Auto Insurance News Archive for January, 2010

• Sen. Clark Likely to Champion Auto Insurance Reform in Gubernatorial Bid

  by Jeanny Hopper
  

  For Michigan State Senator Hansen Clarke, automobile insurance reform will be a key factor in his gubernatorial bid. Clarke has joined in the mix to fill in the seat of state’s next governor, while Lt. Gov. John Cherry opted out of the race recently. Reportedly, auto insurance will be one of his platform’s primary thrust. The Senator told the Associated Press that he has fulfilled all minimum requirements, including paperwork, to officially start getting on to the campaign trail. The gubernatorial aspirant has been actively going around the state to promote his initiative to reduce state auto insurance rates by … (more) January 14, 2010

• New Jersey Auto Insurers Performed Poorly in ‘08

  by Jeanny Hopper
  

  As automobile insurance companies or firms in New Jersey battled for customers, their effort proved to be unfruitful in 2008. Due to this circumstance, drivers are placed in a spot where they have to pay for higher premiums to compensate for decline in profits. New Jersey State and the Auto Insurance Report indicated that insurance companies have “flatlined” after five years of profits in double-digits until 2008. In 2007, companies reported a 10.1% profit. Since state reforms in 2003, more companies have been drawn to the state despite a poor showing of profits and significant increases in rate. Brian Sullivan, … (more) January 14, 2010

• Extra Steps Urged to Maximize Insurance for Teens

  by Jeanny Hopper
  

  25% of teenagers use their cell phones to send text messages and answer calls while they are driving, according to the Insurance Information Institute. In the same report, according to auto insurance expert Phil Mulkins, 25% of these same teenagers also eat and drink while they drive. The two main factors attributed to this are inexperience and the lack of maturity – both contributing to high teenage crash rates. The institute, according to Mulkins, has several recommendations in choosing a safer car which not only offers crash protection but is also relatively easy to drive. High performance vehicles should be … (more) January 13, 2010

• 1 Out Of 4 in South Texas Not Insured, TexasSure launched

  by Jeanny Hopper
  

  TEXAS – Texas State may average 22% for uninsured vehicles, but latest figures show that at least one out of four Texans, in most counties in the South Plains/Panhandle regions, do not have auto insurance. To address such a disparity, the Texas departments of Public Safety, Motor Vehicles and Information Resources, and Insurance created an online state-wide insurance verification program called TexasSure, online at www.texassure.com, to lessen the number of motorists without insurance. The same agencies have collaborated together to create a database connecting every registered vehicle in the state by its license plate, liability insurance policy and vehicle identification … (more) January 13, 2010

• Insurance Deregulation in Massachusetts Not Delivering Results

  by Jeanny Hopper
  

  According to a report commissioned by the attorney general’s office of Massachusetts, deregulation in the state’s insurance industry has failed to lower premium fees; it has increased insurer revenues, diminished consumer protection and created confusion among customers. This report was made two years after the insurance industry was opened to other players and also included recommendations on how to improve conditions in the marketplace. Attorney General Martha Coakley said that deregulation has yet to live up to its promise of cheaper fees for policyholders and has produced disappointing results so far. This report also cited the fact that many consumers … (more) January 12, 2010

• Twenty Four People Arrested for Insurance Fraud

  by Jeanny Hopper
  

  Twenty four people, majority of which are New York City residents, with the rest coming from the state of New Jersey have been caught making false claims that they are from certain areas of Pennsylvania in order to get cheaper insurance premiums.  They are now facing criminal charges for falsification of identity and other related cases. This practice is known as rate evasion wherein non-Pennsylvania residents would make false claims that they are from the state so that they could get a driver’s license or vehicle registration from the Pennsylvania Department of Transportation. They would then use this information to … (more) January 12, 2010

• Two New Appointments in Louisiana Insurance Dept Announced

  by Jeanny Hopper
  

  The Louisiana Insurance Department announced that it will have two appointments this month. According to Commissioner Jim Donelon, the incoming chief deputy commissioner of insurance will be Al Ater. Starting January 11, Mr. Ater will be become managerial head of the department’s daily operations. Incidentally, the department noted that this appointment for Mr. Ater will actually be a come-back for him since he served as Chief Deputy Commissioner from 2004 to 2005. After which, he had experience as first assistant at the Department of State. Next, in July 2005, he was named Secretary of State. The new managerial head was … (more) January 11, 2010

• 24 Auto Insurance Rate Evaders Arrested in Penn State

  by Jeanny Hopper
  

  A total of 24 individuals were charged with insurance fraud, among other related violations, after masquerading as residents of Pennsylvania so that they could capitalize on significantly cheaper rates for their auto insurance. Gen. Tom Corbett, Pennsylvania Attorney General, took charge of the capture of these alleged perpetrators which includes one Pennsylvania resident, 17 from New York and six New Jersey residents. The crime, referred to as “rate evasion,” included collaboration of the outsiders providing fictitious personal information to the Department of Transportation of Pennsylvania State. These fake identities were used for the purpose of getting vehicle registration or PA … (more) January 11, 2010

