Daylight Saving increases your insurance premium

What this episode covers

Daylight Saving Time: The Hidden Factor Behind Rising Insurance Premiums Twice a year, Americans brace for that familiar disruption — the shift in time known as Daylight Saving Time (DST). Whether we "spring forward" or "fall back," the ritual often brings more groans than gratitude. People complain about lost sleep, sluggish mornings, and confused body clocks. But what many don't realize is that this simple one-hour adjustment also brings something else: higher insurance premiums. In a fascinating episode of Insurance Hour, insurance expert Karl Susman dives into an overlooked consequence of our biannual clock change — how it affects car accidents, health emergencies, wildlife collisions, and ultimately, your insurance rates. It turns out that the consequences of Daylight Saving Time are not just about feeling tired. They're measurable, costly, and have ripple effects across the insurance industry. The Confusion Around Why We Even Do This Before getting into insurance impacts, Susman poses a question that many of us have probably asked: Why do we even have Daylight Saving Time? Contrary to popular belief, DST wasn't created for farmers — a common myth that persists to this day. Farmers, in fact, largely opposed it when it was introduced, because it disrupted their working routines. It also isn't primarily about saving energy, as modern studies have shown negligible (and sometimes negative) effects on energy usage. The truth? Even experts can't seem to agree on a clear, consistent reason. The origins of Daylight Saving Time date back to World War I and II, when governments experimented with adjusting clocks to maximize daylight hours and conserve energy. But in the modern world of 24-hour commerce and artificial lighting, that logic simply doesn't hold up. Yet, despite confusion and complaints, we continue to change our clocks — and pay for it, sometimes literally. The Startling Statistic: 7.6% Increase in Fatal Car Crashes According to industry research cited by Susman, the single-hour shift from Daylight Saving Time results in a 7.6% increase in fatal car crashes during the week that follows the time change. That's not just a minor fluctuation. It represents hundreds of preventable deaths every year, directly linked to sleep deprivation and circadian disruption. These accidents also lead to a surge in insurance claims — property damage, medical costs, liability expenses — all of which ripple through the system and eventually lead to higher premiums for everyone. The connection is clear: More crashes → more claims. More claims → higher insurance costs. Even if you personally drive safely, you're part of a shared risk pool. So when claims rise industry-wide, your rates can increase along with everyone else's. The Deer Problem: Wildlife Collisions Surge After the Clock Change If human fatigue weren't enough, there's another side effect of Daylight Saving Time that affects drivers — wildlife. Susman cites data showing a 16% increase in deer-related car accidents during the week following the time change. And the risk doesn't vanish after seven days — the following week still sees a 10% increase in animal collisions. Why does this happen? Simple biology. Wildlife patterns are driven by daylight, not by our arbitrary clock adjustments. When humans shift their driving schedules, we suddenly find ourselves on the road during dawn and dusk — peak movement times for animals. The mismatch creates a deadly overlap. Each collision means an insurance claim — for vehicle damage, medical injuries, or even total loss. The more frequent these claims become, the more strain is placed on insurers, and once again, that cost is passed back to consumers. How Small Changes Create Big Insurance Ripples It might seem surprising that a one-hour change could have such widespread consequences. But insurance is a game of numbers, and the industry measures everything in risk and probability. Every time loss frequency rises — even temporarily ...

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