Car Insurance

For some time now there has been widespread dissatisfaction amongst the motoring public about the cost of insurance which, in recent years, has risen considerably -indeed more steeply than consumer prices in general.

It is no exaggeration to say that the public, and young people in particular, are being fleeced by the insurance industry.

Despite much heated debate on the exorbitant cost of car insurance, there has been no tangible move to reduce the heavy burden on motorists.

Consumers blame high premiums on insurance providers who, in turn, point to the government, the legal profession and young drivers as the main contributors to soaring costs.

Whatever the answer, the industry is in a win-win scenario, raking in billions of pounds every year.

Responsible motorists might be forgiven for feeling a tinge of road rage on learning that uninsured drivers are adding significantly to the cost factor.

According to the insurance industry, the growing problem of uninsured drivers adds significantly to the annual premium of every insured motorist in the country.

Driven To Distraction

New Jersey drivers, on average, pay the most in the nation for auto insurance.

They are almost three times more likely to crack up their cars.

Yet their governor says he has fixed the state’s chronic car-insurance mess.

Like the high premiums and the chilling odds on being involved in a crash, mixed messages surround Gov. James E. McGreevey’s claims to having fixed things, industry leaders say.

Generally, however, they applaud.

Auto-insurance reform applauded

The National Insurance Commission (NAICOM) usually a self-effacing institution, and necessarily so, given the nature of its business, has been in the news lately for a lot of reasons which are bound to shake the confidence of the public in the Commission whose basic product is trust. It is a cardinal principle of insurance, which also constitutes the bedrock of modern enterprise, that trust is fundamental not only with regard to the activities of the individual companies within the sector but especially in the Commission established to regulate the sector.

In Nigeria, NAICM is the regulatory body and it is one of the parastatals under the Ministry of Finance.

For years NAICOM has maintained a dignified presence. Its Commissioner, who until the incumbent served two terms, was hardly in the news preferring to operate from the background as much as possible. All that has changed in the last few years. The current NAICOM Commissioner was appointed to an unprecedented third term by the Abacha administration a few months before the death of the former dictator and for a period of two years served without a board of directors, making him a sole administrator. Only history would tell if those years of wielding absolute power over an entire sector has been beneficial to the national economic interest. But it is an axiom that absolute power tends to affect those in possession of it in ways not socially advantageous.

Why the silence on NAICOM?

The Canadian car insurance business is a toxic wreck and Fairfax Financial Holdings Ltd. and its operating companies will continue to steer clear of it, company executives said Monday.

“It has become such a political issue in Canada,” Byron Messier, president of Fairfax subsidiary Northbridge Financial Corp., told American analysts during a New York presentation.

He noted that across Canada there are either premium rollbacks or freezes, with return on equity on personal auto coverage controlled by provincial governments.

Northbridge (TSX:NB) does less than 10 per cent of its business in personal insurance lines, as its four units concentrate on commercial coverage and niches such as insuring big trucks.

Fairfax Financial steers clear of Canadian car insurance: ‘a political issue’

In a recent Farmers Insurance Group survey, 69.2 percent of respondents admitted to exceeding the posted speed limit on the highway. Furthermore, 36 percent said they regularly exceed the posted speed limit by five or more miles per hour, and 22 percent said they repeatedly drive 10 or more miles per hour over the speed limit.

According to the National Highway Traffic Safety Administration (NHTSA), speeding is a factor in 31 percent of all fatal crashes, killing an average of 1,000 Americans every month. In addition, the NHTSA estimates the economic cost to society of speed-related crashes to be more than $40 billion each year.

“Speeding reduces the amount of available time needed to avoid a crash and increases the likelihood of an accident and the severity of a crash once it does occur," said Greg Ciezadlo, vice president, Personal Lines, Auto Product Management for Farmers Insurance. "Yet motorists continue to endanger their lives and the lives of others by speeding or driving too fast for conditions.”

The Insurance Institute for Highway Safety (IIHS) found that when many states raised their speed limits in 1996, motor vehicle fatalities went up approximately 15 percent on Interstate highways in those states.