• 1M Louisiana Car Owners Face Increased Insurance Rates Since January 1

  by Jeanny Hopper
  

  Since January 1, auto insurance bills rose for over 1 million Louisiana automobile owners due to a law that increases mandated minimum liability coverage. Many drivers were caught off-guard because auto insurance institutions were not compelled to warn policyholders. This law was approved in 2008. Jim Donelon, Insurance Commissioner, expressed that because of the current economic crunch, increase in insurance bills comes at a very difficult time especially for consumers. Nonetheless, he said that this new law is welcome to keep up with rising costs which includes, but are not limited to, accidents, repairs and replacement vehicles. Donelon explained: “Certainly … (more) January 10, 2010

• Auto Insurance Companies, Junkyards, US States to Comply With New National Vehicle Info System

  by Jeanny Hopper
  

  A new federal system, the National Motor Vehicle Title Information System, took effect last January 1 after 17 years. This new policy compels junkyards, auto insurance institutions and all states to report motorized vehicles that are either severely damaged that they were written off, or if the vehicles were stolen. Before customers purchase a used vehicle, they will be given a chance to check the system database. This system, which is purposed on providing protection for clients from purchasing rebuilt wrecks, was implemented 17 years after enactment of the law requiring it. Public Citizen, a consumer advocacy group, legal counsel … (more) January 10, 2010

• El Paso and Laredo Alleged To Be Hotspots for Car Thefts In The Country

  by Jeanny Hopper
  

  Car theft cases in the cities of El Paso and Laredo, Texas are one of the highest in the country according to a research group, a claim that is being belied by city officials.  National Insurance Crime Bureau, a non-profit organization that was created in 1992 by insurance companies to track car crimes around the country, said that car thefts are on the rise in El Paso and Laredo, two cities in Texas, and that most stolen vehicles are being used for transport of illicit drugs to and from Mexico. Police officials in Laredo and El Paso admit that most … (more) January 9, 2010

• Consumer Watch Groups Can Get Compensation For Legal Fees

  by Jeanny Hopper
  

  Consumer groups can now ask for compensation for legal fees from auto insurance companies if they were able to successfully lobby against rate increase requests or proposals, ruled a state appeals court. The Second District Court of Appeals of Los Angeles deliberated on the provisions of a 1988 initiative on reimbursements, and decided that all proceedings from beginning to end would have to be shouldered by insurers in cases where they lose out on their bid. The author of this measure, Harvey Rosenfield, and also founder of the group, Consumer Watchdog, hailed the court decision and claimed that it was … (more) January 9, 2010

• Insurance Fraudsters Sentenced in Idaho and California

  by Jeanny Hopper
  

  Insurance providers and local State officials are advised to be on alert as two separate auto insurance felons have been sentenced to incarceration and probation in two separate states, Idaho and California.  Experts say that reports on car insurance crimes early in the year greatly damage credibility of the insurance system in the US. In Idaho, reports from the Attorney General’s office show that Michael M. Davisson, accused of fraudulently informing city police and his insurance provider that his vehicle has been stolen back in 2007, finally received a verdict and is now placed on a five year probation last … (more) January 8, 2010

• DC Cancels Mandatory Car Safety Checks

  by Jeanny Hopper
  

  After much deliberation during the last weeks of December last year, the D.C. Council has officially cancelled the mandatory safety inspection for automobiles from the list of district vehicle requirements. According to authorities, there was no clear indication that the safety checks were effective in preventing road accidents or traffic jams caused by poorly maintained and disabled vehicles. Cancellation of safety inspections of motor vehicles has raised concerns and various reactions from motorists and safety advocacy groups who are worried that this may just be the beginning of more jurisdictions that will stop safety requirement as well. Other than their … (more) January 8, 2010

• Days of Uninsured Texan Drivers Numbered

  by Jeanny Hopper
  

  According to reliable reports, a lot of Texan drivers are driving without insurance.  Reports coming from the Texas Department of Insurance indicate that 22% of the total 22 million family owned cars registered in the state are uninsured.  The counties of King, Potter and Deaf Smith are among the areas that show the highest number of uninsured vehicles according to the TexasSure database of the insurance agency. These figures do not account for commercial vehicles since they are not yet part of the TexasSure program. Texan drivers by law are required to acquire at least liability insurance to cover for … (more) January 7, 2010

• AG Coakley Blasts Auto Insurance Market, Gives Recommendations

  by Jeanny Hopper
  

  BOSTON – Massachusetts Attorney General Martha Coakley made a few forceful and poignant proposals regarding ways to improve the auto insurance market and its rate-setting system after investigating the impact of Governor Deval Patrick’s market deregulation scheme. The Attorney General, through a report released from her office last December 24, discussed a retailed reportage of current market operations, financial profits that insurance companies are gaining, and bulk of consumers who have to deal with larger price mark-ups. Coakley deemed that many improvements have to be made with regard to offering better protection for consumer interest. Moreover, several observations, as well … (more) January 7, 2010

• Cal Customers Urged To Find More Extensive Auto Insurance Coverage Limits

  by Jeanny Hopper
  

  CALIFORNIA – Since automobile repair costs have been high and surging towards unprecedented levels, it may not be enough to minimally depend on California’s insurance requirements. Though it is considerable that California State’s minimum requirements are among the most affordable in the United States, several auto insurance gurus advise likely customers to look into the possibility of availing higher limits than what is minimally required in order to benefit from preemptive self protection for their vehicle and their assets. Experts advise that looking into rates and quotes provided by various insurers – who are known to provide extensive coverage – … (more) January 6, 2010