Rising healthcare costs mean accident victims need to be very careful when calculating their compensation.
According to the Insurance Research Council, the overall frequency of auto accident injury claims is decreasing. However, the claims that are being made are more costly than ever.
Between 2005 and 2013, claims made under liability coverage (for bodily injuries incurred in accidents caused by another party) dropped 14.5 percent from 0.94 to 0.81 claims per 100 insured vehicles. During this same time period, the average cost of the claims increased 32.1 percent from $11,783 to $15,506 per claim.
Claims made under personal injury protection coverage showed the same pattern. The rate of claims decreased from 1.49 to 1.25 claims per 100 insured vehicles, while the average cost of each claim increased 38.2 percent from $5,802 to $8,017.
Why is this?
Fewer Serious Accidents
One half of the explanation lies in improvements in our vehicles. In addition to ever-improving safety standards designed to minimize injury to drivers and passengers in the event of an accident, we also have new technologies coming on the market that can help prevent accidents entirely. One example would be various accident avoidance systems such as automatic braking or sensors that warn drivers when a vehicle is in their blind spot.
Higher Medical Costs
The other half of the explanation is no doubt tied to increasing health care costs. A variety of complex factors are involved here, but most Americans have faced increases in both their insurance premiums and the fees charged by hospitals and other care providers. For example, according to the Milliman Medical Index, between 2011 and 2012 individuals with insurance experienced a 7.2 percent increase in their share of health care costs. Though the Health Care Cost Institute says the overall rate of increase was slowing for most of the past decade (from 9.5 percent in 2002 to 3.9 percent in 2010), it still outpaced inflation.
Why It Matters
The fact that claims costs are rising tells us that victims of auto accident injuries need to be very careful to ensure that they are seeking an appropriate amount of compensation. Last year’s average numbers for a specific type of injury claim should not be considered a sufficiently accurate baseline for judging the amount of compensation you may require to recover from this year’s accident. Instead, you need to calculate your compensation based on your specific personal needs.
Experienced auto accident attorney Fernando D. Vargas can help you do this. He understands the impact serious injuries have on all aspects of your life and he knows how to argue convincingly for the insurance company to recognize your suffering and compensate you fairly. For a free initial consultation with Attorney Vargas, please call 909-982-0707 now.
