The Insurance Research Council (IRC) recently released a report, Trends in Auto Injury Claims, 2015 Edition, which analyzes claim information from national and state statistical reporting agencies. The data from this report shows a national trend that auto insurance bodily claims have increased dramatically in costs, yet have decreased in frequency. This trend arose even with the improved vehicle safety and graduated licensing laws within the last few years.
These numbers certainly raise questions as to what factors have contributed to and caused this trend. An IRC senior vice president, Elizabeth Sprinkel, stated, “Documenting the specific drivers of cost in the states where cost growth is the greatest will be a priority for the IRC in the years ahead.” As for now, some interesting points can be noted when looking at individual state trends:
-Every state with personal injury protection coverage (PIP) except for South Carolina saw a drop in PIP claim frequency
-All states except Pennsylvania increased in PIP claim severity