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Car insurance injury claim costs rise
By Insure.com staff

Car insurance injury claim costs have increased nationwide, according to a new report by the Insurance Research Council.

The cost of personal injury protection claims per insured vehicle rose more than 18 percent from 2008 to 2010, according to the 2011 edition of "Trends in Auto Injury Claims." The cost trend is concentrated in the largest states with no-fault auto insurance laws -- Florida, Michigan and New York.

The Insurance Research Council is a division of the American Institute For Chartered Property Casualty Underwriters, known as The Institutes.

The PIP claim cost per insured vehicle in Florida jumped 62 percent from 2008 to 2010. In Michigan, the PIP claim cost per insured vehicle has risen more than 120 percent over the last decade. Suspected car insurance fraud, meanwhile, has driven up costs in the New York City area.

Two trends are driving up costs. First, people are filing bigger injury claims. Second, the total number of PIP claims filed, which had declined to offset overall costs in previous years, has begun rising nationwide, according to the study.


"These are not encouraging findings for insurers or drivers," Elizabeth Sprinkel, senior vice president of The Institutes, said in a press statement. "While we hope these findings represent temporary conditions, we can't be sure that is the case and can't afford to ignore the factors driving rising claim costs."

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