In 1997 (latest figures available for both Ohio and the US at close of publishing) claims accounted for $75 of every $100 earned in private passenger auto insurance in the US, less than reported in 1996. For every $100 of revenue in 1997, including investment income of $11, claims accounted for $67, compared to $71 in 1996. These figures are detailed below. Ohio auto premium dollar information for 1997 is also provided.

US expenses-commissions, state premium taxes, general expenses-accounted for 23% of the premium dollar in 1997 (24% in 1997).

Investments added $11 to income, the same as in 1996. Federal taxes took about one-third of pre-tax income. The bottom line worked out to $7 after-tax profit for every $100 in premiums, as follows:

The $7 profit on $100 of premium translates to a 6.3% rate of return on capital (surplus), assuming that capital is allocated to each line on the basis of premium volume.

Of note, lawyers' fees accounted for $13 out of $100 (compared to $12 in 1996), comprised of $7 to plaintiffs' attorneys and $6 to defendants' attorneys. The $7 to plaintiffs' attorneys is taken mainly out of the "pain and suffering and other noneconomic awards" category. Plaintiffs' attorneys are typically paid on a contingency fee basis.

Claims fraud, including bogus medical bills and illegal chop shop operations, affects each part of the claim dollar. An Insurance Research Council study shows that 17-20% of every bodily injury claim dollar is due to outright fraud and claims padding.

The charts above show US premium dollar data in graphic form. The top chart shows where the revenue dollar (premiums and investment income) comes from, and the lower chart shows where the revenue dollar goes in terms of claims, expenses and profits. Ohio charts depicting the same information are found below.