses of the listener. In this series we are going to investigate and learn the basic rudimentary skills of understanding this lingo.
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