Show Reduce Auto insurance rates says U of U finance professor Insurance companies In Utah should be required to reduce premiums on automobile liability insurance by about 20 percent according to Dr Fikry S. S Gahin associate professor of finance at the University of or Utah Or r. r Gahin gives three reasons why premiums should be lowered the enactment of Utah's no-fault no Insurance law the reduction of the maximum speed limit to 55 miles per hour and curtailed driving due to the energy crisis Till THE UTAH Commissioner of Insurance has the authority to request a reduction In premiums Dr Gahin explained and a 20 percent drop would average about 40 to 50 per driver in savings He said no-fault no insurance reduces the cost of insurance to the companies by eliminating overpayments on small claims duplication of benefits attorneys attorney's fees and court costs When Massachusetts passed Its no-fault no act In 1970 the state required a 15 percent premium reduction from bodily injury liability Insurance rates he said This was followed by a 27 percent rebate at the end of 1971 saving consumers about 15 million and that was before the energy crisis DR DIt GAHIN said studies are currently underway to determine the exact effect of lower speed limits and less travel upon auto accident rates But Dut we already know that speed is the largest single cause of oC accidents producing percent of driving fatalities he said During World War II reduced sp speed d limits 35 mph and strict gasoline rationing did result in refunds to insurance policy holders ranging from 20 to 40 percent he said A AND U EITH EITHER It higher prices for gasoline or shortages of or it will certainly have an effect on driving but we cant can't say yet how much he said Curtailed driving not only affects personal injury claims but it also cuts through collision comprehensive and property damage claims as well Dr Gahin said that even under the old inefficient system Utah was an area of high profits to automobile insurance companies With the three factors working total claims should be reduced by at least 20 percent a savings that thatis is not being passed on to the consumer he said Its simple There is less cost of insurance we are driving slower and we are driving less and yet we still pay the same premium Th That t should not be he he sa said Id |