February 2006

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Dangerous Drivers

Two types cause the most accidents

There is general concensus that there are two types of dangerous drivers who cause the most accidents on U.S. highways—slow older people and lead-footed teenagers. The New York Times reports that an obvious question results—is one group worse than the other?

Mile for mile, according to countless studies, drivers younger than 20 are four times as likely to crash as the elderly. Yet accidents caused by drivers older than 75 are more often deadly, for those behind the wheel and for their elderly passengers. One study, by Johns Hopkins’ researchers in 2003, found that this was probably a result of older drivers’ susceptibility to injury.

The largest differences, of course, have to do with risk taking. Teenage drivers are more likely to speed, drive while intoxicated, run red lights and get behind the wheel in bad weather. Studies have found that teenagers tend to underestimate the seriousness of hazards.

Crashes caused by the elderly are usually a result of disorientation and slow reactions. Most of their accidents occur at intersections and involve merging or yielding. Confusing the accelerator and brake pedals also is a common cause.

Bottom line—younger drivers crash more often than the elderly, but accidents involving the elderly are more likely to be fatal.

All-Terrain Vehicles

Deaths, injuries on the rise

An estimated 740 people, a record, died in all-terrain vehicle accidents in 2004. The estimated figure compares with an estimated 617 deaths in 2003, and estimates between 538 and 599 annual deaths in the previous three years, according to a report from the Consumer Product Safety Commission.

An all-time high of at least 136,100 people went to the hospital in 2004 for injuries involving the four-wheel motorcycles that have a wide seat and low stand, and a third of those hurt were younger than 16. In 2003, there were at least 125,500 injuries.

“We have a serious national epidemic in this country of people getting killed and injured in very large numbers when they ride ATVs,” said Rachel Weintraub, director of product safety at the Consumer Federation of America. The group is pushing for ATV regulation, especially for child use of the adult-sized vehicles.

Ohio reported an estimated 186 deaths from ATV accidents during the period of 1982 through 2004—ranking 12th among the 50 states. For the period of 1982 through 2004, the national toll was an estimated 6,494 deaths.

Cell Phones

Crash risk four times higher when driving while conversing

Common sense as well as experience tells us that handling and dialing cell phones while driving compromise safety, and evidence is accumulating that phone conversations also increase crash risk. Insurance Institute for Highway Safety (IIHS) research quantifies the added risk—drivers using phones are four times as likely to get into crashes serious enough to injure themselves.

The increased risk was estimated by comparing phone use within 10 minutes before an actual crash occurred with use by the same driver during the prior week. Subjects were drivers treated in hospital emergency rooms for injuries suffered in crashes from April 2002 to July 2004.

“The main finding of a fourfold increase in injury crash risk was consistent across groups of drivers,” says Anne McCartt, Institute vice president for research and an author of the study. “Male and female drivers experienced about the same increase in risk from using a phone. So did drivers older and younger than 30 and drivers using hand-held and hands-free phones.”

Weather wasn’t a factor in the crashes, almost 75 percent of which occurred in clear conditions. Eighty-nine percent of the crashes involved other vehicles. More than half of the injured drivers reported that their crashes occurred within 10 minutes of the start of the trip.

The IIHS said this study’s findings are consistent with a 1997 Canadian study that also found a fourfold increase in crash risk from use of cell phones.

Homeowners Insurance

Hurricanes a major impact on consumer satisfaction

Major hurricanes, such as the ones that have ravaged the Gulf Coast states in the past two years, have had a significant negative impact on homeowners insurance customer satisfaction in those states, according to the J.D. Power and Associates 2005 Homeowners Insurance Study.

For the homeowners insurance industry, overall customer satisfaction has remained stable compared to the 2004 study. However, satisfaction levels differ significantly from state to state. For example, in Florida, where four major hurricanes occurred in 2004, claims satisfaction is almost 10 percent lower than the rest of the nation.

Recent catastrophes coupled with serious underinsurance of properties, create the potential for disappointed customers as claims are settled. Although study respondents indicate they’ve owned their primary residence for an average of 16 years, only about one-half of homeowners have had their home’s replacement cost value updated in that time. Compounding the problem for consumers and carriers alike, home improvement projects often increase a home’s value. According to the study, while 41 percent of homeowners reported they made significant structural changes to their home, 37 percent did not notify their insurer of these changes.

“As many hurricane victims are unfortunately learning, a home’s replacement cost value can change greatly over the years,” said Kevin Keegan, insurance practice leader at J.D. Power and Associates. “Homeowners need to take an active role in reading and understanding their policy, and make changes if necessary, to make sure they’re sufficiently covered for the value of their home and its contents.”