Auto Insurance Guide Archive for August, 2010

  • Paying For Inaccurate Records

    by Hayden Krueger

    There goes the popular saying that if you want to get the job right, then you have to do it by yourself – and as far as this year is concerned, as many as ten drivers in Massachusetts have learned their lessons the hard way.

    The State’s general attorney has made this announcement on May 6th that at least four insurance companies have made inaccurate accidents reports designating the said 10 drivers to be at fault. The four insurance companies that were instructed to pay fines and compensate for at least $10,000 to each customer were Norfolk & Dedham, United Services Automobile Association, Arbella Mutual and Electric Insurance. Reports from the said insurance providers were used as the basis for penalizing the drivers.

    Just earlier this year, another six auto insurance providers – Metropolitan, Liberty Mutual, Plymouth Rock, Commerce, Peerless and Pilgrim – were found to provide erroneous records as … Click here to read more

  • Asking For a Second Chance

    by Hayden Krueger

    Unlike individuals, insurance companies that committed awful wrongdoings cannot go to jail. They will receive fines and ultimately striped off from operating their business. In Missouri and Illinois, one company has to undergo such scrutiny because the Department of Insurance has received numerous complaints against them. This is the story of the Universal Casualty.

    People are complaining about Universal Casualty on the grounds of poor customer service and bad faith rather than misconduct and fraud.

    Complaining for what?

    It all started last summer, when the Department of Insurance in Missouri received an uncommon turnout of complaints against the Chicago based insurer Universal Casualty. Accordingly, the insurance company failed to act on a timely manner against the claims and not to mention the slow outcome of their investigations. Allegedly, the company has continuously denied legitimate claims or offering ridiculous low settlement payments.

    As part of the measure, the Department of Insurance … Click here to read more

  • Cheap Transportation for the Budget Constraint Folks

    by Hayden Krueger

    Anyone is trying to save these days, and if you are looking forward to buy a new car, a used vehicle might be the best option for you, right? In fact, you can still buy a reliable used-car for as low as $500 from private car dealers. Most of these cars have been in the service for many years and most probably looked like they will need a serious grooming. However, if their respective owners have carefully maintained them over the years, these cars could still provide a good and cheap transportation service for over five years just easily.

    If you are planning to buy one, remember that most of these cars will have zero or very limited warranties extended to you. Also keep in mind that “lemon laws”, the set of laws that protects the buyers from repeated failures and damages, are not applicable to leased or used car … Click here to read more

  • New York: How To Cut Down Insurance Fraud

    by Hayden Krueger

    Over the past few years, auto insurance fraud is steadily climbing in New York and this prompted the lawmakers to pass laws that would impose severe penalties to the offenders. In an attempt to combat the fraud, a US Senator Charles Schumer passed the Cheaper Car Insurance Act of 2010.

    Understanding the coverage

    Once the law is passed, the judge has the power to set fine of up to $100,000 if the claim is proven fraudulent. For fraud involving over the $100,000 cap, the fine shall be equal to the actual cost of the fraud.

    Additionally, the act entails jail time for the criminals. In New York alone, Schumer said that auto insurance fraud is likened to drug ring operations. The goal of the law is to catch the leaders of the syndicate and to punish them harshly – which literally translate up to 15 years of prison time.

    The … Click here to read more

  • Older Drivers behind the Wheel

    by Hayden Krueger

    You have been driving since 18 and undoubtedly, you were a good driver – with squeaky-clean driving record, no major accidents, no speeding tickets, no highway police pullovers – no nothing. And here you are turning 24, you receive a nice birthday present from your insurance provider – your premiums are going down. Well, good for you, but it is a different story for the old folks.

    Forty years henceforth, those rates will never be the same again, regardless if you managed to keep those clean records forever. Again, based on the actuarial tables, as people aged their visions will no longer be as sharp as before, the reaction time will significantly increase and the deterioration of the eye-hand coordination is present. Mixing all of them could mean one thing – accident-prone driving.

    It sounds unfair, but that is how the insurance industry works. It is a business venture and … Click here to read more

  • The Teens And The Insurance Company

    by Hayden Krueger

    In the United States, if you are 18 and you passed the driving test, you are eligible to get a valid driver’s license. In some countries, teens as early as 16 years old can obtain a full-pledged driving license, but that is another story.  As with any agent would tell you, insuring your sons or daughters these days is pretty much expensive.

