According to the National Highway Traffic Safety Administration (NHTSA), injury accidents dropped by 28% between 2004 and 2013, and fatalities dropped by 41%. The Insurance Research Council attributes much of this drop to improved licensing laws and safer vehicles. This is obviously good news. However, as minor accidents decrease, the average cost per claim has risen sharply. In fact, costs have gone up by 38% per claim during the same time period. Contact a Boston Car Accident Attorney.
Are Safer Cars and Improved Medical Technology Responsible for Increase in Costs?
With the number of minor crashes falling due to technological improvements, such as collision avoidance systems, the insurance companies are left with more serious accident claims. This throws off the balance, resulting in a higher cost per claim. In addition, as medical technology advances, medical expenses increase as well. Providers are more likely to use MRIs and other expensive technology than they were only a few years ago, even when injuries are minor. Although safer cars, educated drivers, and advanced medical care are a benefit to everyone on the road, these benefits come with a cost.
The increasing costs per claim are canceling out the savings from fewer claims. According to the U.S. Bureau of Labor and Statistics, the average cost of auto insurance actually fell between 2.8% and 19.8% over the last ten years. However, this decline would have likely been much greater if the cost per claim hadn’t risen so sharply.
Cost Per Claim Up in Every State Except West Virginia
The Insurance Research Council looked at two types of accident injury claims to determine claim costs, liability claims and personal injury protection claims. Liability claims are filed when the driver causes injuries to another party. Personal injury protection claims are filed when the driver and/or passengers suffer injuries in the policyholder’s car. Personal injury protection pays for injuries regardless of who caused the accident. Claim costs increased significantly faster than decline in claims in both cases. In fact, claim costs have increased in every state with the exception of West Virginia which prohibits certain kinds of liability lawsuits. The state with the biggest jump in cost per claim was Texas, with a staggering increase of 49% between 2005 and 2013.
Altman & Altman, LLP – Car Accident Attorneys Serving Boston for Nearly 50 Years
If you’ve been injured in any type of auto accident, the legal team at Altman & Altman, LLP can help. Safer cars and better driver education have undoubtedly made our roads safer, but serious accidents still occur every day. With claims on the rise, the cost of being involved in an auto accident continues to get more expensive. If you’ve been injured due to another driver’s negligence, a faulty vehicle part, or road hazards, the cost of medical bills and repairs to your vehicle could be overwhelming. You may be entitled to compensation for your expenses, as well as for pain and suffering, lost wages, and other associated costs. The skilled car accident attorneys at Altman & Altman, LLP will evaluate the details of your case and position you for the best possible outcome. We will make sure you understand your rights and options, and we’ll be with you every step of the way. Contact us today for a free consultation about your case.