Auto Insurance News Archive for 2009

• 5:1 Ratio Increases Chances of Deer-Vehicle Crashes, Auto Insurance Rise

  by Jeanny Hopper
  

  Motorists in Wisconsin know that travelling along State 96 is not the safest drive in Wisconsin. Bounded by forests on both sides, drivers could expect that deer weighing anywhere from 125 to 300 pounds could leap from out of nowhere. But even if residents drive at less than 45 miles an hour, there is still no assurance that they will not engage in a collision with the antelope. In a state where there are 5 million registered vehicles and an estimated white tail population of at least 1 million, crashes are almost imminent especially during deer hunting season. And with … (more) October 24, 2009

• Competition Hurts Car Insurers, Could be Driven Away Government Action

  by Jeanny Hopper
  

  Heightened competition among Michigan auto insurance providers in the United States is hurting, as revealed by a new report. Fitch Ratings Inc., a Nationally Recognized Statistical Rating Organizations (NRSRO), reported that car insurers are entering tougher days despite their strong operating performance since 2003. Increased competition meant lower premium rates for American motorists since insurers have to outdo each other in terms of the policies they offer, both in cost and coverage. However, competing with each other comes with a great cost for auto insurers. Fitch said it gradually deteriorates income for companies which they need to continue operation. If … (more) October 24, 2009

• Denver Auto Insurance Costs Could be Propelled by Theft

  by Jeanny Hopper
  

  Police records saw a huge increase in smash-and-grab vehicle thefts from January to September this year. While Denver Police Department says such crimes could be prevented, consumer advocates worry that if the trend continues, Denver auto insurance premium rates could go up for city residents. Over a nine-month period which started in January 2009, police has recorded a 34% increase in vehicle break-ins in Denver. This totals to 5,610 cases since the beginning of this year. As caught by several surveillance cameras from different locations in Denver, smash-and-grab thieves usually ride on a motorbike, stop beside a parked vehicle, and … (more) October 23, 2009

• Wisconsin Auto Insurance Rules Set to Change

  by Jeanny Hopper
  

  When Wisconsin’s 2010 budget was signed last June, it also entailed drastic changes in Wisconsin auto insurance regulations. Starting November 1, minimum liability requirements for Wisconsin motorists are going up. Currently, the formula is set at 25-50-10. That translates to $25,000 worth of coverage for personal injury, $50,000 for accident occurrence, and $10,000 for property damages. Under the new regulations, the formula will be reset to $50,000 for personal injury, $100,000 for occurrence, and $15,000 worth of coverage for property damage. State legislators say changes are necessary in providing protection for residents who sustain physical injuries and property damages during … (more) October 23, 2009

• US Teens Encouraged to Driver Safer, Good Passengers for Lower Auto Insurance Rates

  by Jeanny Hopper
  

  Vehicle crashes are the leading cause of death among teenagers. Among policyholders, they are at the highest risk for accidents. That is why auto insurance providers charge them very high rates when applying for policies. US Congress acknowledges this fact and has initiated a safety campaign two years ago that aims at educating teens about safer driving. This year’s National Teen Driver Safety Week focuses on encouraging American teenagers to become good passengers in order not to distract their fellow teen drivers. Safety specialists note that the more passengers a teen driver travels with, the higher his risks for meeting … (more) October 22, 2009

• Georgia Supreme Court Prevents Auto Insurance Stacking

  by Jeanny Hopper
  

  Georgia Supreme Court ruled two days ago that a Senate member is not allowed to stack Georgia auto insurance policies with an insurance giant because the policy was not registered under his name. A local court initially came up with the decision but it was overturned by CA when the Senator filed for an appeal. The high court decision is a reversal of a previous lower court decision in an auto insurance case which involved Georgia Senator Cecil Staton and State Farm Insurance. In a 5-to-2 decision prepared by Justice Hugh P. Thompson, the high court concluded that the Court … (more) October 22, 2009

• Studies Backing Credit-based Auto Insurance Have Loopholes

  by Jeanny Hopper
  

  Critics say studies backing insurers’ assumption that credit and insurance risk have detractors which makes it unfair for some policyholders since they have to pay for risks they do not have. A new study sponsored by state regulators support the claim, making changes imminent in the auto insurance underwriting process. Texas auto insurance providers repeatedly cite a study conducted by University of Texas School of Business that found out an inverse proportion between credit and risk. According to the study, policyholders who have poor credit scores are more likely to file for claims. Researchers reported that lower credit scores are … (more) October 21, 2009

• Poor Credit is 35% Higher Premium

  by Jeanny Hopper
  

  Homeowners and drivers in Northern Texas with poor credit are paying on the average at least 35% more for insurance coverage than residents with good credit. This is even when all other underwriting factors such as recent damage claims on homes and driving records are identical. An analysis by an independent news organization in Dallas revealed that coverages offered by top insurers in Texas could increase dramatically based on credit rating alone. As retrieved from data stored by Texas Department of Insurance, only two out of the state’s 35 largest Texas auto insurance providers use credit history in determining premium … (more) October 21, 2009

