New-York tribune., 1920-11-21
Fire Hazard Once
B ig Is ue in
Auto Insurance
But Not Now, When Big Pro-
duction of Cars of Similar
Appearance Makes Theft
Much Harder to Detect

inert insurance covering automo-
biles, as far as records can he troc.d
was first written by American COM
pan'es about the year 1905, In con-
Junction with fire coverage, and up to
che present time there has been verv
little change in the form. When this
business was first written. the thsrt
coverage WAS not regarded very
seriously by the underwriters. for st
that time there were not MANY car,
manufactured, and ore owning an auto
mobile carried more or less the dis
tlrctlon Of being man of wealth. with
the result that his neighbors for
miles around knew that particular car
by sight "'"' 0"A
That, together with the fact that
few people knew how to drive and
there not being so many cars made To
resemble each other in appearancs
made it most difficult for thief to-
steal an automobile without bein~
caught. Perhaps there might hays
oeen slightly less moral hazard also
IN ehat the owners probably were more
apt to watch their cars very closely,
and probably conditions at that time
we're such that stolen car was con-
sldered almost impossible The under
writers gave very little consideration
70 their protective measures. and
invariably In selling FIRE policy dis
regarded the theft feature as q serious
item
OF course, the situation since then
mas changed. In those days the fire
hazaro was the important end of pro-
tectlon' The increase in the number
81 81 cars manufactured, in use to-day
which are insured has turned the in.
surance business around Just the other
way. To-day the fire hazard is not an
lVefn OF great concern, but the theft
protection is regarded as serious
proposition, notwithstanding the fact
0hat the companies to-day receive a
much larger rate for fire insurance
than few years ago
Years ago automobiles were looked
upon as novelty. To-day they are 2
necessity: Almost everybody knows
GOV, 20" 70 drive and cars are owned by
the average individual, SO that II a
man Of ordinary means drives car
that years ago would not pass unno-
'lced to-day it is nothing unusual
me extensive production has re-
suited in turning out thousands of cars
year, each car assembled alike. and
usually having q stock color. which
makes it almost impossible to tell one
car from the other. This, of course.
makes 1t easier for the thief to ge&
away without trouble.
W course. this may largely contrib
ute to the present theft hazard; still
it must not be overlooked that cars Of
distinctive make and appearance are
being taken just as well. 1t is said
upon good authority that over 125.0Oo
cars, valued at 100000 900, were stolen
in tho United States in the last year
or two. This is at the rate of nearly
$50 cars day. Some Of these were
recovered. but unfortunately not
enough to prevent the loss ratio from
constantly increasing.
The companies writing such insur-
ancs are doing everything they possi-
bly, can to reduce the abnormal theft
hazard by cooperation with the under
writer laboratories and manufacturers
Of automo bile locking devices and urg.
Ing the insured owners to safeguard
their property so far as possible with
the assistance Of those appliances ap-
proved by this underwater laboratories,
and further recommending the en-
make it difficult for the various organ
lied bands Of expert sutomo bile thieves
to ply their trade.
The FIRE hazard was moro worrisome
in the beginning principally on ac-
count Of the internal fire hazard The
majority of the things causing that
have gradually been improved upon in
the mechanical development of the au-
tomobile. so that that particular haz-
ard by comparison has been somewhat
decreased. In addition. the fire COM
panies have lent their cooperation by
encouraging the insured to carry a
standard emergency fire fighting device
in the car, granting q reduction in tho
premium where this Is done.
" n