Automotive technology is meeting the insurance industry in the form of safer cars, and thus safer passengers. The article below is from Dow Jones & Company and outlines the increase in autos which now meet the highest levels of safety ratings. Obviously, this safety leads to less injuries and lower insurance rates. Marty O’Neill, Insurance Agent

(Copyright (c) 2007, Dow Jones & Company, Inc.)

Safety-minded drivers now have many more vehicles to choose from.

Thirty-four vehicles received the highest safety rating in the latest crash tests performed by the Insurance Institute for Highway Safety, up from 13 a year ago. Asian car makers had the largest number of top-rated vehicles, with 17. U.S. car makers had six vehicles on the list, while Germany and Sweden had six and five, respectively.

The results, which are due to be released today, come as auto makers attempt to boost their safety ratings by adding air bags, crumple zones and crash-avoidance electronics — and as consumers increasingly seek out the latest safety features. Toyota Motor Corp.’s Tundra is the first pickup truck to make the list, and Fuji Heavy Industries Ltd.’s Subaru Impreza is the first small car since stricter criteria were introduced last year. They join Hyundai Motor Co.’s Entourage minivan, Daimler AG’s Mercedes-Benz M-Class sport-utility vehicle and Ford Motor Co.’s Volvo XC90 SUV, which were also on last year’s list.

To receive the top rating, vehicles have to be available with electronic stability control, or ESC, and get a top score of “good” in front-, side- and rear-impact crash tests. Other ratings in each category include “acceptable,” “marginal” and “poor.”

Drivers have long been drawn to vehicles that have more horsepower, luxury amenities or conveniences than the competition. But as creature comforts such as heated leather seats, CD changers and navigation systems have proliferated even among budget-priced cars, drivers and car makers have begun to focus on safety features. As a result, attributes such as side-curtain air bags, which cushion occupants in a side collision, and stability control systems, which help drivers avoid accidents, are now among the latest must-haves.

Stephanie Sanford says injuries she suffered from a head-on collision that destroyed her sedan earlier this year persuaded her to look more closely at safety ratings. She recently bought an Acura MDX, an SUV made by Honda Motor Co. that was named a top pick by the Insurance Institute. “I wanted to make sure it had all the stars,” says the Denver flight attendant, referring to high scores in crash tests.

Car companies have rushed to make their vehicles more crash-resistant by strengthening their bodies and adding air bags and electronic collision-avoidance systems. Some are paying particular attention to redesigning seats, seat belts and headrests to better protect passengers when the car is hit from behind, which has been a weak spot for many vehicles since the Insurance Institute began rear-impact crash tests in 2004. Indeed, another 23 vehicles would have made the top-rated list if their seats and head restraints hadn’t fallen short.

The test results also show that car makers are moving faster than ever to make vehicles more appealing to consumers through safety improvements. Some cars made the list only after their makers quickly made changes to improve their safety ratings. Making such design changes in the past could take several years.

Seats and head restraints in BMW AG’s X3 and X5 sport-utility vehicles, and the Honda Accord sedan, Element SUV and Odyssey minivan received “good” ratings for 2008, compared with “marginal” or “poor” ratings a year ago. Volkswagen AG’s Audi reworked the seat and head restraints on its midsize A3 to improve the car’s rating to “good” from “acceptable.”

There are also vehicles that received top ratings this year in categories that weren’t represented in last year’s top picks, which also helped expand the list. These include two convertibles — the Volvo C70 and General Motors Corp.’s Saab 9-3 — in addition to the Tundra and the Impreza.

The auto industry’s newfound agility in making last-minute tweaks to vehicles reflects growing consumer awareness of safety, science, marketing and even how cars are made. Consumers increasingly research a vehicle’s safety ratings along with quality and reliability records before buying. In response, car makers have recognized the appeal of safety as a marketing tool and often refer to crash-test results in their advertising.

Consumer demand and government regulations will continue to make safety more of a core element in vehicle design, says Rebecca Lindland, an analyst with research firm Global Insight in Lexington, Mass. As fuel-economy standards increase, for example, some cars will become smaller and lighter, necessitating new safety features, she says.

“Federal mandates will drive some of this, but it’s also happening because of consumer demand,” says Ms. Lindland.

The Insurance Institute, a research group funded by the insurance industry, says its ratings are designed to make it easier for consumers to identify the vehicles that provide the best protection in the most common types of crashes.

The institute’s ratings are based on frontal offset crashes at 40 miles per hour — in which part of the car’s front end is hit — and side impacts at 31 mph. The two-step rear-impact tests include measurements of the head restraints. Vehicles whose head restraints are judged “good” or “acceptable” are tested in a rear impact of 20 mph to a stationary vehicle. The group began frontal-impact testing in 1995, adding side-impact tests in 2003 and rear tests in 2004.

