Car Insurance

Don’t Become a Statistic

* Close your windows, lock your doors and take the keys with you.

* Park with front wheels turned sharply toward the curb and apply your emergency brake to discourage towing.

* Activate any anti-theft devices you may have. Better yet, install a device that is passive, automatically activating itself a short time after the key is removed.

* Put all packages and personal items out of sight. Items left in the open invite theft.

li>Drive in the center lane when on highways. This reduces your chances on becoming a bump-and-run theft victim.

* Use your garage at home. Lock both your vehicle and the garage.

* Don’t park on the outskirts of a shopping center, motel or other parking lots. Park near the entrance, especially if you will be leaving your car unattended for an extended period.

* Etch your vehicle identification number in hard-to-find spots, using an engraver or dye marker. Hide business cards or address labels on the bottom of floor mats and under the seat, and drop them down window channels into the door interior.

Protecting Your Vehicle

Professional car thieves can steal any car, but make them work for yours. The National Insurance Crime Bureau recommends common sense and a layered combination of anti-theft devices to thwart thieves.

All vehicle theft prevention equipment helps deter criminals. Many anti-theft devices are also effective in protecting your vehicle from burglaries and vandalism.

Steering Wheel Lock: A long metal bar with a lock that fits on the steering wheel and is designed to prevent the steering wheel from being turned. Also acts as a visual deterrent for thieves looking in car windows.

Average Cost: $25 to $100

Benefits: Inexpensive way to keep would-be thieves away. Especially good device to use when layering protection.

Auto Alarm on Keyring

Car Alarms: The typical car alarm is equipped with motion sensors, impact sensors and a loud siren or series of tones in the 120-decibel range.

Average Cost: $150 to $1,000

Benefits: The best alarms arm themselves automatically when you leave the vehicle and include an automatic kill switch. The best models also flash the headlights and honk the horn in addition to sounding a siren.

Kill Switches: Kill switches prevent the flow of electricity or fuel to the engine until the switch is activated. Starter disablers are also growing in popularity.

Average Cost: $10 to $125

Benefits: It’s a hidden switch that needs to be flipped on for the car to start. For their effectiveness as a security device, kill switches are for the most part inexpensive and easy to install.

Electronic Tracking Devices: An electronic transmitter hidden in the vehicle which emits a signal that is picked up by the police or a monitoring station.

Average Cost: $400 to $1,500

Benefits: Very effective in helping authorities recover vehicles before they can be stripped or chopped up.

Electronic Keys: Some car manufacturers have pre-installed electronic anti-theft systems that allow the vehicle to operate only with a correctly coded key.

Average Cost: Standard item in some models.

Benefits: Systems are virtually invisible to thieves, easy to use and reliable.

Steering Column Armored Collars: Collars prevent thieves from breaking into the steering column to hot-wire the vehicle. Some are installed permanently and others must be installed manually each time the driver leaves the vehicle.

Average Cost: $100-$200 installed

Benefits: The collar provides an excellent line of defense for vehicles which can be easily stolen by breaking open the steering wheel column.

Tire Locks: Similar to the circular steel “boots” used by many larger city police departments, tire locks make the car nearly impossible to move. The tire locks are also effective in deterring would-be thieves.

Average Cost: $80-$200

Benefits: Greatly hampers thieves who are looking to make a quick getaway. Not only is the tire lock a strong visual deterrent, but it also provides a formidable challenge for would-be car thieves.

Window Etching: Etching the vehicle identification number onto the window as well as other parts of the car discourages thieves from taking the vehicle and also aids in recovering the vehicle if it is stolen.

Average Cost: $20 to $100 (Some vehicle theft prevention groups provide etching for free.)

Benefits: Chop shop rings thrive on vehicles that have easily removable VINs or none etched on at all. By etching the VIN on important parts of the vehicle, you make your vehicle less attractive to thieves.

Theft-Deterrent Decals: Typical decals identify the vehicle is protected by either an alarm system or national theft prevention company.

U.S. drivers could save an average of $481 every six months on auto insurance if they took the time to compare rates, but most drivers don’t shop around for auto insurance on a regular basis, according to information from Progressive Auto Insurance.

The findings, which focus on auto insurance rate variance - or the average spread between the highest and lowest six-month rates available for new policies - are based on rate information provided to nearly 700,000 consumers, living in 46 states and the District of Columbia, who called Progressive between March 1, 1998 and March 31, 1999. Each consumer received comparison rates for Progressive and up to three other leading auto insurers in their market. Rate information was obtained from public filings with each state’s department of insurance.