• Driving Safety Fair Could Cut Auto Insurance Cost for Teens

  by Jeanny Hopper
  

  Road accidents are the leading cause of death for teens in America. That is why California auto insurance providers have all the reasons to charge younger motorists with higher premium rates. In a continuing effort to save teenage a southern California group along with city officials is conducting a driving safety course for teenagers. The group says safer driving by teens could significantly help trim down auto insurance costs for young motorists. Among American motorists, drivers aged 16 to 19 years old have the highest annual crash and traffic violation rates. Each year, 5,000 teenagers die of road crashes while … (more) October 20, 2009

• County Saves $500,000 on Insurance Cost

  by Jeanny Hopper
  

  Government workers for Burlington County, New Jersey have saved a total of $500,000 this year on insurance premiums simply because fewer claims and lesser renegotiated costs with carriers.  Lower premiums significantly account for the savings. Stephen A. Paolucci, Burlington County’s insurance risk claims manager, updated state board of freeholders last week on savings made since January this year. The savings were accumulated over a nine-month period, with worker’s compensation and general liability contributing significantly. Spending only a total of $1.76 million on New Jersey auto insurance payments, the county saved $243,469 on premium costs. County representatives explained that more responsible … (more) October 20, 2009

• Auto Insurance Group Reminds Car Makers about Older People’s Risk

  by Jeanny Hopper
  

  Older people are frail and are more likely to get seriously injured or killed in a road crash. This is the reminder issued by the Insurance Institute for Public Safety, a non-profit organization funded by auto insurance providers, upon noting that most vehicles manufactured these days are designed for younger motorists. As noted by the organization, senior citizen population is set to double in the next decades so they encourage carmakers to build vehicles which would be safer for the age group. Steering balance, antilock brakes, visibility from the driver’s seat and many other safety features are needed by older … (more) October 19, 2009

• Auto Insurance Agents, Stock Brokers Fined for Taking Kickbacks

  by Jeanny Hopper
  

  43 insurance agents and brokers were charged with finds totaling to $42,650 for accepting kickbacks, for failing to manage staffs who received kickbacks to lead consumers to certain auto glass repair shops. New York State insurance superintendent James Wrynn made the announcement yesterday, reminding people engaged working in the insurance industry that it is unlawful for them to steer clients into firms which provide them with monetary incentives. The agents and brokers work for more than two dozen of insurance firms or group of companies in Central and Western New York. They were accused of accepting gifts in exchange for … (more) October 19, 2009

• Greener is Cheaper

  by Jeanny Hopper
  

  Insurers calculate premiums according to risks. Just yesterday, local auto insurance providers proposed another risk to be included in their calculation of costs: climate change. They cite rising costs that come along with it and expressed intention in fighting it. They suggest giving discounts to drivers who go green, those who join in efforts to decrease the amount of greenhouse gases in the atmosphere. Last month, California Department of Insurance approved a proposal by car insurers to give discounts to consumers who drive less. Normally, people who spend lesser time on the road get lower premiums because they are considered … (more) October 18, 2009

• NASCAR Stars Advise Teenage Drivers to Keep Eyes, Head on the Road

  by Jeanny Hopper
  

  Drivers from the National Association for Stock Car Auto Racing (NASCAR) to inform teenage motorists another road peril: DWD or driving while distracted. They encourage young drivers to put down their phones while driving so nothing gets in between them and the road. Road safety advocates believe that decreasing accident rates in the age group will trim down high auto insurance rates for teens. A recent study conducted by an independent auto insurance firm revealed that majority of Americans favor cell phone ban while driving. 8 out of every 10 correspondents say they would support a legislation that would reinforce … (more) October 18, 2009

• Auto Insurance Rates Diminishing, Decade-Old Law Gets Credit

  by Jeanny Hopper
  

  A recently published report by California auto insurance regulators reveals that premiums have significantly gone down during the past two years. Observers note that regulatory efforts along with several economic factors contributed to downshifting rates. Fewer road accidents, lesser driving by Californians because of increased gas prices, and competition among insurers are some of the factors specialists attribute to decreased insurance rates. As further noted by observers, insurers have placed greater value on attracting consumers because of the very competitive insurance industry in California.  They say policyholders are more aware of their options largely because of Internet advertisements. Consumers are … (more) October 17, 2009

• Nationwide Campaign against Cell Phone Use while Driving Launched, 18 States Join Call

  by Jeanny Hopper
  

  If driving under influence is serious enough to cost lives, so does using cell phones while driving. This is the message of a new awareness campaign launched by different organizations all over United States. Advocates say crashes do not only result in casualties but they also push auto insurance premium rates up. But road safety organizations are not alone in their pursuit. Just last week, President Barack Obama signed a bill prohibiting federal employees from using their mobile phones while operating government vehicles. Reading and sending messages will be banned as well as encoding address into one’s GPS device. There … (more) October 17, 2009

• Seven New York Auto Insurance Companies Hallmarked for Consumer Satisfaction

  by Jeanny Hopper
  

  Seven auto insurers in New York received best ratings based on judgments favoring them. Of the 38 carriers in the State, they have the most number of cases turned in their favor. The results are based on New York State’s Insurance Department 2009 Annual Ranking of Automobile Insurance Complaints. Data are derived from studies made in 2007 and 2008, companies which have the least upheld complaints per million dollars worth of premium. Insurers who have the highest number of complaint ration are placed at the bottom. New York State Insurance Department, which regulates the state’s insurance activities, compiles data every … (more) October 16, 2009