Car crashes declined in 2018. Here’s what’s happening to auto insurance rates
Here's some good news: Many Florida drivers will get a break on insurance rates this year.
An analysis of recent rate proposals by top auto insurers indicate premiums are leveling off and in some cases declining for millions of
For example,
Major companies that recently implemented or are planning no rate increase include Progressive Select (935,136 policies),
Those follow a year in which total motor vehicle crashes in
The tricounty region fared even better, with total crashes declining 2.7 percent, from 134,697 to 131,054. Crashes with injuries fell 2.2 percent, through fatalities declined only 0.9 percent.
It can't be said with certainty that the flattening rates are a direct result of fewer crashes in 2018.
Insurance rates are based on complex formulas that take a multitude of factors into account. Loss projections play a large role, and they are generally based on cost trends over recent years.
Price competition can push prices down as well, and the
"It will be interesting to see how others follow. If
Nationwide, spending on motor vehicle insurance increased 3.4 percent in January compared to the previous January, according to the
Not all insurers plan to flatten or lower their rates.
Too many other factors remain in play, she said. "Cars are safer, but driving isn't getting any better. Distracted driving remains a big problem."
Still, a year of declining crashes "is a good sign, and portends well for the future," she said.
This story has been updated. The original version stated incorrect crash totals for the tricounty region
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