Auto Insurance News Archive for August, 2009

New Car Safety Ratings to Affect Insurance Rates
by Jeanny Hopper

Car owners may soon find it more difficult to find cheaper car insurance if the plans of two major research bodies to upgrade their safety ratings take effect. Since auto insurance companies base premiums primarily on risk, tougher safety ratings can have negative effects on most car models’ assessment. The Insurance Institute for Highway Safety or IIHS is the insurance industry’s main safety research arm. It is responsible for testing how safe cars are and for setting the safety standards. Insurance providers rely heavily on the findings of the IIHS. At present, the institute’s rating system has three major levels, … (more) August 31, 2009
Car Owners Advised to Buy Complete Insurance
by Jeanny Hopper

The poor economy and unstable jobless rate is forcing many Americans to cut back on many expenses, including auto insurance. Industry analysts say that they have seen dramatic changes in the way car owners buy insurance, with many scaling back their coverage to save money. Worse, some drivers have decided to forgo insurance altogether. Insurance experts warn that with more underinsured and uninsured drivers on the road, it could only be a matter of time before they get in accidents involving law-abiding car owners. In fact, some states like New Mexico have announced that as much as 29 percent of … (more) August 31, 2009
College Students Told to Buy Metered Insurance
by Jeanny Hopper

With the new school year just a few weeks away, millions of American parents and their college-bound children are preparing for more expenses. The economic slowdown has further worsened the increasing education costs that many families have to contend with. Because of this, a large portion of the college populace across the U.S. has expressed their desire to spend less this year. In fact, a recent study conducted by the National Retail Federation found that 48 percent of back-to-college consumers have expressed concerns that the poor economy will affect their spending significantly. Analysts contend that the expected decrease in spending … (more) August 30, 2009
Lower Rates Advised despite Low Insurance Average
by Jeanny Hopper

Recent studies have revealed that the national average for auto insurance premiums is at its lowest level in more than a year. The news gave car owners across the U.S. something to cheer at despite the economic gloom. Analysts say that ongoing price wars among insurance providers are keeping premiums down. However, experts say that motorists should not be complacent and instead make use of the momentary improvement to find better insurance rates. At present, the national average for car insurance stands at $1,871. In some states and urban centers, however, the figure is much higher. For instance, insurance rates … (more) August 30, 2009
Experts Remind Motorists of Insurance Factors
by Jeanny Hopper

Auto insurance specialists are reminding car owners and drivers about the various factors often considered by insurance providers when determining rates. Experts say that many motorists overlook the importance of knowing and understanding these factors, adding that insurers assess risks based on them. Analysts also agree that one of the best ways to slash insurance costs would be for policyholders to know how to maximize their knowledge of factors affecting premiums. A primary consideration would be the age of the car owner. Younger, inexperienced motorists are generally charged higher insurance premiums. Because they lack driving experience and are often considered … (more) August 29, 2009
Cutting Back on Auto Insurance Poses Danger – Experts
by Jeanny Hopper

Auto insurance experts aired concerns in recent weeks about the alarming increase of car owners slashing insurance coverage to save money. While not illegal, cutting back on car insurance protection can have dire consequences, they argue. Many motorists who decide to lower insurance coverage or even completely do away with insurance can find themselves taking unnecessary risks and serious consequences. The slow economy is forcing many American motorists to resort to risky practices in order to scale down insurance expenses and hopefully save money. Experts, however, warn that skimping on essential insurance coverage can mean shelling out more money in … (more) August 29, 2009
Critics: Expensive Insurance Costing Detroit
by Jeanny Hopper

Outspoken critics of high car insurance premiums in the state of Michigan went on the offensive recently. Consumer advocates say that the expensive insurance coverage, particularly in the city of Detroit are forcing more and more people to resort to insurance fraud or drive without any form of insurance at all. Some analysts point out that Detroit, dubbed as one of the poorest big cities in the U.S., has the highest insurance rates across the nation. In fact, they argue that annual insurance premiums of $4,000 or more are common in the city. As a result, they say, more than … (more) August 28, 2009
Car Owners Advised to Lower Insurance Rates
by Jeanny Hopper

The national car insurance average is at a year-low figure of $1,871, according to industry analysts. Despite this, more American car owners are becoming even more desperate and dropping insurance coverage just to save on money. With the ongoing price wars and tougher competition among insurance providers, experts say that policyholders and motorists looking for insurance policies can find cheaper premiums and better terms. To discourage drivers from dropping their insurance, specialists are recommending several options that motorists can consider to save money. For instance, first time motorists and car owners have to consider the kind of cars they will … (more) August 28, 2009
California Reports Rise in Car Insurance Frauds
by Jeanny Hopper

