Why are auto insurers not looking to penalize cell phone users?

Many lawmakers seek to legislate safer roads by outlawing the use of cell phones while motorists are driving. Driving and phoning was made illegal with penalties ranging from $2 to $250 by Brooklyn, Ohio, Marlboro, N.J., and Suffolk, N.Y.

Certain measures that would limit or outlaw motorists’ use of cell phones were considered by many state governments. The New England Journal of Medicine published a study that involved drivers who use cell phones, and evaluated that they are four times more likely to be involved in auto collisions. The study also found that driving experience and age did not pay significant roles in accidents caused by cell phone use.

Auto insurers claim that driving distractions aren’t a new concept. Food, radios, shaving razors, and makeup are part of a variety of the motorists’ driving routines. Insurers haven’t yet raised premiums because of those distractions, so why should they start with cell phones?

Dick Luedke, a spokesperson for State Farm Mutual Automobile Insurance Co. claims, “We’re not going to change our premium based on how loudly you play your radio.” He’s right. These decisions are choices made by the driver, and penalizing for every wrong decision isn’t possible, and isn’t needed.

Because auto insurers have no way of tracking how often a cell phone is the cause of a collision, insurers won’t be able to justify premium increases. Ray Palermo, a spokesperson for Response Insurance Co., which recently issued results of a national survey on the driving habits of Americans, claims, “There’s no hard evidence on cell phones.” 

Data that indicates surcharges are necessary for motorists who use cell phones, but unfortunately aren’t found, even by major insurance companies like Allstate Insurance Co., and Progressive Insurance Co.

The insurers’ viewpoint is supported by the National Highway Traffic Safety Administration (NHTSA). More states and communities are recommended to require police to indicate on accident reports whether cell phones are a “casual factor” in the collision. The study recommends doing this.

Sharing information with the government is also recommended by the NHTSA because the “industry is an excellent position to monitor cellular telephone-related crashes, and preliminary discussions with members of the insurance industry indicate that the industry is already doing so.”

Insurers believe that it is foolish to charge higher premiums for something that they can’t even get information of, and something that is used as an every-day distraction like loud music, makeup, food, etc.