The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1938-02-19

NEW YORK. Feb. 19.-Elghty
eight out of loo insured motorists
in 81 of the 107 rating territories
where the Safe Driver Reward
Plan is now operating, il is cal
culated, will pay net liability pre-
miums lower than those previous
" in effect although rates, based
on accident and loss experience,
went UP February | in nearly half
the territories. Rates were lower
ed or unchanged in the rest Of
the territories
This is shown in survey OF
new basic liability rates issued
by the National Bureau of Casual
ty and Surety Underwriters in
conjunction with the Safe Driver
Reward Plan. This new program
was instituted February IN n
states and the District of Column
bia by 30 stock companies, men,
bers of the bureau. and provides
a return of Is percent OF the pre-
MUM if no losses occur under
the policy within a year from the
date it is effective.
The bureau pointed out that
whether it was higher, unchang-
ed or lower, an addition of 4.8
percent had been made to the
+ base rate in each territory which,
while it appears TO be an arbi-
trary increase over the level indi-
Gated by accident and loss expert
ence alone, actually is a charge
upon the driver who has accidents
that produce losses so that the
safe driver can be given a sub
stantial reduction in insurance
cost.
The Safe Driver Reward re-
turns the 4.8 percent to the safe
driver and gives him an addi-
tional saving of approximately ii
percent that would not be pos
sibIe otherwise, said William
Leslie, manager of the National
Bureau. Our figures show that
SO percent of our insured motor
lists are no-accident drivers and
will get this saving.
Once each year the bureau re-
viseS rates on a basis of accident
experience in the 800 territories
into which the country is divided
for this purpose. Determined by
cost, size, horsepower, ETC., cars
are placed in one of three CLASH
fications for rating. The great
majority of insured cars are of
the low and medium-priced type
and the rate on each is either the
same or different only by dol
lar or so. These base rates apply
to the standard $5.000-$l0, 900
bodily injury nd $1,000 property
damage policy.
Typical areas in which the rate
went up, was unchanged and was
lowered were cited as examples
of how the reward plan works.
In Salt Lake City the premium
prior to February / was $50 for
the standard policy on the low
priced type car. The new prem
ium is SGT. Based on experience
alone and minus the factor of 4.0
percent. the premium would be
approximately $3.50. The motor
ist who earns the Is percent re-
ward. however, will receive S5-55,
making his net premium $3l.45.
This is 81 .55 less than the old pre-
MUM while the driver whose &C
cidents produce losses pays the
entire new premium of SGT.
In Omaha. Nebraska, the pre-
MUM remains unchanged at S42
On the basis of experience alone
and minus the factor of 4-8 per-
cent. the premium would be ap-
proximately S40.1O. The Is per-
cent reward. however. is $3.50
making the net premium for the
safe driver $3.50. which is SAC
lower than it could have beer
otherwise.
The premium in St Louis prior
TO February | was $50 and is now
S57. Minus the factor of As per
cent. it would have dropped tC
S54. 40. The safe drivers Is per
cent reward viii be S8-55. making