WEBOY FREE, PRESS, WEDNESDAY, APRIL 5,1989, PAGE 19 Experience considered -' ROM PAGE 18 arîd- sex as criteria for setting premiums. Besides driving records, the new systemn decides insurance prices according te vehicle type, --, geograph#cal territory, vehicle use'and annuai distance driven. xCar insurance expert Lea Algar explains that the new systom lookà back a basic six years in conideriPg driving records. "A vehicle's drivers are classfied in a series of rate categories according te their years of experience and whether or not tbey have had formai driver training," says Algar, manager, insurance services witb Insurance Bureau of Canada. The basic experience classes are: under one year licensed; one. year, up te and including tbree years; over tbree years, up te, and including six years; and over six years. More experienced drivers are considered lower risks and generally pay lower premiums. Completion of driver traing courses also resuits in lower rates within each experience group. The experience raies apply to -oo.. -RS principal and secondary drivers of the insured vehicle. Algar notes that the new plan eliminates the former "occaional driver" classification -- typically applied te drivers under age 25, wbo statistically bave more accidents. Now such drivers are considered secondary usera. Where several secondary drivers might use a car, the least experienced -- considered the bighest accident riak -- will be the designated secondary driver and a suitable surcharge'added to the premium. Surcharges can aiso, be added for car insurance dlaims and for driving convictions recorded over the previous six years. These will be ini set dollar amounts, rather than the percentage surcharges used in the former insurance system. Algar explains that accident dlaim surcharges apply oniy for accidents in whicb tbe insured driver was responsible. 'They're calcuiated using a matrix that takes inte account the nuxnber of dlaims paid and how long ago they bappened. FPor exaxnple, one dlaima a year ago can resuit in a surcharge, but:four dlaims more Where a nd lhnw vehicle used pa.rt of new rat*ng ritei Under the new provincialiy regulated car insurance system going into effect this year Ontario motorisa will stili pay premniums based mainly on where andbow they use their vehicies - n o welthey do it. In a nuýjor change from the PMeiu system, the age and sex of drvr can no longer be used as criteria in aetting premiums. Under the old ruies, under-25 male drivers, who as a group have more accidents, paid higher rates than older drivers. The new system -- controlied by the Ontario Automobile Insiuranoe Board (OAIB) -- is scheduied te be in full operation by June 1. The main criteria deciding premiums are the type of vehiicle, where it is insured, what it, is used for, and the distance it is driven annually. How long a vehicle's drivers have been lioensed, their record of driving offences, and their accident histories are the other rating criteria. The coverage a car owner chooses -- including liability limita, collision and comprehensive covemge and deductibles -- aiso help te deterine the final premnIUM. "Thne firat factor an underwriter considers in setting premniums is the territory -- the area where the car owner resides," says Art Williams, an auto insurance expert with Royal Insurance Company in Toronto. AUl insurers must use the 0MLB system dividing the province inte 32 geographical territories, intended te account for rish factors such. as trafflc volumes and accident frequencies. Five of the territeries cover Metro Toronto, home te roughly haif the province's population. The four vehicie-use categories are basica]ly the same as before, Williams explained, and are based on relative exposure to, accident risks. Business use coverage stili costs most, followed by conunuting, pleasure-only and farmn-use. "The business classification applies if at least 20 per cent of the vehicle use is for business. The percentage is based on either distance. driven or time. For example, if you work a five-day week and use your car for business an average of one day a week you must have business-use coveragel Commuting coverage is required wben the car is used in travelling. te work more than twice a week on average over the. policy period. Oniy a small, percentage of drivers qua]ify for the farin-use rating, which reurs them te have no other gainI occupation than farming. The 0B bas establisbed tbree industry-wide classifications for annual distance driven -- up te 16,000 kilometres, 16,001 te 32,000 km, and over 32,000 km. And it i» studying an additional class -- for under 8,000 km a year. The distance factor applies te the insured vehicle, not its drivers. On the basis of rish exposure, bigber premiums are charged for the greater distances. Standard vehicle type classes are broken down for such tactors as make, model and year, and power te weight ratios. 'Private passnger cars priced up to $100,000 are included., The new s1ystem requires insurancecomanes te offer two approved discounts -- for multiple vehicle coverage and for abstinence fromn alcobol. Williams explains that the multiple vehicle provision calis for a reduction'of about 10 per cent wbere two or more cars are under "common ownersbip" and insured by the samne company. "Long-term leased vehicles are eligible, and the discount applies te eacb car for 'a11 coveraqes provided by the same company.' The abstinence discount means a, five per cent preminum reduction. To get it, aIl drivers in the bousebold must sign a form promising not to consume alcobol during the coverage. period, excepting amaîl amounts for medicinal or religious purposes. As it stands now, the new 0MIB plan eliminates special discounts formnerly offered by senior citizens. But the board is considering discounts for low-risk drivers that could result in premium breaks for many seniors. What if there's a car fire... The usuai cause is an electrical short circuit. If possible, disconnect the bamtteiy "cables immediateiy te remove the power source. Do not use metal object or bare hands te rip ot wires. Use tols or jack hanie wrapped with a piece of clotb or other material that will not conduct electricity. b'mother any fiames with a large article, of clothing. Try te fiag down a -trucker, be 'wll be caryig a fr extinguisher in bis vehicle. Kep a hand extinguisher in the pseer compartment of your vehicle at al times. This W'111 enabie you te act quickly and affectivély. 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