Auto Claims Spike as Gas Prices Drop - BodyShop Business

Auto Claims Spike as Gas Prices Drop

Auto insurance claim frequency has increased since gas prices have dropped from the record levels of 2008, National Underwriter (NU) reports. The publication says two large insurers and industry regulators noted the trend.

The Hartford reported an uptick in auto liability claim frequency that President Juan Andrade said was "clearly driven by an increase in miles driven as gas prices have become more normalized," according to NU.

At Allstate, head of investor relations Bob Block noted that in the third quarter of 2009, claim frequency increased significantly, returning to levels similar to those in 2007, the publication said.

"Auto frequencies in 2008 were favorably impacted by a variety of factors – high gas prices, drop in miles driven and rising unemployment, to name a few – with last year’s third quarter being the most favorably affected," Block said.

Economist Robert Hartwig, president of the Insurance Information Institute, told NU that he expects claim frequency to increase more slowly in states hit harder by the recession, such as California, Florida and Michigan.

"I predict now we will see an end to the decline in auto [claim] frequency, and then it will move back up," he said.

Hartwig added that the situation similar to the oil crisis of the 1970s that sent gas prices soaring, noting that the insurance industry "saw a resumption of frequency after falling for several quarters" during the era and that it took about two years for claims frequency to reach pre-energy crisis levels.

More information:

Read the story from National Underwriter

Collision Severity Down Two Years in a Row


Miles Driven Increase Two Straight Months Over 2008 Levels

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website,

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.