There have been 2 recent announcements by big insurance companies who have seen huge profit losses on the auto insurance side due to wrecks. The biggest cause, distracted driving.
State Farm, one of the 2 companies reporting recent losses, surveyed drivers and found that 36% admitted to texting and driving. A whopping 64% of 18 - 29 year olds surveyed said they have texted while driving. You’ve seen the ads and the billboards with the text message icon and message that says, “It can wait.”
Sadly people have a difficult time putting their phone down in the car. The survey is a testament to that. It’s not just texting, it’s social media, email, news notifications and any number of other app notifications.
Everyone better prepare to pay the price. Rate increases are coming. These rate increases will likely be as much as an insurance company can get approved for by each state’s department of insurance.
There is a silver lining for independent insurance agents. With rates going up, consumers will be shopping around. So batten down the hatches and prepare to quote auto insurance.
Vikki Thomas has been working in the insurance industry since 1995. Vikki has worked for several carriers in customer service, quality assurance, underwriting, product management and marketing. Vikki has worked at AccuAgency since 2008.