This antitheft device may cut your car insurance bill by up to 25%.

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Author: Edgerton, Jerry

When it comes to cars, the harder they are to steal, the cheaper they are to insure. And new research on Ford's sporty Mustang--once among the most stolen cars--shows that nothing foils thieves like a factory-installed cutoff switch. That device immobilizes the engine if anything other than the owner's key is used to start it. Since Ford installed such a switch in its 1996 top-end Mustang Cobra and GT models, theft rates on those cars have dropped by half, according to the Highway Loss Data Institute, a research organization sponsored by the insurance industry. The result: Owners of Mustang models with engine-cutoff devices will be able to shave up to 25% off their annual insurance bill, about a $500 savings.

Ford is now installing its SecuriLock antitheft device as standard equipment on two-thirds of 1998 Ford, Lincoln and Mercury models and plans to have it on all its car and light truck models by 2000. A similar engine-cutoff switch is now standard equipment on 85% of General Motors' 1998 models, as well as on all Mercedes and Volvo models. Most Chrysler lines, Hondas and Toyotas do not yet come with the device.

Of course, it takes more than just theftproofing your car to shift your insurance costs into reverse. Buying an auto with a good safety record is equally important. For instance, though an ignition-cutoff device has slashed theft rates for the Chevrolet Camaro, insurance costs remain high (an average of more than $1,900 a year). The reason: a high driver death rate in accidents. Conversely, two sport utility vehicles, the Toyota Land Cruiser (average annual insurance cost: about $2,900) and the Mitsubishi Montero ($2,500) have enviable safety records. But the utes, which lack engine cutoffs, are stolen frequently for the overseas black market.

So if you are shopping for a new set of wheels, look closely at which vehicles have the strongest safety and theft records. Money's annual special auto section in March gives you insurance cost ratings on about 500 models. Or check the Website of auto-cost researcher Intellichoice (www.intellichoice.com), where for $4.95 you can order a report on prices, insurance and other costs for a specific model.

These annual premium prices for the most and least costly vehicles to insure assume an over-30 driver living in a typical U.S. suburban area.

                               $ per                       $ per
Category   Least expensive     year[1] Most expensive      year[1]


Small      Saturn SL           1,193   Honda Prelude SH    1,908
Mid-size   Ford Taurus G       1,165   Dodge Intrepid      1,356
Luxury     Lincoln Town Car    1,511   BMW 750iL           3,348
Utility    Ford Explorer XL    1,289   Toyota Land Cruiser 2,931
Minivan    Plymouth Voyager    1,053   Mazda MPV           1,422
Pickup     Ford F150 Styleside 1,085   Nissan King Cab XE  1,624

Sources: Intellichoice, Runzheimer International

Note: [1]Based on a $250 deductible for comprehensive and a $500 deductible for collision

PHOTO (COLOR): Warren Buffett

QUOTABLE

"When writing Berkshire Hathaway's annual report, I pretend that I'm talking to my sisters.... They will understand plain English, but jargon may puzzle them.... No sisters to write to? Borrow mine: Just begin with "Dear Doris and Bertie.""

Warren Buffett, in a preface to a handbook the SEC is making available to public companies to help them write prospectuses that investors can understand

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By JERRY EDGERTON