Speeding not only routinely occurs on freeways but also on local streets. Many commuters opt to take "surface streets" thinking they can more efficiently escape traffic and avoid congested freeways. A 2002 NHTSA study revealed that 87 percent of speeding-related fatalities occurred on roads that were not Interstate highways. According to Ciezadlo, driving 45 miles per hour instead of 35 on a five-mile trip saves less than two minutes. Nonetheless, 52.3 percent of the Farmers Insurance survey respondents said they exceed the speed limit while driving to and from work or school.

Weather also plays a significant role: speeding was a factor in 53 percent of fatal crashes that occurred when there was snow or slush on the road and in 60 percent of those that occurred on icy roads.

“Most of the time, these accidents can be traced to drivers who think they can go faster than the conditions will allow them, or they’re in a hurry to get to their destination,” Ciezadlo said.
Farmers Insurance Group offers these safety tips to help motorists become more aware of their driving habits and road conditions:
* Take time to plan ahead. Make sure you allow yourself enough travel time so you don’t end up rushing to get to your destination.
* Check your local traffic report on the web before you leave so you know where to expect congestion — and therefore you’ll know if you need more or less time to get to your destination.
* Know your road conditions. If the road is wet, slow down and keep more distance between you and the vehicle ahead of you. Also, roads are treacherous when it first starts to rain, as the water mixes with oils and other deposits to create a slick road surface.
* Be prepared to adjust to sudden speed reduction, such as when exiting from a highway, encountering sharp curves on a two-lane road or entering residential or high bicycle/pedestrian traffic areas.
* If you’re late, you’re late. Just accept it and apologize when you arrive. It’s better than endangering lives.
* Wear your seat belt. It’s not only the law, it could keep you from becoming a speeding-related fatality.

Drive Safer America! took its message on the road today with a presentation for public health officials at the American Public Health Association 132nd Annual Meeting and Exposition. Spokesperson Phil Headley gave a luncheon presentation on the importance and benefits of active vehicle safety technologies, making America’s roads safer and helping to prevent crashes, injuries and fatalities on our nation’s highways.

“According to National Highway Traffic Safety Administration (NHTSA), more than 42,000 Americans died on our roads in 2003,” Headley said. “Traffic fatalities are the leading cause of death among Americans between the ages of 4 and 34,” he continued. “There is technology available today to help decrease fatalities and injuries on America’s roads.”

Headley’s remarks featured an overview of safety equipment available now, such as electronic stability control (ESC), lane departure warning, adaptive cruise control and active rollover protection. Also highlighted were some future vehicle technologies that will be available soon, including a fully integrated approach to vehicle electronics that encompasses active and passive safety technologies, including airbags, seatbelt pretensioners and sunroofs and windows that close when an impending collision is detected, helping protect passengers when a collision is unavoidable. Electronic stability control is the foundation of this approach to integrating safety technologies.

“Recent significant research has proven the benefits of active safety technologies, like ESC,” said Headley.

The Insurance Institute for Highway Safety reported last month that ” … widespread application of ESC in the vehicle fleet can be expected to afford a significant safety benefit” because the technology “reduces fatal single vehicle crashes by about 56 percent, and all single vehicle crashes by 41 percent.” This concurs with NHTSA’s recent report of preliminary findings that ESC reduced single vehicle SUV crashes by 67 percent. The NHTSA study also found that ESC reduced single vehicle crashes in passenger cars by 35 percent. Evaluating fatal crashes only, the NHTSA found ESC was associated with a 30 percent reduction for passenger cars and 65 percent for SUVs.

These new systems enrich the driving experience by making people safer and more comfortable. The safety advances that the ’smarter vehicles’ bring are crash avoidance benefits. “Active and passive safety measures must be networked in order to reach the objective we all seek — the avoidance of crashes, if possible, and when crashes are not avoidable, significant reduction of fatalities and injuries,” said Headley.

Drive Safer America! Presents Active Vehicle Safety at Meeting of Public Health Officials

Leading motor insurer Co-operative Insurance Society (CIS), is warning drivers to take extra care when using their cars, during the coming winter months. Figures from the UK Department for Transport show that 3,431 people were killed in road accidents last year, with over 35,000 seriously injured.

