Delaware Business Insurance Update From CNC Insurance Associates "Automobile Losses Increase" 6-22-16

Recent reports from many insurance sources are indicating a loss problem in automobile insurance.
Many insurance companies are showing this line as losing money. Underwriting results are getting worse each quarter. So what is causing this to happen? Historically, auto insurance has been a winner for insurance companies. Some experts feel it is the price of gas. With the cost per gallon lower than it has been in years more people are driving which cause more accidents. Also the cost of a new car has skyrocketed. You can't get away with buying any new car under $25000 these days, so the cost to fix a damaged one is putting pressure on insurance company profits. Don't forget all those texting drivers out there. Could cell phones be distracting more drivers than previously thought?  One thing for sure, unless the auto insurance line turns around, you can expect a rise in rates in the very near future. The insurance industry will not absorb losses for very long before adjusting premiums. Small business owners take notice, as this trend is following the commercial auto markets also. Until next time be careful out there and know your risks.


G. Kevin Nemith President CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE,MD,PA,NJ, & VA
www.cncinsurance.com
www.bizinsurancetv.org



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