Auto Insurance News Archive for 2009

• Study: Americans Happy with their Auto Insurers

  by Jeanny Hopper
  

  Despite the economic downturn and uneasy job market, most American car owners are satisfied with their insurers. A recently published industry study by the Insurance Research Council (IRC) found out that an overwhelming portion of policyholders in the U.S. were happy with how their insurance providers performed. To be exact, 91 percent of the respondents interviewed by the researchers expressed different degrees of satisfaction with their current insurers. Sixty-one (61) percent of the consumers said that they were very satisfied with how their providers performed with the remaining thirty percent claiming that they were fairly satisfied with their insurers. The … (more) August 26, 2009

• Importance of Car Insurance Stressed

  by Jeanny Hopper
  

  Experts and car safety specialists are calling on American car owners to renew their auto insurance policies regularly to avoid problems in the future. Industry specialists say that motorists need to ensure that they have sufficient coverage to avoid losing personal assets in the even they are sued for liability in a car accident. Not having suitable insurance, or not having any form of insurance at all, can have serious consequences for a car owner. Most states require drivers to present proof of insurance. In fact, the state of Wisconsin will be the 49th state to make car insurance mandatory. … (more) August 25, 2009

• Last Day of ‘Clunkers’ Drives Insurance Searches Up

  by Jeanny Hopper
  

  Insurance analysts have noticed a sharp spike in the demand for car insurance as the Car Allowance Rebate System (CARS) federal program draws to an end today. Popularly known as the “cash for clunkers” or simply “clunkers” program, the CARS initiative run out of financial resources sooner than expected. Congress initially allotted $1 billion to finance new car purchases. The federal government launched the program to help boost car sales by offering substantial tax credits to Americans who want to trade in their aging vehicles. Car owners who qualified were then given anywhere from $3,500 to $4,500 in tax credit … (more) August 25, 2009

• Experts Say Classic Car Insurance Crucial

  by Jeanny Hopper
  

  Most American motorists who own classic cars fail to understand the need for their vintage vehicles to have specialized protection. According to insurance specialists, classic cars require special attention especially when it comes to insurance. Unlike regular cars, the value of vintage models increase with time. This means that keeping it protected is crucial to maintain its value. Unfortunately, half of American classic car owners take out conventional insurance policies for their vehicles without realizing the value of specialized classic car insurance. Industry sources say that most motorists simply add their vintage vehicles to their existing insurance policy when in … (more) August 24, 2009

• Wisconsin Insurance Industry to be Changed by New Bill

  by Jeanny Hopper
  

  The insurance landscape in the state of Wisconsin is set to change significantly next year with the passage of a historic new budget bill sponsored by Governor Jim Doyle. A new piece of legislation, called the “Truth in Auto Insurance” law, was introduced by the governor to state legislators, who promptly supported him. The new law would offer more protection to motorists in the state of Wisconsin by raising minimum liability amounts by requiring all car owners to have proof of insurance. Wisconsin’s $62 billion, two-year budget bill now includes provision for an increase in the state’s minimum liability coverage … (more) August 24, 2009

• Corruption Seen in Massachusetts Car Insurance Body

  by Jeanny Hopper
  

  Massachusetts Governor Deval Patrick is under fire for allegedly using his political powers to illegally appoint a new member to the Auto Damage Appraisal Licensing Board or ADALB. According to some critics, Gov. Patrick violated the provisions set by law that dictates who should sit in the board. The ADALB is a special body that assesses and issues licenses to auto damage appraisals. Recently, the Gov. Patrick removed Joe Valariotti from the ADALB and replaced him with a woman from a prominent car insurance company. According to the law, the board should be composed of two representatives from the car … (more) August 23, 2009

• Experts Advise Updating Insurance to Save Money

  by Jeanny Hopper
  

  Insurance specialists are advising car owners and policyholders to update their insurance policies to avoid unnecessary expenses and eventually save money. According to experts, many policyholders who stay with the same insurance providers for several years fail to update their policies and coverage regularly. This has resulted in wasteful spending of money, especially if the car owners entrust their policies to company representatives. For instance, a new car five years ago would be well protected if a car owner purchased comprehensive and collision coverage. Now, however, it would often be better for policyholders to pay for any minor damages from … (more) August 23, 2009

• Poor Economy Forcing Car Insurance to Drop

  by Jeanny Hopper
  

  Despite the growing optimism that the U.S. economy is finally clawing its way out of the biggest recession in five decades, analysts are cautioning against premature speculation. The economic turndown has affected many industries, including the car insurance industry. However, the poor economy has turned up some unexpected results. Insurance specialists say that because of the economic slump and the unstable job market, the demand for car insurance has dropped significantly. With many Americans struggling to make ends meet and retain long-term employment, insurance providers are on the lookout for fresh clients in order for them to stay afloat. Industry … (more) August 22, 2009

