New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Reduction i'm
Insurance ON
Autos Coming
Companies Must Readjust
Premium Charges to
Make Competition OH
More Equable Basis
By l.. H. Goldberg

1t is apparent that within the next
four or five months, automobile insur-
ance rates will be reduced This is
gathered from the fact that the present
rates now being used are in the expert
mental stage. and that within a short
zine the rates will be based upon the
experience Ahat the automobile insur-
ance companies have had since the new
rates were promulgated. The matter Of
the new rates. has been an open discus
sion for the last number of months, and
i. is inferred that a change must be
made in this direction in order to better
insurance conditions The wide differ
ence in rates between the mutual COM
panics and those Of the standard stock
companies, which are members of the
conference, means that the competition
must be met in some way, and reason
able rate must be arrived at, in order
to continue getting the bulk of the
business.
From the present analysis the list
price rating plan for cars of the pr-
vate pleasure type recognizes the prin-
ciple that the attainable speed of
given car together with its weight and
Its facilities for easy management and
control constitute its potentially to do
harm or cause damage in given circum-
stances, all of which is reflected in the
price of the car.
IN establishing the groups as they
now appear in the manual the incon-
sistencies resulting from considering
only the price Of the car have been
eliminated; obviously expensive uphol-
O ~ rf ri ,ov,+ IL, co al
gance do not increase the hazard of
operating the car of given model, and
should not call for an increase in
premium rate. In liability and prop
e1ty damage insurance this principle
now gets full recognition under the
ra4lng plan
A number Of car owners of limited
means are operating their cars without
complete covcrage, such as collision
and property damage. They feel the
effects of the premiums, and rather
assume the hazards that the insurance
companies are willing to undertake.
In many instances, it is found that 5
great deal of worry and annoyance are
created by not carrying full protection.
Many automobile owners have COM
planned about excessive rates, and it
is fact that many carry the RESPONSE
bility themselves. The insurance com
panies now realize these conditions,
and it is only a question of time when
change of rates will be announced.
In a number of cases the rates are
rather inconsistent. For instance, un-
der collision protection the rates be-
come lower as the car ages. The new
autom obile takes higher rate, per-
haps due to the fact that the insurance
companies feel that the car owner hav
ing a new automobile (present year
model will be more particular in the
adjustment of claims, in the event of
damage, than an insurance holder
whose car has seen one or two years
service
The liability and property damage
rates also seem to disregard to some
extent the age Of the car. As an illus
tratiOn. one car of a certain make for
1917. 1918 and 1919 irrespective OF list
price. appears to take the same rate.
From the present experience of au
tomobile insurance it is noticeable that
many automobile owners are lax in
taking advantage of the allowance of
10 per cent ON the collision rates for
carrying an approved bumper and 2l2
per cent for carrying a rear bumper.
The same applies to the discount of
per cent on theft for the approved
sparetrc lock and 10 per cent on fire
for the approved fire cXtinguisher 1t
is carelessness not to take advantage
of this saving when the same could be
had without any trouble. 1t is only
necessary to notify the company and
an Endorsement Will be made in the
contract.
1t is false economy to be without
automobile insurance, even if the auto
mobile owner contends it costs too
much to carry protection. Carefully
compiled statistics show that about
100000 automobiles are in use in the
United States and since these figures
indicate large increase in the num-
Der of automobiles in use there will
be ~ corresponding congestion of
traffic everywhere, and, of course, in
proportion, like number Of accidents,
and more damage suits growing out of
such accidents.
If the assured will read his policies
over carefully Il great deal of trouble
and misunderstanding can be elimi-
mated. If one who holds insurance be-
comes familiar with the terms of the
policy, and the protection had claims
Will be more speedily adjusted and a
greater satisfaction will be derived.
and the assured will appreciate to
greater extent the value of automobile
coVerage.
s'EcOnOIniyersH Ara