Filing an auto insurance claim? Expect a big spike in your premium
From The Huffington Post:
“I don’t know for sure, but I have some theories,” says Eli Lehrer, president of the nonprofit R Street Institute. “Medical inflation has been lower, but it may be that increasing numbers of people with insurance and in government programs are reducing hospital profits, which means insurers are making up the difference with higher auto insurance premiums.”
Lehrer adds that with so much safety equipment and driver assistance components in modern cars, it’s harder to actually get into an accident and much harder to sustain an injury from one unless it’s severe.
“It may be that the average accident resulting in a claim is getting more serious, even as accident rates decline,” says Lehrer.