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When asked to write a paper on government regulations, I wasn’t sure what to write about. But being a young teenager who just got their license the idea of auto insurance popped into my head.

I work almost everyday after school just to pay auto insurance in Philadelphia. It has become a problem for my friends, family members and myself just to pay auto insurance. The rates not only in Philadelphia, but also other places are very high. Some of my friends even pay more then I do. The cost for insurance for me is roughly a little over $3,500.00; this is ridiculous especially since some of my friends pay more then me. “Why is this?” I asked myself.

While doing some research I found out many things: all owners of a motor vehicles in the commonwealth of Pennsylvania are required by law to purchase auto insurance. I thought this was ironic because many people drive without insurance in Philadelphia. I later learned that the people who do pay for auto insurance are also paying for the people who don’t purchase insurance. This is one reason why the rates are so high in Philadelphia. Many people in Philadelphia can not afford these rates; this is why they do not pay them. It is now illegal to drive without it and if they commit an accident in Philadelphia they could be sentenced with manslaughter.

Also in doing my research I found out that Philadelphia was not the only city with high insurance rates: Detroit, Los Angeles, Newark, and Boston also topped the list. The average insurance rate for Philadelphia is about $2,829.00. This is well above the average price of $683.00. This is a big difference where many people could be saving thousands towards education or other high priorities.

There are many regulations on auto insurance, especially Philadelphia. One of them is liability coverage. This type of coverage is required, but also protects you from lawsuits that could be filed against you. You can actually buy a certain amount of liability coverage, ranging from 15,000 (required by law) to over a million dollars-the more liability you have the least likely a person would be able to take your house or other possessions by law suit.

Another regulation on auto insurance coverage is called “PIP” (Personal Injury Protection). This too is also required by law, it helps kick in when the medical bills come in the mail. The minimum coverage required by law is $5,000.00. This coverage helps to pay for your medical expenses.

The third coverage is called collision coverage. This coverage is optional, but is good to have if your vehicle is worth a lot. This coverage pays for any damage your car might sustain during an accident, and if the car is totaled the company will pay the estimated blue book value that your car holds.

The last and final coverage that is optional is called comprehensive coverage. This coverage is only good if someone steals your vehicle, or if it is damaged in any way from being parked in the street or in a parking lot. You can also buy a certain amount of this coverage too. All of this coverage makes up most of the cost for insurance, yet there are also many other reasons too.

One of the reasons may depend on what kind of car you drive. There are several different cars that jack up the prices of insurance because of expenses of parts and theft. Some cars are targeted for theft because they may be easy to break into or they can be sold easy. Others are targeted because the thief can get a lot of money on the market for it. Frequent thefts have pushed SUVs into higher insurance rates. Toyota Land Cruiser, Mitsubishi Montero, Jeep Wrangler, and Suzuki Sidekick are just some of the cars that have been targeted by thieves, and because of this owners are paying higher rates for theft insurance. John Hanson, from Toyota motor sales, stated that “sport utility vehicles are popular with thieves because the vehicles and their parts command high prices on the international black market.”

While lawmakers search for new solutions to lower insurance rates, there are ways to save hundreds on your bill by using some of these methods. Get many estimates from many different companies in your area, because this can save you up to 50%. Also look for 5% to 10% discounts for good drivers, and also some companies give discounts for going to Drivers Education or having good grades. Another way to save 20% is to raise your 100$ deductible, and maybe even consider to reduce your collision and comprehensive coverage, especially if your car is more then 5 years old.

By doing this report I discovered the many reasons I was paying the high rates, especially in Philadelphia. From liability to comprehensive, there are many types of coverage that help to keep many drivers on the road; but it wouldn’t help if rates were lower in many areas.

[i] Automobile Insurance Laws in Pennsylvania: A Summary of What You Need to Know. 1835 Market Street. < http://www.civilrights.com/auto_insurance.html>

[ii] Des Moines Versus Detroit, A Study in Contrast of Vehicle Insurance Rates; LA and Philadelphia Also High; EAU Claire and Bismarck Low” Runzheimer International. March 5, 2001. <http://www.runzheimer.com/corpc/news/scripts/030501.asp

[iii] Frequent Thefts Push SUVS into High Auto Insurance Rates. The Seattle Times. June 24, 1998.

[iii] Frequent Thefts Push SUVS into High Auto Insurance Rates. The Seattle Times. June 24, 1998.

<Student Resource Center

[iii] Frequent Thefts Push SUVS into High Auto Insurance Rates. The Seattle Times. June 24, 1998.

