Creamed Fenders

Kansas City's Employers Reinsurance Co. last week had some gloomy news for its stockholders. In the first six months of 1951 the company lost $2,687,519. Main reason: skyrocketing claims for auto accidents. All over the U.S., casualty insurance companies are feeling the same pinch. In New York, where the bulk of nationwide auto liability insurance is written, casualty insurance companies went $120 million into the red on auto policies between 1946 and 1950. Their deficits last year totaled $11 million, in 1951's first half were still growing.

Casualty men complain that inflation-minded juries are handing out purse-popping awards in accident cases. Accidents are growing because there are more cars on the road, and too many motorists are driving too fast and too carelessly. The cost of car repairs has also shot up, and new cars are more difficult to fix than pre-war models. For example, to replace a front fender on a 1940 Chevrolet cost $18.80 for parts and labor ten years ago; the same job on last year's model costs $42.50. As a result, in spite of six rate increases in the last seven years, casualty companies are already getting ready to holler for more.

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