• Importance of Insurance Stressed

  by Jeanny Hopper
  

  Insurance specialists have expressed alarm over the rising cases of uninsured drivers across the U.S. With the recession still enveloping the economy, jobs are increasingly becoming scarce. The unstable job market and rising unemployment figures are forcing many car owners to do without their car insurance. Experts warn that driving without insurance can result to serious legal consequences if the motorists are caught. Recent studies suggest that one out of seven drivers on American roads are uninsured. This is expected to rise in the next few months especially if the jobless figures remain unchanged or worsen. Experts say that there … (more) August 22, 2009

• Car Insurance in Michigan to Go Up

  by Jeanny Hopper
  

  Car owners in the state of Michigan will soon have to pay more for their auto insurance. Beginning on July 1 of next year, motorists in the state will have to shell out an average of $20 more for insurance. That figure totals to around $124 per household. The extra insurance collection will help provide much needed resources to the Catastrophic Fund, a special reserve fund set aside to help motorists who are seriously injured in a car accident. While the objective of the rate hike may seem to be noble, some motorists are not so pleased with the plan. … (more) August 21, 2009

• Insurance Fix in Massachusetts Irks Small Insurers

  by Jeanny Hopper
  

  Small time insurance providers in the state of Massachusetts are voicing out their sentiments over the state government’s plans to further deregulate the insurance industry. Massachusetts’ Department of Insurance is set to implement a new auto insurance method called “managed competition” to encourage the entry of new insurers and hopefully result in lower premiums. Despite the highly ambitious plan, state Governor Deval Patrick and his insurance commissioner Nonnie Brunes are receiving flak from small-time inner city insurers. The small firms argue that the changes are threatening to drive them out of business. The state government and the insurance division have … (more) August 21, 2009

• Car Insurance Perks Stressed

  by Jeanny Hopper
  

  Insurance industry experts are recommending car owners and policyholders to make good use of the less-known benefits that come with their insurance policies. According to specialists, many American motorists fail to understand the importance of having substantial insurance coverage. They add that by sampling adding a few more dollars, car owners can further protect their vehicles and investments better. Unbeknownst to many policyholders, insurance companies typically offer special perks and benefits along with conventional coverage and policies. Experts say that Americans must realize the full potential of taking on these perks as added options. By including these options, policyholders can … (more) August 20, 2009

• Experts Warn Against New California Auto Parts Bill

  by Jeanny Hopper
  

  Legal experts are warning against the possible implementation of a new law that will allow insurers to pressure policyholders into honoring a specific repair shop. Under current California state laws, insurance companies are prohibited from steering their clients to the firms’ preferred body shops. A new bill sponsored by the industry is set to change all that. Democrat assemblywoman Mary Hayashi introduced AB1200 recently in a bid to relax the regulations surrounding California’s consumer protection measures. Industry players have been lobbying for several years now to allow the importation and use of replacement parts from other countries. However, their attempts … (more) August 20, 2009

• Policyholders Satisfied with Car Insurance Companies

  by Jeanny Hopper
  

  Despite the economic upheaval, more Americans are satisfied with their auto insurance providers now more than ever. A study conducted by J.D. Power and Associates revealed that car owners are increasingly satisfied with their insurers this year, mostly because of lower premiums. Industry specialists say that the ongoing price wars are forcing providers to slash insurance rates to attract customers. This has led to a major drop in the national average insurance premiums. In fact, the most recent figures suggest that the average is the lowest in over a year. The research body found out that overall satisfaction this year … (more) August 19, 2009

• Price Wars a Boom for Car Owners

  by Jeanny Hopper
  

  The poor performance of the U.S. economy has led to an unexpected decline in the demand for car insurance. This has resulted in insurers scrambling for clients to remain afloat, experts say. While the car insurance industry is struggling, car owners and policyholders can actually benefit from the situation. Because insurance providers are desperate to find new customers or even retain their old ones, insurance premiums are going down. Competition among insurers is becoming increasingly tougher, with companies doing everything to entice new clients. Analysts say that this trend is expected to continue for several months until the economy shows … (more) August 19, 2009

• Higher Michigan Premiums Blamed on State Supreme Court

  by Jeanny Hopper
  

  The state Supreme Court of Michigan is under fire after voting to force an insurers’ association to reimburse insurance providers in connection with the health care of two brain-damaged car crash victims. The court elected (4-3) to require the Michigan Catastrophic Claims Association (MCCA) to pay insurance companies for the providers’ payouts to the families of two seriously injured policyholders. The victims, Daniel Migdal and Robert Allen, require round-the-clock medical attention since they figured in two separate accidents. Both patients suffer from severe brain damage as a result of their injuries. Insurance companies established the MCCA in 1978 to compensate … (more) August 18, 2009

• Parents Advised to get Cheaper Teen Insurance

  by Jeanny Hopper
  

  Insurance specialists are advising parents of college students to seek alternatives to expensive car insurance. With the start of the new school year in fall, millions of young Americans are expected to rush to thousands of colleges and universities across the nation. Parents are also trying to keep up with the increasing costs of sending their children to college. The tough economic situation is forcing many households to cut back on some traditional expenses and maximize whatever income they receive. This has lead to a sharp decline in auto insurance. The drop has also affected a large number of young … (more) August 18, 2009