Rising Auto Crashes Might Raise Insurance Premiums
Car crashes are on the rise since the first quarter of 2015, and some insurance companies are mulling over increasing insurance premiums should the uptick in car crashes continue.
Year 2015 was forecasted to be the deadliest year in over a decade with car crashes and fatalities going up like crazy. According to the National Highway Traffic Administration (NHTSA) and the National Safety Council (NSC), there were numerous fatalities due to car crash last year.
Auto-related deaths were up by 9.5% during the first quarter of 2015, which grew to 14.0% in the first half. There were almost 2.3 million serious injuries related to car accidents sustained during the first half of 2015, a 50% increase from the previous year.
In 2007, there were 44,000 car related deaths reported, which has since then decreased to below 40,000 from 2008 to 2014. However, experts say that car related deaths seem to hit the 40,000 and beyond for 2015. Statistics are still underway, though.
In this regard, insurance companies are seeing a good reason to raise insurance fees. Also, as the economy is looking good with the fuel prices improving, more and more motorists are encouraged to hit the roads once again – another reason for insurers to raise the cap of policy rates.
There is likewise a rise in insurance claims. With claims becoming more frequent, insurance firms have to compensate by increasing premiums to cover for the costs, especially with more expensive repairs and more drivers increasing their mileage.
In the same way, motorists are out looking for the most cost-effective, value-for-money auto insurance policy they could find. With many insurance firms raising their rates, they might be losing clients if they go overboard, instead of experiencing rise in profits.
Insurance remains a necessary purchase especially since it is required by law and since it provides financial protection during car accidents. Both motorists and insurers must be careful in making decisions in the future – money is not in abundance, and life is fragile.