Auto Insurance News Archive for 2009

Body Shop Owners Demand Car Insurance Investigation
by Jeanny Hopper

Car owners in the state of Connecticut are asking themselves this as a prominent organization of car repair shop owners are asking for a full investigation into the practices of auto insurance companies. Disgruntled auto body shop owners have teamed up with the Attorney General Richard Blumenthal in calling for a federal investigation of the car insurance industry in Connecticut and its policies regarding car repairs. According to representatives of the Auto Body Association of Connecticut (ABAC), motorists and repair shop owners have had it with insurance providers and what they claim as “steering” policies. Auto body repair shops have … (more) September 3, 2009
Critics Decry New Wisconsin Car Insurance Provision
by Jeanny Hopper

Wisconsin, one of only two states not requiring car insurance, will soon join the 48 other states by next year. A new provision in the state’s budget bill for 2010 will require motorists to present proof of insurance whenever law enforcers ask for it. The new law will also increase the minimum liability amounts, which have remained unchanged since the early 1980s. While many supporters of mandatory auto insurance rejoiced over the milestone, critics of the provision are calling it unfair to millions of car owners in Wisconsin. Those who oppose the mandatory insurance provision say that by requiring all … (more) September 3, 2009
Car Insurance Money-saving Tips Given to College Students
by Jeanny Hopper

The fast approaching start of the school year is catching many college freshmen and their parents off guard. With the economic slowdown affecting millions of American families, consumers are looking for ways to cut down on expenses and increase savings. For many households with college-bound family members, the rising educational costs can be a debilitating factor. Having a car to insure can also add to the financial troubles of many consumers. Fortunately, students can look for ways to slash their insurance premiums and help their parents and families save money. According to industry experts, young car owners need not spend … (more) September 2, 2009
Drivers Told to Check Rental Car Insurance
by Jeanny Hopper

Auto insurance experts are advising American car owners to verify with their insurance providers if they have rental car insurance. With more motorists choosing to rent cars when out of town on business trips and even vacations, proper car insurance has become even more important. According to specialists, many major insurance companies offer rental car insurance as part of their packages. Having this protection can be of great help for policyholders who figure in accidents with rental cars. Rental car companies often offer collision waivers to their customers. Motorists can sign up for these waivers, which effectively releases them from … (more) September 2, 2009
Proper Car Maintenance Important for Cheaper Insurance
by Jeanny Hopper

According to auto insurance specialists, many American motorists fail to realize the importance of keeping their cars well maintained to get lower insurance premiums. Most car owners pay more attention to obvious factors like the risks, car models, and their age, experts say. They add, however, that keeping vehicles in perfect working condition can go a long way in saving hundreds or even thousands of dollars in insurance costs each year. Industry experts argue that if a car is well maintained and does not suffer from any mechanical problems, then there is less chance of it breaking down and causing … (more) September 1, 2009
Car Insurance Companies Benefit from ‘Clunkers’ Program
by Jeanny Hopper

The federal government’s popular Car Allowance Rebate System (CARS) program has unintentionally helped car insurers boost their sales, according to many insurance industry analysts. Commonly known as the “cash for clunkers” program, or simply ‘clunkers’, the government initiative was initially conceived to jumpstart the ailing car industry. Americans who traded in their old vehicles were eligible for tax rebates as high as $4,500, depending of course on the new cars they plan to buy. In order to avail of the maximum amount, motorists must buy a new car whose mileage is at least 10 mpg better than their aging cars. … (more) September 1, 2009
New Car Safety Ratings to Affect Insurance Rates
by Jeanny Hopper

Car owners may soon find it more difficult to find cheaper car insurance if the plans of two major research bodies to upgrade their safety ratings take effect. Since auto insurance companies base premiums primarily on risk, tougher safety ratings can have negative effects on most car models’ assessment. The Insurance Institute for Highway Safety or IIHS is the insurance industry’s main safety research arm. It is responsible for testing how safe cars are and for setting the safety standards. Insurance providers rely heavily on the findings of the IIHS. At present, the institute’s rating system has three major levels, … (more) August 31, 2009
Car Owners Advised to Buy Complete Insurance
by Jeanny Hopper

The poor economy and unstable jobless rate is forcing many Americans to cut back on many expenses, including auto insurance. Industry analysts say that they have seen dramatic changes in the way car owners buy insurance, with many scaling back their coverage to save money. Worse, some drivers have decided to forgo insurance altogether. Insurance experts warn that with more underinsured and uninsured drivers on the road, it could only be a matter of time before they get in accidents involving law-abiding car owners. In fact, some states like New Mexico have announced that as much as 29 percent of … (more) August 31, 2009
College Students Told to Buy Metered Insurance
by Jeanny Hopper

