SPEED LIMIT BILL GOES TO GOVERNOR; HIGHER SPEEDS MAY AFFECT DRIVERS' INSURANCE RATES

After two weeks of delays, Missouri motorists should get their wish for higher speed limits by early next week.

Insurance experts warn, however, that automobile insurance rates in the state could rise along with the speed limits.

On Wednesday state Sen. Harold Caskey, D-Butler, dropped opposition to the bill, paving the way for a 28-2 Senate vote to send it to Gov. Mel Carnahan. The measure previously had been approved by the House of Representatives.

Limits will increase to 70 mph on rural interstates, 65 mph on four-lane rural divided highways, and 60 mph on two-lane numbered highways.

The bill contains an emergency clause, meaning the new limits will become law the moment the governor signs it. Carnahan said he would sign the bill as early as Monday or Tuesday.

If the legislature failed to approve a speed limits bill by April 2, Missouri automatically would have reverted to its pre-1974 limits, which allowed speeds of 70 mph on interstates and on some two-lane roads. The Missouri Department of Highways and Transportation is empowered to raise or lower speeds on individual stretches of road for design or safety reasons.

Caskey's insistence on a 70 mph speed limit on U.S. 71, a four-lane divided highway in his district, was blocking the bill's passage. The Senate last week acceded to his demand, but the House refused to accept the change.

Higher limits, made possible by the repeal of federally mandated limits, are overwhelmingly popular with the public. However, safety advocates have voiced concern, citing the correlation between speed and accidents.

"It is only common sense that if there are higher speeds, then the kinds of errors resulting from speed will increase because response time is lessened and the degree of damage will go up," said Randy McConnell, public information officer for the Missouri Department of Insurance.

More accidents would mean more insurance claims, which in turn would lead to higher rates for policyholders.

"It is not a foregone conclusion," said Calvin Call, executive director of the Missouri Insurance Coalition, "but the two major components of accidents, and fatal accidents, are speed and alcohol. Anytime there is a rise in the speed a vehicle travels, it should increase the number of collisions."

Since the insurance rates are not regulated in Missouri, companies can raise rates at will. Legally, there is nothing to stop companies from hiking rates based on speculation that the number of claims will increase.

"Will we see that done? The answer is probably not," Call said. "Insurance companies are not going to react rate-wise to the passage of higher speed limits."

Companies likely will review accident statistics in coming months and make rate decisions based on that information, Call said. Short-term changes, he said, are unlikely.

According to information from the National Association of Insurance Commissioners, Missouri has the 21st lowest auto insurance rates in the nation. McConnell attributes the state's relatively low rates to strong competition among providers.

The Department of Insurance periodically publishes a rate comparison guide that allows consumers to shop for the lowest rates. When it becomes available, a copy of the free guide can be obtained by contacting the department.

Call said despite the connection between speed and accidents, other factors could come into play. Less consumption of alcohol, more safety-conscious drivers and stricter enforcement of traffic laws could counteract the negative effects of higher speeds.

"If people perhaps drive more defensively and more carefully, with a little luck we may have fewer accidents even though we're going faster because drivers are more educated," Call said.

Until the bill is signed, the Missouri Highway Patrol will enforce posted speeds. After it is signed, the new limits will be allowed, although it will take months for all the signs to be changed.