    The reason behind, is that teen car insurance is considered as a high-risk coverage most especially for the male drivers. Any insurance providers would agree that drivers from this age group usually engage in risky driving habits and irresponsible behaviors. Additionally, today’s modern cars are equipped with attention-grabbing devices such as radios, CD players, iPods, the use of mobile phones while driving and carrying rowdy and noisy friends that eventually distracts the guy behind the wheel. The situation gets even more alarming when the National Highway Traffic Safety … Click here to read more

  • Are You Paying That Much Or Less?

    by Hayden Krueger

    People who are living in North Dakota are enjoying the lowest car insurance rates anywhere in the United States, according to the recent survey. If you are feeling otherwise, then something must be wrong with you, kidding.

    On the average, North Dakotans are paying $512 a year for their car insurance policies. Iowa, landed on the second spot with just well over $518 a year.

    These rates vary year after year, but generally, these rates are being enjoyed by the drivers in the Great Plains (having the lowest rates in the U.S. soil), then followed by those situated in the southeast regions.

    So what is the most expensive city?

    New Jersey is on top of our list, followed by Washington DC, New York and Massachusetts.  This no longer surprises us because from DC down to Boston – huge bustling cities are everywhere.  As we all know, busy cities with a … Click here to read more

  • Medical Costs Are Raising Michigan’s Auto Insurance Premiums

    by Hayden Krueger

    When it comes to medical advancement, there is no doubt that America has the best health care services in the world. The high cost of medical services could justify such but many thought that they are getting for less.

    The defects in the U.S. health care system will have a direct impact to the auto insurance industry. It has been noted that the medical treatment in this country rises up to 40% each year. And since portion of your auto insurance policy covers injuries during the accident, insurance providers would need to pass the said increase to their policyholders for the business to remain profitable – this situation happened to Michigan this year.

    All states in the U.S. have some sort of “no fault” insurance law, but in Michigan, they are carrying it in a different way. Apparently, the reason for the increase of auto insurance rates in Michigan was … Click here to read more

  • Hang Up That Mobile Phone And Drive!

    by Hayden Krueger

    Mobile phone is life’s essential and in fact, many of us could not live a day another day touching our cell phones. However, recent statistics indicate that roughly 80% of all car-related accidents are caused by the distractions of the driver when using cell phones while driving.

    Many U.S. states have identified the impending dangers of mobile phones and passed numerous legislations to require the drivers to use “hand-free” devices when talking inside their cars. Interestingly, people continued to disregard the said laws and in fact, added other equally dangerous acts of texting and surfing while driving!

    This problem is not isolated in the U.S. but in the U.K. as well where there is an increase of about 40% in 2008 of the drivers receiving citations for using their mobiles phone while operating their cars.

    The grim statistics

    According to the experts from University of Utah, the distraction caused by … Click here to read more

  • New Jersey is Cracking Down Careless Pedestrians

    by Hayden Krueger

    One morning, you are driving for work and witnessed a pedestrian being hit by a motorist. You cannot help but think how careless the driver was to hit the poor guy. Well, the assumption may or may not be true because there are times that even the most vigilant driver becomes the victim of careless pedestrians. 

    According to the report of Washington University in St. Louis Missouri, more than half or about 51% of all the reported accidents, pedestrians were found to be at-fault.

    The personal responsibility

    Many states recognize that being safe on the road is not the sole responsibility of the drivers but to the pedestrians as well. In fact, in the State of Colorado, the law clearly indicates that pedestrians must wait and give ample time for the vehicle to full stop before entering the crosswalk.

    There are also existing pedestrian laws such as anti-jaywalking and crossing … Click here to read more

  • Women Drivers: Making Our Roads Safer

    by Hayden Krueger

    When it comes to driving, men are far better than women. But if we talk about risk, auto insurance companies tend to be on the women’s side – the actuarial table’s verdict.

    There were numerous studies conducted to support the validity of these claims. Just recently, a study from Carnegie Mellon University (CMU) and reports from Insurance Institute for Highway Safety (IIHS) indicates that women drivers are indeed less risky on the road.

    What the data is showing us

    Back in 2007, American Automobile Association decided to sponsor a controlled study to determine how often men or women are involved in an accident. When the report was finally revealed, it was found out that men are more likely to be killed in a collision accident than women. On the same year, IIHS has recorded at least 14,500 traffic facilities involving men and only 6,000 amongst the women group.

    Will age … Click here to read more