New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-14
More Motor Cars, So
Insurance Rates
Go Higher
By Chester M. Cloud

The increase in rates of insurance
applying to automobiles has been grad
ual since the inception of the business
about twelve years ago. AS with other
new forms of insurance, the compa-
MES started in the business without
any past experience to guide them as
to premium charges upon the risks to
be covered.
Ten years ago the automobile was
still more or less Of a curiosty; it's
usefulness has to-day made it the most
common of vehicles upon our city
accustomed to the automobile, and has
also become less careful in avoiding it
in traffic. This. together with the con-
gestion in traffic in thiclly populated
centres, has made the automobile haz-
ard an increasing one in proportion to
its use.
Rates have advanced from about S25
for a twenty-five horsepower car, for
liability insurance, to the latest and
present rate Of $50 for the same car.
, This increase may be ascribed partly
to the rapid development of the use of
the automobile in recent years, partly
to the inexperience Of drivers, and,
further, to the increase of "ambulance
chasing" attorneys.
The premiums for property damage
insurance have increased correspond
ingly with the liability premiums.
Property damage insurance, which COW
crs damage the assured's automobile
may do to the property of others, nat
urally has become more hazardous for
some of the reasons as expressed
| above.
Collision insurance. which covers
damage to the assured's automobile
caused by collision with another OBJ
ject, has been issued, in the past, un.
der two forms. Ono form, known as
the full coveragc collision clause, COW
| ers the assured Tor his full amount of
collision damage. The second form,
heretofore known as the S25 deductible
collision clause, has called upon the
assured to pay the first S25 damage of
each and every collision claim.
Hereafter the full coveragc collision
form will be continued at material
advance in premium for medium priced
cars. The low priced cars, in some
instances. have received a slight reduc-
tion in premiums, and higher priced
cars have been advanced but not
nearly as much as the medium priced
cars
The S25 deduotible form has been
done away with under the new rules,
and there has been issued q form sim
liar in it's conditions but containing
deduction of 500 from each and
every claim. This form is issued at a
much lower premium than the old s25
dcductibla form, and is meant to sup
ply the need Of the man who does not
want to call upon his insurance COM
pany for the many small collision
losses which occur in the course Of the
year, but who wants to take advantage
Of the more serious damage claims.
Under all the new forms covcracc
Will be extended automatically to cover
the liability Of any person driving the
insured automobile, with, of course,
the owners sanction Heretofore liza
bllity by the company was restricted
to the person named as the assured.
This feature will be appreciated from
the fact that many people have had
claims made against them for acct
dents occurring while they were driv-
ing other peoples cars and for which
heretofore they could not secure insur-
ancc.
Fire and theft insurance rates re-
main the same for the present al
though, undoubtedly, there will be a
REVISION IN these rates within the next
year on account of the large number OF
losses due to thefts, especially in the
larger cities.
Outside Of greater New York liza
biiity and property damage rates have
been advanced, but not as sharply as
IN the larger cities.
The collision rates are uniform
throughout the country, no distinction
being made as to locality or con-
gested centres.