Friday, October 21, 2016

Increasing Losses in the Auto Industry

Industry statistics show that insurance companies are paying out more in auto claims than they have in the past. Why? Are there more accidents happening? Are the costs of auto repairs and medical expenses increasing? In today's blog, your favorite insurance company at the Lake of the Ozarks discusses the increased losses that the auto industry is experiencing.

Auto Loss Statistics

The industry statistics gathered by Safeco below show that insurance carriers are paying out more in auto claims than they have in previous years. These high auto losses are occurring all across the industry.
  • The U.S. set a new car sales record of nearly 17.5 million vehicles in 2015. Newer cars have advanced technology and are more expensive to repair. 
  • 3.148 trillion miles were driven in 2015. That's a 3.5% increase over 2014 - the largest annual increase in 25 years. 
  • 2015 accident frequency increased: bodily injury liability increased 3%, property damage liability increased 0.9% and personal injury protection (PIP or no-fault claims) increased 6.6%. 
  • Traffic deaths decreased 22% from 2000 through 2014. Estimations for 2015 show a 7.7% increase over 2014.
  • From 2005 to 2013, the average cost per paid bodily injury liability claim increased 32.1%. 
  • Mirroring the industry, total loss auto claims for Safeco increased 12.7% between 2013 and 2015. 
  • Drivers are more distracted. In 2014, 3,179 people were killed and 431,000 were injured as a result of distracted drivers. 

Sources: "Strategy&," Price WaterHouse Coopers, 2016 Auto Industry Trends, U.S. Departments of Transportation's Federal Highway Administration, Insurance Services Office Fast Track Data, National Highway Traffic Safety Administration, Insurance Research Council, Safeco Research and

Trust Your Local Independent Agent

When you choose to work with a local, independent insurance agent at the Lake of the Ozarks, you'll get personal service like no other. Whenever you have a question about your auto policy, you can call and talk to your agent. You don't get that when you purchase insurance online - you could get a different person every time you call. Auto insurance coverage is critical to have, and even more important is working with someone you can trust to call should you ever have an accident and need to make a claim.

Do you have the Lake of the Ozarks auto insurance coverage you need? At Insure the Lake, we'll do a free, no-obligation analysis of your current auto insurance coverage to determine what coverage you have, if it's adequate to cover your potential medical bills and protect your assets, and see if we can save you a little money compared to what you are currently paying. Give us a call at 573-348-2794 to discuss your insurance needs. Our goal is to work with you to find the most comprehensive insurance coverage for the best price.  

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral