Auto Insurance News Archive for November, 2009

Consumers Encouraged to Look for Auto Insurance Online
by Jeanny Hopper

With the economic recovery still unfelt by many residents in Chicago, keeping the cost of Illinois auto insurance has become more important. But specialists say there many other benefits that consumers can get by shopping online for policies other than finding the cheapest quotes. They add that the Internet is a place to find reliable companies through policyholders who had firsthand experiences with the good and bad ones. According to industry specialists, most car insurance websites allow policyholders to comment on their services, giving potential clients an opportunity to fairly assess their services. Additionally, there are many reputable consumer watch … (more) November 13, 2009
By-the-Mile Auto Insurance Raises Privacy Concerns
by Jeanny Hopper

The insurance commissioner for California has recently approved regulations for by-the-mile auto insurance which measures the premium of drivers according to the mileage they clock in annually. But critics say legislators have to consider the practice more carefully, saying the savings it gives to motorists may also cause privacy issues and security concerns. The concept of usage based auto insurance has been around for years and is already practiced by several states in America such as Alabama, Colorado, Michigan, Louisiana, and Minnesota. Pay-as-you-drive (PAYD) has been proposed in California a few years ago but was rejected. Last year, state legislators … (more) November 13, 2009
No-Fault Auto Insurance Costs Go Up in New York
by Jeanny Hopper

Major Insurance companies and agencies in New York worry that the no-fault payments to cover medical claims by car accident victims have been strikingly increasing over the past couple of years. Concerned industry groups say that insurance companies and state authorities need to closely work hand-in-hand to reinforce efforts to wipe out abuse, fraud, and other wastes in order to have downward force on those costs. Reports from the Insurance Information Institute say that most of New York’s auto insurance companies have been observing that their average no-fault payments spent for medical and health expenses of accident victims went up … (more) November 12, 2009
Pay-by-the-mile Policies Change California Auto Insurance
by Jeanny Hopper

The resolution to allow pay-by-the-mile automobile insurance policies in California seems to be one of 2009’s insurance innovations. Reports say that Insurance Commissioner, Steve Poizner, finally decided to allow the change to take effect immediately. Industry insiders say that allowing pay-by-the-mile policies is good news for auto insurance customers. Letting pay-by-the-mile polices to be offered has been in the works for more than a year now, undergoing scrutiny, debate, and fine-tuning by auto insurance companies and state officials. Aside from major financial benefits for policy holders, this new rule provides a new option for car owners and a healthier competition … (more) November 12, 2009
Auto Insurance Arson Fraud Up by 31%
by Jeanny Hopper

Insurance regulators and state authorities in California report a 31% increase in auto arson fraud cases since 2008. Reports say that according to California insurance regulators, the dramatic 31% swelling of auto insurance fraud involving arson is a clear manifestation of the effects the economy has on people. Negative trends in the economy are pushing residents to make harsh actions to cash in on insurance policies. California Commissioner Steve Poizner mentioned in an interview that the latest compiled figures by his department illustrate that a number of scam artists and people that are fiscally desperate keep on increasing, which leads … (more) November 11, 2009
Auto Insurance Fraud Reports Increase in Maryland
by Jeanny Hopper

The Insurance Administration in Maryland reports that auto insurance fraudulent activity have doubled in 2009. Increase in car insurance fraud in Maryland is blamed chiefly to the abused use of technology and the country’s current fiscal situation. According to reports, Maryland Insurance Administration (MIA) fraud division head, Carolyn Henneman, announced that as her department concluded the 2009 fiscal calendar last June 30, they received an estimated 2,600 complaints regarding auto insurance fraud. When asked if the department has the exact number of complaints received, an MIA representative said that exact figures are still unavailable as fraud data is still being … (more) November 11, 2009
New York Car Insurance Claim Payments Rise to 55%
by Jeanny Hopper

LATHAM, NEW YORK – A recent report claims that policy holders in New York pay 55% more than what they used to.L New York policy holders find that the usual payments they make for the state’s no-fault system have risen by nearly 55%. Starting on second quarter of 2009, an estimated $8,748 increase per claim has been charged to policy holders. According to reports published by the Insurance Information Institute (I.I.I.), the increase this year has been too shocking and too much for the public to take. Rates have shot far up from where it was back in 2004, when … (more) November 10, 2009
Public Knowledge on Auto Insurance Policies Reinforced
by Jeanny Hopper

The more you know about something, the more prepared you will be about it, and the better you can do to take full advantage about it. In the car insurance industry, local efforts to strengthen public knowledge about auto insurance policies are mobilized. If the public knows more about car policies, the more they can take full advantage of it. Starting November, meetings with public officials in the state of New York have been initiated to plan programs on how to reinforce public knowledge regarding auto insurance coverage policies. Reports say that recent surveys conducted on New York policy holders … (more) November 10, 2009
Using Credit Scores To Determine Premium Rates Argued To Save The Day
by Jeanny Hopper

