Kentucky Saw More Collisions but Lower Total Costs in 2010

Kentuckians got into more accidents in 2010 when compared with 2009, but the total economic damage caused by crashes in the state ended up falling, according to a new report from the Kentucky State Police.

Kentucky collision costsThe state saw 2,757 more accidents in 2010 compared with 2009–an increase of nearly 2 percent.

At the same time, the total economic cost of accidents in the state dropped by about $68 million–or 3 percent.

The decline in costs despite the overall increase in crash volume can at least partly be explained by year-to-year adjustments made to the variables that are used to come up with those numbers.

But even if the same variables were carried over to the 2010 data, the overall costs still would have dropped.

That’s because another contributing factor to the cost-drop was the fact that property-damage only and “possible injury” crashes accounted for the majority of the increase in crash volumes. These types of accidents cost only a fraction of what fatality and incapacitating injury crashes cost, and both of those categories saw significant year-to-year drops.

The statistics are based on average loss costs provided by the National Safety Defense Council. According to them, the average cost of a fatal crash is $1.29 million, and the average for an incapacitating injury is $67,800.

Kentucky saw a nearly 5 percent decline in the number of fatal accidents, and the number of incapacitating injuries fell nearly 10 percent.

At the other end of the spectrum, “possible injury” crashes are estimated to cost only $12,400 each, and property-damage only crashes are put at a mere $2,400.

If the Kentucky State Police numbers coincide with those of Kentucky auto insurance providers, it could mean lower insurance premiums for residents in the future.

That’s because insurers typically operate on a specified profit margin, and fewer dollars spent on claims means fewer losses for the company and fewer premium dollars needed to maintain their margins.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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