Auto Insurance News Archive for 2009

Motorists Told to Trim Auto Insurance Costs
by Jeanny Hopper

The unstable economic situation is cause for concern for millions of Americans who are on the brink of dropping their insurance policies. Financial experts and insurance analysts say that with the unemployment rate expected to worsen in the coming months, the U.S. can expect to see more uninsured motorists driving around. Aside from the added risk to other drivers on the road, uninsured drivers can also force providers to raise premiums substantially. Analysts point out that there is a direct link between jobless figures and the number of uninsured motorists. With the unemployment rate at its highest level in more … (more) September 12, 2009
Car Owners Told to Review Minimum Coverage
by Jeanny Hopper

Insurance experts are calling on policyholders to review their minimum liability coverage to ensure that they comply with their specific state requirements. Of the 50 states, only two have yet to require mandatory auto insurance, Wisconsin and New Hampshire. Insurance analysts say that with Wisconsin set to require motorists to have insurance by next year, New Hampshire is set to follow soon. All state insurance laws provide for a minimum amount of coverage that policyholders have to comply with. These amounts vary from state to state but the purpose is generally the same – to protect motorists against any financial … (more) September 11, 2009
Illinois Senator Leads Auto Insurance Rally
by Jeanny Hopper

A small group gathered just outside the state capitol of Illinois Wednesday afternoon, calling for better insurance industry practices and fair premiums. The group, consisting of consumer advocates, marched to the state capitol under the direct leadership of State Senator Martha Scott. For several months now, different consumer advocacy organizations have been calling on lawmakers and state officials to regulate how insurance companies come up with premiums. Traditionally, insurance providers rely on a host of factors and risks to determine rates. Some insurers have even resorted to basing risks on their clients’ residence. While statistics often suggest that some areas … (more) September 11, 2009
Future of California Low Cost Auto Insurance Unclear
by Jeanny Hopper

Residents in the state of California may soon have to contend with paying for more expensive auto insurance as the end draws neared for a state-sponsored low cost insurance program. Faced with an ever-growing number of uninsured motorists in 2007, the state government introduced a new low cost insurance program designed to help drivers struggling to pay for insurance. By offering relatively cheap auto insurance, state insurance officials hoped that the number of uninsured drivers would go down. The economic crunch has made the situation worse, with California insurance commissioner Steve Poizner admitting that a quarter of the state’s drivers … (more) September 10, 2009
Motorists Urged to Consult Insurance Agents
by Jeanny Hopper

Despite the presence of the internet and other technologically advanced methods for purchasing auto insurance, some experts still recommend consulting traditional agents and brokers. Industry sources argue that policyholders can make good use of the extensive knowledge and experience of insurance agents. Brokers can often share what they know about the insurance industry to car owners looking for the perfect coverage. There are basically two kinds of agents, experts say. The first type, captive agents or brokers, work exclusively for certain insurance providers. They specialize in promoting and marketing the different products and services of their insurance companies. Part of … (more) September 10, 2009
Analysts say Sticking with Same Insurer Bad Idea
by Jeanny Hopper

Despite all the hype drummed up by marketing gimmicks, it seems that staying loyal to the same auto insurance provider is not a guarantee of lower rates. Several industry experts are raising doubts over the effectiveness of staying with the same insurer for extended periods of time. In the past, they point out, customer loyalty still counted when it came to determining rates. With so many insurance companies now competing for the attention of car owners, loyalty may no longer be as important. Experts say that staying with the same provider can indeed have its own benefits. For one, policyholders … (more) September 9, 2009
Industry Experts Warn Against Uninsured Drivers
by Jeanny Hopper

The absence of a definite end to the ongoing economic recession has resulted in ever increasing numbers of uninsured motorists. Government officials and insurance industry experts are seeing more uninsured drivers behind the wheels of millions of cars in the U.S. The unprecedented increase followed a tumultuous year for the American economy with rising jobless rates and floundering industries. This has led to more people dropping their coverage to cut back on expenses. The desperation has led to higher risks and more dangers for law-abiding motorists on the nation’s roads and highways. More uninsured drivers means higher chances of getting … (more) September 9, 2009
Cheap Insurance Tips Offered to New Car Owners
by Jeanny Hopper

The federal government’s Car Allowance Rebate System (CARS) program may be over but experts say that the tax credit hundreds of thousands of new car owners may have gotten can soon disappear because of costly auto insurance. According to analysts, although many Americans who traded in their old cars for new ones may have gotten as much as $4,500 in tax credits, their savings can go directly to insurance expenses. They explain than newer vehicles are naturally more expensive to insure. Some vehicle types and car models are also inherently more costly to insure because they are often the favorite … (more) September 8, 2009
Useful Advice: Drive Safer to get Lower Premiums
by Jeanny Hopper

