New-York tribune., 1920-05-02
Auto Insurance
Rates Have Joined
I'll. C. of l.. Brigade
Particularly in Collision
Classification Premiums
Have Advanced as Much
as Forty-two Per Cent

as FOrty-two Per Cent
Along with everything else nowadays
the cost Of automobile insurance has
gone up. The changes in rates an
nounced after conference of the M
tional Automobile Underwriters and
the National Workmen's Compensation
Bureau put the premiums in some
cases higher than AZ per cent above
the rates prevailing prior to the an
nouncement. This increase is par
| ticularly great in the case Of collision
insurance.
Cars are now divided into four
groups: Low priced, medium low priced,
! medium high priced and high priced.
The metropolitan district is divided
into FIVE territories, the first including
Manhattan, Brooklyn, the Bronx and
Queens, except Far Rockaway and the
Rockaway peninsula. The rates are
higher in this territory than in any
othel In the metropolitan district, no
doubt on account of the greater amount
of traffic. In fact, the rates are
anywhere from two to three times as
high as in outlying territory.
The increased costs affect particu
larly public liability, property damage
and collision. The new rates were
made effective April Is for new bust
ness, and will go into effect June l for
renewals. The general increase on
property damage is about 10 per cent.
Rates on fire and theft vary according
to the age of the car and the list price,
and in few instances have operat ted
to dcceaso the cost The change of
rates affects the entire country, and
for the first time stabilizes rates based
upon the experience within the differ
ent zones of the various types and
makes of cars.
In fact, the whole system Of auto
mobile insurance now is based on q
closer cooperation among the COM
panies, and they are actually using
total experience, as in the case Of
other forms of insurance, rather than
individual arrangements.
It is possible, of course, TO reduce
premiums by the appliance Of approved
safety devices. For instance, fire ox-
tnguishing apparatus cuts down the
premium paid on fire insurance and ap-
proved locking devices reduce the cost
of theft insurance. In the case of an
automobile used exclusively for private
pleasure" there is g reduction in the
premium of about 12 per cent. and
where, again, the owner alone drives
there is further reduction of per
cent. 1t is odd that where the owner
and the chauffeur both, or the chauf-
feur only, drive the car, whether for
professional calls or pleasure use only,
the premium is far higher than when
the owner only drives. This seems to
indicate an experience by the insurance
companies of less accidents where the
owner drives.
The increasing number Of thefts of
automobile has operated to run the
cost of this kind of insurance very high
The loss ratio has run high in very
many classifications and the natural re-
J suit is that premiums have been ad-
vanced,
An interesting form of insurance is
for Gloss Of use" 1t applies either to
the owner Of the car or to any person
with whose car his automobile is in
collision. That is, if another person S
car is smashed up and he has to hire
, one for his business or for other rea-
sons in the interval this clause covers
the cost of that loss of use. 1t applies
also if the owner of car meets with an
accident and his machine is laid up.
The general outline of the forms of
insurance that may be had by the car
owner are:
} Public Liability
Covers against loss from liability
illPOSSQ Wy law upon lllc uSSuESu lOT
damages on account of bodily injuries
including death resulting therefrom,
accidentally suffered by any person or
persons caused by the automobile
owned or operated by the assured. The
usual standard amount carried for
such protection is limited from $4,000
to $4,000. The imitation of one per-
sonal injury is $1,000 and of more
than one person $4,000. This form
of coverage does not include accidents
to employee or employees of the as
sured engaged in the use, operation or
maintenance Of the automobile. A
greater amount of insurance can be
carried for very little cost on this
form,
Property Damage Coverage
Automobile. property damage cover,
age provides indemnity for the assured
against loss by reason of his legal
liability for injury to or destruction of
any property Excluding, however, the
property of the assured or in charge
Of the assured or any Of his employees
or carried in or upon the automobile
of the assured) on account of any ac-
cident due to the ownership, mainte-
nance or use of any insured automobile
The company's liability with respect
to claims arising from one accident is
slight increase in premium a higher
amount of protection can be had.
Loss of Use
Provides indemnity for resultant loss
Of use where claim is made for the
time during which the claimants auto
mobile is laid up for repairs due to ar
accident which occurred with the as
sured's car. The limitation of coverage
is usually $1,000 and this form is fre-
quently included in the property dam
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