Hit and Run Accidents Raise the Risk of Being Victimized Twice

For more information contact
Robyn Frankel, Frankel Public Relations
Toll free: 877-863-3373, rfrankel@frankelpr.com
OR Carolyn Gorman, Vice President
Insurance Information Institute
202-833-1580, carolyn@iiidc.org

November 3, 2003, Washington, DC - Hit and run accidents have continued to rise over the past five years, according to the National Highway Traffic Safety Administration (NHTSA) . From 1998 to 2002, there was a 15 percent increase in hit and run accidents nationwide. But many insured drivers are unaware that if their vehicle is damaged in a hit and run crash, they could be victimized twice - first by being involved in an accident that's not their fault and second by having to pay all the costs involved.

Nationally, 11 of every 100 traffic accidents are a hit and run, but the incidence of hit and run accidents varies by state and region. For example, during the most recent five-year period, there were twice as many hit and run accidents in the South (1.07 million) and Midwest (1.05 million) than in the Northeast (500,000). Although the West (700,000) ranked in between, California has one of the highest rates of hit and run accidents in the nation.

The Insurance Information Institute (I.I.I.), a non-profit organization, says that after a hit and run driver flees the accident scene, the unfortunate victim is responsible for all the expenses, as well as suffering the inconvenience of being without his or her car while it's being repaired. Since the vast majority of hit and run accidents cause vehicle damage only, the victim's largest expenses usually are for repairs and a replacement rental car. But many insured drivers do not have adequate coverage on their insurance policy to handle the additional expense and aggravation of being the victim of a hit and run crash.

To help insured drivers become better prepared for any type of motor vehicle accident, the I.I.I. is working with the Consumer Protection Association of America on a nationwide public information campaign entitled, "Wiser Drivers Wise Up" (www.wiserdrivers.com). The campaign is designed to give drivers tips on what they should do after an accident, as well as to encourage them to review their auto insurance policy annually to make sure they have adequate coverage for various types of crashes - those that are their fault, those that are not their fault, and hit and run.

"Although you're required to have a minimum level of insurance to register your car, the coverage is not always guaranteed to meet your individual needs," says Carolyn Gorman, vice president of the I.I.I. "For example, you may be surprised to discover that your auto insurance does not automatically cover the cost of a replacement car after an accident. Since the average car is in the repair shop for two weeks after an accident, you could end up spending as much as $500 to rent a replacement car. But rental reimbursement coverage, which is only a couple of dollars a month, covers the cost of a rental car while your car is in the shop. The bottom line is that renting a car for one day can cost more than one full-year's coverage for rental reimbursement."

Understanding the differences in insurance coverage can be confusing. "Many of us think that we're well prepared to deal with an accident, but most of us don't find out until after we've had an accident what our insurance does not cover," says Gorman. She advises drivers to take a few minutes to read their policy or talk to their insurance agent once a year to make sure they have the coverage they want and need (see Addendum).

Additional advice on cutting the cost of having a car with tips on everything from reducing the frequency of car repairs to buying used cars that are still under warranty is available at www.wiserdrivers.com.

The Insurance Information Institute (www.iii.org) is a non-profit, communications organization supported by the property/casualty insurance industry.

The Consumer Protection Association of America (www.consumerpro.com), based in Denver, Colo., is a member organization that provides information resources, educational materials, and conflict resolution services to consumers and businesses. The "Wiser Drivers Wise Up" campaign is one of several topics addressed by the Association. Additional information, as well as "Quick Reference Sheets" on a variety of topics, is available on the organization's Web site.

###

Editor's Note: NHTSA's GES regions are comprised of the following states:

Northeast:
PA, NJ, NY, NH, VT, RI, MA, ME, CT
Midwest:
OH, IN, IL, MI, WI, MN, ND, SD, NE, IA, MO, KS
South:
MD, DE, DC, WV, VA, KY, TN, NC, SC, GA, FL, AL, MS, LA, AR, OK, TX
West:
MT, ID, WA, OR, CA, NV, NM, AZ, UT, CO, WY, AK, HI

ADDENDUM

KNOW WHAT YOUR AUTO INSURANCE COVERS

Insurance is a big part of car ownership expense. Many people don't notice they're missing certain types of coverage until it's too late. For example, In addition to hit and run accidents, there are other situations when an insured driver is responsible for damages even if they are not at fault, such as hitting a deer, a serious seasonal problem that peaks in November. In 2002, there were approximately 1/2-million animal related vehicle accidents nationwide, representing about eight percent of all crashes.

The best advice is not to assume anything when it comes to insurance. If a specific coverage is not listed and explained in the policy, the loss probably won't be covered. For more details, go to www.iii.org/individuals/auto/a/basic/

• Property Damage Liability. Pays your legal defense costs and claims against you if your vehicle damages another's property. But, it does not cover your own vehicle.
• Rental Car Reimbursement. Your insurance company covers the cost for a replacement rental car while your own vehicle is in the repair shop after an accident or if it is stolen.
• Collision. Pays for repairs of damage to your vehicle caused by a collision with another vehicle or any other object, regardless of who was responsible.
• Comprehensive Physical Damage. Pays for damage to your vehicle resulting from theft, fire, hail, vandalism, hitting an animal, or a variety of other causes.
• Bodily Injury Liability. Pays your legal defense costs and claims against you if your vehicle injures someone. Covers family members living with you and others driving with your permission.
• Medical Payments. Pays medical expenses resulting from a collision for you and others riding in your vehicle. Also pays for you or your family members injured while riding in another person's vehicle or while walking.
• Uninsured or Underinsured Motorist. Pays for costs related to injuries or property damage to you or your family members and guests in your vehicle caused by an uninsured, underinsured, or hit-and-run driver.