Auto Insurance News Archive for January, 2010

• Dealing With Used Car Auto Insurance

  by Jeanny Hopper
  

  Those who are driving pre-owned cars may be distressed because their car insurance premium would be more costly because of the higher risk involved in a used (not to mention older) vehicle. These worries can be qualified. However, owners of a used car need not to worry because anyone can get proper coverage for their used vehicle. First of all, you must know that a lot of factors are present when you are dealing with your auto insurance premium. You should know what these factors are so that you will have more freedom in dealing with the costs of your … (more) January 31, 2010

• Factors Shaping Auto Insurance

  by Jeanny Hopper
  

  Affordable auto insurance is something that a lot of drivers yearn for, especially these days now that costs of vehicle insurance are higher. A lot of insurance policies are out in the market. The challenge is getting one with a lower price. There are a few tips you can do to make it more affordable. You should always remember that plenty of factors determine your insurance price. If you are a low risk driver (one with a good track record), expect a lower car insurance premium. When companies see that you have a good record, they will see you as … (more) January 31, 2010

• Insurance Info Institute Outlines Tips to Lower Auto Insurance Costs

  by Jeanny Hopper
  

  Other than having a good record as a driver to keep auto insurance costs down, the Insurance Information Institute has outlined nine recommendations in a report entitled, “9 Ways to Lower Your Auto Insurance Costs.” First, owners are urged to ‘shop around’ to find the best valued price quotes. Collecting information through direct phone calls or through the internet is a good start. Even local state insurance departments may be able to offer information regarding major insurers. It would be wise to pick an insurer with a track record of financial stability by looking into consumer periodicals and rating companies. … (more) January 30, 2010

• Rep. Byrum, Dabbs: Pass Urgent Reforms for Michigan Car Owners

  by Jeanny Hopper
  

  The vehicle owners of Michigan have been scrimping economically due for a long time to the unfriendly policies of auto insurers, and the situation is ‘only getting worse.’ This is according to an enjoinder by Michigan State Rep. Barb Byrum and Michael Dabbs, president of the Brain Injury Association of Michigan and spokesperson for the Coalition Protecting Auto No-Fault. The new law compels Michigan residence to purchase auto insurance at rates which rank ‘among the highest’ in the US. The state’s rates have spiked by as much as 70 from 1989 to 2005. Wage drops and a rising unemployment rate … (more) January 30, 2010

• Ban on Texting While Driving Soon to Become Law in Wisconsin

  by Jeanny Hopper
  

  A bill prohibiting texting while driving would soon become a law in the State of Wisconsin. According to reports, Governor Jim Doyle, gave his nod of approval into a legislation backed by different groups including the auto insurance industry. Last January 19, a vote of 89 against 6 sealed the Senate’s version of this proposed law on a mainly bipartisan contest. The only hurdle before it could be signed by the governor is its difference between the Senate’s version of this bill to that of the Assembly which proposed a higher penalty for a second offense. Because of this, another … (more) January 29, 2010

• Many Motorists Still Uninsured in Colorado in Spite of Law

  by Jeanny Hopper
  

  Despite rigid laws already being implemented, Colorado still ranks among states with the highest number of uninsured motorists. According to a data released by the Insurance Research Council (IRC), the probability of being caught in a vehicular accident with an uninsured driver in Colorado is as high as 15%. This pales in comparison to only 10% of the over-all probability that a motorist might figure in a car mishap. IRC is an independent, non-profit research organization whose aim is to provide timely data and information which affects insurers and consumers. It also performs analysis on data to study the statistical … (more) January 29, 2010

• Oregon Owners of ‘Wrecked’ Cars May Get More Info Due To New Law

  by Jeanny Hopper
  

  In an effort to urge Oregon residents and insurers about ‘new’ rights in the event that their car gets totaled in an accident, the state’s Department of Consumer and Business Services (DCBS) issued a reminder last week. Taking effect earlier this month, House Bill 2190 permits car owners to obtain more information for the purpose of greater leverage whenever a settlement for a totaled car is in the middle of negotiation. The DCBS reported that this new law compels insurers to take several considerations. First, drivers should be provided with a written notice that outlines the total loss which includes … (more) January 28, 2010

• Cheaper Insurance Rates May Not Be Wise In The Long Run, Says Experts

  by Jeanny Hopper
  

  Figuring out the coverage that best suits the needs of any customer is a crucial consideration when searching for the most affordable car insurance rates. Auto insurance guru, John Pirro, explained that although paying the price of quality insurance can be a financial burden, being unable to avail of the best coverage in the face of a costly accident can cause a deeper burden. He urged that taking into account insurers who can provide more ‘extensive protection’ is a wise move on the part of consumers so that damages not taken care of by basic policies can be compensated for. … (more) January 28, 2010

• Increasing Deductibles can Bring Auto Insurance Discounts, Says Experts

  by Jeanny Hopper
  

  Asking the “right questions” and having a willingness to take risk are good steps in the direction of achieving better rates and unearthing uncommon discounts on auto insurance, according to experts. The Insurance Information Institute said that premiums become an obligation for owners with current deductable of less than $500. Auto insurance expert, Dayana Yochim, suggests that increasing deductibles from $200 to $500 may consequently lessen the cost of comprehensive coverage (and collision coverage) by as much as 15% to 30%. Since the typical yearly premium is valued at about $820, increasing deductibles could amount to $123 to $246 in … (more) January 27, 2010

