Assignment 8A: Solving The Problem

Solving the Problem

My opportunity has to do with car insurance companies having to increase their rates due to losses and inflation, but people are upset with the increases. Insurance companies increasing rates is something that needs to be done to maintain the balance between losses and revenue. This act obviously affects people; however, we can minimize and try solving this problem as best as we can.

Solving this issue is mainly revolved around educating consumers about the reasons why the rate increases occur. Educating the public that increases are due to inflation and claims can minimize rate increases. It is true that inflation is something we cannot control but having so many claims filed can be controlled. By educating people of this reasoning, will help them be conscious about their driving habits, therefore, accidents will not occur. This also provides a feeling of “working together”, and motivation for drivers to make better judgement calls while driving. (Decrease in claims = Decrease in insurance rate). 

Some of the things we can implement to educate potential drivers or anyone that has a driver’s license includes:

• Having this information relayed in a driving test for first time drivers license. We all had to take the drug and alcohol 4-hour online course prior to obtaining our license. Implementing this additional course would be beneficial so drivers learn about insurance and its effects prior to being on the road. This course would be sold to all DMVs for every state, making it a requirement to take.
•  This point links to the DMV obtaining this information. Drivers who are arrested due to DUI should be required to take a course.
• Implementing a seminar or a one day “boot camp” for high school students to be taught about insurance and its effects. There will be an examination towards the end of the day in which all high school seniors are required to pass prior to graduation. This product or service will be sold and offered through the DMV, a certified driving school, or through the school district.

The ideal way of providing these products and services would be through a company specializes in these practices. Having people access their website to take these exams would be ideal. The DMV and the school district would just refer their students and drivers to the website. For the "boot camp", materials would be provided for the DMV, a certified driving school, or the school district. 

Some people may believe that by providing this education, it will be useless anyways since there will still be people who will drive recklessly. However, some people who drive recklessly are not aware that they are affecting others with their driving habits. There will be some drivers who learn about these things and change the way they drive. Of course, it is impossible to completely transform a driver based on educating them, but it will absolutely bring the numbers of reckless drivers down.