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Auto Insurance Rates Likely Going Up in N.C. During 2017

  1. Car Insurance Premiums
  2. Distraction and Higher Repair Costs Fuel Proposed Insurance Rate Hikes in North Carolina
  3. Contact Myers Law Firm If You’ve Been Hurt in an Auto Accident

Car Insurance Premiums

For years, North Carolina has boasted some of the lowest car insurance premiums in the country, but those golden days for drivers in the state may be waning. The state’s insurers have reached a settlement with regulators for a 2.2% increase in auto insurance rates statewide. The rate hike will take effect on October 1. 

The 2.2% figure represents a much smaller increase than what the state’s insurers wanted. The N.C. Rate Bureau, which represents all insurance companies doing business in the state, filed a request in February with the North Carolina Department of Insurance for a rate increase of 13.8%.

The insurers cited a 7% increase in crashes stemming from distracted driving and a 13.2% rise in alcohol-related traffic deaths as factors that were increasing the average cost and severity of insurance claims. They also said that rising medical costs and higher auto body repair bills played a role in the rate-hike request as well.

“All of these [factors] together are why we are requesting an increase at this point,” said Ray Evans, general manager of the Rate Bureau, which represents all insurers doing business in the state.

As part of the final settlement with the N.C. Rate Bureau, the state’s insurers agreed not to request a rate increase in 2018.

Distraction and Higher Repair Costs Fuel Proposed Insurance Rate Hikes in North Carolina

Insurance experts say that several key factors have combined in recent years to make auto insurance claims more expensive than ever. Some of the most important among those factors include:

  • Higher repair costs: New, high-tech vehicles with advanced safety features and peripherals are much more expensive to maintain and fix compared to older models. While they may help avert crashes and can sometimes lessen the severity of injuries when collisions do happen, added features like parking-assist cameras are easily damaged during an auto accident and are costly to repair or replace.“[A fender-bender] used to be just fixing a bumper,” Allstate spokesperson Adam Polack told the Charlotte Observer. “Now [the bumper] has a backup camera in it. So, cars are more expensive to fix.”
  • Distracted driving: Mobile devices are fueling an epidemic of distracted driving on our roads, and the result is that auto accidents and related fatalities are on the rise nationwide after years of steady decline. According to the 2015 installment in an annual driver behavior survey from State Farm, more than one in three motorists surveyed admitted to texting while driving and 29% said they often browsed the internet behind the wheel.“It’s interesting to observe how the number and types of distractions available on cell phones have grown over the years we have conducted this annual survey,” said Chris Mullen, director of technology research at State Farm, regarding the survey’s results.In addition, many vehicles today are equipped with voice-activated systems for making phone calls, setting GPS, and adjusting the heat or radio. While drivers tend to believe these hands-free systems allow them to multitask safely, studies show otherwise. A 2015 study from the AAA Foundation for Traffic Safety, for example, concluded that voice-based systems in cars are “cognitively demanding and ought not to be used indiscriminately while operating a motor vehicle.”

RELATED: Why You Need More UM/UIM Coverage Than You Think

  • More miles driven: In recent years, low gas prices and a rebounding economy have encouraged people to drive more and take longer trips when they do. In North Carolina, drivers traveled 13% more miles in 2015 compared to the average total over the previous five years. Not surprisingly, this jump in miles traveled has coincided with higher crash rates in the state; the N.C. Department of Motor Vehicles reported that driving-related fatalities increased 8.1% in 2015 from the year before, while injuries increased 11.8% and reported crashes rose 11.1%.
  • Alcohol-related wrecks: North Carolina has recently seen a surge in alcohol-related traffic fatalities, although highway safety experts have so far struggled to explain why. In 2015, the state experienced a 13.2% increase in alcohol-impaired-driving fatalities compared to the previous year. This spike came after five decades of steady decline in drunk driving deaths.

