The Cost of Car Accident Injury Claims is Rising: Learn Why This Matters to You
According to a study from the Insurance Research Council, the number of car accident injury claims is going down, but at the same time, the cost of the average claim is going up. This might seem like something that only affects the insurance companies, but that is not the case. Keep reading to find out how others might be affected – including you. Then contact Law Offices of Fernando D. Vargas at 909-982-0707 for a free legal consultation.
By the Numbers
First, let us take a look at what the study uncovered. It looked at claims under liability coverage between 2005 and 2013. They found that they dropped a full 14.5% from .94 to .81 claims for every 100 insured vehicles in the state. However, the cost of the average claim also increased in this time period by 32.1% from an average of $11,783 per claim to $15,506 per claim.
The same was found for claims made under personal injury protection coverage: The rate of claims when from 1.49 to 1.25 claims per 100 insured vehicles, and the average cost of claims when up 38.2% from $5,802 to $8,017.
There Are Fewer Serious Accidents
The main reason that the number of claims is going down is that there are fewer serious accidents. This is mostly due to the fact that manufacturers of cars have come up with enhanced safety features in the last decade. These features not only work to minimize the injuries when an accident occurs, but they are also actually preventing accidents. Updated features like automatic braking, blind-spot warnings, and rearview cameras have had a notable impact.
Medical Costs Are on the Rise
On the other hand, the main reason that the average cost of a car accident claim is on the rise is that medical costs are on the rise. While the rising costs of health care have gone down in recent years, they are still rising faster than inflating is rising. As a result, individuals are facing higher health care costs – and insurance companies are facing higher medical costs they are expected to pay in personal injury claims.
Why You Should Care About These Costs
If you have been injured in an accident and are seeking compensation from an insurance company, it is important to know what an appropriate amount of compensation is. If costs are rising, you cannot use last year’s averages to estimate your long-term medical costs. Higher average claims also mean that the insurance companies are likely to work even harder to reduce those numbers by denying or reducing claims.
As always, the best way to get the best compensation after an accident case is to work with a personal injury attorney who can help you with your case. Contact Law Offices of Fernando D. Vargas at 909-982-0707 now to request a free legal consultation.