Auto Insurance News Archive for August, 2009

• Experts Advise Updating Insurance to Save Money

  by Jeanny Hopper
  

  Insurance specialists are advising car owners and policyholders to update their insurance policies to avoid unnecessary expenses and eventually save money. According to experts, many policyholders who stay with the same insurance providers for several years fail to update their policies and coverage regularly. This has resulted in wasteful spending of money, especially if the car owners entrust their policies to company representatives. For instance, a new car five years ago would be well protected if a car owner purchased comprehensive and collision coverage. Now, however, it would often be better for policyholders to pay for any minor damages from … (more) August 23, 2009

• Poor Economy Forcing Car Insurance to Drop

  by Jeanny Hopper
  

  Despite the growing optimism that the U.S. economy is finally clawing its way out of the biggest recession in five decades, analysts are cautioning against premature speculation. The economic turndown has affected many industries, including the car insurance industry. However, the poor economy has turned up some unexpected results. Insurance specialists say that because of the economic slump and the unstable job market, the demand for car insurance has dropped significantly. With many Americans struggling to make ends meet and retain long-term employment, insurance providers are on the lookout for fresh clients in order for them to stay afloat. Industry … (more) August 22, 2009

• Importance of Insurance Stressed

  by Jeanny Hopper
  

  Insurance specialists have expressed alarm over the rising cases of uninsured drivers across the U.S. With the recession still enveloping the economy, jobs are increasingly becoming scarce. The unstable job market and rising unemployment figures are forcing many car owners to do without their car insurance. Experts warn that driving without insurance can result to serious legal consequences if the motorists are caught. Recent studies suggest that one out of seven drivers on American roads are uninsured. This is expected to rise in the next few months especially if the jobless figures remain unchanged or worsen. Experts say that there … (more) August 22, 2009

• Car Insurance in Michigan to Go Up

  by Jeanny Hopper
  

  Car owners in the state of Michigan will soon have to pay more for their auto insurance. Beginning on July 1 of next year, motorists in the state will have to shell out an average of $20 more for insurance. That figure totals to around $124 per household. The extra insurance collection will help provide much needed resources to the Catastrophic Fund, a special reserve fund set aside to help motorists who are seriously injured in a car accident. While the objective of the rate hike may seem to be noble, some motorists are not so pleased with the plan. … (more) August 21, 2009

• Insurance Fix in Massachusetts Irks Small Insurers

  by Jeanny Hopper
  

  Small time insurance providers in the state of Massachusetts are voicing out their sentiments over the state government’s plans to further deregulate the insurance industry. Massachusetts’ Department of Insurance is set to implement a new auto insurance method called “managed competition” to encourage the entry of new insurers and hopefully result in lower premiums. Despite the highly ambitious plan, state Governor Deval Patrick and his insurance commissioner Nonnie Brunes are receiving flak from small-time inner city insurers. The small firms argue that the changes are threatening to drive them out of business. The state government and the insurance division have … (more) August 21, 2009

• Car Insurance Perks Stressed

  by Jeanny Hopper
  

  Insurance industry experts are recommending car owners and policyholders to make good use of the less-known benefits that come with their insurance policies. According to specialists, many American motorists fail to understand the importance of having substantial insurance coverage. They add that by sampling adding a few more dollars, car owners can further protect their vehicles and investments better. Unbeknownst to many policyholders, insurance companies typically offer special perks and benefits along with conventional coverage and policies. Experts say that Americans must realize the full potential of taking on these perks as added options. By including these options, policyholders can … (more) August 20, 2009

• Experts Warn Against New California Auto Parts Bill

  by Jeanny Hopper
  

  Legal experts are warning against the possible implementation of a new law that will allow insurers to pressure policyholders into honoring a specific repair shop. Under current California state laws, insurance companies are prohibited from steering their clients to the firms’ preferred body shops. A new bill sponsored by the industry is set to change all that. Democrat assemblywoman Mary Hayashi introduced AB1200 recently in a bid to relax the regulations surrounding California’s consumer protection measures. Industry players have been lobbying for several years now to allow the importation and use of replacement parts from other countries. However, their attempts … (more) August 20, 2009

• Policyholders Satisfied with Car Insurance Companies

  by Jeanny Hopper
  

  Despite the economic upheaval, more Americans are satisfied with their auto insurance providers now more than ever. A study conducted by J.D. Power and Associates revealed that car owners are increasingly satisfied with their insurers this year, mostly because of lower premiums. Industry specialists say that the ongoing price wars are forcing providers to slash insurance rates to attract customers. This has led to a major drop in the national average insurance premiums. In fact, the most recent figures suggest that the average is the lowest in over a year. The research body found out that overall satisfaction this year … (more) August 19, 2009

