Traffic fatalities, violations have spiked since 2019: TransUnion

Roads are getting more dangerous, and auto insurers need to keep an eye on traffic violations, according to a new report from TransUnion.

The report, "Life on the Road: How Better Data Helps Carriers Respond to an Altered Driving and Law Enforcement Landscape," highlights the significance of the predictive nature of previous traffic violations data for projecting potential auto insurance losses and indicates a link between a 13% decrease in traffic enforcement and the 22% increase in traffic fatalities.

The data, recorded with the TruVision Driving History solution that assesses historical data collected from public driving records, was compared with death rates reported by the U.S. Department of Transportation and National Highway Traffic Safety Administration from January 2019 to January 2023.

According to TransUnion's findings, data from 2022 shows that 51% of accidents involved drivers that received traffic violations within a three-year period – a statistic that has increased by 9% since 2019.

"Ultimately, without traffic violation data, insurers aren't able to accurately assess and underwrite a driver's risk," said Mark McElroy, executive vice president and head of TransUnion's insurance business in a press release. "With the compounding cost from accidents, carriers are now increasing rates for everyone, meaning we are all paying for this problem."

The study reports on a number of driving behaviors that hold potential for losses – 38% of Gen Z drivers and 33% of Millennials admit to texting while driving, for example. An increase in distracted driving has persisted in the U.S. since the start of the pandemic, according to the CCC Intelligent Solutions' 2023 Crash Course report. A Travelers 2023 Risk Index has also reported that survey respondents believe that distracted driving is a greater issue now than it was just a few years ago.

The number of traffic fatalities per vehicle mile traveled experienced a sharp increase during the early days of the pandemic, and this elevated rise has persisted, according to the study. Comparing data from 2022 to 2019, there has been a 21% rise in fatal crashes involving unrestrained drivers or occupants, an 18% increase in alcohol-related fatalities and a 17% increase in fatal crashes caused by speeding.

The decrease in law enforcement will have lasting effects, according to the study, even if enforcement returns to normal historical patterns. Property and casualty insurers have already been affected as these carriers use a violation lookback period when assessing surcharges. According to an internal analysis conducted by TransUnion on their existing TruVision Driving History customers referenced in the study, it is estimated that the insurance  industry "could be missing out on $200 million in compounding surcharge revenue."

The study also highlights the driving behaviors that hold potential for increased risk, as reported by the 3,000 adults surveyed by TransUnion in March 2023. Among those surveyed, Gen Z and Millenials reportedly show the highest percentages in habits such as texting while driving, driving under the influence of alcohol, driving without a seatbelt and speeding on highways and in school zones. 

"Among many important takeaways from this research is the plain fact that traffic enforcement plays a role in maintaining safety on the road," said McElroy. "That said, insurers can play a vital role in reversing this trend by educating their customers and promoting safe driving practices."