{"id":30729,"date":"2023-07-03T08:08:53","date_gmt":"2023-07-03T12:08:53","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/the-unfortunate-relationship-between-a-rise-in-traffic-deaths-and-your-wallet\/"},"modified":"2023-07-03T08:08:55","modified_gmt":"2023-07-03T12:08:55","slug":"the-unfortunate-relationship-between-a-rise-in-traffic-deaths-and-your-wallet","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=30729","title":{"rendered":"The unfortunate relationship between a rise in traffic deaths and your wallet"},"content":{"rendered":"
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This <\/em>article<\/em> is reprinted by permission from <\/em>NerdWallet<\/em>.\u00a0<\/em><\/p>\n

If you get the sense you\u2019ve been seeing more bad accidents on the road lately, you probably have. Crashes claimed an estimated 42,795 lives on U.S. roadways in 2022, according to the National Highway Traffic Safety Administration (NHTSA), a fairly dramatic increase over 2019 by more than 6,000 deaths.<\/p>\n

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Though traffic on U.S. roadways plummeted in the first year of the pandemic, roadway deaths did the opposite. Traffic fatalities experienced double-digit growth four quarters in a row beginning in the second half of 2020.<\/p>\n

And death rates haven\u2019t really improved since then. \u201cDriving is back up almost to normal, but fatalities are continuing to go up,\u201d says David Zuby, executive vice president and chief research officer at the Insurance Institute for Highway Safety (IIHS).<\/p>\n

See: <\/strong>These are the worst U.S. cities for traffic<\/p>\n

This is a paradox that spurred U.S. Secretary of Transportation Pete Buttigieg to call it a \u201cnational crisis of traffic deaths\u201d.<\/p>\n

What\u2019s to blame?<\/p>\n

A deadly cocktail of speed, carelessness and mass<\/strong><\/h2>\n

There isn\u2019t one contributing factor to the rise in roadway deaths, but many.<\/p>\n

In the early days of the pandemic, open roads and short-staffed police forces invited bad driving habits \u2014 habits that have been hard for drivers to break, according to IIHS.<\/p>\n

One of them is speeding. According to LexisNexis\u2019 2023 U.S. Auto Insurance Trends Report, major speeding violations were up 20% in 2022 compared to 2019.<\/p>\n

Other contributing factors in the rise of traffic deaths include more people driving drunk and fewer people wearing seat belts. But the cars themselves may also be to blame.<\/p>\n

While newer vehicles sold today are typically safer to drive than models from previous years, they\u2019re also bigger \u2014 2021 models were the heaviest ever, on average, according to the U.S. Environmental Protection Agency.<\/p>\n

And there are a lot of them on the road. According to J.D. Power, 80% of new car sales in 2022 came from trucks and SUVs. \u201cIf you\u2019re a bicyclist or pedestrian struck by an SUV or truck, you\u2019re more likely to suffer serious and fatal injuries than if you\u2019re struck by a car,\u201d Zuby says.<\/p>\n

What the rise in traffic fatalities means for you<\/strong><\/h2>\n

Aside from the morbid thought that there\u2019s a slightly greater chance you\u2019ll be involved in a serious car accident, how else might the rise in traffic deaths impact you? One way is your wallet.<\/p>\n

Read<\/strong>: These are the cars that cost the most and least to insure<\/p>\n

More severe accidents drive up auto insurance costs, says Scott Holeman, a spokesperson for the Insurance Information Institute. Insurers, already battered by inflation, financial losses from natural disasters and tough regulatory environments in some large states, are now facing greater claim payouts from car accidents. According to the LexisNexis report, claim severity, or the total cost of claims, has increased by 35% since 2019 for liability claims and 40% for collision claims.<\/p>\n

And rising costs for insurers mean rising costs for drivers. Data from the U.S. Bureau of Labor Statistics reveals that the cost of car insurance rose 17% in May compared to the year prior, continuing a nine-month run of double-digit cost hikes.<\/p>\n

Here are a few things to consider:<\/p>\n

Make sure you\u2019re not underinsured<\/strong><\/h4>\n

The last thing you want is to find out you don\u2019t have enough insurance if you ever need to make a claim. That\u2019s why now\u2019s a good time to chat with your insurance agent or review your\u00a0car insurance declaration page\u00a0to check your coverage.<\/p>\n

In particular, take a close look at your liability coverage. This pays for other people\u2019s medical bills or property damage from accidents you cause. With the cost of cars, repair labor and medical care all at record-high levels, your\u00a0liability insurance\u00a0limits might not be high enough to cover all medical costs or damages after a bad accident. If that happens, you might be on the hook to pay the balance.<\/p>\n

\u201cNobody wants to read their insurance policies,\u201d Holeman empathizes. \u201cBut it\u2019s an important component to your financial well-being.\u201d<\/p>\n

Related<\/strong>: The surprisingly very long list of things your car insurance won\u2019t cover<\/p>\n

Shop around<\/strong><\/h4>\n

Insurance rate hikes are normal. But if they seem a lot higher than when you originally signed the dotted line, consider other options. \u201cThe good news about insurance is that a lot of people want your business,\u201d Holeman says.<\/p>\n

Make sure you do your due diligence when courting other insurers. Check customer complaint and satisfaction ratings, and\u00a0compare car insurance\u00a0quotes using similar coverage amounts to make a more informed decision. And don\u2019t forget to ask about\u00a0discounts.<\/p>\n

See<\/strong>: Five popular small cars rate \u2018poor\u2019 for rear-seat safety in new, tougher crash test<\/p>\n

Practice safe driving habits<\/strong><\/h4>\n

Perhaps the best financial move you can make is to practice safe driving habits. \u201cIt only takes a couple of seconds for something really bad to happen, especially when people are driving at faster speeds,\u201d Holeman warns.<\/p>\n

Here are a few simple things you can do to stay safe behind the wheel:<\/p>\n