Drivers are split as to whether they want to be judged based on their credit. According to experts in the auto insurance industry, the use of the credit scoring method to determine premium rates saves insurance companies and policyholders time, money, and effort. University Professors who specialize in insurance and financial services suggest that a very good way to determine the premium rates to be paid is by credit scoring. As soon as the idea is presented, a number of critics who are against the credit scoring method argued that using such method will be detrimental to the poor and … (more) November 9, 2009
Tough Times Heighten Auto Insurance Fraud
by Jeanny Hopper

The number of car insurance fraud caused by economic difficulties and recession is starting to increase in now scary numbers. Insurance companies report catching fake insurance claims or “Give-ups”. Increasing incidents of faking car theft or make believe fire by fraudsters in an effort to collect insurance money on any discarded vehicles have been reported. Insurance industry insiders say that the numbers have gone up since 2008, roughly by around 23%. On the other hand, the numbers of insurance claims arising from suspicious vehicle arson have gone up by 27%. Auto insurance companies are now afraid that the economy will … (more) November 9, 2009
Congress Confused On Who Should Be the Key Decision Makers
by Jeanny Hopper

Recent meetings the United States Congress still show confusion and indecisiveness as to what role should each state play in regulating auto insurance. In recent Congress meetings, members of the Congress appear to remain in a state of confusion and are unable to decide on whether they should limit the extent on how state powers can control and regulate car insurance. Reports say that the Congress wants the states to have the power to make key decisions in car insurance, particularly in auto insurance reforms. On the other hand, some members of the Congress want to maintain the key powers … (more) November 8, 2009
Drivers Cut Back on Auto Insurance Coverage
by Jeanny Hopper

With less purchasing power and with money spent more on gas bills, motorists are cutting back on auto insurance coverage. Regional insurance companies reported that much of their clients had trimmed on coverage policies. Some drivers have canceled policies they originally purchased when they have the chance and leave only the coverage required by state jurisdiction. Reports show that a major US insurance company that serves motorists from Delaware, Maryland, Washington, Pennsylvania, New Jersey, Virginia, and D.C. experienced having clients who “trim” their auto insurance policies. The same company has reported to have said that a huge number of their … (more) November 8, 2009
California Pushes for Pay-As-You-Drive Car Policy
by Jeanny Hopper

Insurance Commissioner, Steve Poizner, announced that they issued regulations allowing mileage verification for pay-as-you-drive (PAYD) car insurance policy or coverage, which is not yet available in a California market. In PAYD, premiums will be determined on the number of miles or how far consumers drive. They have control to lower the cost of their car or vehicle insurance by driving less. In amended regulations released recently by the Department of Insurance, it gives insurers an option to use either mileage-estimated or mileage-verified method in estimating rates for car insurance plans. In mileage-estimated methods, figures for mileage will be determined through … (more) November 7, 2009
Teen Drivers Risky To Insure
by Jeanny Hopper

United States annual statistics showed about 400,000 drivers age 20 and below figured in car accidents, which translates to $26 billion total damage costs of road mishap. In fact, vehicular accidents ranked as No. 1 cause of death among teen Americans. The number of death for teen drivers is four times higher than drivers whose ages are between 25 to 69 years. Statistics also showed that more teen male drivers get killed in car accidents than teen female drivers. About 19 get killed for every 100,000 male drivers, while 11 get killed for every 100,000 female drivers. First time teen … (more) November 7, 2009
Consumers Prepare for Planned Rate Hikes Come 2010
by Jeanny Hopper

Car owners are putting on their seatbelts in preparation for another bumpy ride as auto insurance providers plan to increase premium rates again. Although it has been reported that a 15% increase has been made from 2008 to 2009, a number of insurance companies still feel the need for a 10% increase from 2009 to 2010. These companies blame it on delinquencies of their current customers and the unsteady market forecasts. A survey conducted by an auto insurance consultancy firm showed that almost 50% of auto insurance companies in the United States have scheduled a premium increase next year from … (more) November 6, 2009
Local Communities and Car Companies Help Solve Insurance Rate Problems
by Jeanny Hopper

In most parts of the country, a growing concern is the continued increase in auto insurance premium rates. State after State, authorities are on their necks in preparing drivers on how they can be responsible enough to save on auto insurance. In New Jersey, local medical centers are offering courses on defensive driving on November 17 and 18, 2009. The event, scheduled to run from 10 in the morning to 3 in the afternoon, is organized by New Jersey’s local organizations who are concerned about the growing premium rates motorists pay in the state. Drivers and car owners who will … (more) November 6, 2009
Business Owners Advised to Pick the Right Policy
by Jeanny Hopper

Some small business owners and self-employed individuals report that they are confused whether to choose a commercial or personal policy when insuring their vehicles. Experts say car owners should choose the right auto insurance in order to avoid paying unnecessarily and to avoid having problems when filing for a claim. Being a business owner does not necessarily mean that a person has to purchase commercial auto insurance, since the type of policy to apply for depends on several factors. According to industry specialists, needing a commercial policy depends on how a vehicle is used and what company it is insured … (more) November 5, 2009