It’s not a mystery how auto insurance providers determine rates. Insurance companies base premiums on several factors, including the risks associated with a policyholder’s behavior, occupation, and residence, as well as the vehicles being insured. All these factors come into play when insurers determine rates. According to insurance experts, motorists may not be able to do much about their place of residence or the car crime statistics in their neighborhood. This means that when it comes to this particular aspect, insurers clearly have the upper hand. Even the cars that policyholders drive may have negative effects on their premiums. For … (more) September 8, 2009
Car Owners Advised to Review Deductibles
by Jeanny Hopper

Insurance experts are recommending that policyholders reevaluate their insurance policies and review their deductibles. Even with the average insurance cost at its lowest level in more than a year, analysts say that car owners can do even more to slash their insurance expenses. Increasing the amount of deductibles leads to lower premiums. However, experts say that policyholders should only increase deductibles if the value of their vehicles are low enough for them to shoulder any minor repairs. By increasing deductibles, car owners accept the fact that their insurers would only accept repair costs if they are above their declared deductibles. … (more) September 7, 2009
Motorists Warned Against Driving Without Insurance
by Jeanny Hopper

Insurance and safety experts are stepping up efforts to remind American motorists about the dangers involved in driving without insurance. According to recently conducted studies, more and more drivers are choosing to drop their policies to cut back on expenses. While this can save them upwards of $1,000, the risks are considerably more costly. Uninsured car owners who end up getting in accidents can lose their personal assets in liability lawsuits and hospital expenses. With rising medical costs and costly lawsuits, motorists can end up paying hundreds of thousands of dollars when in fact, they would only have to shell … (more) September 7, 2009
Analysts: States where Motorists Live Affect Insurance
by Jeanny Hopper

Auto insurance specialists are reminding Americans about the roles the states they live in play when it comes to insurance rates. Based on data collected from several years of research, the geographical locations of car owners play a crucial role in their insurance rates. Most insurance providers base premiums on different factors present in many states. High incidence of car crimes can drive premiums higher while states that are relatively safe for cars can mean lower rates for policyholders. The different weather patterns and climates in a particular region or states can also affect how premiums are determined. For example, … (more) September 6, 2009
Car Insurance Tips for Students Explained
by Jeanny Hopper

Insurance experts are stepping up efforts to remind young American motorists of their insurance policies, especially with the next school year about to start. Statistically speaking, inexperienced and young drivers are more likely to figure in accidents. Because of this, insurers often charge college students and motorists under the age of 25 higher insurance premiums. Despite this fact, auto insurance analysts say that college freshmen can actually find cheaper insurance using several methods. By simply sticking to these suggestions, they point out, younger drivers can slash hundreds of dollars off their insurance premiums. Parents also have to do their part … (more) September 6, 2009
Car-Thefts-Drop-Insurers-Elated
by Jeanny Hopper

American car owners and auto insurance providers bought breathed a sigh of relief over recent data regarding car theft. According to the National Insurance Crime Bureau (NCIB), 2008 saw a record drop in reported car thefts. Researchers also bared that the figures, less than one million incidents, is the lowest in more than 20 years. Insurance experts say that the latest data is good news for many motorists living in risky areas, as well as for insurance companies looking for ways to reduce expenses. The NCIB submits any and all data regarding car theft to the National Bureau of Investigation’s … (more) September 5, 2009
Experts Bust Teen Car Insurance Myths
by Jeanny Hopper

With a new school year opening in just a few weeks, auto insurance experts are calling on parents and college freshmen not to forget their coverage. According to many analysts, young motorists would often forego insurance just to save money. Auto insurance for inexperienced and relatively young drivers can reach as much as $2,000 each year or more. The steep premiums often force college freshmen to drive uninsured, placing themselves in more risk. However, sources from the insurance industry point out that there are a number of widely held beliefs that have no shred of truth in them. If car … (more) September 5, 2009
Motorists Urged to Know Insurance Tips
by Jeanny Hopper

According to auto insurance experts, the poor economy is not a good reason to skimp on insurance. On the contrary, they argue, Americans should pay more for insurance now more than ever. Recent studies suggest that with unemployment figures still high, more and more car owners are choosing to drop their coverage. As a result, the likelihood of getting in an accident with uninsured drivers has increased significantly. Eventually, insurance providers have to raise premiums to better protect policyholders from underinsured and uninsured motorists. However, there are several options that motorists can consider to save money without letting go of … (more) September 4, 2009
Study: Drivers with DWI Violations Pay More for Insurance
by Jeanny Hopper

A recent survey conducted by researchers associated with the auto insurance industry found that motorists who have been caught driving while intoxicated (DWI) pay substantially more for insurance than average drivers. While the results of the study did not come as a surprise to many insurance experts, researchers were able to come up with the average premiums paid by erring drivers. According to insurance experts, a DWI on a motorist’s record could mean skyrocketing premiums. In fact, being convicted on a single count can mean insurance expenses up to 38 percent higher. Car owners who were involved in alcohol-related accidents … (more) September 4, 2009