Auto Insurance News Archive for December, 2009

• Massachusetts Attorney General Criticizes Car Insurance Deregulation

  by Jeanny Hopper
  

  The Massachusetts’ attorney general’s office yesterday released a report last Tuesday, December 22, a report challenging the managed competition car insurance policy that was enforced back 2007. According to this detailed report, so far the said insurance policy has failed to accomplish its goals of lowering premium rates and safeguarding the interests of motorists. According to the sources, the only good thing that this managed competition system did for the state was to bring in a number of new insurance companies, boosting investment rates in Massachusetts’ auto insurance sector. On the other hand, this system failed to achieve its predicted … (more) December 31, 2009

• Sen. Nelson Cites Car Insurance Mandate to Justify Health Reform Bills

  by Jeanny Hopper
  

  Senator Ben Nelson said last Wednesday, December 23, that the constitutional authority of Congress to mandate individuals to buy health insurance probably originates from the same constitutional power that granted certain states authority to require drivers to carry car insurance policies. The statement made by Sen. Nelson came as a reaction to a much talked about Senate health care reform bills that will mandate all citizens in the US to buy health insurance, and non-compliance to this legislative act can result to imprisonment or being subject to paying a penalty. It was also during December 23 that Republican Senators forced … (more) December 31, 2009

• Insurance Deregulation Judged with Harsh Criticisms

  by Jeanny Hopper
  

  As Massachusetts’s auto insurance experiment reaches its second year mark since it was imposed, more and more criticisms about the policy change are being made. The most recent and biting criticism came from consumer watchdog and insurance expert Attorney General Martha Coakley, as she launched an intense attack on Massachusetts’s deregulated car insurance system. According to Attorney General Coakley, the new system failed keeping up with the promises it made almost two years ago when it was implemented, it was not able to yield more affordable rates for consumers and make insurers provide better benefits and improved services. Included in … (more) December 30, 2009

• Christmas Present for Michigan Drivers in the Form of a Legislative Reform

  by Jeanny Hopper
  

  It seems like Michigan is getting its present this year and in excellent timing. Reports are coming out one by one confirming that the state House of Representatives has already placed their names on a legislative act that will relieve Michigan drivers from the burden of paying costly auto policy rates. For the last decade, auto insurance premiums in the state have been driving motorists off their budget with amounts that seem to be getting steeper and steeper each year when compared to the US average. According to recent statistics released by the Insurance Information Institute, an average citizen in … (more) December 30, 2009

• Massachusetts Deregulated Auto Policy Receives Harsh Criticism

  by Jeanny Hopper
  

  On the day of Christmas Eve, reports came out that Attorney General Martha Coakley vocally expressed how she felt about Massachusetts deregulated auto insurance system as she launched a scorching attack against the state’s rules on auto policies. According to Coakley, deregulated policy did not result to cost efficiency and other benefits that legislators have promised when the policy was still being drafted. Atty. Coakley is known to lead an organization that acts as a consumer watchdog for the insurance system. In a detailed report released yesterday by Coakley, she emphasized a list of complaints regarding this so-called “managed competition” … (more) December 29, 2009

• Massachusetts Deregulation Receives Feedback

  by Jeanny Hopper
  

  As everyone prepares to look back at how the year was for them, drivers and consumer advocates also look back at how changes in auto insurance policy affected them. As 2010 draws near, Massachusetts drivers cannot help, but wonder if the deregulated car insurance system really did produce good results for them or if it worked for their disadvantage. Unfortunately, the auto policy deregulation that was initiated back in 2008 seems to have been receiving very harsh criticisms recently and needs to be improved. Consumer advocate and a consumer watchdog of the insurance system Attorney General Martha Coakley have recently … (more) December 29, 2009

• NY No-fault Auto Insurance Overhaul Set to Take Place

  by Jeanny Hopper
  

  New York may be facing some changes in auto insurance as 2009 closes. During the first two weeks of December, State Insurance Superintendent, James J. Wrynn, has released a draft of amended regulations governing no-fault automobile insurance. According to Wrynn, this draft will make the state more effective in fighting abuse and fraud in the insurance industry. Superintendent Wrynn also said that New York drivers should be spared of the burden of paying abuse and fraud taxes when they pay for their auto policy premiums. He stressed that particularly in today’s tough economic times; they need to be very vigilant … (more) December 28, 2009

• NY No-fault System Needs Changing, Draft Already Made

  by Jeanny Hopper
  

  Recent reports say that New York’s no-fault automobile insurance system has been causing a headache for both insurance providers and motorists, and needs to be changed immediately. Insurance Superintendent, James J. Wrynn, said that New Yorkers should not be required to pay high amounts of auto policy premiums when bulk of that amount goes to abuse and fraud taxes. Wrynn adds that a reform in the No-fault system is what the Empire state needs and a proposed amendment in regulations is a step towards changing auto insurance for the betterment of all. Superintendent Wrynn already presented a draft that is … (more) December 28, 2009

