Ohio Crashes Drive Auto Insurance Rates Up

An increase in auto accidents in Ohio has prompted some carriers to increase their auto insurance rates across the state. A report from the Ohio Department of Public Safety showed that the number of auto accidents rose by 7 percent last year. The rate of fatal accidents has risen by more than 10 percent through June 2015 than at the same point twelve months earlier. The increased number of accidents, as well as the higher costs of repair bills and medical expenses, has led insurers to consider hikes in auto insurance rates.

More Claims Bring Higher Auto Insurance Rates

Researchers at the Insurance Information Institute revealed some startling statistics related to accidents and auto insurance rates. The study showed that the average cost for care repairs from collisions is nearly $3,300 per claim. This amount represents an increase of 3 percent from April 1, 2014, to March 31, 2015. The Ohio Insurance Institute reported that carriers paid out $3.8 billion in collision claims in 2014. The high amount of claims payments, the highest in over ten years, has prompted many insurers to increase their auto insurance rates.

Other Factors Contribute To Auto Insurance Rates

The incentive to raise auto insurance rates comes from more than just repairing collision damage. The National Safety Council report showed that vehicle accidents caused more than $152 billion from January 2015 to June 2015. The estimated damage amount includes medical expenses, property damage, lost wages and lost productivity. The amount also includes the administrative expenses insurance carriers incur from processing claims. An increase in auto insurance rates would allow carriers to recover some of those costs.

Economic Growth Leads to Auto Insurance Rates Increases

An insurance industry group cited the increase in traffic across the state as a reason for the increase in auto insurance rates. Bob Hartwig, president of the Insurance Information Institute, told reporters that “an improving economy, improving job picture and lower gas prices” can all lead to more cars on the road. Drivers who were unemployed must now drive to their new jobs, which can lead to higher auto insurance rates. “When people drive more,” he said, “they get in more accidents.”

Insurers Cite Reasons Behind Higher Auto Insurance Rates

Several major insurance carriers cited the collision data among their reasons for raising auto insurance rates in Ohio. A spokesperson for State Farm, the state’s leading insurer, told reporters that “a number of reasons” for the company increasing its auto insurance rates. These reasons include the “frequency and severity in claim trends and the costs associated with car repairs and medical care.” Allstate Chairman and CEO Thomas J. Wilson said that his company has “responded aggressively to improve profitability with rate increases, tighter underwriting standards and expense reductions.”

Source: Columbus Dispatch

Get Answers For Your Auto Insurance Lawsuit Questions

To find out how we can answer your questions about auto insurance lawsuits, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your auto insurance lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.

NOTE: This blog post is a news story and is not an endorsement of Arguello Law Firm by any party mentioned herein.