The winter season has officially started, with snow, ice, and slush covering the roads, drivers are having to be much more cautious while commuting. Cities are busy plowing roads, salting streets and making sure the roads are in the best conditions possible. This time of year puts everybody in a more stressful mood while driving, and puts local tow services on high alert. The winter weather brings big economic change for people living in northern states.
There are many businesses that thrive this time of year and rely on snowfall and winter weather to make money. Two services that have a higher demand in the winter months are snow plow services and tow truck services. Without snowfall the snow plows have nothing to do and are reliant on snowfall to get paid. On the other hand, the tow truck services are active year long, although during the winter months they have a surplus of customers that need assistance since accidents are easier to get into with tough road conditions.
From 2004-2013 there were 1.25 million weather related auto accidents throughout the United States. The main cause of these accidents were snowy roads and icy roads with a total of 907,000 accidents. That’s 72% of all weather related accidents are caused by winter conditions which is a pretty large portion considering that there are limited months out of the year that these conditions are relevant in the United States.
Another economic change that winter weather brings affects insurance companies. With the high rate of accidents occurring, people are making plenty of insurance claims and insurance companies are benefitting greatly. Although they may be more busy during these months, they are making much more money which is worth the a few extra hours in the office. This is the insurance company's opportunity cost because they are at work longer instead of being at home with their families.