Study on Safest Drivers
It is certainly refreshing to see The Times’ own research validate what the insurance industry has been saying for years (“Drivers Over 65, Women Tend to Be Among State’s Safest, Study Finds,” June 18). Women are involved in fewer accidents than men and deserve lower rates. Teen-agers have higher accident involvement than other age group and deserve higher rates. Senior citizens should be recognized with discounts. Age, gender and marital status do tend to be relatively accurate predictors of risk.
Your study also supports the “territorial” factor in predicting risk. Urban drivers are involved in more accidents than rural drivers. Your reporters contention that the rate is “only 13% higher” was worded in a fashion to make that difference appear small. What is not given as much attention is the difference in the cost of resolving those urban accident claims as opposed to the rural accident claims.
That 13% difference in urban claims accounts for hundreds of thousands of dollars more paid out than for the claims paid in rural areas. That 13% difference is a factor of population density, roadway overcrowding, fraud, theft, unsafe intersections, excessive litigation, costly medical care, expensive labor costs, exorbitant replacement part costs, and even insurance companies that overpay smaller claims for fear of being dragged into court and facing the irrational claims award decisions by juries. One can conclude from all this that urban drivers should be charged more for insurance than rural drivers.
Proposition 103, however, effectively denies the insurance industry the use of these more reliable risk predictive criteria which make an individual’s insurance premium more accurately reflect the risk represented. Proposition 103 also does nothing to reduce the above cost factors.
As the facts get reported it is becoming painfully clear, for insurance buyers, that Harvey Rosenfield and Voter Revolt lied. The insurance industry did not.
DAVID E. FOUNTAIN
Director of Communication
Personal Insurance Federation
Sacramento