Steve Poizner, California’s Insurance Commissioner recently reported that suspected insurance fraud cases in the state are on the rise. Poizner says that there was sharp spike in the number of auto arson and theft reports last year, compared to the previous years. To be exact, California’s Department of Insurance has seen suspected auto insurance fraud cases increase by 31 percent last year compared to 2007. Insurance providers, law enforcement agencies, and private citizens usually refer suspected incidents of fraud to state insurance officials. The Department of Insurance then investigates these reports and forwards probable fraud cases to the respective law … (more) August 27, 2009
Rising Premiums Feared in Automakers’ Collapse
by Jeanny Hopper

Insurance specialists and concerned policyholders are expressing apprehension over the possible increase in insurance costs if more American carmakers close shop. According to experts, if the current economic crisis forces major automakers to shut down, there could be a domino effect in the insurance industry. Analysts explain that insurance companies determine rates and premiums based on several factors, one of which is the availability of parts and repair services. Some vehicles and car models are more expensive to repair or replace in the event of an accident. The collapse of a major car manufacturer can mean spare parts that are … (more) August 27, 2009
Money Saving Tips Shared by Auto Insurance Experts
by Jeanny Hopper

In this time and age, saving money is always a top priority of any American family. The tough economy and the uneasy job market are making life even more difficult for families across the U.S. Despite the improving unemployment figures, economists are cautioning against speculating at an early stage regarding economic recovery. The uncertainty is taking its toll on millions of Americans, with more motorists choosing to forego their auto insurance to save money. Experts agree that getting rid of insurance coverage in order to save money is never a good decision. With more and more uninsured motorists on the … (more) August 26, 2009
Study: Americans Happy with their Auto Insurers
by Jeanny Hopper

Despite the economic downturn and uneasy job market, most American car owners are satisfied with their insurers. A recently published industry study by the Insurance Research Council (IRC) found out that an overwhelming portion of policyholders in the U.S. were happy with how their insurance providers performed. To be exact, 91 percent of the respondents interviewed by the researchers expressed different degrees of satisfaction with their current insurers. Sixty-one (61) percent of the consumers said that they were very satisfied with how their providers performed with the remaining thirty percent claiming that they were fairly satisfied with their insurers. The … (more) August 26, 2009
Importance of Car Insurance Stressed
by Jeanny Hopper

Experts and car safety specialists are calling on American car owners to renew their auto insurance policies regularly to avoid problems in the future. Industry specialists say that motorists need to ensure that they have sufficient coverage to avoid losing personal assets in the even they are sued for liability in a car accident. Not having suitable insurance, or not having any form of insurance at all, can have serious consequences for a car owner. Most states require drivers to present proof of insurance. In fact, the state of Wisconsin will be the 49th state to make car insurance mandatory. … (more) August 25, 2009
Last Day of ‘Clunkers’ Drives Insurance Searches Up
by Jeanny Hopper

Insurance analysts have noticed a sharp spike in the demand for car insurance as the Car Allowance Rebate System (CARS) federal program draws to an end today. Popularly known as the “cash for clunkers” or simply “clunkers” program, the CARS initiative run out of financial resources sooner than expected. Congress initially allotted $1 billion to finance new car purchases. The federal government launched the program to help boost car sales by offering substantial tax credits to Americans who want to trade in their aging vehicles. Car owners who qualified were then given anywhere from $3,500 to $4,500 in tax credit … (more) August 25, 2009
Experts Say Classic Car Insurance Crucial
by Jeanny Hopper

Most American motorists who own classic cars fail to understand the need for their vintage vehicles to have specialized protection. According to insurance specialists, classic cars require special attention especially when it comes to insurance. Unlike regular cars, the value of vintage models increase with time. This means that keeping it protected is crucial to maintain its value. Unfortunately, half of American classic car owners take out conventional insurance policies for their vehicles without realizing the value of specialized classic car insurance. Industry sources say that most motorists simply add their vintage vehicles to their existing insurance policy when in … (more) August 24, 2009
Wisconsin Insurance Industry to be Changed by New Bill
by Jeanny Hopper

The insurance landscape in the state of Wisconsin is set to change significantly next year with the passage of a historic new budget bill sponsored by Governor Jim Doyle. A new piece of legislation, called the “Truth in Auto Insurance” law, was introduced by the governor to state legislators, who promptly supported him. The new law would offer more protection to motorists in the state of Wisconsin by raising minimum liability amounts by requiring all car owners to have proof of insurance. Wisconsin’s $62 billion, two-year budget bill now includes provision for an increase in the state’s minimum liability coverage … (more) August 24, 2009
Corruption Seen in Massachusetts Car Insurance Body
by Jeanny Hopper

Massachusetts Governor Deval Patrick is under fire for allegedly using his political powers to illegally appoint a new member to the Auto Damage Appraisal Licensing Board or ADALB. According to some critics, Gov. Patrick violated the provisions set by law that dictates who should sit in the board. The ADALB is a special body that assesses and issues licenses to auto damage appraisals. Recently, the Gov. Patrick removed Joe Valariotti from the ADALB and replaced him with a woman from a prominent car insurance company. According to the law, the board should be composed of two representatives from the car … (more) August 23, 2009