Auto Insurance News Archive for November, 2009

• Changes Set to be Made to Eliminate New York No Fault Fraud

  by Jeanny Hopper
  

  In an attempt to lessen and eventually eradiate fraud, the New York State Insurance Department is proposing that changes be made for no-fault auto insurance coverage. Fraud on no-fault insurance is said to be an emerging problem in New York. Reports from the Department show more than 11,000 no-fault fraud complaints year to date, approximately 7% more than the number of complaints received last year. The proposed changes include regulations that will increase the number of information required on medical forms, and reduce the need for additional verification by insurance companies. Experts believe that these changes are necessary in hastening … (more) November 30, 2009

• Is Mobile Phone Usage the next threat on road safety?

  by Jeanny Hopper
  

  The Insurance Information Institute has recently conducted a research that the use of mobile phones while driving on the road is starting to be a growing concern in certain states in the US.  According to the results of the study, calling or texting while driving can be one of the greatest problems on US roads. According to industry experts, almost all US drivers own a mobile phone, and all of them are prone to making and answering a call or sending and reading text messages while behind the wheel. Loosing focus because of being caught in an important call or … (more) November 30, 2009

• Are Florida Insurance Requirements Not Enough?

  by Jeanny Hopper
  

  The state of Florida mandates its drivers to carry a car insurance policy that includes the coverage for both damage to third party properties and personal damages. However, a recent study conducted by a major insurance consultancy firm in Florida reveals that motorists think about buying higher limits on top of the minimum requirements due to the fact that the added coverage may be relatively low compared to the cost of property damage and medical expenses caused by being involved in a car accident. According to reports, state authorities in Florida are considering to upgrade their insurance laws and increase … (more) November 29, 2009

• Thousands of Denver Drivers still Uninsured

  by Jeanny Hopper
  

  Thousands of motorists on the public roads of Denver, Colorado still do not have Denver auto insurance despite the state laws in mandating it. Authorities now question if the almost 40 years of mandating car insurance is really effective in making the laws any safer. Insurance industry experts say that insurance mandates in Denver failed to achieve the goal of lowering the number of car accidents and lowering the costs of car insurance. According to University of Pennsylvania Professor Scott Harrington, the problem with mandates is that you can never expect for everyone to comply. He adds that while vehicle … (more) November 29, 2009

• Consumers Confused Why Premium Rates Go Up While Consumer Rates Go Down

  by Jeanny Hopper
  

  According to many insurance consultancy companies, more and more motorists are confused as to why the rates of car insurance premiums continue to go up when the prices of most consumer products have started to decline. Speculations say that reports about the motorists’ confusion came out as an effect of the U.S. Department of Labor’s declaration early this week. The U.S. Department released information revealing that the Consumer Price Index went down by 2% from last year to October of 2009. The Consumer Price Index is a very reliable indicator that measures the cost of majority of the things consumers … (more) November 28, 2009

• High Unemployment Rates may lead to More Uninsured Drivers in California

  by Jeanny Hopper
  

  Motorists in California are now starting to be afraid that auto insurance will soon become a thing for the privileged few who can afford it. As both car insurance premium rates and unemployment rates go in the same upward direction, it’s only a matter of time until drivers run the risk of driving without being insured. According to reports, the state of California may be facing problems regarding unemployment. In the San Joaquin Valley in central California where a huge number of former employees were retrenched, high unemployment may result to more car owners driving in the state’s public roads … (more) November 28, 2009

• Wisconsin Congressmen Thinking Of Expanding Auto Coverage

  by Jeanny Hopper
  

  Wisconsin lawmakers are contemplating if there is a need to expand auto insurance coverage for residents or not.  They are looking into the possible financial repercussions of changing the mandated coverage requirements, if in the long run it would prove to be costly for drivers. In June of this year, legislators passed amendments to existing auto insurance laws, primary of which was making auto coverage for Wisconsin motorists mandatory.  However, the minimum coverage requirements are not that clearly defined and there have been some discussions about overhauling the concerned provision in the bill. For example, in cases of collisions with … (more) November 27, 2009

• Auto Insurance Company Offers Incentives to Policyholders Who Will Use A Call-Blocking Program

  by Jeanny Hopper
  

  Experts frown at the practice of using one’s mobile phone while driving.  There have been a number of studies that point to the danger of one’s attention getting distracted by texting or talking on the phone.  Research revealed that it’s as dangerous if not as dangerous as driving while under the influence of alcohol. When one is talking on the phone while his other hand is on the wheel, he is putting himself at great risk of figuring in a vehicular accident.  Since one’s attention is divided it is harder to focus on one thing, and driving demands the full … (more) November 27, 2009

• PIP Fee Schedule to be implemented in New Jersey

  by Jeanny Hopper
  

  The New Jersey Supreme Court has finally decided to allow the state’s insurance regulator to start implementing a medical fee schedule for the expenses to be paid for by Personal Injury Protection policy or PIP. According to reports, the Supreme Court decision supports the August decision made by a State Appeals Court. New Jersey Department of Banking and Insurance Commissioner, Neil N. Jasey, said in an interview that he is very happy and thankful for the decision made by the Supreme Court. According to him, he feels that many years of diligent work conducted by his Department have finally paid … (more) November 26, 2009

