Auto Insurance News Archive for November, 2009

• Auto Insurance in Wisconsin Now compulsory

  by Jeanny Hopper
  

  A recently-enforced law in Wisconsin made insurance coverage mandatory to all motorists.  Also, insurance companies are now required to hike liability minimums of policyholders. Meme Fehr of Sandeen Insurance in Hudson explained that the recently passed laws were made during the budgetary hearings in the legislature, and did not go through the traditional path of legislation.  Some of the provisions of the new legislation were put into effect on November 1, while the rest will not be implemented until next year. Previously, Wisconsin was one of the four remaining states in the US where motorists were not required to have … (more) November 22, 2009

• Dallas Local Groups Remind Motorists that Safe Driving Can Control Premium Rates

  by Jeanny Hopper
  

  Local organizations in Dallas reiterate to car owners and drivers the importance of working on things you can control rather than focusing on things that you cannot change no matter what.  When it comes to Dallas auto insurance, local motorist groups in Dallas plan to hold a month long campaign during December to remind Texas drivers that safety in driving is the best way to control rising costs of Texas auto insurance. The plan of the local groups in Dallas started during the second week of November. Plans to promote safe driving include seminars on Dallas traffic regulations, responsible driving, … (more) November 21, 2009

• Wisconsin Upgrades Car Insurance Policies – Insurance Companies Taken by Surprise

  by Jeanny Hopper
  

  Drastic changes in laws governing auto insurance in the state of Wisconsin is happening to fast; too fast that even major insurance industry players are struggling to cope up with the sudden changes. New car insurance requirements took effect last November 1, and the other changes are set to become a law next year. Changes in Wisconsin State law mandates all motorists to have car insurance and calls for providers to increase liability minimum requirements. Changes in minimums have been effective at the beginning of 2009. On the other hand, liability insurance has become mandatory starting June 1. Starting January … (more) November 21, 2009

• Massachusetts Auto Insurance Agents Clamor for a “Fair” Premium Rating System

  by Jeanny Hopper
  

  Massachusetts Association of Insurance Agents President, Frank Mancini, together with some key people from his organization testified at the State House meeting last Thursday, November 12, in support of legislation that will make the ban on the use of socioeconomic factors in setting auto insurance premiums as part of State law. Auto insurance agents in Massachusetts all agree to stop considering socioeconomic factors in auto insurance rates. According to them, consumer-friendly bans must be done to make sure that auto insurance companies are doing their part in serving clients. Most Massachusetts insurance agents believe that drivers should be judged through … (more) November 20, 2009

• Motorists React to Premium Rate Hikes in Florida

  by Jeanny Hopper
  

  Reports from premium indexes of insurance companies in Altamonte Springs, Florida verify that the state’s average cost of Florida auto insurance for November averaged at $ 1,652.80, 3.3% higher than last year’s average. According to insurance industry insiders, there can never be a better time than now to get vehicle insurance as trends show an increase in rates year after year. While various insurance companies in Florida take most of the opportunity by luring motorists to promos and offers, the public blame these companies for the constant increase in premium rates. In Florida, public interest groups are starting to be … (more) November 20, 2009

• Million Dollar Bonuses Awarded to Maryland Automobile Insurance Fund Employees

  by Jeanny Hopper
  

  According to a legislative report in the state of Maryland, the state, thru an automobile insurance fund, recently gave employees a total of $1.4 million worth of bonuses, despite losses in 2008 amounting to $19.6 million. From its traditional method of rewarding bonuses during the end of a year, the board of the insurance fund changed its formula to award bonuses midyear, allowing bonuses to come through. Reports say that the group was going down deep into losses from last year, raising questions as to how they were able to award such bonuses. According to insurance insiders, the board of … (more) November 19, 2009

• Teenage Driving in New York Peak during Summer and Christmas Seasons

  by Jeanny Hopper
  

  In the state of New York, New York auto insurance purchases for teenage drivers peak during summer and Christmas season. This may be good news for insurance companies, but for parents of teenage drivers, the said seasons may not be worry-free for them. According to the Insurance Information Institute, sales for young driver’s car insurance soar during the months November, December, and March to June. Based on a research conducted by Students against Destructive Decisions, during summer, months between March to June, teenagers spend 44% more hours driving compared to any other months of the year. Another study conducted by … (more) November 19, 2009

• November a High Risk Month for Deer Collisions

  by Jeanny Hopper
  

  November is marked as a high risk month, and states such as Michigan and Virginia are flagged as high risk states by insurance providers due to the expected number of auto-deer collisions this season. For many insurance companies, deer and cars can be one deadly combination. Especially during the months of October, November, and December where deer mating and migration is at its peak, the chances of having an auto-deer collision are very fatal. Reports from the Insurance Information Institute say that the fourth quarter of every year brings forth a striking increase in the movement of deer population, causing … (more) November 18, 2009

• Protection Still Possible Even without Uninsured and Underinsured Coverage

  by Jeanny Hopper
  

  For certain states in the US, such as New York, getting concerned about uninsured drivers remains to be an option. New York and other states that still rules for uninsured and underinsured driver coverage to be optional, there are still ways to get protected from inadequately protected motorists. According a recent research conducted by the Insurance Information Institute, out of every seven motorists in the United States does not have enough protection from auto insurance; and even though it’s only 1 out of 7, those with inadequately protection can greatly cause repercussions for insured motorists. Reports say that Insurance companies … (more) November 18, 2009

