BMW's State-of-the-Art Technologies Lower Insurance Rates for BMW Owners in 30 States
18 February 1998
BMW's State-of-the-Art Technologies Lower Insurance Rates for BMW Owners in 30 States
WOODCLIFF LAKE, N.J., Feb. 18 -- Qualified BMW owners in
30 states can now take advantage of dramatically reduced automobile insurance
premiums based on a new rate structure that recognizes class-leading safety
and security features of BMW automobiles. The new rate structure, pioneered
by TIG Insurance Co. and its subsidiaries and affiliates, reduces insurance
premiums for eligible owners of BMWs (produced in 1995 or later) by up to
30 percent.
In this first-of-its-kind arrangement between an automaker and an
insurance company, TIG Insurance Co. began offering the lower rates in early
1996 and has been rolling out the program state-by-state since then.
Applications have been filed with insurance departments in all fifty states
and as each state approves the new rate structure -- a requirement for
implementation -- the lower rates are available to BMW owners. BMW and TIG
Insurance Co. anticipate that the lower rates will be available to consumers
in all 50 states in 1998, pending regulatory approval.
"When a manufacturer lowers the price of its cars by almost 10 percent,
it's considered a significant development," explained Victor Doolan, President
of BMW of North America, Inc. "In some cases, these lower rates are able to
cut the cost of owning a 3 Series BMW by $3,000 over a three year period,
close to ten percent of the car's initial cost. That's a significant
development."
"This is the first insurance program designed with the BMW owner in mind
and BMW owners are responding well. To date, TIG has written more than 3,300
policies," explained Frank C. Taylor, Senior Vice President of TIG Insurance
Co. "BMW's state-of-the-art technologies enhance passenger safety, deter
theft and lower the cost of repairs. TIG recognizes the lower risk of
insuring BMWs and passes those savings along to eligible BMW owners with lower
premiums. The TIG automobile plan provides liability and physical damage
coverage along with a variety of discounts making this program both innovative
and competitive."
Where available, eligible BMW owners may receive a variety of discounts
for the anti-theft system called Coded-Driveaway Protection. This passive
system, which requires no action on the part of the driver, is activated each
time the key is turned in the ignition lock.
Further technologies which also may result in discounted insurance
premiums include Anti-Lock Braking (ABS) and dual front and side impact
airbags. BMW introduced one of the industry's first dual threshold airbag
system in 1994, with a dual-deployment threshold for belted and unbelted
occupants. When the safety belt is used, the airbag will not deploy at a
lower crash severity, but only at the higher crash severity, where airbags are
more effective. Widely known for its broad range of high-performance
automobiles, BMW has developed an "intelligent safety system" which recognizes
whether or not the passenger seat is occupied; if not, its airbags do not
deploy, possibly saving repair.
"As the leader in automotive safety, BMW has brought impressive new
technologies to market first," Doolan continued.
Last year, BMW introduced the world's first side-impact Head Protection
System, featuring an inflatable tubular structure that drops from the
headliner within .0025 seconds of impact. Part of BMW's intelligent safety
system, the Head Protection System is standard on all 1998 BMW 7 Series and
5 Series models and will be incorporated on other models progressively.
BMW is the only manufacturer with All Season Traction standard on all 3, 5
and 7 Series models. Other state-of-the-art features include the first Head
Protection System, xenon headlamps for superior night-time visibility; Dynamic
Stability Control to enhance driving performance under adverse travel
conditions; and self-deploying rollover bars on convertibles.
Doolan continued: "TIG has developed an insurance product that has proven
to be a great benefit for BMW customers. A truly forward-thinking company,
TIG has reduced their premiums to reflect the lower theft rates that are due
to our coded driveaway protection rather than historical data used by most
insurance companies. By expanding this program to all 50 states, we hope that
all qualified BMW owners can profit from this program soon."
BMW IN NORTH AMERICA
BMW of North America, Inc. was established in 1975, when the company
assumed marketing and distribution responsibilities of BMW vehicles in the
U.S. from a private distributor. Since then, the company's North American
operations have grown to include marketing, sales and financial services
organizations in the United States and Canada; a South Carolina manufacturing
operation; a design firm in California; and various other operations
throughout the U.S. and Canada. BMW is represented in North America through a
network of more than 375 automobile and 190 motorcycle retailers in the United
States and Canada. BMW (US) Holding Corp., the brand's North American
headquarters, is located in Woodcliff Lake, New Jersey.
Information about BMW products is available to consumers via the World
Wide Web on the BMW homepage. The address is: http://www.bmwusa.com.
TIG Insurance Company, rated "A" (Excellent) by A.M. Best, a financial
rating source for the insurance industry, is the lead company of a property-
casualty insurance group offering reinsurance and primary commercial and
personal insurance throughout the United States. The company's National
Support Center operations are based in Irving, Texas. TIG Insurance company
is part of the property-casualty group owned by TIG Holdings, Inc.,
headquartered in New York.
TIG's special insurance rate for newer BMWs is now available in the
following 30 states:
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Maine
Maryland
Minnesota
Missouri
Nebraska
Nevada
New York
Ohio
Oklahoma
Oregon
Pennsylvania
Tennessee
Utah
Virginia
Washington
Wisconsin
SOURCE BMW of North America, Inc.