<Student Resource Center

[iii] Des Moines Versus Detroit, A Study in Contrast of Vehicle Insurance Rates; LA and Philadelphia Also High; EAU Claire and Bismarck Low” Runzheimer International. March 5, 2001. <http://www.runzheimer.com/corpc/news/scripts/030501.asp

1- Automobile Insurance Laws in Pennsylvania: A Summary of What You Need to Know. 1835 Market Street. < http://www.civilrights.com/auto_insurance.html>

2- Des Moines Versus Detroit, A Study in Contrast of Vehicle Insurance Rates; LA and Philadelphia Also High; EAU Claire and Bismarck Low” Runzheimer International. March 5, 2001. <http://www.runzheimer.com/corpc/news/scripts/030501.asp

3- Frequent Thefts Push SUVS into High Auto Insurance Rates. The Seattle Times. June 24, 1998. <Student Resource Center>

4- Why New Jersey Auto Insurance Rates Dig Deep in Consumers’ Pockets. Liz Stillacci. Insure.com. <http://www.insure.com/states/nj/auto/rateshigh102.html

5- Premium Comparison of Largest Auto Insurance Writers in Pennsylvania. Diane Koken. June 2000.

6- Best and Worst States for Auto Insurance Premiums. Insure.com. http://www.insure.com/auto/rates.html

Questions

Q1-What is the only way to prevent hijackers from gaining control of an airplane according to the unknown author?

-The only way to prevent hijackers from gaining control of an airplane is to harden the cockpit.

Q2-What are the arguments given by lobbyist for the Bells in favor of HR 1542 and arguments given by their opponents against this legislation?

-It argues that its members need regulatory relief to compete with cable television companies and other high-speed Internet providers.

-They contend that the Tauzin-Dingell bill would give the Bells a stranglehold on high-speed Internet service and delay the development of next-generation Web technology.

Q3-Why does small business groups like HR1831? From the small amount of information presented in your required reading, do you think the legislation is a good idea? Why?

-They like it because it gives more power to the little businesses, rather then the large businesses have too much power and money.

Q4-Give an argument in favor of government regulation activities such as rollerblading and bungee jumping?

-I can see why the government would want to regulate these things. It’s because they are very dangerous and could result in severe injury, but I don’t think they need to regulate these things because we take out own chances. The government is just looking out for the people that live in our nation.

Q5-Define a “burden hour.”

-A burden hour is supposed to measure the time it takes to collect data and fill out federal forms, surveys and reports

Q6-Why was Connecticut Senator, Joseph Lieberman, concerned enough to vote against the nomination of Professor John Graham as administrator of the office of Information and regulatory Affairs in the current Bush administration?

-he questioned the way Graham gauges proposed solutions. Instead of estimationg the number of lives that would be saved by a regulation-one commonly used standard-Graham tries to determine how many years of life would be saved. That means, say critics, that he dismisses problems that might not arise for decades and solutions that might add a few high-quality years to an individual’s life.

-Q7-What was the makeup of the “iron triangle” during the Reagan and what do environmentalists and consumer activists foresee as it’s composition in the current Bush administration?

-During Reagan’s presidency the iron triangle was made up of an unbreakable alliance among Democratic committee chairmen, agency officials, and interest groups that worked together achieve common goals. Environmentalists and consumers fear that a new triangle is forming, containing industry officials, the White House and GOP committee chairmen. This new coalition could bar environmentalists and consumers for having their desired influence.

Q8-Name 5 actions of the Bush administration that have drawn criticism from environmentalists.

-Reversing a Clinton rule that would lower the legal amount of arsenic in drinking water

Reniging on a campaign promise to regulate carbon dioxide and by rejecting the Kyoto Protocol on global warming

Signing of legislation that repealed a Clinton ergonomics rule

His national energy plan that called for the drilling of public land and easing of regulatory restrictions on energy producers

Bush’s signaling of his intention to revise or reverse the Clinton Regulations

Q9-What did the executive order issued by Ronald Reagan in 1981 and still in effect today, require agencies to prove before new regulations were enacted? How did the Democratic House counter in 1986?

-The executive order required agencies to prove that a regulations benefits would outweigh it’s costs. The 1986 Democratic House counter this measure by rescinding the OMB’s funding forcing a compromise and an easing of the rule making process

Q10- On average how long does it take to build an airport? A highway?

-Typically it requires 15 years for an airport and 12 years for a highway

Q11- Discuss the pros and cons of licensing requirements?

-Licensing requirements can protect businesses’ profits and create a standard of acceptable service. At the same time it damages entrepreneurs preventing them from making their living.

Q12- Discuss the pros and cons of master plans and planning departments?

-Without some master plans or goals and planning departments society will slowly slip into chaos. Goals set priorities that help achieve stability. When there is an excess of plans and the master plan cannot be deviated from a caste system is created. People become dependent on regulation to survive, they stop thinking for themselves, this occurs until revolt.