Auto Insurance News Archive for January, 2010

• Missouri, Kansas among ‘Yellow’ States for Lack of Insured Drivers

  by Jeanny Hopper
  

  About 14% of Missouri and 10% of Kansas drivers might not have automobile insurance, according to a recent study by the Insurance Research Council (IRC). The 2008 edition of ‘The Uninsured Motorists’ contained this reported data which was collected per state from 2005 to 2007. The IRC calculated the figure of those without auto insurance by means of computing the ratio of insurance claims made by persons who were injured themselves by uninsured car owners to the claims by persons who were caught in an accident with insured car owners. Nationwide, this same study said that about 14% of drivers … (more) January 23, 2010

• Bill Seeks to Impound Uninsured Cars in Oklahoma

  by Jeanny Hopper
  

  If the bill passed by Oklahoma Rep. Steve Martin is approved, uninsured vehicle owners would have their cars impounded. According to Martin, there is a new verification system that would allow instant confirmation on whether an automobile is insured or not. He stated that this bill plans to take advantage of this technology to help law enforcers and other agencies tasked with road safety and management. In the past, such innovation is unavailable. Department of Safety Captain, Chris West, said that they are open to the idea. He added that such a measure is a welcome step for people to … (more) January 22, 2010

• Healthy Competition and Location Help Keep Auto Insurance Costs Low

  by Jeanny Hopper
  

  Amidst rising auto insurance rates all-over the country, Kansas State motorists may sleep well at night, consciously knowing that any hike in their car policy this year is very much unlikely. A report made by the National Association of Insurance Commissioners (NAIC) revealed that Kansas placed 6th nationwide in terms of having the lowest average insurance expenditures. This, in turn, is equivalent to one of the lowest rates for vehicle coverage throughout the nation. NAIC is a non-profit organization whose aim is to organize supervisory and regulatory efforts of the various state insurance commissioners from all-over the country. In the … (more) January 22, 2010

• Mandatory Auto Insurance to Be Implemented in Wisconsin

  by Jeanny Hopper
  

  In an effort to bring down the number of uninsured motorists, a new law would be implemented mandating every vehicle owner to obtain auto insurance. This law, which is set to be enforced in June, would put Wisconsin along with 48 other states that have mandatory laws requiring insurance policy amongst its constituent drivers. A text of the law would read that “no person may operate a motor vehicle upon a highway in this state unless the owner of the vehicle has in effect a motor vehicle liability policy with respect to the vehicle being operated.” This means that drivers … (more) January 21, 2010

• Proposal Submitted to End Fraud and Abuses in NY Auto Insurance Policy

  by Jeanny Hopper
  

  It is very likely that in New York, motorists would experience a major overhaul in their auto insurance system. For about 36 years now, the State of New York has been using a no-fault system. Simply put, it is an arrangement between an insurer and the insured that in case of damage or loss, the latter must be indemnified regardless of who is at fault. This no-fault scheme also allows victims of road mishaps to be directly reimbursed by their insurance provider. Conceptualized to avoid expensive litigation and lower premium costs, some industry experts feel that it is outdated and … (more) January 21, 2010

• Reforms In Michigan’s Auto Reform Policy Sought

  by Jeanny Hopper
  

  In Michigan, efforts are being made by insurance advocates to change the State’s long-standing auto insurance policy. Dr. Robert Hartwig is one of these people. Hartwig, a medical doctor by profession, is also the president of the Insurance Information Institute. In his speech presented to the members of the Michigan House Committee, he testified that the “no-fault” system is what causes Michigan’s car insurance costs to increase. A no-fault system is any type of contract by which the insured is indemnified for losses by their own insurer irrespective of who is at fault, or who had generated the damage or … (more) January 20, 2010

• Stricter Program Implementation to Compel Drivers to Get Auto Insurance

  by Jeanny Hopper
  

  This year, uninsured motorists in Texas would have to get their vehicles insured, or they would have to face the prospect of having to face sanctions. The Texas Department of Insurance (TDI) reported that there are about 4.8 million registered family-owned cars in the state which remains uninsured. This is roughly about 22% of the 22 million automobiles recorded in the Texas Department of Motor Vehicles. Because of this large number, notices are being planned by TDI to notify and compel these drivers to get auto insurance. By law, drivers of this state are already mandated to have minimum liability … (more) January 20, 2010

• Florida Drivers Urged to Protect Themselves with Better Insurance

  by Jeanny Hopper
  

  Though auto insurance minimum coverage requirements are relatively low in Florida, it is inevitable that drivers may be left more vulnerable. Since Florida has certain minimum requirements which should be maintained in all occasions, these minimum levels may not allow drivers to be fully covered once an accident occurs.  Substantial losses resulting from a collision on the road can exhaust these limits very easily. Thus, drivers who avail of such policies will still be left with taking care of the expenses not covered by insurance limits. The Florida Department of Highway Safety and Motor Vehicles has certain demands so that … (more) January 19, 2010

