Traffic Fatalities Down… Will Auto Insurance Rates Follow?
Texas Watch—March 1st, 2010
The Insurance Council of Texas – an industry trade group – is reporting that traffic deaths are down 25% across Texas. Mark Hanna, the industry’s spokesman, says that it is because people are driving fewer miles. He doesn’t mention whether insurance companies will be lowering their rates to reflect their decreased risk.
According to the insurance industry’s review, fewer than 3,000 people died on Texas roads last year. That is down from nearly 4,000 deaths in 2007.
Hanna told the Fort Worth Star-Telegram that the reduction in traffic fatalities is because “People are driving fewer miles … choosing to stay home for vacations and to telecommute for work.” Hanna also said that safer cars deserve some credit for the reduction in deaths on Texas roads.
Since insurance companies rely on how much a person drives when determining how much to charge, shouldn’t auto insurance companies be lowering their rates accordingly? Mr. Hanna doesn’t address that.
