Posted August 4, 2015 - James R. Gregory, Trial Attorney
According to figures published by the United States Department of Transportation, miles driven on American roads are surging, recovering rapidly from a 2009 low. While this phenomenon can certainly be interpreted as good news in terms of the overall economy as well as fuel prices, it also signals an increase in traffic accidents and injuries.
Historically, when driving increases, not only the number but the severity of automobile crashes increase as well. This results from an upswing in the number of people driving on unfamiliar roads at highway speeds. Insurers are feeling the pinch from this phenomenon, due to a rising number of claims as well as the rising costs of repairing today’s complex vehicles. Allstate, for example, recently reported a 38% drop in revenue this quarter, compared to Q2 last year, and its stock prices dropped as a result.
We would like to remind you to take extra care when you hit the open road this summer, and keep your family safe, happy and healthy.
* * UPDATE * *
In response to the loss of revenue suffered by Allstate and reported above, the company will be holding out their good hands for a rate increase, along with instituting cost cutting measures and potentially selling customer data in an effort to make ends meet.