What Drives the Cost and What Can Be Done About
It.
I'm a good driver, I've never had an accident or a ticket, so why does
my insurance cost so much? Customers and insurance companies are concerned,
too. The price of car insurance is higher than we all like.
Is There a 'Quick Fix'? Some say just force the insurance companies to cut their rates.
But that's no "fix" unless we can cut the costs of things insurance
pays for.
What Can We Do?
Work to reduce the number of traffic crashes -- and the injuries, deaths,
and property damage that result. And that means dealing with the issues
outlined in this pamphlet.
Drunk and Drugged Driving
The Facts...
Nationally, an alcohol-related crash kills someone every 30 minutes.
In Washington, 294 people were killed in alcohol-related accidents
in 1994.
The tab we all shared for alcohol-related crashes in Washington was
$465 million.
A 4% reduction in drunken driving nationally would save 1,200 lives,
stop 65,000 injuries, and save taxpayers $74 million a year in health
care costs.
What Has Been Done...
Nationally, the insurance industry continues to back tough drunk and
drugged driving laws and strict enforcement.
Offenders who fail or refuse a blood-alcohol test in Washington state
can lose their licenses on the spot.
In Washington, the cars of repeat offenders can be confiscated.
The insurance industry continues to educate the public.
What You Can Do...
If you plan to drive, don't drink or use drugs.
If you host or attend a party where alcohol is served, have designated
drivers -- and be sure they don't drink.
Support tougher drunk and drugged driving laws.
Report hazardous drivers by calling 1-800-28DRUNK or 911.
Seat Belts and Air Bags
The Facts...
Nationally, vehicle accidents kill over 42,000 of us a year, and cause
injuries every 16 seconds. They cost us $104 billion.
One out of eight American residents will be involved in a car accident.
One out of 391 people in the U.S. who are involved in a vehicle crash
will die as a result of the accident.
People not wearing seat belts are killed in crashes at speeds as low
as 12 mph.
Seat belt use is mandatory in all states except two.
Front-end crashes in cars with air bags result in a 23% lower driver
death rate than cars without them.
What Has Been Done...
Washington state law requires that everyone in the vehicle wear seat
belts. Fines are imposed for those who do not.
More auto manufacturers are making air bags standard equipment on
new cars.
What You Can Do...
Always wear your seat belt and insist that others wear them too.
Actively support seat belt use laws -- and their enforcement.
If possible, purchase a car with air bags.
Make sure children are properly restrained.
Auto Theft
The Facts...
Your chances of having a vehicle stolen or broken into are one in
42.
Nationally, a car is stolen about every 20 seconds.
The FBI says over $8 billion worth of vehicles are stolen each year
in the U.S.
It is estimated that theft accounts for 25% of all insurance claims
that don't involve collisions.
What Has Been Done...
Electronic reporting of auto theft to the National Insurance Fraud
Bureau (NICB) gives faster notification to law-enforcement bodies.
What You Can Do...
Always lock your car and take your keys
Do not leave valuables in sight; secure them in the trunk.
Park your car in a safe, well-lit area.
Install anti-theft devices.
Insurance Fraud
The Facts...
Insurance fraud is big business, second only to income tax evasion.
Nationally, the cost of fraud is about $20 billion annually in false
claims to auto and home insurers.
It's estimated that one of every 10 claims in the U.S. is fraudulent.
What Has Been Done...
Insurance companies have special investigative units to look closely
into suspicious claims.
Claims people get specialized training to help them detect and deny
fraudulent claims.
What You Can Do...
Insist on complete honesty, from yourself and others, when you're
involved in a claim.
Recognize that fraud against your insurance company directly affects
the premium you pay.
REMEMBER... Inflating or padding your insurance claim IS fraud.
Support laws that impose stiff penalties for insurance fraud.
If you suspect insurance fraud, call 1-800-TEL-NICB.
Safer Driving, Cars, Roadways
The Facts...
The 65-mph speed limit on rural interstate highways has increased
deaths on those highways by 24%.
Crashes are the leading cause of death for people aged 18-24.
Speeding, failure to yield right of way, driving left of center, improper
passing or turns, and following too closely are the leading cause of
accidents.
What Has Been Done...
Tougher enforcement of speed limits.
Working with officials to identify and improve traffic safety in many
communities.
Replacing fixed highway barriers with flexible ones to reduce collision
injuries.
What You Can Do...
Support stronger speed laws and enforcement, including tougher penalties
for violators.
Work for better driver education and training programs in your community
and schools.
Back programs to build high safety standards into our cars and our
roadways.
Always drive as if your life depended on it -- it does.
Insurance Costs
The Facts...
The cost of insurance reflects cost increases for things like new
cars, repairs, and medical care.
Increases in lawsuits and fraud also account for an additional rise
in auto insurance premiums.
Washington ranks 21st in the country for average auto insurance premium.
What Has Been Done...
Insurers helped to organize and support the National Insurance Crime
Bureau and its hotline (1-800-TEL-NICB).
Insurers participated in the Washington insurance fraud task force
which resulted in passage of key anti-fraud legislation in 1995.
What You Can Do...
Work with law enforcement to deter home burglaries and auto theft.
Have your vehicle identification number etched onto the vehicle glass
in your car.
Keep a record of your vehicle identification number and license plate
number at your home or office to enable you to report a theft easily
and accurately.
Summary... We want you to have the facts about the cost of auto insurance.
We want you to know what we're trying to do to keep costs down...and what
you can do. We want you to know about the value of talking to your insurance
company, agent, or broker -- call them, ask question -- any time! They
are there to help you. If you have more questions, please contact WIC's
toll-free consumer hotline at 1-800-664-4942. WIC is a 27-year-old Washington-based
nonprofit trade association supported by the insurance industry.