• El Paso Tagged as a ‘Hot Spot’ for Auto Theft, Auto Insurance Premiums may Remain Unaffected

  by Jeanny Hopper
  

  EL PASO, TEXAS – The National Insurance Crime Bureau (NICB) reported that El Paso, Texas is becoming a ‘hot spot’ for automobile theft. Insurance Information Institute vice president of media relations, Michael Barry, said that insurance companies are least likely to include NICB data when factoring in risk calculations for premiums. El Paso is already struggling with the stigma that the drug war which roots all the way to Mexico is stimulating a crime rate spike. The NICB, a nonprofit organization that addresses insurance related violations, keeps track of thefts and even recovers stolen cars on behalf of auto insurers. … (more) January 27, 2010

• Bill in Nebraska Seeks to End “Guest Statute”

  by Jeanny Hopper
  

  In the State of Nebraska, a guest passenger may recover for damages or injuries caused by a vehicular accident, but not the relative of the insured the driver. This is the statute that the bill introduced by State Senator Norm Wallman seeks to repeal. According to Wallman, an incident involving a constituent brought his attention to this dilemma. The constituent figured in a car mishap driven by a relative. Seeking indemnification, the latter found out that because of an existing law, recovery for damages would not be possible. Being hospitalized for more than seven days, the man had to shoulder … (more) January 26, 2010

• Californians to Decide on New Auto Insurance Law by Ballot

  by Jeanny Hopper
  

  Amidst efforts to contradict the Continuous Coverage Auto Insurance Discount, a group had stated that it had already submitted more than seven hundred twenty thousand signatures, succeeding for its inclusion in the primary election ballot. The group, Californians for Fair Auto Insurance Rates (CalFAIR), said that such a move would allow citizens of California to decide on whether car owners who religiously maintained motor insurance coverage are entitled to discounts or not. According to California Secretary of State Debra Bowen, supporters of the ballot initiative had turned in at least 433,971 valid signatures. This qualifies the legislation to be included … (more) January 26, 2010

• Non-Profitability in 2010 Seen By Auto Insurance Industry Insiders

  by Jeanny Hopper
  

  If the survey conducted to executives from different insurance companies is true, then the auto insurance industry is in for a big crunch. In a poll conducted at the yearly Property and Casualty Insurance Joint Forum Industry, a total of 51% industry execs said that overall industry profits would remain flat. This is because of expectations that a number of premiums would likely fall. Pessimism on its growth is accentuated by the fact that only 14% polled that any increase in the volume of premiums is likely to happen. When it comes to profit, 51% anticipate increase in revenues in … (more) January 25, 2010

• Parents Advised of Options for Auto Insurance Coverage of Teens

  by Jeanny Hopper
  

  Every year, and this year included, thousands of teenage drivers would hit the streets. After learning how to drive and most especially after obtaining their driver’s license, teenagers are most often careless and excited while driving. Because of this, they are considered as high risk auto insurance drivers. Case at hand: In a study released by the Insurance Information Institute (III), a quarter of them use cell phones to send text messages and answer calls while driving. About the same percentage also eat and drink behind the wheel. Some attribute this for immaturity or lack of experience. However, the point … (more) January 25, 2010

• Auto Insurance Fraud Referrals Tops List in District of Columbia

  by Jeanny Hopper
  

  The District of Columbia Department of Insurance, Securities and Banking (DISB) have been experiencing relative success in the area of insurance fraud referrals in the last three years. According to recent figures, since 2007, the Enforcement and Investigation Bureau of the DISB has received about 350 fraud referrals annually (a 75% increase since three years ago). DISB Associate Commissioner for Enforcement and Investigation, Stephen Perry, said that auto insurance fraud topped the list of the DISB’s enforcement and investigation division in the last three fiscal years. There has been a spike, according to Perry, in “auto owner give-ups, staged accidents … (more) January 24, 2010

• Two Auto Insurance Companies Win in Michigan Bridge Lawsuit

  by Jeanny Hopper
  

  In Lansing, Michigan, Ogden Township taxpayers were turned down by the Michigan Supreme Court in their plea to sue two insurance companies for damages caused by an overweight truck to a public bridge. The court decision was in favor of the insurance companies, 4-3. The bridge in dispute is located on Horton Road. In 2007, the township was compelled to spend more than $200,000 to replace this damaged bridge. Construction company trucks allegedly drove over the infrastructure in 2005 with loads which exceeded its 20-ton weight capacity. The two insurance companies’ attorneys were able to force a shift in their … (more) January 24, 2010

• Mass. Motorcycle Insurance Holders Set to Receive $11.1 M in Refunds

  by Jeanny Hopper
  

  Motorcycle insurance holders in Massachusetts are set to receive $11.1 million in refunds after three insurance companies agreed to settle allegations of overcharging their clients since 2002. The office of Martha Coakley, Massachusetts Attorney General, pressed charges against Safety Insurance Co., Liberty Mutual Insurance Co., and Quincy Mutual Fire Insurance Co. after investigating for about a year. These companies were accused of charging premiums based on inflated vehicle values. The office said that current book values should have been used. The settlement was filed in Suffolk Superior Court which compelled Safety Insurance to refund $7.2 million to its clients, $3.1 … (more) January 23, 2010