By Marty O’Neill, Insurance Agent

When people get ready to walk across a public road, they usually look both ways first to see if any motor vehicles are coming. Unfortunately, this isn’t the case with animals, including certain large ones. Too often, the result is a motorist’s nightmare: a collision with a deer, moose or elk. The animal usually comes out second-best in this type of close encounter, but the toll on vehicles and their occupants can also be substantial.

Each year, more than 150 people die in animal-vehicle collisions, the Insurance Institute for Highway Safety says. The Insurance Information Institute estimates some 1.5 million such collisions cause about over $1 billion in damage annually. While animal-vehicle collisions can happen any time of year, fall is the peak season for deer-car crashes. That’s mainly because autumn is both mating season and hunting season, so deer are more active and more likely to roam beyond their normal territory.

No foolproof way has been found to keep deer, moose and elk off highways and away from vehicles. Deer whistles have their advocates, but the Insurance Institute for Highway Safety says there’s no scientific evidence to support claims they work as intended. Some studies suggest roadside reflectors – designed to reflect light from vehicle headlamps and cause deer to “freeze” rather than cross the road – reduce crash frequency to some extent.

There are ways you can lessen an unplanned meeting with a deer, moose or elk. Here’s how:

• Be aware of your surroundings. Pay attention to “deer crossing” signs. Look well down the road and far off to each side. At night, use your high beams if possible to illuminate the road’s edges. Be especially watchful in areas near woods and water. If you see one deer, there may be several others nearby.
• Be particularly alert at dusk and dawn, when these animals venture out to feed.
• If you see a deer, moose or elk on or near the roadway and think you have time to avoid hitting it, reduce your speed, tap your brakes to warn other drivers and sound your horn. Deer tend to fixate on headlights, so flashing them may cause the animal to move. If there’s no vehicle close behind you, brake hard.
• If a collision seems inevitable, don’t swerve to avoid the animal; your risk of injury may be greater if you do. Hit it, but control the vehicle. Report the crash to the police.
• Always obey the speed limit and wear safety belts.

Being alert at all times while driving is your best defense against any type of accident.

By Marty O’Neill, Insurance Agent

Wake up, America! A financial crisis could be looming for which you are not prepared. This is the loud and clear conclusion of a recent Roper study about long-term care which shows that most Americans have done little to prepare for what could be one of the largest expenses they’ll ever face – their long-term care. The American Society on Aging (ASA) released the study.

“This study is a real wake-up call for people to start thinking about long-term care,” said ASA’s Jim Emerman. “People need to take the first step of getting some guidance about their long-term care needs. Careful planning can help preserve your options and protect your assets if you ever need long-term care in a nursing home, an assisted living facility or even in your own home.”

But the Roper study of people 45 and older shows how few are actually taking that important first step. More than four in five (86 percent) of the people surveyed said it was important they have enough money to be able to choose a long-term care setting if they or a loved one needs it. But only 37 percent have actually started saving money to cover those costs.1

At the same time, while the overwhelming majority (89 percent) believes it’s important or very important to have some type of private or government coverage for long-term care, only 17 percent have bought insurance that specifically provides it.2

Long-term care is for people who need help taking care of themselves after an injury, illness, stroke or disease. While most people think of it simply as moving into a nursing home, it can also include having a healthcare aide come to your home or staying in an assisted living facility. Surprisingly, 40% of the people who need long-term care are actually quite young, working adults under the age of 65 who need help after an accident or an injury.3

Why aren’t people planning for this vital need? After all, we plan for retirement, for college and other important things. The survey, which was funded by State Farm4, found considerable confusion about long-term care. For example, almost half the people surveyed mistakenly believe their health insurance or disability insurance will pay for long-term care. Others are not aware that Medicaid will only cover long-term care if you’ve used up almost all your financial resources. And, in the most telling comments of all, half said since they won’t need long-term care until they’re older, so there’s no need to think about it now.5 It’s time to wake up and change that way of thinking.

Given the fact that 71.8% of people over the age of 65 will need some form of long-term care, families need to consider long-term care insurance as part of their financial plan. Long-term care insurance can help protect assets, preserve choices and provide independence.

Families should at least be discussing their individual needs with someone they trust.

1 The Roper survey findings will be posted on statefarm.com® at www.statefarm.com.
2 Study conducted by Roper ASW, August 2002. Released by State Farm Mutual Automobile Insurance Company and the American Society on Agency (ASA), April 2003.
3 GAO analysis of information from the Department of Health and Human Services and the Institute for Health Policy studies at the University of California, San Francisco. As cited in, “Long-term Care: Current Issues and Future Directions, General Accounting
Office Report to the Chairman, Special Committee on Aging, U.S. Senate.” (GAO/HEHS-95-109). April 13, 1995: pg. 7. The level of coverage provided by long-term care insurance depends on the type of policy you purchase. Some types of care received may not be covered by long-term care insurance.