Despite Fewer Claims, Personal Auto Insurance Payouts Increase
Monday, July 24th, 2023 AutoThe average claim payment per insured personal vehicle rose between 2002 and 2022, with higher payments by insurers more than offsetting declines in frequency, according to new research by the Insurance Research Council (IRC) -- like Triple-I, an affiliate of The Institutes.
‘During the first half of the study period, the combination of declining frequency and increasing severity left average insurer loss costs relatively unchanged,’ said IRC president and Triple-I chief insurance officer Dale Porfilio. ‘However, as claim frequency leveled off and claim severity accelerated, the average payment per insured vehicle for most coverages began to climb steadily until the 2020 drop due to COVID-19. By 2022, however, average loss costs for nearly every coverage had surpassed the 2019 level.’
