May 7, 2002

Majority of crashes occur close to home says insurance company

Mayfield Village, Ohio – A survey by Progressive Insurance, one of the largest auto insurance companies in the U.S., has found that most vehicle crashes occur close to home.

The survey found that 52 percent of reported crashes occurred 8 kilometres (5 miles) or less from home and a whopping 77 percent occurred 24 kilometres (15 miles or less from home.

The insurance company said this data is not typically gathered by law enforcement or insurance companies. As part of an ongoing claims satisfaction survey process, Progressive asked more than 11,000 people who reported a crash in 2001, how far from home they were when their accident occurred.

“Consumers may wonder why where they live is so important to an auto insurance company,” said Alex Ho, consumer brand director, Progressive. “Most people drive most of their miles close to home and understanding the risks associated with where someone drives helps insurance companies develop more accurate rates.”

Auto insurance companies examine claims their customers have had in a geographic area, along with other information, to help determine the cost of insurance. Companies typically consider factors such as how often crashes and thefts occur, and the cost of repairs and medical treatments in the area. Each company’s claims experience can vary significantly, which is why the cost of auto insurance can vary widely from company to company.

“We want consumers to know exactly how their rates are determined so they can make more informed insurance decisions,” said Ho.

Additional study findings:

  • Twenty-three percent of reported accidents occurred within 1.6 kilometres (1 mile) of home.

  • Accidents were more than twice as likely to take place 1.6 kilometres (1 mile) from home compared to 32 kilometres (20 miles) from home.
  • Only one percent of reported accidents took place 80 kilometres (50 miles) from home.

The Progressive group of insurance companies ranks fourth in the U.S.A. for auto insurance.

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