Auto Insurance News Archive for September, 2009

Tucson to Place Strict Sanctions on Insurance Proofs
by Jeanny Hopper

Tucson City, Arizona- City court ruled out last Friday in favor of greater sanctions against drivers who cannot show proof of insurance. Higher fines and suspension of license and registration will be imposed on violators. The decision came after Tucson City Court noted that no proof of insurance has become the most common citations they get. The court decision will take into effect starting October 1. Before, a driver who is caught with no proof of insurance will be cited by traffic officers and his case is brought to court. If the driver is able to present the necessary documents, … (more) September 30, 2009
New “Deer” Statistics Set to Raise Insurance Rates in Michigan
by Jeanny Hopper

A recent study reveals that Michigan is second in the whole United States when it comes to deer collisions. Industry analysts say that the statistics could be used by insurance providers as a basis for another round of price hike in Michigan. A study sponsored by a group of Michigan auto insurance companies show that drivers in Michigan have a one in 78 chance of colliding with a deer. This places Michigan in number two spot for such car crashes, just next West Virginia with a one in 39 chance. Statistics also reveal that most collisions happen around October, November, … (more) September 30, 2009
Texas to Raise State Requirements in Two Years, Rates Expected to Rise
by Jeanny Hopper

Insurance regulators in Texas announce that the state will increase requirements for Texas auto insurance policies by 2011. Analysts believe that the new mandate could inevitably trigger another round of increase in the premium rates. Texas Department of Insurance plans to revise the current provisions on minimum insurance liability requirements in the state. Industry analysts say that the decision came after TDI perceived that medical and repair costs for automobiles are set to increase significantly in the near future, adding that it is a safeguard to make sure that drivers have enough coverage to protect them when they need it. … (more) September 29, 2009
Auto Insurance Cost in Dallas-Fort Worth Climbs by Double Digits within a Year
by Jeanny Hopper

Vehicle owners in Dallas area saw their insurance rates rise by 10 percent in a year, causing consumer groups to raise alarms. Insurers say that much of the increase is boosted by the rise in liability cost, which makes up half of a premium rate. But consumer groups say that poor return in the industry is the real reason behind it. North and South Dallas, Duncanville, Garland, Irving, and Richardson are all affected by insurance cost hike. Last year’s monthly premium rate was at $556. This was for 25- to 65-year old male drivers who drive their car from home … (more) September 29, 2009
Insurers Warn Policyholders to Drive Safer in Fall
by Jeanny Hopper

Experts from the auto insurance industry are cautioning motorists against the hazards that fall season may bring. Analysts contend that more drivers get involved in accidents during this particular season because of the change in weather and the overall change in road conditions. The start of classes can also affect the safety of passengers and drivers alike. Safety experts are telling drivers across the U.S. to practice safe driving especially during the early morning and late afternoon rush. Roads may be filled with school buses and street leading to schools can be crowded with students heading back to school. Motorists … (more) September 28, 2009
Texans to See Car Insurance Rates Rise
by Jeanny Hopper

Car owners and motorists living in the state of Texas will have to live with higher insurance costs in 2011 if the state’s department of insurance has its way. According to sources from the Texas auto insurance industry and other experts, the state government is poised to introduce another round of changes to the minimum liability amounts required by law. State officials last increased the minimum liability amounts on April 1 last year. Even then, officials have hinted at another increase in the coming years. Those changes are expected to take place on the first day of the year in … (more) September 28, 2009
Zip Codes No Longer Rate Factors in Car Insurance Premiums in Milwaukee
by Jeanny Hopper

With a proposal at works in the state Legislature of Milwaukee, car insurance would soon cost pretty much the same regardless of your place of residence. Whether you live in an area posting high risks or in a rural town that is not too populated, car insurance would still cost the same. This is in response to the movement of Democratic legislators who pushed for the revival of the plan, in spite of Governor Doyle’s veto movement of a similar measure, as included in the current state budget. In general, car insurance per vehicle would cost approximately 50% to 60% … (more) September 27, 2009
With Car Insurance Changes come Higher Premiums
by Jeanny Hopper

State laws pertaining to car insurance have changed particularly in Appleton, Wisconsin, thanks to the law that was signed by Governor Doyle, which takes effect November this year. The state of Wisconsin does not really require its drivers to take out car insurance policies, which leads to a lot of trouble especially during cases where the driver at fault is not insured or is under-insured. A related change is also the requirement of boosting the coverage levels to a fixed minimum. Residents of Wisconsin are showing mixed emotions towards these changes. Todd Talady of Appleton says that he is pleased … (more) September 27, 2009
Travelers Advised to Take out Rental Car Insurance
by Jeanny Hopper

