In today’s economy, both insurers and insureds experience the negative impact of the high cost and lengthy repair times for cars after an accident. According to The New York Times article Why Car Repairs Have Become So Expensive, repair costs have increased 36% since 2018. This is due in part to newer vehicles’ sophisticated, computer-based technology and sensors that cost more to calibrate, repair, and replace.  

Current pressure on the supply chain has resulted in delivery of auto parts taking longer or being unavailable altogether. Labor shortages at repair shops are compounding the issue, causing drivers to wait longer than ever to get their vehicles back. According to the 2024 Crash Course Report by CCC Intelligent Solutions Inc., wait times for vehicles to get into repair shops has increased 60% since the pandemic. As a result, it’s not uncommon for a driver’s rental car allowance to end before their vehicle has been returned.  

In the face of these and other pressures, the auto insurance market remains hard and continues to impact drivers and insurers alike. Finding proactive ways to reduce the pain for both is critical. The best way to start is by preventing claims from happening in the first place.  

4 Ways to Help Policyholders Prevent Avoidable Damage  

Insurers can help promote safer driving habits and reduce the likelihood of accidents by providing policyholders with helpful tips during regular billing touchpoints or at their annual renewal time. These value-based interactions can also bolster client relationships and promote customer loyalty. 

Start by highlighting key aspects of the policy’s terms and conditions so insureds are better informed about their coverage and discuss whether the policyholder should consider changing their deductible. Share these four simple, proactive ways drivers can stay as safe as possible on the road: 

1. Limit distractions while driving

According to the National Highway Traffic Safety Administration (NHTSA), distracted driving caused 3,308 fatalities in the U.S. in 2022. Advise drivers to avoid activities that take attention away from driving, such as eating or drinking, talking or texting on the phone, or using the car’s stereo or navigation system while in motion.  

Use impactful language like that used in the following analogy from the NHTSA to help drive home your message with policyholders: Each text takes a driver’s eyes off the road for five seconds, which at 55 mph is the equivalent to driving an entire football field length with your eyes closed.  

2. Slow down

According to the National Safety Council, speeding was a contributing factor in 29% of all traffic fatalities in 2022, killing 12,151 people.     

Stress the importance of having the right mindset when drivers get behind the wheel, prioritizing patience and avoiding the temptation to speed, given that such behavior could cost them and their passengers.  

3. Maintain your car

Vehicles last longer and are on the road for more miles than ever before. According to The Impact of Vehicle Maintenance on Safety, a study by the Federal Motor Carrier Safety Administration, cars with maintenance issues have a 65% greater future crash rate compared to the national average.   

Help policyholders understand that while delaying vehicle maintenance may be appealing (to save time and money in the short term), doing so can contribute to much more serious vehicle repairs and could cause harm to themselves and others on the road. 

4. Store vehicles securely and use anti-theft devices

More than 1 million vehicles were stolen in the U.S. in 2022, according to the NHTSA. Approximately half of those thefts were related to driver error, which means policyholders can take action to reduce the likelihood of their vehicle being stolen. 

Encourage drivers to keep vehicles in well-lit, covered places where they are less likely to be damaged by weather, falling objects, or vandalism. Remind drivers to always lock their doors and take keys and valuables with them.  

Educate policyholders about the array of anti-theft devices currently available. These includes audible and visible devices such as horn alarms or steering-wheel locks to specialized computer chips that prevent thieves from hot-wiring a vehicle.   

Accidents will still occur — even with prevention plans in place. In those cases, suggest that insureds consider used or aftermarket parts instead of new replacement parts to lessen costs and repair times. 

Give Insureds Your Best with the Right Technology 

These are trying times for insurers and insureds, and fostering valuable, trusted customer relationships is key to continued success in today’s volatile insurance landscape. Contact us to explore how our cloud-based software solutions can improve your organization’s ability to rapidly adapt to market trends and customer demands.