A recent study has once again underlined the strong connection between personal injury claims and the cost of insurance policies. Despite the fact that most drivers in the USA are now behind the wheel of far safer cars, serious injuries are still occurring.

Any South Carolina personal injury lawyer will confirm this is the case. As would virtually any USA lawyer who specialises in representing people that have been injured in vehicle accidents. 

Average payments on the rise

The Trends in Auto Injury Claims report for 2019 breaks the statistics down at country and state level. Between 2008 and 2017, the average payment per insured vehicle for bodily injuries (BI) and (PIP) rose by 31%. For personal injury protection claims the payouts rose by 26%.

Even if you look at the trend in the short-term, payment levels still rose by a significant amount. For BI cases the rise across 12 months was 3.1% and for PIPs, it was 2.6%. Both rises were above the rate of inflation, for the same period, which was just under 2%.

Claim frequency rates are also rising in some states

That is the average trend. But, there is significant variation across the states, particularly when you look at claim frequency rates. Across the country, the claim frequency rate was between 0.80 and 0.83 per 100 insured vehicles. While the PIP claim rate frequency fell from 1.31 to 1.27 per 100 vehicles on the roads. 

However, in Florida and Georgia the claims frequency rate was significantly higher. In Florida, that rate rose by 33% and in Georgia by 24% for bodily injuries. There was also 10% uplift in PIP claim frequency, in Florida.

The fact that more people are claiming for personal injuries sustained during an accident is clearly a part of the reason the overall bill the insurance companies have to foot is higher. That is a cost that needs to be covered, which inevitably results in higher premiums.

However, the study also shows that the total cost of each claim is going up too. It is a double whammy that is making driving more expensive for people in the USA.

The USA’s high road accident death rate

Road traffic death payouts are also playing a role. The USA has one of the highest car accident death rates in the developed world. A report produced by the World Health Organization shows that the U.S.’s traffic fatality rate is 12.4 deaths per 100,000. In most of Western Europe, Canada, Japan and Australia that statistic is 50% lower.

However, it is important to realise that this figure includes pedestrian deaths that occurred as a result of road accidents. New vehicle safety features are primarily designed to protect the vehicle occupants rather than pedestrians. So, it is unlikely that advances in safety will reduce the death rate. In the USA, pedestrian death rates have risen from representing 12% of all traffic deaths, in 2008, to 16%, in 2017. This is partly due to the fact more people are once again driving heavier, higher vehicles, which cause more serious injuries when they strike pedestrians. You can read more about the rise in death rates in US road traffic accidents, by clicking here.