Auto Insurance News Archive for 2009

• New York Car Insurance Claim Payments Rise to 55%

  by Jeanny Hopper
  

  LATHAM, NEW YORK – A recent report claims that policy holders in New York pay 55% more than what they used to.L New York policy holders find that the usual payments they make for the state’s no-fault system have risen by nearly 55%. Starting on second quarter of 2009, an estimated $8,748 increase per claim has been charged to policy holders. According to reports published by the Insurance Information Institute (I.I.I.), the increase this year has been too shocking and too much for the public to take. Rates have shot far up from where it was back in 2004, when … (more) November 10, 2009

• Public Knowledge on Auto Insurance Policies Reinforced

  by Jeanny Hopper
  

  The more you know about something, the more prepared you will be about it, and the better you can do to take full advantage about it. In the car insurance industry, local efforts to strengthen public knowledge about auto insurance policies are mobilized. If the public knows more about car policies, the more they can take full advantage of it. Starting November, meetings with public officials in the state of New York have been initiated to plan programs on how to reinforce public knowledge regarding auto insurance coverage policies. Reports say that recent surveys conducted on New York policy holders … (more) November 10, 2009

• Using Credit Scores To Determine Premium Rates Argued To Save The Day

  by Jeanny Hopper
  

  Drivers are split as to whether they want to be judged based on their credit. According to experts in the auto insurance industry, the use of the credit scoring method to determine premium rates saves insurance companies and policyholders time, money, and effort. University Professors who specialize in insurance and financial services suggest that a very good way to determine the premium rates to be paid is by credit scoring. As soon as the idea is presented, a number of critics who are against the credit scoring method argued that using such method will be detrimental to the poor and … (more) November 9, 2009

• Tough Times Heighten Auto Insurance Fraud

  by Jeanny Hopper
  

  The number of car insurance fraud caused by economic difficulties and recession is starting to increase in now scary numbers. Insurance companies report catching fake insurance claims or “Give-ups”. Increasing incidents of faking car theft or make believe fire by fraudsters in an effort to collect insurance money on any discarded vehicles have been reported. Insurance industry insiders say that the numbers have gone up since 2008, roughly by around 23%. On the other hand, the numbers of insurance claims arising from suspicious vehicle arson have gone up by 27%. Auto insurance companies are now afraid that the economy will … (more) November 9, 2009

• Congress Confused On Who Should Be the Key Decision Makers

  by Jeanny Hopper
  

  Recent meetings the United States Congress still show confusion and indecisiveness as to what role should each state play in regulating auto insurance. In recent Congress meetings, members of the Congress appear to remain in a state of confusion and are unable to decide on whether they should limit the extent on how state powers can control and regulate car insurance. Reports say that the Congress wants the states to have the power to make key decisions in car insurance, particularly in auto insurance reforms. On the other hand, some members of the Congress want to maintain the key powers … (more) November 8, 2009

• Drivers Cut Back on Auto Insurance Coverage

  by Jeanny Hopper
  

  With less purchasing power and with money spent more on gas bills, motorists are cutting back on auto insurance coverage. Regional insurance companies reported that much of their clients had trimmed on coverage policies. Some drivers have canceled policies they originally purchased when they have the chance and leave only the coverage required by state jurisdiction. Reports show that a major US insurance company that serves motorists from Delaware, Maryland, Washington, Pennsylvania, New Jersey, Virginia, and D.C. experienced having clients who “trim” their auto insurance policies. The same company has reported to have said that a huge number of their … (more) November 8, 2009

• California Pushes for Pay-As-You-Drive Car Policy

  by Jeanny Hopper
  

  Insurance Commissioner, Steve Poizner, announced that they issued regulations allowing mileage verification for pay-as-you-drive (PAYD) car insurance policy or coverage, which is not yet available in a California market. In PAYD, premiums will be determined on the number of miles or how far consumers drive. They have control to lower the cost of their car or vehicle insurance by driving less. In amended regulations released recently by the Department of Insurance, it gives insurers an option to use either mileage-estimated or mileage-verified method in estimating rates for car insurance plans. In mileage-estimated methods, figures for mileage will be determined through … (more) November 7, 2009

• Teen Drivers Risky To Insure

  by Jeanny Hopper
  

  United States annual statistics showed about 400,000 drivers age 20 and below figured in car accidents, which translates to $26 billion total damage costs of road mishap. In fact, vehicular accidents ranked as No. 1 cause of death among teen Americans. The number of death for teen drivers is four times higher than drivers whose ages are between 25 to 69 years. Statistics also showed that more teen male drivers get killed in car accidents than teen female drivers. About 19 get killed for every 100,000 male drivers, while 11 get killed for every 100,000 female drivers. First time teen … (more) November 7, 2009

• Consumers Prepare for Planned Rate Hikes Come 2010

  by Jeanny Hopper
  

  Car owners are putting on their seatbelts in preparation for another bumpy ride as auto insurance providers plan to increase premium rates again. Although it has been reported that a 15% increase has been made from 2008 to 2009, a number of insurance companies still feel the need for a 10% increase from 2009 to 2010. These companies blame it on delinquencies of their current customers and the unsteady market forecasts. A survey conducted by an auto insurance consultancy firm showed that almost 50% of auto insurance companies in the United States have scheduled a premium increase next year from … (more) November 6, 2009