With the new school year just a few weeks away, millions of American parents and their college-bound children are preparing for more expenses. The economic slowdown has further worsened the increasing education costs that many families have to contend with. Because of this, a large portion of the college populace across the U.S. has expressed their desire to spend less this year. In fact, a recent study conducted by the National Retail Federation found that 48 percent of back-to-college consumers have expressed concerns that the poor economy will affect their spending significantly. Analysts contend that the expected decrease in spending … (more) August 30, 2009
Lower Rates Advised despite Low Insurance Average
by Jeanny Hopper

Recent studies have revealed that the national average for auto insurance premiums is at its lowest level in more than a year. The news gave car owners across the U.S. something to cheer at despite the economic gloom. Analysts say that ongoing price wars among insurance providers are keeping premiums down. However, experts say that motorists should not be complacent and instead make use of the momentary improvement to find better insurance rates. At present, the national average for car insurance stands at $1,871. In some states and urban centers, however, the figure is much higher. For instance, insurance rates … (more) August 30, 2009
Experts Remind Motorists of Insurance Factors
by Jeanny Hopper

Auto insurance specialists are reminding car owners and drivers about the various factors often considered by insurance providers when determining rates. Experts say that many motorists overlook the importance of knowing and understanding these factors, adding that insurers assess risks based on them. Analysts also agree that one of the best ways to slash insurance costs would be for policyholders to know how to maximize their knowledge of factors affecting premiums. A primary consideration would be the age of the car owner. Younger, inexperienced motorists are generally charged higher insurance premiums. Because they lack driving experience and are often considered … (more) August 29, 2009
Cutting Back on Auto Insurance Poses Danger – Experts
by Jeanny Hopper

Auto insurance experts aired concerns in recent weeks about the alarming increase of car owners slashing insurance coverage to save money. While not illegal, cutting back on car insurance protection can have dire consequences, they argue. Many motorists who decide to lower insurance coverage or even completely do away with insurance can find themselves taking unnecessary risks and serious consequences. The slow economy is forcing many American motorists to resort to risky practices in order to scale down insurance expenses and hopefully save money. Experts, however, warn that skimping on essential insurance coverage can mean shelling out more money in … (more) August 29, 2009
Critics: Expensive Insurance Costing Detroit
by Jeanny Hopper

Outspoken critics of high car insurance premiums in the state of Michigan went on the offensive recently. Consumer advocates say that the expensive insurance coverage, particularly in the city of Detroit are forcing more and more people to resort to insurance fraud or drive without any form of insurance at all. Some analysts point out that Detroit, dubbed as one of the poorest big cities in the U.S., has the highest insurance rates across the nation. In fact, they argue that annual insurance premiums of $4,000 or more are common in the city. As a result, they say, more than … (more) August 28, 2009
Car Owners Advised to Lower Insurance Rates
by Jeanny Hopper

The national car insurance average is at a year-low figure of $1,871, according to industry analysts. Despite this, more American car owners are becoming even more desperate and dropping insurance coverage just to save on money. With the ongoing price wars and tougher competition among insurance providers, experts say that policyholders and motorists looking for insurance policies can find cheaper premiums and better terms. To discourage drivers from dropping their insurance, specialists are recommending several options that motorists can consider to save money. For instance, first time motorists and car owners have to consider the kind of cars they will … (more) August 28, 2009
California Reports Rise in Car Insurance Frauds
by Jeanny Hopper

Steve Poizner, California’s Insurance Commissioner recently reported that suspected insurance fraud cases in the state are on the rise. Poizner says that there was sharp spike in the number of auto arson and theft reports last year, compared to the previous years. To be exact, California’s Department of Insurance has seen suspected auto insurance fraud cases increase by 31 percent last year compared to 2007. Insurance providers, law enforcement agencies, and private citizens usually refer suspected incidents of fraud to state insurance officials. The Department of Insurance then investigates these reports and forwards probable fraud cases to the respective law … (more) August 27, 2009
Rising Premiums Feared in Automakers’ Collapse
by Jeanny Hopper

Insurance specialists and concerned policyholders are expressing apprehension over the possible increase in insurance costs if more American carmakers close shop. According to experts, if the current economic crisis forces major automakers to shut down, there could be a domino effect in the insurance industry. Analysts explain that insurance companies determine rates and premiums based on several factors, one of which is the availability of parts and repair services. Some vehicles and car models are more expensive to repair or replace in the event of an accident. The collapse of a major car manufacturer can mean spare parts that are … (more) August 27, 2009
Money Saving Tips Shared by Auto Insurance Experts
by Jeanny Hopper

In this time and age, saving money is always a top priority of any American family. The tough economy and the uneasy job market are making life even more difficult for families across the U.S. Despite the improving unemployment figures, economists are cautioning against speculating at an early stage regarding economic recovery. The uncertainty is taking its toll on millions of Americans, with more motorists choosing to forego their auto insurance to save money. Experts agree that getting rid of insurance coverage in order to save money is never a good decision. With more and more uninsured motorists on the … (more) August 26, 2009