Vanishing Vehicles and Disappearing Parts

Many of us have experienced the hollow feeling in our stomachs as we walked towards our parked cars only to see empty spaces and no signs that we had ever been there. According to the Insurance Information Institute (III), in 2004, 1,237,114 motor vehicles were reported stolen in the United States; this translates into one motor vehicle theft every 26 seconds.

Even if your vehicle isn’t stolen, you may discover that valuable auto parts are missing. In the United States, more than 75,000 airbags are stolen each year. While airbags sell for $50 - $200 on the black market, replacements from dealers cost drivers about $1,000. Xenon headlights are also popular items for thieves, and GPS systems will likely make the thieves’ most desired lists soon.

According to a 2005 National Insurance Crime Bureau (NICB) study, three of the top five cities for vehicle thefts in 2004 were in California, as detailed below:

(1) Ranked by the rate of vehicle thefts reported per 100,000 people, based on the 2000 Census.

Which vehicles are being stolen? According to the NICB, in 2004, the 1995 Honda Civic was the most stolen vehicle. In many cases, vehicles are stolen for their parts. In other cases, the theft is a joy riding situation or the vehicle is exported to and sold in another country. The top five vehicles most frequently stolen in 2004 are as follows:

Whether the entire vehicle vanishes or only parts of the vehicle disappear, theft is covered by the comprehensive portion of a vehicle insurance policy. According to the Insurance Information Institute, the average comprehensive insurance premium in the United States rose 11.2% from 1999 to 2003. Since the costs of comprehensive insurance are linked to the risk of loss, vehicle models that are popular targets for theft will have higher comprehensive coverage cost.

Ultimately, it’s up to owners to do all they can to keep their vehicles safe from theft. Today, an experienced thief can break into most vehicles within a matter of seconds. Using common sense, however, can make stealing your vehicle more difficult and time consuming, and cause thieves to move on to a different target. Here are a few suggestions:

1. Always take your keys with you. Nearly 20% of all thefts reported had keys left inside the vehicle.
2. Lock your vehicle. About 50% of stolen vehicles were unlocked.
3. Park in well-lit, attended parking lots.
4. Close all windows when leaving a vehicle for any length of time.
5. Do not leave valuable items in plain view.
6. Prevent the vehicle from being moved by using tire and wheel locks.
7. Use the emergency brake when parking. This makes the vehicle more difficult to tow.
8. Use a visible steering wheel lock that prevents the steering wheel from being turned.
9. Use hood locks to prevent thieves from gaining easy access to batteries and security systems.
10. Use an alarm to keep thieves away from your vehicle.

Vehicle and parts theft is a billion dollar industry. Taking these practical steps to make access to your vehicle more difficult might just keep your vehicle from becoming a casualty of the black market.

Even before the controversy relating to driving and cell phone use is settled, a whole new debate has surfaced. The issue at hand is whether cell phone signals should be used to monitor traffic.

Several states are evaluating new technology that would allow them to monitor traffic through the use of cell phone signals. Transportation experts say the traffic surveillance and cost benefits relating to this technology are significant, and traffic congestion in many areas across the country could be reduced by 50 percent.

Cell phones that are turned on constantly interact with cellular towers. Through this advanced traffic system technology, the interaction and movements of several hundred thousand cell phones can be analyzed and mapped against road grids at one time. As a result, transportation agencies would be able to immediately identify areas of congestion and divert drivers through radio alerts or electronic road signs. Although Maryland, Virginia, Missouri, and other states are moving forward to test this technology, certain roadblocks still exist.

A primary challenge is that cellular carriers would need to collect additional cell phone data and share it. Furthermore, monitoring companies would be required to negotiate agreements with the cellular carriers that would likely involve a sharing of revenue. An additional obstacle is potential privacy issues. Privacy groups are concerned that traffic monitoring through the use of cell phone signals may result in the privacy rights of citizens being compromised. Meanwhile, advocates of this new technology emphasize that privacy shouldn’t be an issue as large clusters of phones, not individual cell phones, are being monitored.

Source: Automotive Digest

Vehicle fleets continue to be the leading cause of on-the-job deaths and an ongoing source of liability loss experience for many organizations. As a result, both company-provided and reimbursed fleets are taking liability prevention more seriously.

A sound fleet safety program includes a well-developed policy, motor vehicle record (MVR) checks, driver training, insurance and vehicle maintenance requirements, and accident reporting procedures. Setting out these policies in a handbook–and ensuring clear communication to all employees–is critical to the success of any fleet safety program.