Specifically, six-month rates varied an average of $481 across the country. That means the same driver could receive a quote of $1,256 for a six-month auto insurance policy from one company, and a quote of $775 for the identical policy from another company. On a state-by-state basis, average six-month rates varied more than $500 in 13 states — Arizona, California, Delaware, Illinois, Kentucky, Louisiana, Maryland, Minnesota, Nevada, Oklahoma, Oregon, Tennessee and Texas — and in the District of Columbia.The most dramatic variances were in Kentucky and Texas. The average six-month variance in Kentucky, based on calculations for more than 13,000 consumers in that state, was $711. In Texas, the average six-month variance was $705, based on calculations for 64,000 Texans. The study also found that rates varied least in New York and Vermont, where average six-month variances were $192 and $210 respectively. The chart below shows savings available in major U.S. markets, based on the average rate variances in each:
National Average    Average Six-Month Rate Variance
$481
Baltimore    $764
Houston    $838
Dallas/Ft. Worth    $722
Chicago    $634
Philadelphia    $595
Los angeles    $616
Washington, D.C.    $587
Miami    $555
San francisco    $514
Atlanta    $454
Detroit    $469
New York City    $241

Many drivers unaware of variances because they don’t shop around
In a separate study, Progressive commissioned Millward Brown, a national research firm, to conduct interviews with 1,800 drivers during November 1998. The results revealed that the majority of drivers are unaware of how extensively rates vary. In fact, 65 percent of those polled thought that comparable auto insurance policies would vary by no more than $250 in a six-month period. Furthermore, almost 60 percent of consumers surveyed had not contacted an insurance company or agent to obtain rate information in more than two years.

Ralph Nader, well-known consumer advocate, commented on the findings, “It’s surprising that so few people take the time to shop around when the premium varies so greatly between companies. Clearly, consumers need to be aware of these differences and they need to shop around to make sure they are getting the best value for their auto insurance dollar.”

“Nationally, the auto insurance market is very competitive with more than 300 companies offering coverage in any given market,” said Moira Lardakis, Progressive division president. “Because no single insurance company will always offer the lowest rates for everyone, the best way to manage auto insurance costs is to shop around for the best combination of rates and service. Consumers can’t benefit from the competitive market unless they shop around.”

Most of us think about accidents in terms of how we’ll hold up, and about how to avoid crashes altogether. But your car’s design and construction can play a significant role in what happens if an accident occurs. As more studies are conducted and research is gathered, insurance companies and consumer groups are reacting by lobbying for the changes that will keep you safe - and keep insurance claims lower.

From seat-belt laws to air bags and anti-lock brakes, the auto industry has responded over the years to studies showing where the weaknesses lay in the design and safety of their products. Government has played a role as well, enacting laws that lower speed limits in dangerous areas, require motorcycle helmet use, restrict teen driving or punish drunk drivers.

With good reason. The tragedy for everyone involved in auto accidents is compounded by a staggering cost to society. A federal study released in May 2002 claims the economic toll of crashes on the U.S. economy each year has reached $230.6 billion - or $820 for every single person living in the country. The study, based on statistics from 2000, took into account lost revenue in areas including workplace and household productivity, property damage, medical costs and travel delay costs.

So, what’s next on the safety and prevention horizon? The National Highway Traffic Safety Administration (NHTSA), as well as consumer advocacy groups and the insurance industry, are lobbying for more (and tougher) tests to determine how cars will perform in accidents and strengthen weak areas, and more rating systems to alert consumers to how cars, trucks and SUVs stack up against their competition.

“Crashworthiness,” which is the ability of a car to prevent occupant injury in an accident, and “rollover ratings,” which let you know how likely it is your auto will roll over in an accident or during certain driving conditions, have been debated recently as they apply to SUVs. (The NHTSA reported that SUVs roll over in 37 percent of fatal crashes, compared to a 15 percent rollover rate for passenger cars. Smaller SUVs have an even higher incidence of fatal rollover crashes.)

But those debates have prompted more attention to crashworthiness in general. At the NHTSA, a full-time crashworthiness group conducts research and vehicle testing to examine autos’ structural integrity, crash test results, occupant protection and automotive defects.

Advocates of increased tests and warnings want consumers to get familiar with how the cars and trucks they’re thinking of buying perform out on the roadways - and demand safer and better products from automakers.

Where’s the debate in that? Well, safety improvements can add quite a bit to the cost of manufacturing a car, which means that either the car is going to cost more to buy, or the manufacturer is going to make less profit on it. Or a little of both. So what individual automakers do with the latest studies and requests for improvements will be interesting to see.