• Local Communities and Car Companies Help Solve Insurance Rate Problems

  by Jeanny Hopper
  

  In most  parts of the country, a growing concern is the continued increase in auto insurance premium rates. State after State, authorities are on their necks in preparing drivers on how they can be responsible enough to save on auto insurance. In New Jersey, local medical centers are offering courses on defensive driving on November 17 and 18, 2009. The event, scheduled to run from 10 in the morning to 3 in the afternoon, is organized by New Jersey’s local organizations who are concerned about the growing premium rates motorists pay in the state. Drivers and car owners who will … (more) November 6, 2009

• Business Owners Advised to Pick the Right Policy

  by Jeanny Hopper
  

  Some small business owners and self-employed individuals report that they are confused whether to choose a commercial or personal policy when insuring their vehicles. Experts say car owners should choose the right auto insurance in order to avoid paying unnecessarily and to avoid having problems when filing for a claim. Being a business owner does not necessarily mean that a person has to purchase commercial auto insurance, since the type of policy to apply for depends on several factors. According to industry specialists, needing a commercial policy depends on how a vehicle is used and what company it is insured … (more) November 5, 2009

• Pay-as-you-drive Auto Insurance Makes another Mile

  by Jeanny Hopper
  

  California legislators have moved a step forward in pushing a policy that will determine the auto insurance rate of a motorist according to the number of miles he drives. Usage based auto insurance, more popularity known as a pay-as-you-drive (PAYD) policy, was initially proposed several months ago to help drivers save on their policy costs. PAYD is not new concept in the auto insurance industry. There are many countries that are practicing, among them United Kingdom, Canada, Australia, South Africa, and Japan. 30 states in the country are currently allowing carriers to offer the plan to consumers as a limited … (more) November 5, 2009

• Police Efforts Helpful in Lowering Premium Rates

  by Jeanny Hopper
  

  Insurers cannot quantify its effects yet but they say efforts by law enforcers in curbing vehicle theft would eventually push Denver auto insurance costs down. Aided by new technology along with their dedication, the police have trimmed down the rates of stolen vehicles by double digits. Local law enforcers have been employing new technologies to protect car owners from vehicle thieves. Sheriffs in some counties plant GPS tracking devices on farm tractors or four-wheeler trucks left out to trick machinery thieves. Cops in Metropolitan Denver drive vehicles equipped with computerized license plate readers that can detect stolen vehicles in one … (more) November 4, 2009

• Car Insurer Closes Several Offices in Florida

  by Jeanny Hopper
  

  An auto insurance provider, popular among car owners struggling with their credit, has closed several offices and has stopped accepting new applicants in some Florida areas, including Tampa. Direct General Insurance Agency Inc., which provides coverage in the state under the Florida No-Fault and Cash Register brands, closed nine retail stores this week causing disappointment among policy holders. They closed five offices in Tampa, one in West Palm Beach, another one in Fort Myers, and two in Miami. A company spokeswoman says it is no longer writing new car policies in those areas. But she assures current policy holders that … (more) November 4, 2009

• Drivers Urged to Remain Cautious Despite Drops in Deer Crashes

  by Jeanny Hopper
  

  The number of deer-vehicle crashes in Delaware has gone down in 2008 but experts tell motorists to remain cautious, with most of those accidents tending to rise during this time of the year. A resident of Morrow County reported that he was driving through Marengo early morning yesterday at 50 miles per hour when three doe darted across the road in front of him. Driving at a low speed, he was able to avoid all three of them but something heavy smashed hard into his truck’s bumper. It was a ten-point buck running after the female deer which caught the … (more) November 3, 2009

• Experts Tell Parents that They Can Avoid Rise in their Auto Insurance Premium

  by Jeanny Hopper
  

  Insuring a teenage driver is quite expensive, with their premium bills sometimes costing three times more than adult drivers. But car insurance companies say they can provide discounts to parents that would keep their teenage driver’s bill from hurting their pocket. Teenagers are at their safest if they keep off the road, but that is impossible for students living in large metropolitan areas. They often have to drive on their way to school, sporting events, and part-time jobs. Once they start turning on the ignition, parents know that they need to get their teenager covered. However, adding a teenager to … (more) November 3, 2009

• Consumers Urged to Choose the Right Auto Insurance Deductible

  by Jeanny Hopper
  

  Uncertain about how well the United States economy will do in the coming months, most car owners expressed willingness to undertake all means that would help them save on auto insurance cost. But many policy holders neglect one thing that could significantly lower their premium cost—choosing the right deductible. According to experts, paying higher deductibles could reduce the premium by a huge percentage. But they advise consumers to consider several factors first before spending on deductibles unnecessarily. Industry specialists explain that carriers require policy holders to pay a certain amount of money out of their pocket when filing a claim. … (more) November 2, 2009