State-of-the-Art Technologies Lower Insurance Rates for BMW Owners
2 September 1998
BMW's State-of-the-Art Technologies Lower Insurance Rates for BMW Owners in 32 States
WOODCLIFF LAKE, N.J., Sept. 1 -- Qualified BMW owners in
32 states can now take advantage of dramatically reduced automobile insurance
premiums based on a new rate structure that recognizes safety and security
features that were introduced on BMW automobiles in the last couple of years.
The new rate structure, pioneered by TIG Insurance Co., reduces insurance
premiums for newer BMWs (produced in 1995 or later) by up to 30 percent. The
most recent states to approve the program are North Dakota and West Virginia.
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. Rate
filings have been filed with most insurance departments and as each state
approves the new rate structure -- a requirement for implementation -- the
lower rates will be available to BMW owners. BMW and TIG Insurance Co.
anticipate that the lower rates will be available to consumers in 40 states by
the end of this year.
"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, we've written more than 5,000
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 BMW owners through lower
premiums. The TIG automobile plan provides liability and physical damage
coverage, making this program both innovative and competitive."
The savings represent discounts especially 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 lead to the 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
(and ultimately insurance costs).
"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
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 for 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 additional states, we
hope that all qualified BMW owners can profit of 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 and "AA" by
Standard and Poor's, 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 states:
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Maine
Maryland
Minnesota
Missouri
Nebraska
Nevada
New York
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Tennessee
Utah
Virginia
Washington
West Virginia
Wisconsin