Clearly, some of these factors should concern North Carolina drivers, as they indicate that the insurance rate hike is a symptom of serious statewide highway safety issues. While individuals are ultimately responsible for their own actions behind the wheel, N.C. residents should also look to law enforcement officials and highway safety authorities to develop practical measures to combat the ongoing epidemic of distracted driving and the recent spike in alcohol-related traffic deaths.

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Contact Myers Law Firm If You’ve Been Hurt in an Auto Accident

The experienced personal injury attorneys at Myers Law Firm are committed to helping injury victims in the wake of traffic accidents and whenever our advice and advocacy are needed. If you or someone you love has been injured in a motor vehicle accident, please contact our offices to set up a free, no-risk consultation and speak with an attorney about your legal options.

To get in touch with us right away, complete the brief contact form on our website, or call 888-376-2889.

References

Nelson, K. (2016, September 19). North Carolina has second-lowest car insurance premiums nationwide, according to report. Wsoctv.com. Retrieved from http://www.wsoctv.com/news/local/north-carolina-has-second-lowest-car-insurance-premiums-nationwide-but-rates-are-on-the-rise/447639977

Ranii, D. (2017, February 9). NC auto insurers seek 13.8 percent rate hike. The News & Observer. Retrieved from http://www.newsobserver.com/news/business/article131736244.html

Ranii, D. (2017, June 15). Your auto insurance rates are going up – but less than insurers wanted. The News & Observer. Retrieved from http://www.newsobserver.com/news/business/article156389224.html

Smith, C. (2017, March 15). 4 reasons your NC car insurance will very likely rise this year. The Charlotte Observer. Retrieved from http://www.charlotteobserver.com/news/business/article138378218.html

The content provided here is for informational purposes only and should not be construed as legal advice on any subject.

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Distraction Seems to be Causing the Rise in U.S. Traffic Deaths

  1. Car Crash Fatalities
  2. Distracted Driving
  3. Studies Show That More than Half of Drivers May Be Distracted
  4. Contact Myers Law Firm

Car Crash Fatalities

Car crash fatalities are on the rise in the United States. The suspected culprit, according to traffic safety experts: Distracted driving.

Unfortunately, this comes as no surprise considering the general increase of cellphone use and our culture of “need-it-now” information. Compounding the widespread use of smartphones and other devices are lower gas prices and a stronger economy, which inevitably fuel more driving and therefore more traffic fatalities.

Distracted Driving

Distracted driving is anything that takes away your cognitive, visual, or physical ability to focus on the primary task of driving. When you’re behind the wheel, distractions can pop up everywhere you look. Whether it’s your cell phone, car passengers, other drivers, your car stereo or temperature controls, or even just thinking about your busy day, distractions can compromise your attention and cause a crash in the blink of an eye.

Distractions while driving, of course, have been around far longer than smartphones — in fact, they’ve been around for as long as automobiles have existed. Eating and driving, for example, is one of the most dangerous activities you can engage in behind the wheel; the National Highway Traffic Safety Administration (NHTSA) estimates that it increases your risk for a crash by 80 percent.

Still, there’s no denying that the advent of smartphones, in-car GPS, and other portable electronic devices have introduced a host of new sources for distraction without alleviating any of the distractions that already existed. With social media, mobile games, and all the information on the world wide web at their fingertips, drivers are feeling more tempted than ever to take their eyes off the road — and they’re causing more crashes as a result.

Troubling Statistics Regarding Distracted Driving

The National Safety Council (NSC) reports that the current upward trend in traffic deaths began in 2014 and shows no signs of decreasing. Nationwide, the NSC reported 17,775 traffic fatalities in the first six months of 2016 — an increase of 10.4% compared to the same period in 2015 and up 18% compared to the same period in 2014. These alarming numbers came after years of declines in the total number of annual traffic deaths.

In addition, the World Health Organization (WHO) recently reported that the United States ranked 17th out of 29 high-income nations for the most traffic deaths per 100,000 people in 2013. The United Kingdom, Canada, Brunei, and the Philippines (just to name a few) have fewer traffic-related fatalities per capita than the United States.

As we discussed back in September, North Carolina doesn’t seem to be an exception to this trend, as state officials reported a 7.4% increase in traffic fatalities in 2015 compared to the previous year.

