Auto Insurance News Archive for July, 2009

  • Bad Economy Forcing Drivers to Find Car Insurance Bargains

    by Jeanny Hopper
    Bad Economy Forcing Drivers to Find Car Insurance Bargains

    As if bad credit scores and rising debts were not enough, car insurance rates have hit many Americans hard because of the economic recession. A recent market research revealed some changes in the behavior of most consumers looking to renew their car insurance. According to the study, less and less drivers are sticking with their existing auto insurance companies compared to previous years. Only 23 percent of American motorists have decided to stay with their car insurance providers. Eight years ago, the figure was much higher at 31 percent. A whopping 77 percent or more than three-quarters of consumers now … (more) July 5, 2009

  • Massachusetts Reports Lower Car Insurance Rates

    by Jeanny Hopper
    Massachusetts Reports Lower Car Insurance Rates

    Massachusetts’ Division of Insurance recently said that auto insurance costs in the state have fallen significantly more than a year after the government ceased setting rates. A state study revealed that in a one-year period from April 2008 to April of this year, car insurance rates fell 8.2 percent. The decline was 5.2 percent from 2006 to 2007. In April of last year, the state government allowed insurance providers to set their own rates. Officials described the move as a “managed competition” plan. The state government regulated insurance rates before deciding to let open competition bring down rates. By allowing … (more) July 5, 2009

  • GM, Chrysler Car Owners Worry over Insurance

    by Jeanny Hopper
    GM, Chrysler Car Owners Worry over Insurance

    Due to the economic recession, both General Motors and Chrysler have been forced to file for bankruptcy. The two giant car manufacturers have been iconic companies for many Americans and their financial problems are upsetting many people who have transactions with them, especially auto insurance dealings. Over the months, more and more consumers have turned to the internet to seek advice and answers about their car warranties and insurance coverage. Media sites, blogs, and even advice columns have been flooded with a wide range of questions from GM and Chrysler car owners who fear having to contend with more financial … (more) July 4, 2009

  • Nevada to Try Usage-Based Car Insurance

    by Jeanny Hopper
    Nevada to Try Usage-Based Car Insurance

    Drivers in the state of Nevada may soon have something to grin about besides the magic of Las Vegas. A leading insurance company in the state is considering fielding a revolutionary car insurance rating system later this year. Dubbed as a usage-base rating system, the new system, its supporters say, will give more drivers better discounts and premiums that are more accurate. The consumers pay only for the distance they have driven and how they have driven, reveals some industry experts. Unlike a similar program also tested in the state of California, the usage-based system also takes into account how … (more) July 4, 2009

  • More Drivers Raising Deductibles

    by Jeanny Hopper
    More Drivers Raising Deductibles

    The continuous onslaught of the economic recession has hit many American motorists hard. Despite the grim situation, most drivers are choosing to retain the same level of auto coverage. To cut costs, some are resorting to increasing their deductibles, industry specialists and data reveal. A recent survey conducted by the Insurance Research Council has found out that 28 percent of respondents are looking for lower premium rates because of the recession. Another 15 percent expressed their readiness to increase policy deductibles or trim down on coverage to save more money. Industry players say that even before the economy turned for … (more) July 3, 2009

  • Car Insurance Prices Up In June

    by Jeanny Hopper
    Car Insurance Prices Up In June

    A recently conducted study revealed that car insurance rates increased in June compare to previous months. The average annual insurance rose to $1,884 last month after four straight months of declining rates. Compared to rates last October 2008, though, the latest figures are still better. The annual insurance cost back then was $1,982 for the entire nation. Experts say that the economic recession is forcing more Americans to forgo their insurance coverage to save money. As a result, car insurance companies are slapping higher rates for irresponsible drivers. This has had a negative effect on many policyholders and motorists across … (more) July 3, 2009

  • Policyholders Testify in D.C. vs. Auto Insurance Companies

    by Jeanny Hopper
    Policyholders Testify in D.C. vs. Auto Insurance Companies

    Consumers who say their car insurance providers duped them testified in Washington D.C. in a bid to support a proposed legislation making their insurers liable in court. The move comes as more people filed complains saying that their insurance claims were delayed, low-balled, or even denied by their insurers. Several groups expressed their support for the legislation, which is being hailed as a milestone in consumer protection. Consumer Watchdog joined advocacy groups, policyholders, and attorneys in calling for the swift passage of the bill intended to protect consumers from unscrupulous and abusive insurance firms. As part of the process, the … (more) July 2, 2009

  • Car Insurance Rates Up in Arizona

    by Jeanny Hopper
    Car Insurance Rates Up in Arizona

    A trend, which began last year among auto insurance providers in Arizona, has shown no end yet. The latest tally from the Arizona Department of Insurance reveals that of the many insurance companies operating in the state, 77.46 percent are or will increase premium rates. Of these providers, Colorado Casualty Insurance Co. posted a 30.20 percent hike. Its close competitor Garrison Property and Casualty Insurance Co., follows with a 30.20 rate increase. Colorado Casualty is a subsidiary of Liberty Mutual Group Company. Erin Klug, a spokeswoman for the Department of Insurance, says that companies have the entire year to report … (more) July 2, 2009

  • Comments Sought for Proposed Prepaid Car Insurance

    by Jeanny Hopper
    Comments Sought for Proposed Prepaid Car Insurance

    Steve Poizner, California’s Insurance Commissioner, is seeking comments and reactions from the public regarding regulations related to the proposed Pay-as-you-drive (PAYD) auto insurance. Poizner’s office will be accepting public comments until five in the afternoon on July 9. The proposed insurance program is set to be implemented in fall. The said insurance scheme involves insurers to calculate premium rates based on how much a driver takes his vehicle out on the road. Many groups have hailed the new initiative that aims to reduce the number of cars on the road and provide more accurate premium prices for consumers. Commissioner Poizner … (more) July 1, 2009

  • More Distracted Drivers Seen this Fourth of July Travel

    by Jeanny Hopper
    More Distracted Drivers Seen this Fourth of July Travel

    Millions of Americans are expected to hit the roads this coming Fourth of July weekend, once again raising concerns that distractions can cause drivers to lose their concentration. Some industry specialists say that the presence of potential distractions inside the car can lead to serious car crashes. Worse, a recent research conducted by a leading insurance provider reveals a disturbing trend. According to a recent survey by one of the nation’s top insurance companies, Nationwide Insurance, six out of ten drivers heading for the open roads this coming weekend expect to be available through their mobile phones and other electronic … (more) July 1, 2009