athena53
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 11, 2014
- Messages
- 7,383
This has been discussed in other threads (which I can't find, of course) but this article landed in my e-mail today. It was written by and for actuaries but is clear enough for the average person to understand.
https://ar.casact.org/unexpected-developments-in-personal-auto/
Briefly:
It's actually the Physical Damage costs (theft, collision, etc.) that are rising faster than Bodily Injury Liability claims.
Claim Counts aren't rising but average claim cost is.
Catalytic converter thefts are increasing and they can cost $1,000 to $3,500 to replace. Car thefts in general are rising.
Increasing tech adds to claim and repair costs. Even if my puny Honda Civic crashes into an EV the battery in the EV is likely to be destroyed. And the high-tech windshield in a vehicle such as my puny Civic can cost over $1,000 to replace. (BTDT with a large crack from gravel thrown up by a passing truck.)
Since the COVID-19 pandemic, primary causes of accidents such as distracted driving, speeding and driving while under the influence of alcohol or drugs, are on the rise.
Car prices- new and used- are increasing faster than overall inflation.
As I've noted before in these discussions, personal Auto and Homeowners rates are strictly regulated and must be supported by data (plenty of which is in the article)- not just "Well, you know, because of COVID". The reasons are real.
https://ar.casact.org/unexpected-developments-in-personal-auto/
Briefly:
It's actually the Physical Damage costs (theft, collision, etc.) that are rising faster than Bodily Injury Liability claims.
Claim Counts aren't rising but average claim cost is.
Catalytic converter thefts are increasing and they can cost $1,000 to $3,500 to replace. Car thefts in general are rising.
Increasing tech adds to claim and repair costs. Even if my puny Honda Civic crashes into an EV the battery in the EV is likely to be destroyed. And the high-tech windshield in a vehicle such as my puny Civic can cost over $1,000 to replace. (BTDT with a large crack from gravel thrown up by a passing truck.)
Since the COVID-19 pandemic, primary causes of accidents such as distracted driving, speeding and driving while under the influence of alcohol or drugs, are on the rise.
Car prices- new and used- are increasing faster than overall inflation.
As I've noted before in these discussions, personal Auto and Homeowners rates are strictly regulated and must be supported by data (plenty of which is in the article)- not just "Well, you know, because of COVID". The reasons are real.