With nights getting longer it is imperative that motorists are even more vigilant. Many drivers will be making their way to and from work in the dark, and sometimes in terrible weather conditions.

Before you Leave on Your Journey:

- Check the engine oil level, coolant levels, brake fluid level, windscreen washer liquid level, tyre condition and pressures before setting off.

- Use a special formula windscreen washer that will not freeze at low temperatures and will keep your windscreen clear from frost and ice.

- Make sure the antifreeze in your radiator is up to strength.

- Be prepared for an emergency if you are unavoidably out in poor conditions. This includes keeping not just a de-icing spray, first-aid kit, torch and jump leads, but a spade and a pair of Wellingtons in your boot should conditions be really bad and you have to dig yourself out. Don’t travel without warm clothing and take a blanket and a flask containing a hot drink for longer journeys.

- Tell someone where your going and what time you expect to be there, take your mobile phone and make sure that the battery is charged.

- If you are not a member of one of the motor emergency services, check with your insurer they maybe able to offer you a roadside assistance package at an extra, reasonable rate. Keep any helpline numbers that your insurer or emergency service provider has given you handy in your car.

When Driving:

- Drive in accordance with the conditions and keep your speed down in order to give you adequate reaction time, remember its not just you that could have an accident, be aware of other road users too.

- Brake gently, vary the pressure you exert on the brake pedal, braking sharply will cause the brakes to lock, which in turn can result in you loosing control of the vehicle.

- Avoid sudden acceleration and do not attempt any manoeuvres, which could cause you to swerve suddenly.

- Keep a good distance from the vehicle in front and take special care if there are cyclists and motorcyclists on the road.

- If you intend to drive in snow and ice and the roads are remote and snowbound, or have not been gritted, consider fitting snow chains to your wheels where practical (and affordable). This will give extra grip and will help if you really have to make the journey.

- Even when the snow and ice appears to have gone, roads may have ‘black ice’ or unseen icy patches. Be careful when driving over stretches that do not get much exposure to the sun or which are lined by trees and rocks.

CIS General Insurance Director, Andy Watson said: “People are often in a rush first thing in the morning and drive their vehicles without fully realising how bad conditions really are. Take note of the weather reports on television and radio and consider leaving the house five minutes early. The best advice of all is to take your time and not to drive when conditions are so bad that they can become dangerous. Stay at home or check the availability of public transport, drive only if your journey is absolutely essential.”

Two men defrauded Eagle Star Insurance of almost €30,000 by falsely claiming a BMW car was stolen and obtained another €25,000 for the same car by selling it on, Dublin Circuit Criminal Court has heard.

Eamon Shiel, aged 33, Fenswood, Lucan and Barry Murphy, aged 29, of Clonguane, Cappowhite, Co Tipperary pleaded guilty to defrauding €29,500 from Eagle Star Insurance by falsely pretending their BMW had been stolen.

The two men, who had bought the car in Carlow in May 2002 and reported it stolen in Swords, Co Dublin, in August 2002, also pleaded guilty to selling the car to another man in the same month for €25,000.

Ms Aileen Donnelly SC, for Murphy, told Judge Miriam Reynolds that he had mistakenly seen the insurance company as “not real people” and, therefore, his crime as “victimless”.

Pair admit car insurance scam

HOUSEHOLD disposable income is set to fall for the first time in seven years on the back of increasing utility bills.

The share of total income available to spend on items of choice will fall to just 37.3% in 2005, down from 37.5% this year. The fall is the first since 1998 when the figure stood at 28.6%.

Only vehicle insurance and clothing and footwear tax looks likely to decline in 2005, falling by 0.8% and 1% respectively.

Families’ income set to fall

Someday it’ll happen, probably when you least expect it. Just as you countersteer while drifting out of a tight corner, or after you punch the brakes hard, you’ll hear the mechanically animated female voice emanating from your car’s audio system:

“Collision detected. Calling OnStar.”

Your first impulse might be to complain of the intrusion to those behind the bright blue OnStar button, but here’s a flash: You should be far more alarmed by what alerted OnStar in the first place—the “black box” insidiously hard-wired into your car’s electronic guts, unstoppable, unalterable, and unbeknownst to most drivers, silently recording every dramatic move.