January 2006

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Safety
a Concern?

Check FEMA's list of disaster-prone states before moving

Tired of hearing about the natural disasters and the damage they do to the homes and lives of those living in disaster-prone states? Well, you might want to check out Rhode Island or Wyoming, Utah, or even Washington, D.C. They have racked up the least number of federally declared disasters.

The Federal Emergency Management Agency’s records, dating back 52 years, show that some places are much more disaster-prone than others. Texas leads the list with 76 disaster declarations, followed by California with 69, Florida with 56 and Louisiana with 51. Ohio comes in at tenth place with 40. It is tied with Pennsylvania and Arkansas.

Rhode Island has had six disaster declarations, followed by Wyoming, Utah and Washington, D.C. with 7.

But let’s face it, people are determined to live on the coasts, regardless of the number of past natural disasters. Insurance underwriters can only hope that Americans will become more careful about deciding where to live.

Auto Insurance Buyers

Using Internet more often

The number of consumers turning to the Internet for service or to obtain an auto insurance quote has increased considerably, according to a study by J.D. Power and Associates, based on 15,272 auto insurance policyholders.

The 2005 National Auto Insurance Study reported that more than one-fourth (27 percent) of consumers said they shopped for auto insurance in the past year and of those, 33 percent used the Internet to get a quote. However, by far the greatest increase in online traffic occurred among existing customers using their insurer’s Web site for service.

The study identifies five major factors that contribute to overall customer satisfaction with auto insurance providers. They are (in order of importance): non-claim interaction with the provider, billing, purchase/policy experience, cost and claims experience.

Overall, customer satisfaction with auto insurance providers has improved every year since 2002, and now stands at 796 index points (based on a 1,000-point scale). 

Motorcycle Safety

Honda develops first airbag for motorcycles

Honda has developed the first airbag intended for production motorcycles. It plans to offer the feature on the new Gold Wing model due for sale in the United States in the spring of 2006.

Honda said the airbag, which inflates after sensors detect an oncoming crash, is aimed at reducing injuries in a head-on collision.

Honda said the airbag opens in front of the rider, reducing the speed at which they get thrown off the motorcycle. The idea is to lessen injuries when the rider hits the road or another vehicle.

Teenage Drivers

More likely to exhibit risky driving behaviors if with a teen male passenger

Teenage drivers – both males and females – were more likely to tailgate and exceed the speed limit if there was a teenage male passenger in the front seat, according to a study by the National Institute of Child Health and Human Development (NICHD) of the National Institutes of Health.

Conversely, male teenagers were less likely to tailgate or exceed the speed limit when a teenage female was in the front passenger seat.

In addition, female teen drivers were slightly more likely to tailgate if there was a female teen passenger in the vehicle with them.

“The findings indicate that teen risky driving increases in the presence of teen passengers, particularly male teen passengers,” said NICHD Director Duane Alexander, M.D.

Crash rates for 16- and 17-year-old drivers are higher in the presence of teen passengers. However, researchers do not understand the reasons for these higher crash rates.

Of the 14.9 percent of teen males engaging in risky driving (defined as either driving with a headway of less than 1 second and speeds 15 or more miles above the posted speed limit), 21.7 percent had a male teen passenger in the vehicle. In contrast, only 5.5 percent of teen male drivers showed risky driving behavior in the presence of a female passenger.

Of the 13.1 percent of teen female drivers showing risky driving behavior, 12.9 percent had a male teen passenger, and 15.5 percent had a female passenger.

Researchers are currently designing a study to determine the reasons for risky driving behavior, so that they can then work to develop ways to prevent it.

Health Care Expenses

Americans plan poorly for the unknown

Although 74 percent of the public says they worry about rising health care costs, and 24 percent have gone into debt due to health care bills, only 51 percent budget for health care expenses. Only 20 percent know how much they actually spent on heath care expenses in 2004.

Researchers said 93 percent of the participants agreed that they have a personal responsibility to educate themselves about their health care options, and 96 percent said consumers need to be savvier about their health care choices.

This survey of 2,000 U.S. adults looked at consumers’ health care budgeting efforts. It was conducted by Humana Inc. of Louisville, Ky., and Consumer Action, San Francisco.