Every MVR policy not only needs to identify individuals who should have their driving records checked, but how often the checks should be run. Some organizations choose to run MVR checks on all employees who regularly operate vehicles for business; others include occasional drivers as well. In most instances, it is prudent to run MVR checks annually. However, to reduce your organization's liability exposure, MVR reports should be obtained every six months for those employees with questionable driving records.

Beyond the policy, several procedural activities are also critical. Companies must adhere to the Fair Credit Reporting Act, which includes key components. First, every driver must have a signed release form on file. Drivers are required to give permission to their employer in order for MVRs to be run. Second, it is important to limit the number of people who have access to MVR records to only those with a “need to know.” Companies are required by law to ensure that only those people who must see the employee’s driving record are allowed access to them.

There is good news for companies with fleet safety programs. As the quality of an organization’s driver force improves, the company can realize tangible cost savings in insurance premiums, medical expenses, wage losses, and workers’ compensation claims. Lost time, training, and productivity ratios can also be improved dramatically. Additionally, the risk of negligent entrustment is minimized.

A new Risk Analysis Tool from Runzheimer can help you evaluate your organization’s liability risk. By looking at specific information such as total mileage driven, typical driver profile, driving locations and other factors, we can help you identify various elements that contribute to accidents and liability claims. For more information, please contact us at 1-800-558-1702 or www.runzheimer.com.

New car buyers in 2005 benefited greatly from the explosion of cash-back coupons, employee pricing programs, and rebates offered by automobile manufacturers. In fact, according to Edmunds.com, total cash rebates exceeded $28 billion nationwide. The question being asked by both consumers and industry experts is:  Should taxes be collected on pre-rebate or post-rebate sales prices? 

There is significant inconsistency in the manner in which states are collecting taxes on new car sales. A number of states either categorically allow the rebates (before tax is figured) or allow them under certain circumstances. In other states, rebates are handled similar to the treatment of grocery store coupons. If an in-store coupon or frequent shopper card results in the consumer paying a lower bill, then the savings is taken into account prior to accounting for the appropriate taxes. If the consumer's savings comes from the manufacturer, then the rebate is taken off the final bill which normally includes taxes on the entire transaction. Virginia has estimated that the impact of not collecting taxes on auto pre-rebate sales price accounts for a revenue loss of approximately $20-30 million dollars annually.

The Consumer Federation of America's position is that it doesn’t make sense for new car buyers to be taxed on a higher amount than they pay. Conversely, some industry experts believe a rebate should be treated as a form of cash payment so it shouldn’t affect the transaction price.

Because of this confusion, some manufacturers are considering a reduction in the prices of automobiles to replace rebates which would result in consumers only being taxed on the actual amount paid for the automobile. In the meantime, the debate on rebates continues.

Source:  Washington Post

Winter can be the most difficult driving season. With snow and icy conditions combined with fewer hours of daylight, it’s important to stay focused on safety, according to the National Safety Council. Here are some tips to help you through

this winter season.

Safety
According to the National Safety Council, preparing for emergency situations is critical. The Council recommends carrying necessary equipment including: cellular phone, properly inflated spare tire, wheel wrench and tripod-type jack, a shovel, jumper cables, tow and tire chains, a bag of salt or cat litter, and a tool kit. It’s also essential to have a working flashlight and extra batteries, reflective triangles or road flares, compass, first aid kit, windshield fluid, ice scraper and snow brush, and non-perishable foods such as water, nuts, hard candy, or dried fruit. Lastly, having a blanket, hat, gloves, socks, and boots can help you stay warm.

Buckle up and refer to the vehicle’s operating manual for braking (ABS or standard) in hazardous conditions. Remember to allow extra distance for stopping (8 to 10 seconds for following distances). Keep off the cruise control to allow for maximum control, and stay on major highways and interstates which have the best maintenance in the winter.

Maintenance
Make sure to give your vehicle a winter tune up. Check the battery, and tires should be checked for air, sidewall wear and tread depth (1/8-inch tire tread depth). Cold temperatures can have a lowering effect on tire pressure so check them frequently. Clean the air filter and perform any necessary tune ups prior to winter. Make sure the windshield wipers are in good working condition and switch to winter wiper blades made for driving in the snow. Be sure all fluids are at the proper levels. Warm up your vehicle by driving it rather than allowing it to sit idle.

Planning Ahead
Listen to weather forecasts and the news for road conditions. Be sure to plan ahead for longer commutes to allow adequate time for travel. This will help ensure timely arrival to key business appointments.

Sources: National Safety Council, AAA, and Roadtrip America