• Michigan Car Insurance Can Be More Affordable in 2010

  by Jeanny Hopper
  

  A lot of people complain about prohibitive car insurance fees that almost cost an arm and a leg.  Some people opt not to sign in to one not seeing any practicality to something that is rarely used, but can burn a hole in one’s pocket.  In these challenging times where every buck counts, a lot of people would view car insurance as a nuisance and unnecessary.  They would rather use the money for more important matters. In Michigan, local politics is making headway in alleviating people’s financial woes with a State election panel approving an earlier petition to conduct a … (more) November 17, 2009

• Pay-as-you-drive Insurance Plans Inching Closer in the State of California

  by Jeanny Hopper
  

  Recent developments in California signal changes in the insurance landscape of the State.  California Insurance Commissioner, Steve Poizner, recently released policies that in effect permit monitoring and verification of miles used for pay-as-you-drive insurance plans. The system of pay-as-you drive insurance plans is similar to pre-paid mobile phones, where policyholders pay premium based on the number of miles travelled, as in the case of phone subscribers, they only pay for minutes consumed. In effect, the lesser one drives, the lesser he pays; the more one drives the more premium he pays. This type of plan is very democratic and highly … (more) November 17, 2009

• Economic Downturn Increases Risk

  by Jeanny Hopper
  

  More often than not, road accidents lead to serious injury and loss, not only to property, but also life. Surviving family and friends do not only deal with emotional stress, but also financial distress.  Things turn up a notch higher in these difficult business conditions where people forego a lot of conveniences because of tight finances. Just recently a massive traffic accident occurred in Louisiana that resulted in the deaths of five people.  The lone survivor of the accident, an elderly woman broke both her legs.  She lost her son, grandchildren, and daughter who all perished in the mishap.  The … (more) November 16, 2009

• Ailing GMAC to Receive Another Shot in the Arm from the Government

  by Jeanny Hopper
  

  The Federal Reserve has infused another tranche of capital to GMAC with the approval of additional $6.5 billion bailout money.  However, the beleaguered financial company appears to be almost relying purely on government funds to keep it afloat, and does not show any clear signs of making a turnaround. The government has already shelled out huge amounts of bailout money to ailing companies in light of this economic downturn that hit the country recently.  GMAC has yet to show signs of recovery and was the only one of 19 major financial institutions that received financial assistance from the government which … (more) November 16, 2009

• Maryland Insurance Companies Fined for Mishandling Premiums

  by Jeanny Hopper
  

  Almost half of the 119 automobile insurance companies in Maryland have been reprimanded and charged with fines by state insurance authorities during the second quarter of 2009 for mishandling of auto insurance premiums and other fees. According to reports, Insurance authorities in Maryland fined the approximately 59 auto insurance companies nearly $400,000 in reimbursement to car owners and a total of 235,000 in penalties. Insurance authorities say that the mishandling of insurance fees came mainly as a result of the changes made to the state law during the last quarter of 2008. Although reports say that most insurance companies were … (more) November 15, 2009

• Private Companies and Non-Profit Groups in Virginia Find Ways to Stop Distracted Driving

  by Jeanny Hopper
  

  Auto insurance companies and non-profit organizations in Virginia team up to call the public’s attention to the ramifications of distracted driving. Drive Smart Virginia, a non-profit organization composed of car insurance companies that serves more than roughly 85% of the state’s policyholders, decided to act on the growing concern regarding distracted driving. As more and more private companies join the organization, the goal of Drive Smart Virginia to make the state’s public roads safe for motorists is slowly coming true. Reports say that Drive Smart Virginia even conducted a thorough research to uncover the real causes of near-crash and crash … (more) November 15, 2009

• Prolonged Recession Causes Increase in Maryland Fraud Reports

  by Jeanny Hopper
  

  The Maryland Insurance Administration has been receiving almost twice the normal number of complaints involving fraud for this year compared to 2008. This may be attributed to the ongoing recession and an increasing popularity of the use of technology. According to Carolyn Henneman, Fraud Division Head of the Maryland Insurance Administration, their division has recorded around 1,400 reports for the fiscal year 2008. For fiscal year 2009, ending on June 30, more or less 2,600 insurance fraud reports have been received – almost double the previous number. Current statistics regarding fraud complaints is not an exact value, according to an … (more) November 14, 2009

• Men, Women and Car Insurance – Who Gets the Cheaper Deal?

  by Jeanny Hopper
  

  One of the highest expenses you can expect to shoulder when owning a car or vehicle is insurance. Usually, automobile insurance costs far exceed expenses or money spent for gasoline, permits, licenses, registration, routine maintenance and spare parts. Out of all drivers on the road, those who have been driving for a short while can expect higher costs or premium rates, to the extent that the total may even be equal to the price of a car. This is true even for basic insurance coverage or policy. Some insurance companies or firms offer a type of coverage especially designed for … (more) November 14, 2009