Boston-based Liberty Mutual saw its profits in the last three months of 2016 plummet on higher losses from car accidents, the insurance company reported on Thursday.

Liberty Mutual’s profits were down by 65 percent in the last quarter of the year, to $143 million from $411 million for the same period in 2015.

Still, the insurer ended the year with more than $1 billion in profits, nearly double what it made in 2015, as a result of shedding its troubled Venezuelan operations.

But for many insurance companies, auto accident claims are starting to squeeze profits.

Distracted driving and more people on the highways in an improved economy are increasing the number of accidents, and pricier high-tech safety equipment in cars is making repairs more expensive when crashes occur, David Long, the chief executive of Liberty Mutual, said during an earnings call.

“The increase in distracted driving . . . is leading to more serious accidents,’’ Long said. “And second, repairs to cars with advanced driver assistance systems involve a higher number of parts replaced per claim and an increase in labor hours per claim.’’

The company estimates that a minor fender-bender for an entry-level luxury car in 2014 cost $1,850 in repairs, while a similar accident last year cost $3,550.

As a result, Liberty has been raising auto insurance rates on both individuals and businesses, Long said.

The company has been raising rates between 4 and 9 percent on drivers as their auto insurance policies renew.

Illinois-based State Farm Mutual Automobile Insurance Co., the country’s largest auto and home insurer, earlier this week announced that its profits had dropped by 94 percent, to $400 million from $6.2 billion in 2015, for the same reasons cited by Liberty Mutual.

The Travelers Companies Inc., based in Connecticut, announced in January that it will start raising auto insurance rates.

According to the US Department of Labor, the cost of auto insurance rose 7.5 percent in January over the previous year, compared to just 2.5 percent for all goods and services.

Liberty Mutual officials said they expect rate increases to continue into next year.

The company announced its earnings just one week after reporting that Long earned a $17 million pay package in 2016, an 8 percent increase over the previous year.

Deirdre Fernandes can be reached at deirdre.fernandes@globe.com. Follow her on Twitter @fernandesglobe.