Frequency of auto injury claims has been falling while the average claim cost has risen 18-to-22 percent--driven up by more expensive repairs and medical treatment, according to a new report.

The findings were contained in the Insurance Research Council study "Trends in Auto Injury Claims, 2008 Edition," which documents auto insurance claim frequencies and costs, both countrywide and by state, using private passenger auto claim data from national and state-level statistical reporting agencies.

Researchers examined trends for major auto insurance coverages: property damage liability (PD), bodily injury liability (BI), and personal injury protection (PIP).

From 2000 through 2006, property damage claim frequency based on claims per 100 insured vehicles decreased 11 percent, IRC found.

Bodily injury claim frequency decreased 19 percent; and personal injury protection claim frequency fell 14 percent.

IRC said these declines in claim frequencies mirror national trends in fatality and injury rates and indicate significant progress in efforts to make vehicles, roads and highways safer for the driving public.

The report also documents an increase in claim severity, or the average cost of claims. From 2000 to 2006, property damage claim severity increased 18 percent; bodily injury claim severity increased 22 percent; and PIP claim severity rose 19 percent.

On an annualized basis, increases in claim severity from 2000 to 2006 averaged 2.9 percent for property damage, 3.3 percent for bodily injury, and 2.9 percent for PIP. IRC said the increases in claim severity are largely attributable to the rising cost of automobile repair and medical care.

In 2006, for all three coverages, claim frequency was found to be at its lowest point and claim severity was at its highest point since 1990.

Decreasing claim frequency and rising claim severity have resulted in relatively stable loss costs, the average cost of claims per insured vehicle. Since 1997, the combined injury loss cost for all injury-related coverages has fluctuated just under $200, according to the study.

IRC said loss cost stability "built on a foundation of falling claim frequency and rising claim severity raises concerns about the potential consequences should the favorable trend in claim frequency end."

"The continued drop in claim frequencies has offset escalating car repair and medical care costs," observed Elizabeth A. Sprinkel, IRC senior vice president. "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."

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