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The Insurance Implications of Dangerous Driving Holidays

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Is it time for insurers to consider innovative plans to cover fatal vehicular tragedies during certain days of the year?

As I scanned through this article on Forbes.com about the most dangerous holidays for drivers, I immediately began to consider the insurance implications. Undoubtedly, these days are factored in to an insurer’s risk and premium figures, but I wonder if it’s time to be innovative with the way insurers handle coverage and claims around these days.

A hallmark of most American holidays is an increased amount of drinking, which translates to more intoxicated drivers and therefore more dangerous driving conditions. For that reason, New Years Eve would be expected to be the leader amongst accident fatalities. But according to research by the National Highway Traffic Safety Administration (NHTSA) the most dubious culprit is actually Thanksgiving. Experts say the combination of celebrations involving drinking combined with heavy long-weekend traffic is the factor driving the numbers up.

An excerpt from the article with the average stats:

Thanksgiving is the day when heavy traffic, drinking and long-distance car trips combine to create fatal travel conditions.

The 5 Most Dangerous Holidays for Drivers

No. 1 Thanksgiving
Average Vehicular Deaths: 573

No. 2 Independence Day
Average Vehicular Deaths: 505

No. 3 Memorial Day Weekend
Average Vehicular Deaths: 493

No. 4 Labor Day Weekend
Average Vehicular Deaths: 488

No. 5 New Year’s Eve/Day
Average Vehicular Deaths: 421

This reliable trend may just be a prospective source to design new insurance products. Carriers may come up with new insurance policies that give extra coverage for accidents occurring on those specific days – with the appropriate premiums, of course.  They may even plan to provide incentives for policy holders not to drive on those particular days. Whichever way they look to implement, this trend could drive insurers to take an innovative approach in their policy making.

With the nation’s attention on change in the insurance industry, we expect carriers to use innovation to capture the larger interest of customers. Perhaps it may not take long to see policies like these coming into effect.

To the auto and health insurers reading this, I encourage you to contribute your thoughts on this issue! How do you handle this issue currently, and is the prospect for change anywhere on the horizon?



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