保险学Treisch12Ch14.ppt

Risk Management for Auto Owners–Part IIChapter 14 Chapter Objectives Describe how the average automobile insurance dollar is used Identify and describe some of the key factors that drive automobile insurance costs Describe actions that individuals, governments, and insurers could take to reduce auto insurance costs Explain how no-fault auto insurance operates and how it might reduce auto insurance premiums Discuss the trade-offs among benefit levels, the right to sue, and automobile insurance costs Review attempts to reduce the problem of drinking and driving Explain some of the advancements made in auto safety during the past twenty years Discuss trade-offs among automobile safety, better mileage, and the cost of autos Where Does the Auto Insurance Premium Go? People often assume that because automobile insurance is expensive Insurers must make massive profits on each policy sold Table 14-1 provides detailed information For every $100 received in premiums $104 was paid out in losses and expenses However, this does not mean that the insurance industry lost money Considering investment gains, insurers made $1 in after-tax profit for every $100 of premiums collected Table 14-1: U.S. Premium Dollar Expenditures, 2002 Where Does the Auto Insurance Premium Go? Key reason there has been so much controversy over the use of aftermarket parts in auto repair The fact that most auto claims expenses are for repairing damage to autos Aftermarket parts are often dramatically less expensive than original equipment manufacturer (OEM) parts Insurers are very interested in using aftermarket parts As are some insureds However, some people argue that aftermarket parts are of lower quality than OEM parts Where Does the Auto Insurance Premium Go? State legislatures and the industry have responded in a variety of ways to the controversy over aftermarket parts Most states have passed legislation requiring insurers to notify insureds when aftermarket parts are bei