Auto Dealer Workers Compensation Rates Continue to Rise
By Eric Schmitz
Vice President, EHS Products
October 24th, 2014
KPA has analyzed workers compensation rates for automotive dealerships using data available from NCCI and has found that insurance rates for 2014 are expected to increase for a fourth straight year.
We looked at rates for 26 states going back to 2004 when rates averaged $5.45 per $100 of payroll. On the graph to the right, we show what rates have done on average for those 26 states and compare that to an average inflation rate of 3% year over year. Given that rates are still well below the inflation adjusted trend-line we expect continued increases over the next several years. Some states continue to try to control these costs through legislation and these actions have had both positive and negative effects on rates. To find a historical look at rates for your state, select it from the drop-down menu to the right. Please note that your state will not be listed if no data was available.
The good news is KPA can help. Even with rate increases coming year after year, you can be proactive and lower your overall workers compensation costs by taking action to reduce your Experience Modifier (learn more about Ex-Mods in this short video). KPA’s programs have shown to reduce our average client’s rates more than 10% below the average. With a $70,000 annual insurance premium that would be an annual $7,000 direct premium savings – not to mention the other indirect benefits of a safer workplace.
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