Evening star., 1960-01-12
Auto insurance
Following Rise
InLivingCosts
By CHARLES STAFFORD
AP Newsfeatures Writer

A4hC L4lC Id4l VI klGc, IllS
cost of automobile liability in
surance is following the cost
Of living upward. And there is
little hope that the trend will
reverse itself.
j. Dewey DorSett, general
manager of the Association of
Casualty and Surety Compa-
nies, says the principal factors
contributing to rising rates are
the ever-increasing number of
accidents, the general eco
nomic imitation. skyrocketing
claim costs and rising jury
awards.
THE question Of why rates
are where they are and where
they are going. begins with
traffic accidents" says Mr..
Dorset. The whole enormity
of the traffic accident tragedy
is untold. and up to now safety
organizations have peen arriv-
ing at conflicting toll approx
nations"
Insurance companies esti-
mate. there are between III
and IL million traffic accidents
fatal, personal injury and
property damage combined
each year. The total, says Mr..
Dorsett, may be more like ~
to Is million.
Heavy Liability Losses
Estimates of the economic
loss from traffic accidents
range from S51a billion a year
to more than STA billion.
Contrary to what many
people have been led to be-
lieve," Mr.. Dorset says, insur-
ance companies have been suf-
fering heavy underwriting losses
in automobile liability insur-
ance." Since the end Of World
War II, he says. the stock
casualty companies - which
write a majority of the busi-
ness-have lost $500 million. |
Department Of Labor sta
tistics show that hospital rates
have increased 3l3 per cent
over the l935-l939 average,
medical care has gone up ll2I
per cent. the price of new cars
lat per cent. and auto repair
costs 95 per cent.
During that same period, Mr..
Dorsett adds. auto liability in
surance rates have gone up 86
per cent.
Repair Costs Soar
A good example Of why in
surance rates have climbed is
the way car repair costs have
increased.
In most instances, insurance
men say, it's cheaper to re-
place damaged parts than to
repair them. This is because
skilled labor in this field has
increased from SO an hour in
l948 to $3.50 to IS an hour
today.
Consider the Chevrolet. In
1948 you could replace the
windshield for $3.50 Today it
costs $168.50. In 1943 it cost
$50.15 to replace a radiator;
today the cost is 1855. The
cost Of front bumper has in
creased from $3.50 to $35, a
head lamp from $3.50 to
$26.80. a hood from s27.10 to
$69.55, a front fender from
S28 to $7210, and q door from
$56.75 to $105.35.
Puts 1t Up to States
1.-THE insurance companies
have spent millions of dollars
trying to persuade the public
to drive more carefully" Mr..
Dorset says.
only the State government
can make people drive more
carefully. Only State govern
ments can enact adequate
motor vehicle laws. Only the
State governments can put
enough policemen on the streets
and highways to assure full
and impartial law enforcement.
Only the State governments
can insist that the courts punish
drivers according to the severity
Of their crimes.
only the State governments
can stop ticket fixing and put
off the road those who will not
obey the law. Only the State
governments can maintain ade-
quate reporting systems that
will show the true enormity
of our traffic accident scandal
and thus arouse the people to
demand corrections in words
and tones that will be heard
and needed by those who hold
high public Offices"