The severity of claims for bodily injury and property damage increased by 35% since 2019, while the severity of collision claims jumped by 40%, LexisNexis Risk Solutions said in a new report.
The data broker’s 2023 US Auto Insurance Trends report says traffic volumes on US roads fell after the start of the pandemic in March 2020, but volumes have returned to near pre-pandemic levels last year. Total miles driven in 2022 will be 5% less than in 2019.
Motorists drive like the roads are empty. The report said that the number of major speeding violations increased by 20% over 2019 rates, “mostly due to the increase in northeastern states, which have large population centers.”
Minor speeding violations surpassed 2019 levels for the first time since the pandemic.
“Although the growth is lower than the relative growth of major accelerations, the rates of growth are similar,” the report said. “This development is significant, as minor speeding represents the highest category of moving violations, and also one of the highest categories in total volume.”
LexisNexis said the number of violations may reflect a law enforcement effort to curb speeding because of documented evidence that motorists are driving faster and correspondingly increase the number of traffic deaths.
“Basically, more tickets are now issued per mile driven,” the report said.
There is one note of good news: The report says that the total number of deaths on US highways decreased by 0.2% in the first three quarters of 2022 compared to the same period in 2021.
Auto claims data did not reveal any sign of improvement. LexisNexis said bodily injury claims were 8% to 10% higher than last year, on top of a sharper surge in 2021 that led to an overall increase in insurance costs. bodily injury claims 35% since 2019.
Growth in property damage claims also moderated in 2022 to an 8.5% increase, but that still led to a 35% jump in 2019 property damage costs, the report noted. – said.
The severity of collision claims increased by 9% in 2022 compared to 2021, for a total increase of 40% over pre-pandemic 2019 levels. The share of claims resulting in total loss also increased, to 27% of collision claims in 2002 from 24% in 2021.
LexisNexis said the improvement is significant because general loss claims take more time and effort, often requiring adjusters to manually find data from multiple sources.
The report said inflation also played a role in the increase in severity. The cost of motor vehicle parts and equipment rose 10% last year, according to data from the US Bureau of Labor Statistics. Repair costs increased by 19% during that period.
The report states that the increased adoption of advanced driver assistance systems may provide an explanation for the increase in claims costs. They have proven to be very effective in reducing the accident rate and frequency of claims.
Some ADAS features are more effective than others. LexisNexis says that many combinations of ADAS features result in loss cost reductions of 5% or less, but others reduce costs by 20% to 25%.
The increased adoption of electric vehicles, which are generally equipped with ADAS, can also reduce the costs of the loss, the report says.
Trends Auto Price Trends COVID-19
Interested in AUTO?
Get automatic alerts for this topic.