The Current State of the Auto Industry (In Statistics)
Insurance carriers are seeing an elevation in automobile loss cost trends. Here are some statistics that show the industry rate trends.
To illustrate the rates in change, we’ll compare the auto insurance industry in 2015 with 2006. In 2006, the industry loss ratio was 69.7 percent and the combined ratio was a rather healthy percentage at 95.5 percent. In 2015, the loss ratio was 80.2 percent and the combined ratio reached 104.9 percent! What drove this increase? Well, there are a few factors that could have been an influence: more cars on the road, distracted drivers, and more expensive cars.
Statistics
3.148 trillion miles were driven in 2015 (over half of 1 light-year!). That’s a 3.5 percent increase over 2014! the largest annual increase in 25 years. As more miles are driven with more cars on the road, it increases the odds for accidents. We’ve seen that with a higher accident frequency.
From 2000 all the way through 2014, traffic deaths decreased by 22 percent. In 2015, however, the rate saw an unexpected increase by 7.7 percent! Again, more cars and more miles driven support this statistic.
The average cost of bodily injury claims rose by 32.1 percent between 2005 and 2013. The cost of medical care is on the rise and vehicles are now more expensive than ever to cover. Better materials and the installment of rear-view cameras and sensors on cars add to the price increase.
One in four accidents involves a cellphone. Humans are terrible drivers because of our awful reaction times and short attention spans. As more and more drivers become distracted and more people continue to suffer injuries and death, the argument against self-driving cars begins to lose any credibility.
Our staff at Remland Insurance is very experienced in all matters regarding auto insurance in Orange County and surrounding areas. Please contact us for any further questions regarding your auto insurance!
