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Posted: Thursday, January 30, 2014 7:20 AM

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Accident experience is probably influenced considerably by density of population and the number of vehicles per square mile of territory. These factors vary widely not only from state to state but between different areas within the state. In a survey made in California, significant differences were noted, as shown in Table 2.4 From this table it is seen that the death rate was considerably lower in Los Angeles county than in the state of California as a whole and lower in California (1954) than in the United States. On the other hand, the personal injury rate in the metropolitan area was considerably above national and state averages. Professor Heins concludes that "each geo-graphic territory has a basic problem of accident frequency and accident prevention unique unto itself." This "demonstrates the frustration that may be experienced if a universal solution to the accident frequency problem is applied on a nationwide basis with hope of success." It also indicates the importance of dividing the nation into many different territories for both underwriting and rate-making purposes.

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