Insurance Shell Game?

While Fl. Gov. Crist takes on property insurance, representative Simmons in the House introduces HB256 that if passed will raise vehicle insurance dramatically. Is this a shell game, trade off or just a stupid move by Representative Simmons. Or should we take a look at his political contributors and see who he represents. the people of Florida or the the Insurance Companies? Any guesses? To date there is no companion bill in the senate It will be interesting to see if and when one gets introduced and by who. There is also wording in this bill to reclassify just what constitutes a "motor vehicle". Hello, can you say, we gotcha now motorcycles?

No doubt Fl. is a dangerous place to drive and it is agreed that something needs to be done about it. But just as building expensive homes on barrier islands will do nothing to decrease the impact of a hurricane it boggles my mind to try and figure how increased insurance rates will do anything to alleviate, what in most cases, is just stupid driving, in Fl.

Look at the picture above and lets have a little lesson. Insurance may cover the car, it may also cover medical bills of those who were injured. It will not bring back any of the persons killed nor will it prevent such accidents from occurring. Isn't it about time we quit bitching about accidents that have occurred and start doing something to stop them from occurring in the first place? It isn't impossible you know? In fact, though maybe politically unpopular (as if raising insurance rates is popular), it is relatively easy. Following are just a few recommendations that I could guarantee that if implemented and enforced would cut fatalities almost in half. That is of course if one is serious about saving lives.

It is fact ok! It is proven ok! I don't care if you like the facts or not. Driving while using a cell phone (including hands free sets)makes one 4x's likely to be involved in a crash (we have to stop referring to negligence as accidents). It is comparable to driving while under the influence of alcohol. To keep ignoring this "fact" is to ignore the elephant in the living room" and become a part of the problem vs being part of the solution. Add to cell phones the other distractions such as eating while driving, yelling at kids, putting on make up, reading, etc and it doesn't take a rocket scientist to figure out that hey, insurance is not going to fix the problem.

Stiffer penalties: I'm not talking about the stiffer penalties that were enacted last year to address motorcycle accidents, that pretty much go unenforced. I'm talking about stiffer and enforced penalties for everybody that drives. You kill somebody because you are yaking on the phone when you should be paying attention to traffic, You go to jail. If you use a gun in a crime you go to jail. A driver on a cell phone is a loaded weapon looking for something to kill. Wait till you get to where you are going to put on that make up ok. You don't think guys are trying to cop a look at your eyelashes do you?

EDUCATION: Make Driver Education compulsory. Driving today ain't the same as it use to be. Add components re driver distraction and "Inattentional Blindness" to the courses and the license test. You don't get a certain % right you don't drive.

Do just these three things you save money and more importantly lives. This should make insurance companies happy. Why don't they promote it? rc

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Posted by aka rc at Monday, January 22, 2007
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1 comments:

  1. A recent article in the Panama City News Herald, January 23, 2007, written by Ken Underwood, is a wake-up call for all of us who are paying for insurance for our automobiles and motorcycles.
    We have been asleep at the wheel when it comes to the increases that we have endured relating to our motor vehicle insurance rising rates.

    The article reads, “As the Florida Legislature convenes its special session this week to tackle the problem of skyrocketing property insurance rates, lawmakers should take action to provide relief from rising auto insurance rates as well.

    Everyone knows how much trouble Floridians are having finding affordable homeowners insurance. However, little attention has been paid to the tremendous increases in auto insurance premiums burdening families across our state. The Legislature should work to address this insurance crisis and provide relief to drivers who are in need of quality, low-cost auto insurance.

    In 2006, the Florida Office of Insurance Regulation authorized auto rate increases several times higher than the rate of inflation. Some insurance companies say these increases are needed to defray the cost of paying thousands of claims for cars destroyed or damaged in recent hurricanes.

    But this crisis began earlier than the storms of 2004 and 2005. Before the hurricanes in 2004, the average Florida household paid 11 percent more on auto insurance premiums—an average of $2,477--than the year before.

    In fact, according to the National Association of Insurance Commissioners, Florida’s ranking in the cost to insure a car leaped from 11th in the nation in 2000 to 6th in 2004, at an average expense of $1,062.31--a dramatic 36 percent increase over four years earlier.

    While these rate hikes have failed to capture headlines, Florida families have been forced to dig deeper into their pockets to afford the same auto insurance coverage. Some families have been strained to the point of choosing between food, medicine or auto insurance premiums.

    That’s one reason why 19 percent of Florida motorists illegally are uninsured--ranking Florida eighth worst in the nation for uninsured motorists, according to the Insurance Research Council. This means Floridians in an accident have a one-in-five chance of being hit by an uninsured motorist. Further fueling the rate crisis, responsible drivers who pay their insurance premiums end up footing the bill for damage caused by the uninsured.

    Florida’s transportation system depends on driving, which in turn depends on a reliable auto insurance system. The past decade’s significant rise in auto insurance rates threatens Florida’s employers, employees and our economy as a whole.

    That’s why its critical for our lawmakers to take a close look at auto insurance rates in any legislative effort to combat skyrocketing property insurance rates. If our government officials choose inaction in the face of rate increases far above inflation or wage growth, they will be taking a great gamble with the economic stability and security of Florida families.”
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