Wednesday, April 18, 2007

When New Hampshire lawmakers recently passed a seat belt bill, supporters emphasized that buckling up would save lives. But the issue also has financial ramifications, and not just because changing the law would net the state $3.7 million in federal funding.

Though mandating seat belt use probably would not reduce car insurance premiums immediately, it may contribute to a decrease over time, according to the insurance industry. It could also save the state millions of dollars a year in medical care, lost productivity and other costs associated with motor-vehicle deaths and injuries that result from the failure to buckle up, according to seat belt supporters.

With a seat belt usage rate of 63.5 percent, New Hampshire tied Wyoming for lowest in the nation last year, according to the National Highway Traffic Safety Agency. A mandatory seat belt law, coupled with education, could increase that rate to more than 80 percent, according to Seat Belts for All, a coalition of state lawmakers, health officials and law-enforcement leaders.

That would spare the state an average of 14 deaths, 335 serious injuries and roughly $75 million in related costs each year, the group estimates.

During the House debate, opponents described the bill as a blow to personal liberty and said the failure to wear seat belts only affects those who choose not to wear them, not the wider public. They also said New Hampshire already enjoys relatively low auto insurance rates.

New Hampshire's average auto insurance policy was $798 in 2004, compared to $698 in Vermont and $650 in Maine.

Doug Nadeau, a spokesman for State Farm Insurance, said a seat belt law in New Hampshire would not reduce those rates immediately but could bring a decrease over time, just as safety improvements to vehicles -- such as air bags and crumple zones -- have kept rates in check.

"All those safety features translate to driving down your insurance rates," he said. "It doesn't happen instantly."

David Snyder, an automotive insurance expert with the American Insurance Association, also said a mandatory seat belt law could reduce rates, because it would reduce the number of accident-related injury claims and the severity of those claims.