Car Insurance Premiums Raised to Pay for Increasing Accident Claims

The past year saw a slow rise in the economy. Businesses and the general public have just started recovering from almost a decade of a low. This has led to more people venturing out on roads, driving and increasing on-road miles. Our Chicago car accident lawyer explains that this has, in turn, led to an increase in on-road accidents, increasing accident related injuries and fatalities, thereby, leading to a surge in car accident claims.

Increased on-road miles lead to an increase number of accidents

The country has recorded a steady yearly decline in car accident related claims for fatal crashes over the past decade due to a number of factors like more stringent enforcement of safety laws for motorists, tougher enforcements for DUI (driving under influence) offenders, better quality and safer car accessories like seatbelts, airbags and better stability control systems.

However, with the turning economy and a reduction in unemployment figures, statistics indicate that more people are now driving to work, and have more time and income for luxury outings, thereby increasing on-road miles. Another contributor was decreasing gas prices that contributed to more motorists on the road.

With more people on the road, there has to be a surge in automobile accidents. More people on the road, coupled with extreme weathers in some parts of the country largely affected the number of car accidents. 2015 saw a 14% increase in fatal car accidents, according to a National Safety Council study.

More accidents lead to surge in accident claims

The changing economy and related factors, increasing accidents and fatalities are also affecting car insurances and more specifically, claims for car accidents. Between 2003 and 2011, the US average annual car insurance expense dropped from $1,076 to $846, 2015 has seen a steady rise in these figures, and insurers are all set to use different methods to maintain profit margins.

In view of this, a number of top ranking Car insurance companies have started raising premiums. The top two insurers, Geico and Allstate, have already increased claim premiums, with Allstate at 3.9% increase and Geico will announce the rates as and when required. Insurers are raising their premiums only to compensate for paying more claims for car accidents. These changes in trends and increases in rates indicate that the following years are going to witness increases in premium rates and frequencies of payment.

How can an attorney help?

In such times, where accident related fatalities and injuries are on the rise, vehicle owners and drivers have to be extremely careful and vigilant. You never know if you will be hit by a negligent driver, and might require filing a claim for car damages and/or injuries.

At the same time, it is likely that rules surrounding claims will only get stricter. Keeping this in mind, it is often in your best interests to hire the services of a Chicago car wreck lawyer, who can help you file a claim and help you get what is rightfully yours. Call (312) 957-4166 for a free case evaluation with a top-rated attorney at Willens Law Office.