• Insurers Worry of Going Out of Business

  by Jeanny Hopper
  

  While Democrat lawmakers in the House of Representative continue to lobby legislative amendments to lower insurance costs for customers, insurance providers continue to be alarmed that any further action to lessen premium prices can lead them to bankruptcy and move their businesses somewhere else. Providers attacked state Democrats by comparing Michigan’s activities to those of other states when it comes to how state officials interact with the auto insurance business. The contrast in the actions of the states regarding auto insurance became very evident as the development department in Ohio sent out invites to private groups for the launch of … (more) December 27, 2009

• Planned Michigan Ballot Proposition Causes a Stir in the Insurance Industry

  by Jeanny Hopper
  

  Much like a magnet, efforts of legislators to put together a proposition on the Michigan ballot that will amend auto insurance regulation have both positive and negative charges as it continues to attract both strong negative and positive reactions from various interest groups. Automobile and Home Insurance Consumer Advocate Melvin Hollowell together with Michigan House and Senate Democrats announced that they will do whatever it takes to push a set of insurance reform bills with the end goal of making auto premium rates more affordable and insurance providers more accountable. Sources indicate that the issue at hand is the proposed … (more) December 27, 2009

• Democrat Leaders In Michigan Propose Measures To Lessen Insurance Costs

  by Jeanny Hopper
  

  State House of Representatives Democrats revealed a plan that they hope will reduce the rates of auto policies more Michigan drivers and will make the restrictions on insurance companies in the state tighter and more stringent. On the other hand, reacting immediately on the announcement are insurance providers saying that the Democrats plans are not really that good that it will result to more expensive costs for drivers. The Michigan Insurance Coalition even called the Democratic plan as political grandstanding and a way of driving insurance industry out of Michigan. According to reports, the legislative plan lobbied by state Democrats … (more) December 26, 2009

• Tennessee Drivers May Face Premium Hikes Next Year

  by Jeanny Hopper
  

  Recent reports from Memphis point that that the cost of driving safely in Tennessee and being protect when behind the wheel could be steeper anytime soon. Motorists may be required to shell out extra dollars to pay for auto insurance premiums come 2010. According to a number of insurance providers in the state, a premium rate hike next year can be inevitable as prices of other commodities go up. One of the major auto policy providers in the state said that they need to increase premium rates as much as 6.5%. Other representatives from other insurers said that a 5% … (more) December 26, 2009

• Florida Insurance Help Center now Online

  by Jeanny Hopper
  

  Technology savvy Florida drivers will be in for a delight after Florida Chief Financial Officer Alex Sink announced the availability of the online help center for insurance consumers in the state. The Consumer Online Assistance System unveiled by Sink will allow policy holders to submit questions regarding auto insurance using the internet. According to insurance experts, this is a great step in car insurance as customers will be served better and accountability and effectivity of service providers will be improved. Reports say that the CFO Sink’s move will make taxpayers save dollars by cutting the costs that come with speaking … (more) December 25, 2009

• Michigan Legislation on Auto Insurance Feared to be a “Threat”

  by Jeanny Hopper
  

  According to insurance trade groups, there is a possible threat to the current costs of auto insurance, economic condition, and job market situation in Michigan as the state’s House of Representatives passed a bill that may affect the state’s legal mandates on auto policies. The Property Casualty Insurers Association of America recently said that the House of Representatives approved a portion of a bill package that contains certain provisions including a ruling that will prohibit insurance scoring and premium computation systems that are credit-based. The group calls the bills “misguided reforms”. Property Casualty Insurers Association of America vice president Ann … (more) December 25, 2009

• Michigan Lawmakers Pass a Bill Making Auto Insurance More Affordable

  by Jeanny Hopper
  

  According to Michigan reports, city residents will no longer have to pay expensive premium rates for auto policies as the state House of Representatives passed a bill this afternoon that is set to revamp auto insurance. Experts say that it is about time for Michigan to be relieved from the burden of costly premiums, and in perfect timing t00, since this news will certainly be an added cause for celebration this holiday season.  For many years now, average car insurance prices for drivers in the state have been way steeper when compared to national average. As per latest figures released … (more) December 24, 2009

• Republicans Oppose New Michigan Legislation

  by Jeanny Hopper
  

  December 16 – while the Michigan House of Representatives passed a legislation that will amend how auto policy premiums are set in the state this afternoon, the House seems to be divided in half as the opposing team, made mostly of Republican Representative, voice out their opinions regarding this bill. Having a 57-47 vote during last Wednesday’s session, the bill easily won the House majority vote and is now waiting to be signed by Gov. Jennifer Granholm. After this bill is signed and other formalities are finished, major changes are set to take place in Michigan. Democrat Representatives, who counted … (more) December 24, 2009

• Indiana County Set to Legalize ATV Use

  by Jeanny Hopper
  

  Sources say that despite concerns raised by local groups, Owen County in Indiana is continuing to draft its plans of allowing motorists and car owners to drive around in ATVs on public highways. This decision to allow all-terrain vehicles to be driven on county roads is causing the public to worry that drivers will not obtain appropriate insurance and registrations needed, and some may not even bother to install necessary safety devices. Owen County, said to be the most rustic county in the state and located approximately 50 miles southwest of Indianapolis, recently approved an ordinance that will legalize use … (more) December 23, 2009