Workers Comp Total Claims Fall, While Motor Vehicle Accident Claims Rise

Well, we have good news, and we have bad news. The good news is that the total amount of workers comp claims in the United States are steadily declining. The bad news is that the number of workers comp claims involving motor-vehicle accidents are on the rise. So, what does that mean?

According to a new report by the National Council on Compensation Insurance (NCCI) the total amount of workers comp claims between 2011 and 2016 dropped by 17.6 percent. In stark contrast to that drop, the total number of car accident claims rose by 5 percent during that same time period.

This information is of particular interest to insurers because, according to the workers’ compensation rating organization, car accident claims often cost 80 to 100 percent more than the average workers comp claim. There are a lot of reasons for this but the biggest contributing factor is the severity of the injuries that usually result from a car accident.

It is worth noting that this rise in car accidents is not just being observed in the workers comp industry, but across the country. According to the NCCI, accident rates have been increasing in the general population during that same time period, as well. While there are a lot of likely causes behind this, the biggest culprit is likely distracted driving.

The National Safety Council reports that 27 percent of car crashes involved one or more drivers talking and texting on their mobile phones. The council also points out that the number of drivers who honestly report their cell phone use while driving is incredibly low, meaning that 27 percent number is likely vastly under the true statistic.

The auto industry has to adapt to the continued proliferation of mobile devices when driving. This is not only an important issue for workers comp, but also self-driving technology. Distracted driving is not a problem that’s going away. In fact, these numbers tell us that it’s a problem that’s only getting worse. Eventually a tipping point will be reach, and drastic changes will have to be made.

For now, all we can do is not text and drive ourselves and make sure we have the proper insurance policies in place. If you want a new insurance policy, or just want to check in on your current ones, we encourage you to reach out to the staff at TGS Insurance. TGS Insurance offers all types of insurance policies and their staff are always happy to answer any questions that you may have. Visit www.tgsinsurance.com to learn more.

Sources:
https://www.insurancejournal.com/news/national/2018/08/14/497902.htm