Reported data confirms there were 147,452 car accidents reported in the state of Alabama throughout 2015. This means that one crash was reported nearly every 3 ½ minutes. According to Drive Safe Alabama, that was an increase of 10.68% when compared to the statistics compiled from 2014. When you think about the millions of dollars in medical expenses, legal fees, insurance deductibles, collision repair invoices and other related costs, it becomes very clear that the lasting ripple effect of a single automobile crash can be very expensive. However, what exactly is the impact of car accidents in Montgomery on auto insurance?
The overall structure of automobile insurance is built on probabilities and statistics. When calculating insurance premiums or even if a carrier can offer coverage for a particular driver, the underwriting department is advised to examine the associated probabilities. Studies show that the probability of drivers being involved in any type of crash (regardless of severity level) at some point in their lives is over 98%. However, the average driver in Alabama has more than a 33% chance of being injured by or involved in a fatal crash.
Therefore, it is understandable to express concern over how the car accidents in Montgomery add up when it comes to automobile insurance rates and the fluctuations in premiums caused by these incidents year after year. Even the safest of drivers is openly exposed to the possibility of getting involved in an automobile accident.
Within the average automobile accident, the chances are that the driver and passengers involved only focus on their expenses, losses, and damages. However, insurance carriers must focus on the bigger picture of financial liabilities – especially within the state of Alabama. Keep in mind that Alabama had nearly 4 million licensed drivers, 5.5 million motor vehicle registrations and close to 70 billion miles traveled throughout 2015 alone. Those are the types of statistics considered by insurance companies and underwriters when it comes to analyzing and calculating insurance rates and renewal premiums for Alabama drivers.
Unfortunately, when you factor in the increase in automobile crashes (+5.47%) and injuries (+2.37%), it is clear that the risks and liabilities associated with insurance policies increase right along with those statistics. An individual driver may consider their health and auto insurance deductibles after an accident. However, insurance companies must consider figures such as the $17 billion of economic loss caused by car accidents in Alabama in 2015 – an increase of 18.41% from 2006.
The key to maintaining low automobile insurance rates is relatively simple: reduce all risks and liabilities as much as possible. The same principle applies to all forms of insurance – not just automobile insurance. For instance, if you want a better rate on health insurance, lifestyle changes, weight loss, and improved physical fitness can help. When it comes to auto insurance, your behavior on the road plays an integral role in the calculations of your premiums and overall coverage options.
According to the Alabama Department of Transportation, there are a vast number of driver circumstances and behavioral conditions/decisions that lead to car accidents in Montgomery and other counties. The report states that failure to yield the right of way, an unseen object/person/vehicle and misjudged stopping distance are the top three primary cases determined by the police officers who reported the crashes. Failure to yield the right of way is also on the list of the top three causes of crash-related fatalities alongside speeding and driving under the influence.
After experiencing an automobile accident, regardless of which driver was at-fault, you should seriously consider retaining a car accident attorney in Montgomery, Alabama. Insurance companies base their findings and conclusions on confirmed reports, convictions and the finalized documentation of automobile accidents added to your Motor Vehicle Report with the DMV. Consulting with a car accident attorney to handle the aftermath of your car accident can help to protect your rights and your insurability.
Contact Vance Law Firm today to schedule a free consultation to explore all of your available options. You will be paired with a car accident attorney who will be able to provide you with one-on-one assistance every step of the way and offer high-quality advice on handling insurance claims and any applicable charges.