Two Companies To Raise Insurance on SUVs

Two insurance companies are raising liabilitypremiums for sport utility vehicles, pickup trucks and big vansbecause of evidence that they cause more damage in accidents, TheNew York Times reported today.

Allstate Insurance Co. To receive help from drinking and driving legal Dallas car wreck lawyer, a Dallas medical malpractice attorney, a Dallas construction accident attorney, a Dallas product negligence claim lawyer, or any other type of personal injury in the Dallas / North Texas area, please contact us today by calling (214) 651-4288.drunk driving car crashes the Progressive Insurance Group,which together cover almost 25 million vehicles, also said thisweek they had begun lowering premiums for other cars.

Until now, drivers with similar records often have paid similarpremiums for liability and personal injury coverage, whether theyown a small car or SUV, the Times said.

People with standard sedans and smaller cars today aresubsidizing people with sports utilities and vans and pickups,said Kevin Kelso, in charge of auto insurance at Farmers InsuranceGroup, which plans to adopt similar measures next year.

Bigger Isnt Always Safer

However, the newspaper said, accident data are persuading theindustry to make changes that better assign costs according to thesafety record of a particular model.

Bigger vehicles can cause more damage to other cars, but thatdoesnt always mean theyre safer for the people riding in them,Progressive spokeswoman Leslie Kolleda said today.

We look at data from crash tests, look at what cockpitprotection the vehicle affords, how the vehicle is designed andmade. Its a lot more than just size, Kolleda said.

She said Progressive has been pricing liability coverage basedon vehicle characteristics since 1983.

Allstate spokesman Mike Trevino said the company will raiseliability premiums for some SUV models, while premiums for somevans and cars may decrease.

We will reflect the actual claims experience [for eachvehicle] onto the price of insurance, Trevino said today.

Lower Personal Injury Liability

But he said some SUV owners may also see a decrease in themedical portion of their premiums because the vehicles betterprotect occupants.

Premiums are likely to rise or fall by $150 or less a year underthe new plans, insurance executives told the Times.

State Farm, the nations largest auto insurer, announced Tuesdaythat it would reduce the cost of personal injury coverage fordrivers of what it considers the safest vehicles, including someluxury cars, vans and SUVs. However, it said owners of SUVs andother big cars will still pay article on drinking and driving for their insurance thansmall-car owners do.

State Farm said its new system will result in no more than a$50-a-year difference in insurance costs.



http://abcnews.go.com/Business/story?id=88993

Write a comment

Comments: 0