What’s Driving Larger Auto Liability Losses? [Infographic]
April 24, 2014| By Liz Kramer |
Auto liability claims have taken an interesting turn. The headlining trend: frequency has fallen and should continue to fall. Meanwhile, auto severity has increased on the back of rising medical costs. Between 2007 and 2012 auto severity grew at a faster rate than economic inflation for the same period.
Technology, improved safety standards and graduated license laws have all contributed to fewer accidents; the number of highway deaths over the past five years has been at an all-time low. But we continue to watch the numbers as 2012 saw the first year-on-year increase in driver deaths since 2005.
We highlight three trends to watch, one of which is distracted driving. Driver distraction plays a part in one in four auto crashes; one-fifth of drivers aged 15-19 involved in fatal crashes are distracted by cell phones. Clearly, technology is driving us to distraction. And that’s why April is Distracted Driving Awareness Month.
See our infographic below to view other auto liability trends.