• Price Wars a Boom for Car Owners

  by Jeanny Hopper
  

  The poor performance of the U.S. economy has led to an unexpected decline in the demand for car insurance. This has resulted in insurers scrambling for clients to remain afloat, experts say. While the car insurance industry is struggling, car owners and policyholders can actually benefit from the situation. Because insurance providers are desperate to find new customers or even retain their old ones, insurance premiums are going down. Competition among insurers is becoming increasingly tougher, with companies doing everything to entice new clients. Analysts say that this trend is expected to continue for several months until the economy shows … (more) August 19, 2009

• Higher Michigan Premiums Blamed on State Supreme Court

  by Jeanny Hopper
  

  The state Supreme Court of Michigan is under fire after voting to force an insurers’ association to reimburse insurance providers in connection with the health care of two brain-damaged car crash victims. The court elected (4-3) to require the Michigan Catastrophic Claims Association (MCCA) to pay insurance companies for the providers’ payouts to the families of two seriously injured policyholders. The victims, Daniel Migdal and Robert Allen, require round-the-clock medical attention since they figured in two separate accidents. Both patients suffer from severe brain damage as a result of their injuries. Insurance companies established the MCCA in 1978 to compensate … (more) August 18, 2009

• Parents Advised to get Cheaper Teen Insurance

  by Jeanny Hopper
  

  Insurance specialists are advising parents of college students to seek alternatives to expensive car insurance. With the start of the new school year in fall, millions of young Americans are expected to rush to thousands of colleges and universities across the nation. Parents are also trying to keep up with the increasing costs of sending their children to college. The tough economic situation is forcing many households to cut back on some traditional expenses and maximize whatever income they receive. This has lead to a sharp decline in auto insurance. The drop has also affected a large number of young … (more) August 18, 2009

• Experts: Factors Affect ‘Clunkers’ Savings

  by Jeanny Hopper
  

  The popular Car Allowance Rebate System (CARS) of the federal government may not be as promising as it seems, according to several insurance experts. Analysts say that car owners who lack the knowledge about the “cash for clunkers” program can actually spend more money in the long run, instead of saving thousands of dollars through the rebates. Car owners who trade in their gas-guzzling vehicles can qualify for as much as $4,500 from the federal government. Drivers can only get the maximum amount if the new car they are planning to purchase gets more than a 10 mpg improvement over … (more) August 17, 2009

• Illinois Bans Texting while Driving to Reduce Premiums

  by Jeanny Hopper
  

  Citing studies and researches about driver distractions, the state of Illinois recently passed a bill into law prohibiting motorists from using their mobile phones while driving. State Governor Pat Quinn and State Secretary Jesse White signed the new law just last week in an effort to curb the increasing number of car accidents associated with driver distraction. The new law took effect August 6 of this year and is set to help reduce injuries and fatalities caused by distracted drivers using their cell phones. Motorists caught texting or making calls will be pulled over by law enforcers and fined $75. … (more) August 17, 2009

• Car Insurance Rates Ever-Changing, says Specialists

  by Jeanny Hopper
  

  Contrary to popular belief, auto insurance rates are never the same for everyone. In fact, car insurance companies depend on different factors to come up with the rates. Experts say that premiums differ from one car owner to the other because of the different circumstances governing them. Industry specialists are cautioning against the use of the term “car insurance rates” since it can be misleading. They argue that it does not actually exist because providers rely on various aspects to come up with premiums. No two rates are ever the same because of the subtle differences between car owners. For … (more) August 16, 2009

• Insurance Rates Control Tips Revealed

  by Jeanny Hopper
  

  It is a well-known fact that car insurance rates are determined by different, equally-important factors. These aspects control insurance quotes and eventually, premiums. Experts say that knowing how to use these factors to car owner’s advantage can help them push insurance rates down to more affordable and manageable levels. First, policyholders have to know what factors they cannot control or alter. For example, a car owner’s age and age group can never be changed. Naturally, so is gender. The driver’ place of residence is also one factor that cannot be changed easily. Insurance providers also consider the policyholder’s location to … (more) August 16, 2009

• Experts: Americans not Saving Enough from ‘Clunkers’ Program

  by Jeanny Hopper
  

  The revival of the popular incentives program by the federal government is prompting some insurance specialists to caution prospective applicants. According to several experts, the Car Allowance Rebate System (CARS) can actually give many Americans false hope regarding expected savings. Experts familiar with the federal program say that the CARS program, also known as the “cash for clunkers” program, does not necessarily guarantee large savings for car owners who trade in their old vehicles. The ‘clunkers’ program aims to get aging cars off the nation’s roads and replace them with more economical vehicles. Applicants can get the maximum amount, $4,500, … (more) August 15, 2009

• Insurance Premiums Fall in Time for Return to School

  by Jeanny Hopper
  

  With a new school year just around the corner, parents and students alike are preparing once more for another year of education and of course, expenses. Some Americans reeling from the economic slump are bracing themselves for a more expenditures with the opening of classes. Parents with children in college are also finding it even harder to find ways to cut unnecessary expenses. Increasing education costs, rising living expenses, and costly car insurance are forcing many families to cut back on some lifestyle features just to send children to college. According to experts, however, many American families are in for … (more) August 15, 2009