More and more car insurance experts are advising traveling motorists to take out additional protection when renting vehicles that they use when traveling out of town. Today’s rental companies are forced to implement stricter laws when it comes to damages to any of their rental vehicles. This is because repair costs and the prices of cars’ spare parts are steadily rising. Having supplemental protection through rental car insurance would then help travelers avoid having to pay large amounts just to cover repairs. There is also the fact that the problems of motorists tend to become bigger and more serious if … (more) September 26, 2009
Auto Insurance is Equal to Health Insurance
by Jeanny Hopper

President Obama and his administration caused quite a stir with their analogy of health insurance and auto insurance. In the administration’s attempt to build a strong case for mandated health insurance, the President and Congressional Democrats are claiming that getting health coverage is as important as getting auto insurance. During his address to Congress last week, Obama says that the insurance reforms people seek today won’t be achieved unless everyone does their part. One of the reforms being sought after today is the requiring of insurance companies to provide coverage for preexisting conditions. Obama continues that this is the underlying … (more) September 26, 2009
New Arizona Insurance Law Draws Cheers, Jeers
by Jeanny Hopper

A new law set to be implemented in October has divided many Arizonians. The new provision will revise the existing insurance laws of the state and impose stiffer penalties on motorists caught without proof of insurance. At present, Arizona law requires all drivers to have proof of policy whenever law enforcers ask for them. Failure to present proof will automatically mean a fine and a court date. Drivers who have Arizona auto insurance but for any reason fail to provide proof to law enforcers can see the charges drop if they have valid insurance. However, the rising numbers of uninsured … (more) September 25, 2009
Providers say New Drivers more Expensive to Insure
by Jeanny Hopper

Sources from the auto insurance industry called on inexperienced motorists to find better ways to slash premiums in the face of higher insurance rates. According to experts, providers usually slap on higher premiums on younger drivers because of the risk they present. Because insurance companies determine rates based on several factors, most importantly risks, inexperienced motorists tend to garner more costly insurance. Providers also categorize policyholders according to their age groups, with some age groups more expensive to insure than others. Analysts point out that drivers aged 16 to 25 are notoriously costly to insure because of the lack of … (more) September 25, 2009
Car Owners Urged to Switch Insurers to Save Money
by Jeanny Hopper

Leading auto insurance industry experts are calling on car owners and policyholders to consider switching to other providers to get significant savings. According to industry sources, the high demand for insurance coverage is causing tougher competition among providers. They add that this is potential good news for motorists who may be looking forward to saving more money as the global economic recession rages on. Several noted industry analysts also supported the idea of finding new providers to avail of lower premiums. Experts say that car owners can make use of lesser known facts like the increasing competition among insurers to … (more) September 24, 2009
Insurers Warn Rates may Risen with Wisconsin Law
by Jeanny Hopper

Representatives from insurance companies operating in the state of Wisconsin say that motorists who own multiple vehicles can expect premiums to rise with the implementation of a new law in Wisconsin mandating Wisconsin auto insurance. According to industry sources, Wisconsin’s approval of mandatory car insurance for all its car owners and motorists can result in skyrocketing insurance costs. Earlier this year, Gov. Jim Doyle approved the state budget for next year. A provision included in the budget bill calls for all motorists in Wisconsin to present proof of insurance during routine traffic stops. Law enforcement agencies would be requiring car … (more) September 24, 2009
Alaska, Florida see Highest Premiums-Wage Hike Gap
by Jeanny Hopper

The latest study conducted to assess the insurance industry reveals that the gap between increasing insurance costs and wage hikes has been widening in most states. Vice President Joe Biden addressed the National Association of Insurance Commissioners yesterday to tackle the issue of insurance rate reviews, a practice that would give insurance commissioners across the U.S. additional power to control hikes in premiums. According to a report prepared by the National Economic Council, policyholders in the state of Alaska and Florida have seen the biggest difference between insurance rate hikes and wage increases. Even analyst from the Alaska auto insurance … (more) September 23, 2009
Worst Cars for Insurance Costs Listed
by Jeanny Hopper

A new report released by one of the leading safety research firms in the U.S. revealed just how much extra money car owners have to pay for if they drive the wrong vehicles. According to the Highway Loss Data Institute or HLDI, Americans may be shelling out for more expensive insurance premiums because of the car models they drive. Industry experts contend that providers usually place emphasis on the safety records of the vehicles policyholders own and operate. As such, insurers often rely on independent and industry-sponsored researches and studies to find out which car models are more costly to … (more) September 23, 2009
Experts Claim Insurance Mandates Useless
by Jeanny Hopper

Several insurance experts claim that insurance mandates and sweeping changes to insurance policies are often rendered useless and punitive without the full support of the public and policyholders. Analysts are now shedding light on the full impact and effect mandatory insurance laws and revisions have on the presence of uninsured drivers across the U.S. According to sources from the insurance industry, too much emphasis has been given on government regulations designed and implemented to control industry practices in favor of car owners and motorists. As a result of the misplaced focus, they point out, states with tougher regulations and comprehensive … (more) September 22, 2009