The 2008 edition of the report Trends in Auto Injury Claims, has been released by the Insurance Research Council. The annual report looks at recent trends in three types of auto insurance coverage: bodily injury liability (BI), personal injury protection (PIP), and property damage liability (PD), and documents claim frequencies and costs both by state and on a national stage.

This year's report shows that BI claim frequency decreased 19%, PIP fell 14%, and PD claims were 11% lower from 2000 through 2006. These changes reflect national trends in injury and fatality rates and point to significant progress in making both roads and vehicles safer for those who use them.

While claim frequency (the number of claims per 100 accidents) is falling, however, the report shows that in the same block of time - 2000 to 2006 - claim severity has increased. Specifically, PD rose 18%, PIP claim severity increased by 19% and BI claim severity soared 22% higher. According to the report, these increases are related to the rising costs of both automobile repair and medical care.

The year 2006 marked the lowest point of claim frequency and the highest point of claim severity since 1990, but despite this, loss costs (the average cost of claim per insured vehicle) have been relatively stable since 1997, fluctuating around $200.

According to Elizabeth A. Sprinkel, senior vice president of the IRC, "The continued drop in claim frequencies has offset escalating car repair and medical care costs. However, if claim frequencies start to rise or even just stop declining, then rising claim severities will increase loss costs, creating upward pressure on premiums for consumers."