Under The Hood - 2005-03-21

Car Insurance Rates Vary Widely Across U.S. Cities
Management consulting firm Runzheimer International last month released data showing the wide variance in annual insurance premiums, ranging from under $760 in Roanoke, Va., to nearly $5,200 in Detroit. Philadelphia, Newark, N.J., Los Angeles and New York City round out the five most expensive cities for car insurance, ranging from $3,127 in New York to $4,142 in Philadelphia. The five least expensive cities, all under $1,000 per year, also include Wapakoneta, Ohio; Chattanooga, Tenn.; Green Bay, Wis.; and Raleigh, N.C. Runzheimer said rates are based on annual insurance coverage for a midsize sedan, blending averages for "both male and female drivers over a minimum age with clean driving records and include comprehensive, collision, bodily injury, property damage, and uninsured motorist coverage."

Hertz $2.50 Booking Fee Still On The Table
Although Hertz Corp. last month slammed its brakes on a $2.50 charge for domestic reservations before it was instituted, the company has not ruled out the possibility of such a levy. "Since we announced that we were going to implement the fee, we've had some questions from some key accounts and the fee has been put on indefinite hold," said Richard Broome, vice president of corporate affairs at Hertz. When the company sent a memo to corporate clients notifying them of the fee, travel managers and industry associations rallied against it. Some, including Business Travel Coalition chairman Kevin Mitchell, said Hertz mistakenly anticipated other car operators would follow suit. Yet, for the time being, concerned travel managers—many of whom expressed outrage at the proposal—are safe from the charge. "We don't have any current plans for an implementation date," Broome said.

Dollar Thrifty's Record Earnings Point To Recovery
Following last month's posting of record revenues totaling $1.4 billion in 2004, Dollar Thrifty Automotive Group Inc. president and CEO Gary Paxton said, "We expect continued growth in travel in 2005." The company's 2004 revenues marked a 16 percent increase over 2003. The company said revenues for the fourth quarter, ending Dec. 31, also set a record totaling $349 million—a 15 percent jump from the last quarter of 2003. "2004 was a year of outstanding achievements for Dollar Thrifty, with record revenue, record vehicle utilization and increased presence at the airports," Paxton said.