One line of coverage that is seeing measurable rate increases from all carriers is Auto. The reason is due to poor underwriting results (e.g. companies are not charging enough to cover what they are paying out in claim dollars).
There are a number of reasons for this:
- The cost of repairs are going up – even minor damage claims cost significantly more than they did just handful of years ago. With increasingly technologically advanced cars (e.g. rear bumper sensors, back up cameras) a minor rear end claim can be a significant claim payment.
- Cost of Medical is going up – causing larger payouts for Bodily Injury related claims
- Increased accident volume – we have to be living in an age where there are more distractions than at any other time period, with cell phone, text, Satellite Radios with 100s of station to choose from
I’ve also noticed more very aggressive drivers on the road. The type that drive up the back of the driver in front of them or do that thing where drive up the back of the person in front of them then change lanes at the very last second, which gives them no margin for error if the driver in front of them has to slow down (just a normal slow down and they'll hit them!). I’ll bet I see this almost daily. I don’t know if they watch NasCar and pretend they are their favorite driver or if they are just assholes. I tend to think it is the latter and it sets me off whenever I see it.
In any case, stay safe, keep your eye open for the %*#%s on the road and remind your family members as well and your employees if you are an employer.
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