Insurance Claims Continue Steady Climb, According to New Runzheimer Research Report

Auto insurance costs now account for nearly 18 percent of total vehicle ownership costs;

Vehicle reimbursement experts suggest increased collisions and claims costs, coupled with recent and potential hurricanes, will play role in future increases

WATERFORD, Wis.--()--Runzheimer, a leading business vehicle technology and solutions provider, announced today its outlook for vehicle insurance premiums in the U.S. over the next three to twelve months. Experts regard late August through the end of September as peak hurricane season, and Runzheimer noted that Hurricane Harvey, along with other potential storms, could also drive up costs.

Runzheimer researches insurance rates and gathers quotes from locations around the United States for a wide range of vehicles on a weekly basis. The company uses this data along with trend information on driving habits, accident frequency and severity, and claims costs to compile its Vehicle Insurance Trend Report, explaining several factors affecting the outlook on auto insurance.

“As our Vehicle Insurance Trend Report describes, insurance continues to be a significant and growing component of vehicle costs,” said Heidi Skatrud, Senior Vice President of Operations and Product Management for Runzheimer. “From July 2016 to June 2017, it accounted for 17.9 percent of the total cost to own and operate a vehicle. As a percent of total vehicle costs, this component grew by 1.7 percent in the last year and 9.8 percent over the last two years.”

Highlights from this year’s trend report include:

  • Americans are driving more miles – setting new records each year since 2014. 3.22 trillion miles in 2016, a 2.8 percent increase over 2015.
  • Accidents are more frequent - distracted driving is on the rise. Accident frequency is at its highest level since 2007.
  • Claim costs are steadily increasing – both collision and bodily injury. Since 2012, the average cost of bodily injury claims related to an auto accident has increased 15.9 percent.
  • Sport utility vehicles, on average, are less expensive to insure, compared with mid-sized sedans. The average cost to insure an SUV rose by about 2 percent in the first half of 2017.

“The statistics in this report, which take into account these trends as well as the impact of recent and potential natural disasters, indicate that vehicle insurance premiums will continue to rise,” said Ms. Skatrud. “We are watching closely the potential impact Hurricane Irma might have on projections if it makes landfall in the U.S. and, as needed, Runzheimer will adjust its projections accordingly.”

Runzheimer works with companies of all sizes to ensure their drivers have auto insurance for business use, and to help manage risk.

For more information, download a copy of the full trend report at https://www.runzheimer.com/insurance.

About Runzheimer

Runzheimer, a business vehicle technology and solutions provider, is the recognized leader in mobile workforce management. We help organizations increase agility, reduce costs, and improve satisfaction through fair, accurate and defensible™ vehicle reimbursement programs. Our solutions deliver an effortless experience for employees while providing data, visibility and actionable intelligence for managers and executives. It is our mission to offer mobile technology and solutions that connect people, companies and their vehicles to drive superior productivity and valuable business intelligence.

Contacts

For Runzheimer
Media Contact:
Yvonne Gonzalez
yvonne.gonzalez@techimage.com
312.673.4876

Release Summary

Auto insurance claims continue steady climb, accounting for nearly 18% of total ownership costs, reports Runzheimer in latest Insurance Trends Report

Contacts

For Runzheimer
Media Contact:
Yvonne Gonzalez
yvonne.gonzalez@techimage.com
312.673.4876