• Plea Bargain Granted to Philadelphia Arson Case

  by Jeanny Hopper
  

  Another arson case is put to an end as a former assistant fire chief who has been indicted to be guilty of starting two small fires in small town near Philadelphia has settled for a plea bargain setting him temporarily free from jail. Robert Tracey Jr., a 37-year-old citizen from Coatesville, Pennsylvania was included in the seven suspects who have been previously arrested in relation to a number of fires in and around Coatesville last February 2008. According to reports, it was a Chester County judge that allowed Robert Tracey Jr.’s plea bargain. Reports indicate that the County judge approved … (more) November 26, 2009

• Bill to Weed Out Unfit Elderly Massachusetts Drivers Still on Debate

  by Jeanny Hopper
  

  Massachusetts lawmakers are caught up on deciding whether to approve or not to approve a bill that will make it mandatory for Massachusetts drivers who are aged 75 and above to pass physical and cognitive examinations each time they wish to renew their driver’s license and policy papers. According to reports, State legislators are yet to decide whether to ratify the said bill or not. Legislation on the bill gained momentum during summer where an increase in the number of vehicle accidents involving elderly motorists soared. However, for the past weeks, the bill has been stalled and is waiting for … (more) November 25, 2009

• New Hampshire Promotes Safe Holiday Driving

  by Jeanny Hopper
  

  New Hampshire is set to begin a campaign that will promote a safe holiday for motorists as a response to the state’s problem on high rates of drunk or drugged drivers during the holiday season. According to reports, an estimated number of 200 State officials are expected to take part in launching the campaign to be held at the governor’s yearly highway safety gathering in Meredith, New Hampshire. Records from the Insurance Information Institute say that in New Hampshire, the number of insurance claims filed go up by a whopping 20% during the months of December and January. Much of … (more) November 25, 2009

• Local Motorist Groups vs. HB 101

  by Jeanny Hopper
  

  Local motorist groups in Utah are wondering if House Bill 110 is really being used according to its purpose or not. House Bill 110, which was successfully completed last March 6, 2002, aims to allow insurance provides to make use of the credit-based insurance scores for the initial underwriting in car insurance. When it comes to how companies charge premium rates, the bill limits the use of such scores only when it is to provide consumer discounts. According to the National Association of Independent Insurers, the legislative action simply makes the use of credit-based scores useless. In addition, the organization … (more) November 24, 2009

• Uninsured Drivers Pose Risk

  by Jeanny Hopper
  

  The alarm for uninsured motorist is on as some states remain lenient about letting their motorists drive freely without the need to purchase car insurance policy first. According to a recent study conducted by the Insurance Research Council, one out of every seven US drivers go and ride freely without being insured first. Reports from the Insurance Information Institute show that drivers who do not have car insurance pose a great of threat once they get on the road – when an uninsured motorist causes a road accident and he isn’t capable of paying the damages, the injured party would … (more) November 24, 2009

• Court Awards $15 million to Autobody Association of Connecticut

  by Jeanny Hopper
  

  The Autobody Association of Connecticut was awarded $15 million by a Stamford Superior Court on Tuesday November 17 after it had found The Hartford Insurance Company, the defendant in the case, guilty of engaging in unfair business practices. The case filed by the Connecticut auto group and three of its members had been on trial for six years, and stemmed from what the ABAC believed as unjust practices of Hartford Insurance Company, that was in blatant violation of Connecticut’s state laws. The jury was unanimous in its decision to convict the insurer guilty of the charges filed against it by … (more) November 23, 2009

• Progressive Hikes Auto Premiums

  by Jeanny Hopper
  

  Auto insurance giant Progressive Corporation has recently increased insurance rates for policies that are sold through agents and consumers.  The hikes were very minimal and for the most part, were up by just 1%. Motorists, who had to make adjustments to their lifestyles due to the recent economic crunch, are still paying less, with many motorists opting for less coverage in their auto insurance and driving older model cars. Progressive Corporation believes that with the country’s current weak economic prospects, some policyholders might take advantage of their auto insurance policies and file false claims for injuries or damages sustained during … (more) November 23, 2009

• Californians Can Now Get A Low-Cost Auto Insurance

  by Jeanny Hopper
  

  Due to the tough economic times, many residents of San Joaquin Valley (just like most residents in California) are being forced to let go of some conveniences — auto insurance included.  With unemployment at an all time high, more and more Californian motorists are choosing to hit the road uninsured.  Affected drivers feel that car insurance is not a necessity but more a financial burden.  Faced with budgetary constraints, a lot of people are forced to downplay the benefits of auto coverage. State officials on the other hand are set to change the mindset of Californians and are on a … (more) November 22, 2009