Halloween Will Cause Spike in Insurance Claims

Halloween has become one of the more popular traditions in the United States. In the four years prior to 2020, around 70% of Americans planned to participate in Halloween celebrations, according to Statista, a market and consumer data provider. And while COVID-19 is expected to put a damper on the holiday, 58% of Americans still plan to celebrate Halloween.

Source: Forbes | Published on October 23, 2020

Halloween pumpkins on wooden background. Space for text

The holiday’s origins trace back to more than 2,000 years ago in the ancient Celtic festival of Samhain. Their new year began on Nov. 1, and the night before was a time when the boundary between the living and the dead was blurred. On Oct. 31, ghosts returned to earth in search of food and comfort while more sinister spirits enjoyed a night of mischief, which included destroying crops.

And while menacing spirits may or may not have been the cause of a lost harvest, they inspired a tradition of trickery and hijinx that has lasted millennia. The time period around Halloween is not only known for costume parties and trick or treating, it is also associated with an uptick in crime, vandalism and traffic fatalities.

Sharp Spike in Vandalism Claims

While many Halloween-related pranks are at the harmless end of the vandalism spectrum, like toilet-papered trees or smashed pumpkins on the sidewalk, some insurers’ claim data indicates that plenty of vandals take it a step further.

Geico reports a 30% increase in vandalism claims on Halloween, and Travelers Insurance reports that last year’s vandalism-related homeowners insurance claims increased by 26% compared to the average number of homeowners claims reported daily. Farmers’ claims data shows a 29% spike in vandalism and theft claims when compared to the same date of the week just one week before and one week after Halloween.

Halloween Is a Popular Holiday for Car Thieves

Halloween was the third biggest holiday for stolen cars in 2018, according to the most recent data from the National Insurance Crime Bureau (NICB). While New Year’s Day (2,571 thefts) and Presiden’t Day (2,380 thefts) had the most thefts, there were 2,275 car thefts on Halloween.

In the last seven years of NICB’s stolen-vehicle data, Halloween typically lands in the top three spots for car thefts on a holiday. In 2015 and 2016, the most car thefts occurred on Halloween. The lowest number of car thefts on Halloween was in 2012 with 2,053 thefts, which was the fifth most that year.

Drunk Driving Plays a Role on Halloween Traffic Fatalities

While drunk driving crashes have fallen by a third in the last three decades, almost 30 people die every day from drunk driving crashes, according to the U.S. Department of Transportation’s National Highway Traffic Safety Administration. In 2018, 29% of traffic fatalities were caused by drunk driving.

Halloween usually has an uptick in drunk driving fatalities, according to the U.S. Department of Transportation. There were 158 people killed in drunk driving crashes on Halloween between 2013 and 2017, an average of almost 32 deaths each year during that time period. Of all traffic fatalities that happened on Halloween night, 42% involved at least one drunk driver.

Halloween is the Deadliest Day of the Year for Pedestrians

Halloween is one of the most kid-friendly holidays on the calendar. An estimated 41.1 million kids between the ages of 5 and 14 went trick or treating in 2018, according to the most recent data from the U.S. Census Bureau. That seems like a pretty solid participation rate, considering there were 48.3 million kids in the U.S. between the ages of 6 to 17 that same year.

But with all those kids (and adults) out on the streets, the risk for car accidents involving pedestrians increases. Between 2013 and 2017, the two deadliest days for pedestrian deaths were Oct. 31 and Nov. 1 (after midnight on Halloween), according to the Insurance Institute for Highway Safety (IIHS).

Children are more than twice as likely to be struck by a car and killed on Halloween than any other day of the year, according to the National Safety Council (NSC). The NSC offers the following safety tips for pedestrians and motorists:

  • Put your electronic devices down. Keep your head up and walk (don’t run) across the street.
  • Watch for children walking on roadways, medians and curbs.
  • Carefully enter and exit driveways and alleyways.
  • Watch for children in dark clothing in the evening.
  • Discourage young, inexperienced drivers from driving on Halloween night.