The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1922-02-21
MOTOR INSURANCE COSTS
CONSIDERABLY ADVANCED
Many Privileges Allowed Un.
der Former Policie. Are Not
Now Obtainable

Owners Of motor cars whose insur.
ance has expired within: the last few
weeks and who have applied for re.
newal, have ascertaincd not only that
the prevailing rates are considerably
higher than year ago, but that many
privileges formerly allowed in auto
mobile insurance policies are no
longer obtainable.
The most radical change is that
= tires and other accessories. are no
longer included in the regular theft
insurance unless the entire car should
be lost or destroyed. Formerly this
form of insurance included minor
losses of anything except tools, rugs
or clothing.
It is also%impossible to obtain what
has been known as the valued form
Of policy for FIRE or theft,
Full Value Paid.
Until this change went into effect
it was possible by paying a somewhat
higher rate to insure for the full
value of the car with accessories, say
$4,000, and if the car were lost or
stolen during the year the full insur-
ance value would be paid. -
Practically all of the insurance
companies. are now writing only what
is known as the r1on-valued policy,
and if the car is completely lost the
payment is based on the appraised
value of the car at the time Of, loss.
Greater insistence is being placed
by the insurance companies upon de-
probation, too. Under the non-valu.
ed form, for a car insured for ST.
900, if stolen within six months, the
company may appraise the value at
81, 500, regarding it as secondhand
machine which has had six months
There is a. clause in the policy pro-
tecting the owner who may feel that
the insurance appraisal is too low,
permitting him in case of: dispute to
appoint his own appraiser.
The insurance company also names:
one and the two appraisers name q
third who acts as q referee and their
decision isafnal. =
1t is difficult to make any definite
estimate on the increase of insurance
rates: as the rate depends upon every
individual car, its age, condition, the
use to which it is put and the locality
in which it. is used - 4;
AS q general average for all makes
of cars, full insurance, including theft
and fire, collision and liability, has
advanced from rs to 40 per cent over
that of year ago. Within the city
limits the rate is highest. A lower
rate is given for suburban localities
and a still lower. rate for. country
areas. -. .
Fords Hardest Hit.
The greatest advanced any par
ticular make ,of2car is seen in the
Fords, the rate being about 200 per
cent: higher than last year.
Nearly. all of the higher priced,
and. moderate priced cars obtain
considerable reduction from the regu.
lar rates by attaching some Of the de-,
vices approved by the insurance COM
panies. BY, using one of the sew
eral theft approved by the COM
panies reduction of Is per centsis
obtained. =
The use of a bumper in front also
gives lower rate, amounting in
many cases to $50 or $40, while the
bumper may be purchased for less
than half that sum. A bumper on the
rear of the car gives still further
reduction. -.
Due to what is called the prevail
ence of juries to give high damages
in case of personal injuries. the liza
bility rates have increased; but not
to so great an extent as the theft in.
surance, .'..-
This tendency has also led the own
ers OF many cars to take out larger
liability policies than in the past.
While the IS, 900 to $4,000 liabil-
ity policy is still taken by the ma
iority:: Of: motor owners: many more
than formerly are being. insured for
s25, 000:to $4,000 and there are sew
eral cases where policies have been
written for as high as 100000 to
100000 liability insurance.