Insurers Don't Provide Safety Incentives, According to Report

Insurers do not offer incentives for consumers to purchase and drive safe vehicles, according to a study conducted by Rob Cirincione of the Center for the Study of Responsive Law in Washington, D.C., "Innovation and Stagnation." The Center for the Study of Responsive Law is a nonprofit organization that conducts research and educational products to promote awareness of the needs of consumers. It was founded by consumer advocate Ralph Nader.

According to Cirincione, in the early days of airbags, auto insurers offered discounts for them-but once they became standard, insurers left safety incentives by the wayside. Likewise, the study notes "auto insurance policies do not cover the true cost of motor vehicle crashes, hindering the ability of insurance premiums to convey the full damage potential of motor vehicle operation." Thus, Cicirincione writes, consumers are less apt to study the safety aspects of a vehicle-as the safety aspect likely will have little to no effect on the cost of the premium, according to the study.

CLICK HERE to read the full report, "Innovation and Stagnation."