Driving less isn't cutting insurance rates

By Don Mecoy, The Oklahoman

Aug. 22--Oklahoma is a drive state, and even record-high gasoline terms haven't changed that much.

Recent numbers issued by the Federal soldier Highway disposal show road traveling decreased 3.7 percentage nationwide in May, compared to May 2007. But in Sooner State, the lessening was only 3.2 percentage.

That diminution might be reflected in lower hit claims filed with insurance companies. Nevertheless, it hasn't resulted in lower claims costs for those insurers because bad weather condition has boosted total vehicle damage claims, said Allstate Spokeswoman Shelly Frost Beeler.

No long-term impact John Wiscaver, State Farm Insurance Co. Spokesman, said that company hasn't seen any diminution yet attributed to less drive. For such a alteration to affect rates, it would have to be a long-term change, he said.

"If you had a significant decrease, logically you could make an premise that you would see less claims," Wiscaver said.

The Brookings Institution estimates that a pay-as-you-drive insurance scheme would save motorists money and gasolene.

If all motorists paid for accident insurance based on how much they drove alternatively of as a lump sum amount each year, that would green goods an 8 percentage reduction in miles driven, according to the Brookings Institute paper.

progressive tense Insurance has launched a new auto insurance that may lure some commuter train who have cut back on their drive due to high gasolene prices. Presently available only in New t-shirt, the new policy provides a customized rate to client based on how much and when their car is driven as registered by an electronic monitoring device installed in the vehicle.

Costs worry travelers Cristy Cash, guidance hot line director for consumer Credit guidance Service of telephone exchange Oklahoma, said many company to her organisation are lamenting increased traveling costs. A Shawnee couple that make payments on two cars, each of which is driven daily to Oklahoma City, is paying $2,400 a month in transportation costs, Cash said.

"Gasoline prices definitely put us over into a new group of people," Cash said.

"People were on the edge before but this kind of pushed them over."

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