Auto Insurance News Archive for 2009

• Teenage Driving in New York Peak during Summer and Christmas Seasons

  by Jeanny Hopper
  

  In the state of New York, New York auto insurance purchases for teenage drivers peak during summer and Christmas season. This may be good news for insurance companies, but for parents of teenage drivers, the said seasons may not be worry-free for them. According to the Insurance Information Institute, sales for young driver’s car insurance soar during the months November, December, and March to June. Based on a research conducted by Students against Destructive Decisions, during summer, months between March to June, teenagers spend 44% more hours driving compared to any other months of the year. Another study conducted by … (more) November 19, 2009

• November a High Risk Month for Deer Collisions

  by Jeanny Hopper
  

  November is marked as a high risk month, and states such as Michigan and Virginia are flagged as high risk states by insurance providers due to the expected number of auto-deer collisions this season. For many insurance companies, deer and cars can be one deadly combination. Especially during the months of October, November, and December where deer mating and migration is at its peak, the chances of having an auto-deer collision are very fatal. Reports from the Insurance Information Institute say that the fourth quarter of every year brings forth a striking increase in the movement of deer population, causing … (more) November 18, 2009

• Protection Still Possible Even without Uninsured and Underinsured Coverage

  by Jeanny Hopper
  

  For certain states in the US, such as New York, getting concerned about uninsured drivers remains to be an option. New York and other states that still rules for uninsured and underinsured driver coverage to be optional, there are still ways to get protected from inadequately protected motorists. According a recent research conducted by the Insurance Information Institute, out of every seven motorists in the United States does not have enough protection from auto insurance; and even though it’s only 1 out of 7, those with inadequately protection can greatly cause repercussions for insured motorists. Reports say that Insurance companies … (more) November 18, 2009

• Michigan Car Insurance Can Be More Affordable in 2010

  by Jeanny Hopper
  

  A lot of people complain about prohibitive car insurance fees that almost cost an arm and a leg.  Some people opt not to sign in to one not seeing any practicality to something that is rarely used, but can burn a hole in one’s pocket.  In these challenging times where every buck counts, a lot of people would view car insurance as a nuisance and unnecessary.  They would rather use the money for more important matters. In Michigan, local politics is making headway in alleviating people’s financial woes with a State election panel approving an earlier petition to conduct a … (more) November 17, 2009

• Pay-as-you-drive Insurance Plans Inching Closer in the State of California

  by Jeanny Hopper
  

  Recent developments in California signal changes in the insurance landscape of the State.  California Insurance Commissioner, Steve Poizner, recently released policies that in effect permit monitoring and verification of miles used for pay-as-you-drive insurance plans. The system of pay-as-you drive insurance plans is similar to pre-paid mobile phones, where policyholders pay premium based on the number of miles travelled, as in the case of phone subscribers, they only pay for minutes consumed. In effect, the lesser one drives, the lesser he pays; the more one drives the more premium he pays. This type of plan is very democratic and highly … (more) November 17, 2009

• Economic Downturn Increases Risk

  by Jeanny Hopper
  

  More often than not, road accidents lead to serious injury and loss, not only to property, but also life. Surviving family and friends do not only deal with emotional stress, but also financial distress.  Things turn up a notch higher in these difficult business conditions where people forego a lot of conveniences because of tight finances. Just recently a massive traffic accident occurred in Louisiana that resulted in the deaths of five people.  The lone survivor of the accident, an elderly woman broke both her legs.  She lost her son, grandchildren, and daughter who all perished in the mishap.  The … (more) November 16, 2009

• Ailing GMAC to Receive Another Shot in the Arm from the Government

  by Jeanny Hopper
  

  The Federal Reserve has infused another tranche of capital to GMAC with the approval of additional $6.5 billion bailout money.  However, the beleaguered financial company appears to be almost relying purely on government funds to keep it afloat, and does not show any clear signs of making a turnaround. The government has already shelled out huge amounts of bailout money to ailing companies in light of this economic downturn that hit the country recently.  GMAC has yet to show signs of recovery and was the only one of 19 major financial institutions that received financial assistance from the government which … (more) November 16, 2009

• Maryland Insurance Companies Fined for Mishandling Premiums

  by Jeanny Hopper
  

  Almost half of the 119 automobile insurance companies in Maryland have been reprimanded and charged with fines by state insurance authorities during the second quarter of 2009 for mishandling of auto insurance premiums and other fees. According to reports, Insurance authorities in Maryland fined the approximately 59 auto insurance companies nearly $400,000 in reimbursement to car owners and a total of 235,000 in penalties. Insurance authorities say that the mishandling of insurance fees came mainly as a result of the changes made to the state law during the last quarter of 2008. Although reports say that most insurance companies were … (more) November 15, 2009

• Private Companies and Non-Profit Groups in Virginia Find Ways to Stop Distracted Driving

  by Jeanny Hopper
  

  Auto insurance companies and non-profit organizations in Virginia team up to call the public’s attention to the ramifications of distracted driving. Drive Smart Virginia, a non-profit organization composed of car insurance companies that serves more than roughly 85% of the state’s policyholders, decided to act on the growing concern regarding distracted driving. As more and more private companies join the organization, the goal of Drive Smart Virginia to make the state’s public roads safe for motorists is slowly coming true. Reports say that Drive Smart Virginia even conducted a thorough research to uncover the real causes of near-crash and crash … (more) November 15, 2009

• Prolonged Recession Causes Increase in Maryland Fraud Reports

  by Jeanny Hopper
  

  The Maryland Insurance Administration has been receiving almost twice the normal number of complaints involving fraud for this year compared to 2008. This may be attributed to the ongoing recession and an increasing popularity of the use of technology. According to Carolyn Henneman, Fraud Division Head of the Maryland Insurance Administration, their division has recorded around 1,400 reports for the fiscal year 2008. For fiscal year 2009, ending on June 30, more or less 2,600 insurance fraud reports have been received – almost double the previous number. Current statistics regarding fraud complaints is not an exact value, according to an … (more) November 14, 2009

• Men, Women and Car Insurance – Who Gets the Cheaper Deal?

  by Jeanny Hopper
  

  One of the highest expenses you can expect to shoulder when owning a car or vehicle is insurance. Usually, automobile insurance costs far exceed expenses or money spent for gasoline, permits, licenses, registration, routine maintenance and spare parts. Out of all drivers on the road, those who have been driving for a short while can expect higher costs or premium rates, to the extent that the total may even be equal to the price of a car. This is true even for basic insurance coverage or policy. Some insurance companies or firms offer a type of coverage especially designed for … (more) November 14, 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