Among the new and recent developments that affect you, or will soon:

* Congress instructed NHTSA to create a new test by late 2002 that’s based on actual road handling. Also coming later this year is a mandate that all SUVs with a wheelbase of 110 inches or less display “rollover risk” warning labels.
* Ford will offer a stabilizing system by 2005 designed to improve handling and reduce rollovers on SUVs.
* Earlier this year the NHTSA proposed tougher performance requirements for car and light truck tires. The proposal adds tests in two new areas. The first would ensure that tires won’t fail when underinflated. The second would assess performance after a tire has been aged.
* Though the government requires auto bumpers withstand impacts of up to 2.5 mph without damage, some automakers are voluntarily returning to the previous 5-mph bumper standard, which simply means that the bumpers are stronger, due to pressure from the insurance industry and consumer groups.
* The New Car Assessment Program (NCAP) reports rollover resistance ratings and crash test results in a range of one to five stars, with five stars showing the best safety protection for vehicles.
* The Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act in November 2000 requires vehicle and equipment makers to report to NHTSA all potential safety defects and to advise NHTSA of foreign safety recalls. It also increases penalties for safety law violations and provides criminal penalties for misleading the agency about safety defects that have caused death or injury.

Northern California, February 2002: A 20-year-old woman lost control of her car and crashed it at about 2:15 a.m. She had just left a downtown area where she had spent the evening drinking in several bars, despite being underage. Three of her four passengers, men between 20 and 22 years old, died at the scene. She was hospitalized, and authorities had manslaughter charges awaiting her when she recovered.

The story is true, and terrible, but not particularly unusual. Similar accounts of drunken driving accidents involving teens, young adults and older drivers appear in the pages of newspapers and on evening news broadcasts weekly.

Drunk driving is so common and prevalent that the toll these accidents take seems impossible to calculate. But government agencies, in their ongoing efforts to reduce these accidents and fatalities, do try.

The numbers they come up with are staggering:

* In recent years, nearly 40 percent of deaths in auto accidents have been alcohol-related.
* Every 30 minutes, someone in the U.S. dies in an alcohol-related crash.
* In 2000, 16,653 people were killed in crashes involving alcohol. An estimated 600,000 more are injured every year in alcohol-related crashes.

These numbers are more heartbreaking when you consider that young people are over-represented in them due to several facts: They are less experienced drivers; they are less experienced drinkers and don’t know their limits; they’re more likely to also be experimenting with drugs, which further impairs driving; and finally, many think they’re invincible and haven’t learned responsible behavior.

Why does it continue to happen? According to Mothers Against Drunk Driving, many communities and families regard underage drinking as a rite of passage that does not require attention. For too many, alcohol is a forgotten and ignored drug problem - until something tragic occurs. But studies have shown that alcohol kills more people under 21 than all other illicit drugs combined.

Other disturbing information from MADD: The earlier children drink, the more likely they are to become alcoholics as adults, and the more likely they are to drive drunk. As many as eight young Americans die in alcohol-related traffic crashes daily. As if the personal price for injuries and young lives isn’t enough, underage drinking also costs America more than $52 billion every year.

Much of that figure represents taxpayer money that funds police, emergency medical crews, hospitals, courts, jails and abuse recovery programs. Drunk driving also affects insurance rates: claims payments for damage and liability are costly for companies and drive up rates for all insurance consumers.

For example, government analysts believe alcohol-related crashes accounted for about 15% of auto insurance payments in California and New York. Based on that, industry experts believe that reducing alcohol-related crashes by 10 percent would save $260 million in claims payments and loss adjustment expenses in California, and $120 million in New York.

The following are some of the most widely embraced methods for combating the toll of drunk driving on the country. All of these are in place in some, but not all, states:

* Serving Intoxicated Patrons law: Undercover police officers can enforce laws against serving alcohol to intoxicated bar and restaurant patrons.

* Sobriety checkpoint programs: Continued intensive enforcement with highly visible sobriety checkpoints.

* Primary Belt laws: These allow law enforcement to ticket drivers for not using a safety belt without requiring the driver to have committed another offense. Unbelted drivers account for 75% of impaired driving fatalities.

* Stiffer penalties for repeat offenders Courts, where legally allowed, can impose longer sentences and mandatory alcohol treatment for repeat offenders.

Many motorists look to government for solutions such as these to help ensure their safety. As a private citizen, what can you do?

Lobby for passage of stiffer fines and increased checkpoints. Let your elected representatives know you support these.

Avoid driving during times that drunk drivers are most likely to be on the road: very early morning weekend hours (midnight to 6 a.m.) and afternoons and evenings of major holidays and lesser holidays known for drinking, such as Superbowl Sunday and St. Patrick’s Day.

Be a positive role model to young people. Show children that alcohol is not required for relaxation and enjoyment. Talk to children about consequences before they try drinking. While many parents believe they’re safe until high school, studies and statistics show that’s not true. Many children try alcohol for the first time (how old were you?) in middle school. Establish open communication, and if you ever suspect a problem, act fast - get answers from the child, and treatment if necessary.

Be a responsible host to all. We’ve all heard it countless times, but how often do we practice it? If you’re worried about a guest or relative’s ability to drive, take the keys and call a cab. Doing so could save lives.

Volunteer to be the driver. Work with young people to establish a “pickup anytime” policy to encourage them to come to you when they need you.