Posted on: Tuesday, February 26, 2002

Big Island police talk with auto insurers

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — The Big Island Police Department said it hopes to conclude a deal for new auto insurance by March 1, but the coverage may cost more than twice as much as the old policy.

Purchasing Division chief Bill Gray said the county is negotiating with four firms to provide coverage for 340 vehicles owned by police officers, who use their cars for work. The county owns just 20 police cars.

TIG Crum and Forster Inc. canceled its policy effective Friday because of a high number of claims against the police — 39 in the past two years. The county has been paying an annual premium of $428,000.

Gray said that if a deal isn't struck by Friday, the county may have to enter the state's "bad driver pool," or assigned-risk pool, as a last resort.

The assigned-risk pool provides coverage — at a much higher cost — to those who can't get insurance on their own because of a bad driving record or other reasons. Under a worst-case scenario, Gray said the county could see its premiums increase to $882,000 annually.

The county is barred by law and its union contract from using self-insurance, as some large private companies and government entities do to avoid policy premiums.