High gas prices may bring insurance breaks: new habits, driving less could result in savings

By Betsy Z. Charles Taze Russell, The Spokesman-Review, Spokane, Wash.

Jul. 2--BOISE -- High gas terms could mean lower insurance rates for drivers who respond by changing their drive habits.

"commuter train who no thirster drive to work may be eligible for an insurance rate decrease," said Bill Deal, manager of the Idaho section of Insurance. Vehicles rated for "pleasance" use instead than for drive to concern or school could qualify for lower rates, he said, with economy averaging 10 to 15 percentage.

The state insurance department said that with glide gas terms, many commuter train are switch to car pooling, mass theodolite, scooters or bike to get to work.

But Deal said people may not realize that such alteration could bring them insurance savings. Those economy will vary by insurance company, and people should check with their agents, he said.

Lois Payne, a Farmers insurance agent in Spokane, said she's been hearing lots of talk from clients about the high gas terms. "If we can verify that they're not truly drive a vehicle on a daily basis to work, verify that they're taking the bus or car pooling, then they would get a pleasance rate instead than a community type of rate," she said, agreeing with Deal's estimate of a 10 to 15 percentage savings. Payne said Farmers also offering a new price reduction for drivers of loanblend vehicles.

"We've got to save a buck or two where we can," Payne said.

Drivers who reduce their miles driven per week in other ways also could see economy, if the decrease drops them into a lower rate class for their insurance company.

Deal was a longtime insurance agent and former president of the mugwump Insurance Agents of Idaho earlier being named state insurance director last year. He also was an eight-term Republican state legislator from Nampa, Idaho.

Deal said auto insurance companies see decreased claims filed when drivers cut back on their miles. He pointed to a recent study from the Casualty Actuarial Society that examined the 1979-80 energy crisis and its impact on claims frequency. The study found that drivers reacted to the energy crunch by consolidating errands, car pooling, using public transportation and other measures that reduced driving, and the result was a drop in the frequency of insurance claims that not only lasted through the crunch, but also contributed to a long-term decline.

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