2017 Driving in America Report: The Prices and Dangers

Driving has lengthy been central to American tradition, and we’re on the street now greater than ever: We drive over 3 trillion miles every year, and that quantity retains going up, in keeping with the U.S. Division of Transportation. Add to these numbers the growing risks of distracted driving and you’ve got a mixture that’s leading to extra automotive accidents — and extra deaths.

To look at the state of driving within the U.S., NerdWallet used business knowledge sources to research prices related to driving. We additionally commissioned a survey of over 2,000 U.S. adults performed on-line by Harris Ballot to be taught extra in regards to the nation’s drivers. See the methodologies on the finish of this report for particulars about our evaluation and the survey.

• Good drivers may very well be lacking out on saving $416.52 a yr, on common nationwide, by not procuring round for automotive insurance coverage, NerdWallet’s evaluation discovered. Residents of Delaware, Michigan and Connecticut stand to lose out on essentially the most cash, as much as $1,845.59 yearly on common.

• 38% of People who’ve automotive insurance coverage haven’t checked the worth, or in contrast prices, of their present automotive insurance coverage in a minimum of three years (or ever), in keeping with our survey.

• Shoppers and insurers pay a excessive value for auto insurance coverage fraud resulting from padded claims, which totaled almost $6 billion for bodily harm and private harm safety claims in 2013, in keeping with NerdWallet’s evaluation of the most-recent business knowledge.

• 10% of People who’ve ever had automotive insurance coverage admit to deliberately offering inaccurate data when buying a brand new automotive insurance coverage coverage, our survey discovered.

• Of People in our survey who’ve pushed previously 12 months, 67% have used a cellphone whereas driving throughout that point. That conduct can result in dying: Probably the most-recent knowledge present that 10% of deadly crashes concerned distracted driving in 2015, and the driving force was utilizing a cellphone in 14% of these, in keeping with the Division of Transportation.

NerdWallet’s evaluation reveals that drivers with out tickets or violations could also be lacking out on saving $416.52 a yr, on common nationwide, by failing to examine automotive insurance coverage.

As well as, 38% of People who at present have automotive insurance coverage say that they haven’t value checked their insurance coverage by evaluating it with quotes from different corporations in a minimum of three years (or ever), the survey discovered. Greater than 1 in 5 (21%) haven’t checked in a minimum of three years and 17% haven’t checked in any respect.

However over 1 / 4 (28%) of People who at present have automotive insurance coverage suppose they pay an excessive amount of for it. Amongst those that at present have automotive insurance coverage, our survey discovered that:

• 1 in 3 millennials (33% of these ages 18-34) suppose they pay an excessive amount of for it. They’re additionally least prone to have in contrast insurance coverage quotes: 26% of those youthful adults say they’ve by no means value checked automotive insurance coverage, in contrast with 14% of adults ages 35 and older. Out of all adults, 17% say they’ve by no means value checked their insurance coverage.

• People whose annual family revenue is $50,000 to $74,999 are extra seemingly (37%) to suppose they’re paying an excessive amount of for his or her automotive insurance coverage than these (24%) whose annual family revenue is $75,000 or increased.

Procuring round for automotive insurance coverage can repay due to the sophisticated methods insurers decide charges. Along with elements you would possibly anticipate — like driving historical past and your automotive — your credit score, the place you reside, your age and different elements play a task. And every insurer calculates charges in a different way.

Auto insurers routinely elevate costs when insurance policies are renewed, which is often each six months or yearly. It’s smart to test insurance coverage quotes usually to see for those who’re getting value. As well as, examine charges while you:

• Add or take away automobiles in your coverage.

• Have a life change similar to marriage, job change or retirement.

One in 10 People who’ve ever had automotive insurance coverage (10%) have lied about their private or automobile data when buying a brand new coverage, our survey discovered. Folks ages 18-34 are twice as seemingly as these 35 and older to mislead insurers (16% vs. 8%), and males usually tend to mislead insurers than girls (12% vs. 7%).

Deceptive insurers can backfire: For those who get into an accident and your insurer discovers your software had false data, the corporate may deny your declare.

Whereas some shoppers suppose they pay an excessive amount of for automotive insurance coverage, others might imagine little of padding claims by overstating harm or accidents. The additional cash they get from declare funds is both swallowed by insurers or handed on to the remainder of us within the type of increased insurance coverage charges.

Almost 1 / 4 (23%) of People who’ve ever had automotive insurance coverage say they’ve filed a declare, in keeping with our survey. Amongst them, 7% admit to padding auto insurance coverage claims by doing a number of of the next:

• Including extra harm to the automotive for the declare.

• Misstating the reason for a automotive accident.

• Together with pre-existing harm in a declare.

• Overstating restore prices.

• Exaggerating the extent of ache or private accidents.

Nationally, auto insurance coverage fraud resulting from padded claims for bodily harm and private harm safety price insurers and shoppers $5.88 billion in 2013, the most-recent yr for which knowledge can be found, NerdWallet’s evaluation discovered.

Usually, padded-claims prices are increased in closely populated states. Extra drivers and denser populations make for the next variety of auto insurance coverage claims — and extra alternatives for fraud.

Preliminary crash knowledge for 2016 point out that motor-vehicle deaths elevated 6% from a yr earlier, in keeping with the Nationwide Security Council. Complete crashes elevated yearly from 2011 to 2015, with 958,000 extra crashes in 2015 than in 2011, in keeping with the Division of Transportation.

Distracted driving can be on the rise — and it prices us greater than cash. Based on the Division of Transportation, 10% of all deadly site visitors crashes in 2015 concerned distracted driving.

And a majority (67%) of the People who’ve pushed previously 12 months used a cellphone whereas driving throughout that point, NerdWallet’s survey discovered.

Of the 35,092 individuals who died in automotive accidents nationwide in 2015, 3,477 have been killed in crashes involving distracted drivers, in keeping with the most-recent federal knowledge. 9 % of distracted drivers in these deadly crashes have been youngsters ages 15 to 19.

To handle cellphone use by drivers, 46 states and Washington, D.C., have banned texting and 14 states and Washington, D.C., have banned speaking on a cellphone (aside from hands-free) whereas driving, in keeping with the Nationwide Convention of State Legislatures. For those who discover it’s troublesome to disregard your cellphone within the automotive, attempt tossing it within the again seat earlier than you begin driving.

Lately, distracted driving appears to be the norm. Amongst those that have used a cellphone whereas driving previously 12 months, about 1 in 8 (13%) admit that after they have been utilizing a cellphone they weaved out and in of lanes, virtually went off the street, almost bought into an accident or bought into an accident. Almost 1 in 5 millennials (18%) admitted these occurred.

Driving distracted endangers not solely these in a automotive, but in addition pedestrians and bikers. Probably the most-recent knowledge from 2015 present that 551 individuals not in vehicles have been killed by distracted drivers, in keeping with the Division of Transportation.