• Uninsured Vehicles in Oklahoma State May be Impounded

  by Jeanny Hopper
  

  Oklahoma City drivers may be compelled to have their vehicles impounded if they are caught driving without auto insurance, according to a bill filed in the state’s House of Representatives. This bill, House Bill 2331, is authored by Bartlesville Rep. Steve Martin. Martin said that figures show that 25% of automobiles on the roads of Oklahoma have no liability insurance despite existence of the state’s mandatory insurance law. The statesman added that this bill is a much needed “positive step” for Oklahoma since there have been countless stories of victims caused by motorists without insurance. In this said proposal, a … (more) January 19, 2010

• Michigan Auto Insurance Costs Driving Motorists off the Road, Experts Offer Advice

  by Jeanny Hopper
  

  Car owners in Michigan lament that they are paying the highest auto insurance rate in the whole United States, but some specialists say there is little that they can do about it.  They cited weak consumer protection policies and oversights as the two major causes of the excessively high rates, leaving most consumers to the hands of auto insurance carriers. But some industry specialists say car owners can do many things to reduce their premium rate. They also expect the proposed reforms to help car owners in the state. This Monday, Nov. 30, several lawmakers are set to meet with … (more) January 18, 2010

• NYID Proposes Auto Insurance Reforms

  by Jeanny Hopper
  

  The New York State Insurance Department (NYID) is planning to change some regulations for no-fault auto insurance in order to help reduce fraud which is hitting many carriers as of late. If not stopped, frauds could contribute to the increase of premium costs for policyholders. Superintendent James Wrynn says state regulators are trying to be vigilant to protect the welfare of consumers. He adds that New York car owners do not have to pay extra fees in fraud and abuse tax, referring to the more than 50 percent increase in no-fault auto insurance as caused by the increase in fraudulent … (more) January 18, 2010

• Consumer Group Fields California Car Insurance Law as Model

  by Jeanny Hopper
  

  One of the leading and most influential consumer advocacy groups in the state of California called on the federal government and the Obama administration to adopt one of the state’s auto insurance laws in tackling health insurance issues. According to representatives from Consumer Watchdog, government officials can learn lessons from the success of Proposition 103, one of the most effective provisions created to protect the rights of policyholders in California. Insurance experts say that advocates of consumer rights are calling on the Congress and government regulators to implement a similar system of insurance rate regulation already present in California. The … (more) January 17, 2010

• Insurance Claims Process Explained to Motorists

  by Jeanny Hopper
  

  Experts from the auto insurance industry are now reminding car owners and policyholders of the proper procedures in the event of an accident. Recent statistics from studies sponsored by insurance providers have shown that a large majority of American car owners lack the sufficient knowledge regarding their car insurance. The surprising figures have prompted many insurance experts to call on motorists to refresh their memories of what to do when claiming for insurance. After assessing for any potential injuries, drivers should immediately contact their insurance providers or agents to inform them of the situation. Analysts say that many car owners … (more) January 17, 2010

• Getting Your Auto Insurance Claim

  by Jeanny Hopper
  

  Statistics say that over $150 billion worth of auto insurance claims are filed per year. Despite these figures, Americans actually find filing an auto insurance claim a tiring and somewhat intimidating process. However, vehicular accidents are very real so no excuses can be made for not knowing how to file an auto insurance claim. In fact, it would be the responsibility of a driver. In the long run, this will save him a lot of money, time, and effort—the whole point of having auto insurance. The first step in filing an insurance claim is assessment. In this case, a driver … (more) January 16, 2010

• Minimum Liability Coverage is Up, So are Insurance Rates

  by Jeanny Hopper
  

  In Louisiana, drivers are required to at least have “10-20-10” liability coverage. These numbers simply correspond to liability limits. However, with the passage of a new law approved January 1, a vehicle owner is now compelled to obtain a minimum “15-30-25” coverage and with this comes higher rates, or more fees to be paid. According to Richard Piazza, actuary head for the Louisiana Department of Insurance, policy holders would need to cough-up $71 more a year for car insurance. Proponents of this law had cited a need to increase minimum liability requirement to meet rising costs associated with accidents such … (more) January 16, 2010

• Reforms Working Despite Auto Insurance Rate Increases

  by Jeanny Hopper
  

  Auto insurance rates in New Jersey are expected to rise this year. However, instead of looking at it as bad news, take it as a sign that reforms in the industry are working as intended. In 2003, NJ Governor Jim McGreevey called for a sweeping legislation to overhaul the State’s auto insurance regulatory structure. Among its purpose is to create a more competitive marketplace for insurers, and to give consumers more choices, protection and empowerment. This law enabled attainment of higher profits by insurance companies. Because of the reduction of time frame given to state regulators to decide on requests … (more) January 15, 2010

• 24 Interstate Scammers Charged of Auto Insurance Fraud

  by Jeanny Hopper
  

  A total of 24 individuals have been reported to be charged with interstate auto insurance fraud. According to reports, 17 of them are New York citizens, 6 are from New Jersey, and 1 is a driver from Pennsylvania. Charges have been filed against the unnamed individuals for committing car insurance fraud and other charges of insurance felony for falsely identifying themselves as Pennsylvania drivers in an attempt to receive lower premium rates on auto policies. Each of the 24 defendants are facing charges including one count of auto insurance fraud and one count of false application for registration or certificate … (more) January 15, 2010