Automobile Insurance and Traffic Safety

Report Outline
Penalties of Careless Auto Driving
Auto Insurance Coverage and Costs
Accident Research and Traffic Safety
Special Focus

Penalties of Careless Auto Driving

Rise of Traffic Deaths and Insurance Rates

Death by automobile rang up new records over the Fourth of July; more than 500 persons died in traffic accidents. Unless accident incidence takes an unexpected drop in the last half of 1964, more than 50,000 men, women and children will perish in motor traffic in the United States this year, and 1.7 million will suffer disabling injuries. Such statistics have long since lost shock value. But motorists who might otherwise shrug off loss of life on the country's highways are discovering to their dismay that there is a direct relationship between the mounting traffic toll and the rates they have to pay for car insurance.

Liability insurance rates on certain high-risk drivers are reaching prohibitive levels. Motorists with especially bad driving records cannot buy insurance from standard companies at any price. Such people, many of whom must drive to hold their jobs, find they can finance needed insurance only through so-called “substandard” companies which charge sky-high rates and add exorbitant interest or handling charges.

Numerous drivers take their chances behind the wheel with no liability insurance at all. The uninsured motorists leave their accident victims with no realistic means of obtaining compensation, unless it is through state funds for the purpose which are operated at substantial deficits.