Update Regarding Current Insurance Trends

Hello valued clients,

We hope the new year is treating you all well! As we reflect on 2016 and plan for the year ahead, we feel incredibly blessed for the trust you have placed in our agency and for your ongoing patronage. Our goals this year are simple- we will continue to provide you with an outstanding level of service and will strive to offer you the best rates and products to meet your auto, home, life and commercial insurance needs.

We wanted to take a moment to discuss current auto insurance conditions so that we can keep all of our customers in the loop regarding the insurance industry and the challenges it is facing. According to the Insurance Information Institute (2016), the auto industry is experiencing significant loss costs. Unfortunately, as a result, insurance premiums have been on the rise and there are several factors which will continue to impact insurance rates in the future.

  1. People are driving more and buying more cars. The US Department of of Transportation’s Federal Highway Administration reports that 2015 saw the greatest increase in driving in 25 years thanks to higher employment and lower fuel costs. Americans bough a record 17.5 million new vehicles in 2015!
  2. This factor likely comes as no surprise to any of us on the road- distracted driving is increasing. While fewer people are talking on the phone while driving, more people are texting and accessing the Internet, according to the National Highway Traffic Safety Administration.
  3. Injury and repair costs are increasing. Medical inflation, claim complexity and technology are all driving up costs. Repairs often include costly electronics such as cameras, safety features and sensors. (ISO Industr Loss Trends, 2016)
  4. Traffic fatalities are reaching record levels- the National Safety Council reported that 2015 brought the largest single-year increase in deaths related to driving since 1966. Further, numbers indicate that there will be a two year increase of 18% over this number.

While this all sounds pretty bleak, rest assured that you are in good hands with Kerth Insurance and the carriers we offer. We will continue to re-rate your renewals and keep you alerted if we can offer you savings or suggest any potential discounts. If you ever have any questions, we are here to answer them. As always, we thank you for your business and your referrals!

Warm regards,

Aaron & Brittney Kerth

Posted on: February 7th, 2017 at 3:58pm by bkerth. Filed under: Uncategorized
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