Robert Gordon, senior vice president for the Property Casualty Insurers Association of America, told a safety forum late last year that experts in the insurance industry believe that distracted driving is one of the primary causes behind the increase in traffic deaths. They came to this conclusion in part, he said, because traffic fatalities spiked especially sharply in urban areas where congestion is higher and driving speeds are generally slower.

RELATED: Can “Textalyzers” Help Stop Distracted Driving?

“You look at urban areas where the traffic slows way down and the first thing that half the drivers do, or more than half, is pull out their iPhones and their iPads,” Gordon said. “You start talking to your friends, you check your email, maybe you send a text and that’s a huge problem.”

“Our auto insurance companies feel the biggest cause of the increasing accident frequency is this type of distracted driving,” he added.

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Studies Show That More than Half of Drivers May Be Distracted

Even though most drivers are aware of the danger that distracted driving poses, few people realize just how serious and widespread the problem is. According to one recent and highly comprehensive study from the Virginia Tech Transportation Institute, the average person behind the wheel of a passenger vehicle is distracted more than 50 percent of the time, and 70 percent of crashes involve some degree of distraction as a cause.

Researchers in this study came to this conclusion based on in-car camera footage of more than 3,500 drivers, who were filmed for a period of three years. Not only that, but they also gathered self-reported survey data from the participants, and the results are equally eye-opening:

  • 1 in 5 drivers admitted to surfing the internet while driving;
  • 1 in 3 sent text messages while driving; and
  • 1 in 2 talked on the phone while driving.

Clearly, distracted driving poses a greater and more widespread threat to public safety than most people would ever care to imagine. Until lawmakers and public safety experts find a way to address this ongoing epidemic of distracted driving, traffic fatalities will most likely continue to trend in the wrong direction.

Contact Myers Law Firm

If you or someone you love has been injured in a car accident caused by a distracted driver or by any other type of negligence, Myers Law Firm is here to fight for you. When you choose us to handle your case, we promise fair and aggressive representation that places your best interests above any other concern. Please complete our online form, or call 888-376-2889 to discuss your legal options in a free, no-risk consultation.

References

DHSMV reminds motorists to focus on driving, Florida [press release]. (2016, April 1). Florida Department of Highway Safety and Motor Vehicles. Retrieved from https://www.flhsmv.gov/safety-center/driving-safety/distracted-driving/

Eating while driving. (n.d.). Decide to Drive. Retrieved from http://www.decidetodrive.org/distracted-driving-dangerous/eating-driving/

Lowy, J. (2016, October 29). Surge in U.S. traffic deaths attributed to cell phone distractions. The Associated Press. Retrieved from http://www.allgov.com/news/controversies/surge-in-us-traffic-deaths-attributed-to-cell-phone-distractions-161029?news=859681

Marshall, A. (2016, March 8). U.S. drivers are distracted more than half the time they’re behind the wheel. CityLab. Retrieved from http://www.citylab.com/commute/2016/03/major-distractions-for-drivers/472656/

Motor vehicle fatalities up 9%; No sign of a decrease in 2016, says National Safety Council. (2016, August 23). National Safety Council. Retrieved from http://www.nsc.org/Connect/NSCNewsReleases/Lists/Posts/Post.aspx?ID=134

U.S. traffic deaths jump by 10.4 percent in the first half of 2016. (2016, October 5). The Associated Press. Retrieved from http://www.nbcnews.com/news/us-news/u-s-traffic-deaths-jump-10-4-percent-first-half-n660241

The content provided here is for informational purposes only and should not be construed as legal advice on any subject.

Contact Myers Law Firm

We are committed to continuing to serve our clients’ legal needs

Single Divider

We are able to meet with clients and hold consultations with prospective clients via telephone or video conference. If you need to contact us, please do not hesitate; we are happy to speak with you about your situation, your needs, and how we can help.

Schedule Your Consultation Now!

Type of Case (Select One)(Required)
This field is for validation purposes and should be left unchanged.