Distracted Driving And Car Insurance Rates

Distracted driving is one of the top reasons for car accidents, according to data released by authorities.  Insurance experts say that the explosion of smartphones has been correlated to higher rates of road accidents and traffic fatalities. In 2016, 40,200 people died in traffic accidents, an increase of 14% over 2014. The only solution for automobile insurance companies to protect their business is to increase the premiums. Find out more about distracted driving and car insurance rates.

More accidents equate to higher costs for insurance companies, and insurers pass along these costs to customers.  Distraction-related deaths were up almost 9 percent in 2015, according to data from the National Highway Traffic Safety Administration.  State Farm Mutual Automobile Insurance Co., the largest U.S. auto insurer by market share, said 36% of the people it surveyed in 2015 admitted to texting while driving, and 29% said they access the internet, compared with 31% and 13%, respectively, in 2009. And every American is going to pay more because of this distracted driving epidemic.

Young people appear to be disproportionately responsible for fatal road crashes involving a distracted driver—i.e. someone who might have been texting, scrolling through Snapchat messages, or using a navigation system. “Young drivers (age 16 to 24) have been observed manipulating electronic devices at higher rates than older drivers,” the National Highway Traffic Safety Administration (NHTSA) reports, noting that 10% of drivers ages 15 to 19 involved in fatal crashes were distracted behind the wheel.

Also, combine this with the fact that most drivers use new cars which are more expensive.  Modern cars are packed with more high-tech features than their predecessors, so it costs more to repair them.  Traffic accidents tend to involve lawsuits and medical bills as well, and since legal fees and health care costs have been rising faster than inflation, they too are pushing auto insurance rates skyward.

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