How are the death rate statistics arrived at?
The IIHS and NRMA review federal data on deaths in accidents that occurred during the previous calendar years and compile a semi – annual death rate report. The relative death rates are good indicators of how insurers will set rates for different vehicles. Insurance companies price coverage by dividing a market into different types of risks based on claims experience and related costs of providing insurance coverage. Not surprisingly, 2-seat sports cars, turbocharged or V-8 muscle cars, convertibles, mini-cars, light pick-ups and small sport utility vehicles (SUVs) have much higher death-related expenses, collision repairs, and medical bills. Owners of these “targeted” cars face higher insurance rates, regardless of their own driving records. Large luxury cars, minivans, and large SUVs are less likely to be involved in fatal motor vehicle accidents and enjoy lower liability, personal injury protection (PIP), and collision rates. For vehicles sold in the United States, the Death Rate co
