Residents of Sioux Falls, S.D., are the safest drivers in the United States, according to the second-annual “Allstate America’s Best Drivers Report.”

The largest city in South Dakota moves up from the number two spot on last year’s report from Allstate Insurance Company – replacing Cedar Rapids, Iowa, whose drivers are parked in the number three position on this year’s list.

This ranking of the best drivers in the 200 largest cities in America revealed that the average driver in Sioux Falls will experience an auto collision every 14.3 years, compared to the national likelihood of a crash every 10 years – making them 30 percent less likely to have an accident than the national average.

Allstate researchers analyzed company claim data to determine the likelihood drivers in America’s 200 largest cities would experience a vehicle collision compared to the national average.

“The Allstate America’s Best Driver’s Report elevates the country’s discussion on safe driving. Our hope is that each year the Allstate report helps facilitate an ongoing dialogue that saves lives,” said George Ruebenson, Allstate senior vice president for claims service.

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The cost of auto insurance is expected to rise by just 0.5 percent this year, the smallest increase in six years, reports the Insurance Information Institute.

The average cost for auto insurance nationwide for 2006 is estimated at $867, an increase of just $4 per vehicle from last year, despite record vehicle-related losses arising from the 2005 hurricane season, the institute says. The projected increase represents a continued slowdown from 2005 when auto insurance costs rose by 2.5 percent.

“The cost of auto insurance is increasing by about one-sixth the rate of inflation and little more than a single gallon of gasoline,” says Robert Hartwig, senior vice president and chief economist of the institute.

“Many people who, for example, drive safe cars, have excellent safety records, and good credit-based insurance scores may see their rates go down, often by 3 percent to 5 percent or about $25 to $50 per vehicle. This is welcome news for drivers who have been battered by record high gas prices over the past year,” Hartwig says.

What’s more, he says, people who trade in their expensive gas-guzzlers for smaller, more fuel efficient, and less expensive vehicles may see even lower insurance costs in many cases. Smaller cars that cost less with fewer horsepower are often less expensive to insure because repair costs are less. Some insurers now even offer discounts for hybrid vehicles. It also might pay to leave the car at home.

“People who make the switch to public transportation may also qualify for lower insurance premiums if they no longer use the vehicle commuting and drive it significantly fewer miles each year,” says Hartwig.

Key factors contributing to the overall cost slowdown, he says, are a declining number of auto accidents, safer cars, new auto theft technology, fraud-fighting efforts, and graduated licensing laws for teen drivers. He adds, though, that rising costs for medical care and vehicle repairs as well as defense costs and jury awards remain a problem, according to the institute’s analysis.

I found this statement from the Insurance Information Institute about credit-based insurance scoring right on the mark:

“Insurance scores are highly accurate predictors of future loss, allowing insurers to more accurately price insurance and create a more fair and equitable rating environment for all drivers,”

“Efforts to ban scoring will lead directly to higher insurance rates for good drivers while, ironically, lowering rates for people who are involved in the most accidents.”

The Insurance Journal reports on the new gay civil rights law that takes effect Wednesday in Washington state.

The measure adds “sexual orientation” to a state law that bans discrimination in insurance, housing, employment and credit. It makes Washington the 17th state with laws protecting gays and lesbians, and the seventh to protect transgender people.

Supporters of the new law said the new law will not end discrimination but will send a strong message that discrimination against gay people is wrong and illegal.

Legislation changing the uninsured motorist law in Washington that is named in honor of accident victim Ethel Adams has taken effect.

Adams was injured in an automobile accident in 2005 when her car was hit during an intentional act of road rage by Michael R. Testa. She sought coverage under her uninsured motorist coverage but her insurance company denied her claim. Adam’s insurer believed that because Testa intentionally caused the accident, her coverage did not apply. The injustice of Adam’s case received unprecedented public outcry.

“Consumers have a right to trust that if they pay their premium, they will be taken care of by their insurance company if they’re involved in an accident,” said Insurance Commissioner Mike Kreidler. “And most people assume they know what the word accident means. This new law will make certain no insurance company pulls a similar stunt in the future.”

The new law adds a paragraph to the existing uninsured motorist law. The change defines “accident” as an occurrence that is unexpected and unintended from the standpoint of the person who is insured. If an insurance company wants to deny coverage, the burden of proof is on the company to demonstrate that the covered person intended to cause the damage.

“Ethel Adams’ insurance carrier tried to apply an imaginative interpretation of the law to keep from paying her claim,” Kreidler added. “This new law bears her name with the hope that no other innocent insured will have to go through the nightmare Ethel experienced.”

The law was sponsored by Rep. Mark Ericks and Sen. Jean Berkey.

Source: Insurance Journal