Printer Friendly

'HIT ME I NEED THE MONEY' AND OTHER REASONS TO REFORM AUTO INSURANCE

'HIT ME I NEED THE MONEY' AND OTHER REASONS TO REFORM AUTO INSURANCE
 NEW YORK, May 15 /PRNewswire/ -- As auto insurance premiums skyrocket at more than twice the rate of inflation, many people -- even good drivers -- can't afford insurance and the financial burden is quickly becoming unbearable for those who can. But as costs continue to escalate, politicians keep assuring the public that reform is right down the road. It is a long road.
 Marjorie M. Berte, insurance advisor to the governor of California, author of "Hit Me - I Need The Money!" and guest on today's The Premium Dollar Today insurance program explained why reform is not happening: "The stand-offs, compromises and hidden agendas involving a number of players -- insurers, trial lawyers, auto repair interests, consumer advocates and medical groups -- have created a political stalemate. And it's the average citizen that's paying for it through outrageous auto insurance premiums."
 While solutions to reforming auto insurance are not simple, Berte offered steps on The Premium Dollar Today to make it affordable again. Among them:
 -- Individuals must be able to take responsibility for handling risk in a way that meets their own needs. They must be empowered by information to govern decisions. More important, they must see the rewards of responsible behavior -- such as maintaining a good driving record - in the insurance system itself.
 -- A no-fault system should be set up that restricts the ability to sue in return for guaranteeing benefits for drivers. Low-income drivers would receive insurance vouchers to guaranty access to coverage, but the vouchers would not pay additional costs stemming from a poor driving record. Other system reforms are: tougher enforcement of drunken- driving laws; lowering the legal blood-alcohol limit, and enacting tougher vehicle-safety standards.
 -- Consumers must take matters into their own hands, demanding information and a say in where their auto premium dollars go. If insurance buyers take collective action, especially political action, to make structural changes in the system, then consumers will finally be able to set the priorities for how their insurance dollars are employed.
 On the Premium Dollar Today, Ms. Berte revealed where your premium really goes and provided other concrete steps for auto reform. The Premium Dollar Today aired on USA Cable Network, May 15, 6 a.m. EST. It was brought to the public by Reliance National in association with the financial services practice of KPMG Peat Marwick, the Society of Chartered Property and Casualty Underwriters (CPCU) and A.M. Best Company. Editorial input is provided by Business Insurance magazine.
 Reliance National is a full service property/casualty insurance operation. It is a part of Reliance Group Holdings, Inc., whose operations include insurance as well as technical and management consulting.
 The Society of CPCU is a non-profit association founded in 1944 to promote and ensure excellence in insurance and risk management. The society has more than 20,000 members in 147 chapters across the United States.
 A.M. Best Company, most widely known for its Best's Ratings, is a leading independent source for insurance information and financial strength ratings.
 Through 135 offices in the United States, KPMG Peat Marwick provides industry-specific accounting, taxation and consulting services to a broad range of businesses and other organizations in the insurance, financial, commercial, and service sectors. KPMG has more than 76,000 people worldwide and operates in 125 countries.
 -0- 5/15/92
 /CONTACT: Beth De Lisi of KPMG Peat Marwick, 212-909-5128/ CO: ST: IN: INS SU:


KD-OS -- NY096 -- 0938 05/15/92 16:38 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 15, 1992
Words:581
Previous Article:NAPCO SECURITY SYSTEMS ANNOUNCES SALES/EARNINGS FOR THE NINE AND THREE MONTHS ENDED MARCH 31, 1992
Next Article:NATIONAL DATACOMPUTER, INC. REPORTS LOSS FOR FIRST QUARTER
Topics:


Related Articles
Auto insurance industry turns up heat on government plan.
CCA Says Colorado Auto Insurance Reform Should be Viewed From the Accident Victim's Perspective.
New Company Set to Travel New Jersey's Road to Auto Insurance Competition; Governor Announces First Major Company to Enter Market in Decades.
New York Drivers Gain Additional Auto Insurance Options; Esurance Introduces New Auto Insurance Program to the Empire State.
State of recovery: after years of tinkering, New Jersey's auto insurance market is finally well tuned.
Out on a limb: New Jersey recently established the Territorial Rating Equalization Exchange, also known as TREE. Could it be the answer to affordable...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters