Auto Insurance News Archive for February, 2010

• Auto Insurance Claims Rise After Snow Storm

  by Jeanny Hopper
  

  It seems that aside from snow, auto insurance claims had also been piling-up in the State of Maryland. With a record breaking snowstorm that hit the state last February 10, the second in a week, the Baltimore area and north-center Maryland accumulated at least 19.5 inches of snow after the storm. Baltimore City had been under Phase 3 status which means that no vehicles were allowed to be driven on streets aside from those owned by the city. Insurance agents estimated that the blizzards had taken at least $830 million of the state’s economy. Damage to vehicles had been on … (more) February 28, 2010

• Options Discussed to Lower Uninsured Number of Drivers in Montana

  by Jeanny Hopper
  

  A committee hearing at the Montana Legislature revealed that around 15 percent of the state’s drivers do not have insurance. This is in light of the fact that Montana already has laws in effect mandating motorists to have vehicle insurance. A fine and a penalty may also be imposed if a driver was caught without the necessary insurance. The study is part of a Joint Resolution made by the Senate and House of Representatives. SJR 16, requests of an interim study “to investigate the issues of the underinsured and uninsured motorists,” It is set to make recommendations and submit findings … (more) February 28, 2010

• Lawyer and Chiropractor Indicted in Philadelphia for Defrauding Auto Insurers

  by Jeanny Hopper
  

  Seventeen people including a lawyer and a chiropractor have been indicted in Philadelphia for allegedly staging phony car accidents in order to defraud auto insurance companies. This was announced by Philadelphia District Attorney Seth Williams, U.S. Attorney Michael Levy and FBI Special Agent in Charge Janice Fedarcyk last February 19. On what is said reported to be mail fraud involving $634,000, investigators revealed that vehicles were made to look as if it figured in a car accident. Thus, several vehicles were intentionally damaged or driven into walls. An unidentified body shop is included in the scheme although this has not … (more) February 27, 2010

• Proposed Law Seeks to Hike Auto Insurance Rates of Convicted Drunken Drivers

  by Jeanny Hopper
  

  If you live in Maryland State and you have been convicted twice for alcohol-related offenses, expect your auto insurance rates to become higher if a bill sponsored by Republican Del. Tanya Thornton Shewell becomes a law. House Bill 526 would increase personal liability insurance in order to beef-up the minimum amount of coverage for claims involving destruction of property or damage, and/or bodily injury or death arising from car accidents involving drunken drivers. Thus, those who would be mandated to secure this are those motorists who were convicted of, or were granted probation, for previous alcohol-associated mishaps. The bill is … (more) February 27, 2010

• Insurance Claims in Baltimore Spike Up Due to Record Snowfall

  by Jeanny Hopper
  

  The aftermath of the record levels of snowfall on Greater Baltimore in February has prompted insurance agents to move double time to aid clients who needed to file claims for car damages ranging from crumpled fenders to fallen gutters. There has been a sharp increase in calls for insurance claims since the onset of the snowstorms which began on February 6 and 9 to 10. The state has reported an economic loss of $830 million. Baltimore insurance agency Mason & Carter president Clark Carter said that the recent flurry of snowfall has been the worst natural catastrophe by far that … (more) February 26, 2010

• Teen Girls Behind the Wheel Found to be More Reckless Than Boys

  by Jeanny Hopper
  

  Recent trends suggest that teenage girls drive more recklessly than boys. Formerly, teenage boys have been known as being the most reckless drivers but a recent report indicates that teenage girls are also gaining that same reputation. Allstate Foundation released a report entitled “Shifting Teen Attitudes: The State of Teen Driving 2009” which showed that more girls admit to driving recklessly, speeding, adjusting music, or using a cell phone while driving more times than boys. New Jersey Manufacturers Insurance Co. actuary Thomas DeFalco said that two decades ago, the cost to insure teen boys costs twice as much for boys. … (more) February 26, 2010

• Hawaiians Urged Not to Scrimp on Auto Insurance

  by Jeanny Hopper
  

  Several Hawaii residents are looking into cutting back on their car insurance, but this is not advisable. Island Insurance Companies, which is one of the largest insurers in the state, has noted that several clients think they are making a good decision to trim their insurance coverage when in fact it may not be a sound recourse. Island Insurance Companies chief operating officer and president John Schapperle said that they have seen a lot of people who merely contend for what is minimally required by the state. Schapperle also said that availing lower coverage would mean that there would not … (more) February 25, 2010

• ‘No-Fault’ Insurance Policy is Flawed, Says Recent Study

  by Jeanny Hopper
  

  No-fault auto insurance has failed to accomplish its primary goals to lower premiums and limit court expenditures, according to a recent study by the RAND Corporation, a nonprofit research organization. The insurance scheme has notably declined in terms of popularity for both customers and insurers. The study said that the scheme has, in effect, caused court costs to increase because the cost of medical claims has risen sharply. Initially, it intended to keep compensation costs low for persons involved in road mishaps by taking most of the cases ‘out of the court system.’ RAND researcher and lead author of the … (more) February 25, 2010

• 15 Out Of 100 Montana Drivers Do Not Carry Auto Insurance

  by Jeanny Hopper
  

  A state insurance official reported that around 15% of Montana residents do not carry auto insurance. The national average is 13.8%. Property and casualty actuary in Missouri state’s Auditor’s Office Mari Kindberg, explained that all of the states surrounding Montana have statistically lower rates of motorists without insurance including South Dakota (7%), North Dakota (5%), Idaho and Wyoming (both at 9%). Billing Republican Sen. Roy Brown directed a resolution in 2009 to enable the Revenue and Transportation Interim Committee to study the issue of underinsured and uninsured motorists. Kindberg said that there are already existing laws in Montana which compels … (more) February 24, 2010

• Low-Cost Auto Insurance Program in California is Gaining Popularity

  by Jeanny Hopper
  

  Several Californians enjoy the benefit of enrolling in the state’s Low Cost Automobile Insurance Program (CLCA). Since its inception in July 2000, the program has provided ‘low-cost liability insurance’ to car owners with good driving records that do not have the financial capability to avail of market-rate insurance. The economic recession in the previous year along with a state initiative to promote the CLCA has successfully encouraged more participation last year. The program’s policies are agreed upon by licensed insurance companies while the state administers it. Two years ago, Shasta County reported 175 successful sign-ups. It became first county to … (more) February 24, 2010

• Auto Insurance Rates May Not Necessarily be Affected by Toyota Recall

  by Jeanny Hopper
  

  The global recall of over 8 million Toyota models, including cars and trucks, is expected to not have an impact on insurance rates, according to several industry groups and insurance companies. Although various models from Toyota have received top marks in safety ratings by the Insurance Institute for Highway Safety in the past, the global recall has placed such praised status into question. The cost of automobile insurance is determined by several essential factors. This is not limited to the cost to fix the car, the overall safety record, and the model of the car. The Insurance Information Institute, which … (more) February 23, 2010

• Drivers Urged To Carry Much More Than State Minimum Auto Coverage

  by Jeanny Hopper
  

  Drivers who only carry the state minimum auto coverage could be doing others a ‘great disservice.’ According to auto insurance guru Howard Ain, although anyone involved in a car accident would be relieved to know that the other party has insurance coverage, it should be a ‘real shock’ to find out that the other driver only carries minimum coverage (even if it is a requirement in all US states). Ain cited the example of a resident from New Richmond who got into an accident after getting hit by a woman driver who only carried minimum insurance. In the ordeal, two … (more) February 23, 2010

• New Study Revealed No-Fault Auto Insurance not likely to cause savings

  by Jeanny Hopper
  

  A new study revealed that no-fault auto insurance may not be really a good way to lower policy premiums. The study found out that the no-fault auto policies, which were designed mainly to provide drivers with affordable premiums, turned out to have increased the expenses of motorists due to steeper medical costs brought upon by no-fault claims. Non-profit research group RAND Corp. did a recent study on auto insurance and gave results indicating that under no-fault plans, medical expenses went up by 73%. Back in 1987, a similar study was conducted by another research group and they found out that … (more) February 22, 2010

• Issue on California’s Proposition 17 heats up

  by Jeanny Hopper
  

  The issue regarding Proposition 17, or more popularly known as the insurance provider’s initiative, is heating up as California’s June ballot draws near.  Supported by Mercury General Corp., the Proposition is set to allow insurance companies to attract new customers by offering big discounts, as long as drivers have been loyal auto policy holders for at least five years. Many say that for Mercury General Chairman George Joseph, one of the backers of Proposition 17, the victory of the initiative in the June ballot can be considered as his personal victory. Joseph is known to have been battling it out … (more) February 22, 2010

• Insurers Enter Settlement For Failure To Update At-Fault Accident Determinations

  by Jeanny Hopper
  

  The Attorney General of Massachusetts entered into a settlement with five auto insurance companies which allegedly violated a state law involving the Board of Appeal Enforcement Initiative. As such, the insurers would make amends to their practices even as the probe goes forward. In a press release posted by Attorney General Martha Coakley’s office, the companies involved include Liberty Mutual Insurance Company, Plymouth Rock Assurance Corporation, Metropolitan Property & Casualty, Pilgrim Insurance Company, and, Peerless Insurance. All complaints filed relate to at-fault accident findings which were overturned by the state’s Board of Appeal. Said insurers also allegedly failed “to update … (more) February 21, 2010

• Former Insurance Exec to Go On Trial in Louisiana

  by Jeanny Hopper
  

  After failing to enter into plea bargain with prosecutors, the case of the former head of Louisiana Citizens Property Insurance Corp. would go to trial this coming March 22. Terry Lisotta, the former executive, was accused of having committed theft by fraud. According to reports, Assistant Attorney General David Caldwell and defense lawyer David Courcelle held a more than an hour closed-door meeting in the presence of Judge Richard Anderson of the 19th Judicial District. The Louisiana Citizens Property Insurance Corp. is a non-profit organization aimed at providing insurance products “for residential and commercial property applicants who are in good … (more) February 21, 2010

• Cheaper Car Insurance Act’ in New York Aims to Curb Auto Insurance Fraud

  by Jeanny Hopper
  

  A New York senator is ushering in a proposal for federal law which he hopes will cause much needed rectification with regards to automobile insurance fraud crimes and criminals involved. New York Senator Chuck Schumer’s legislation, called the Cheaper Car Insurance Act of 2010, aims to bring in new federal penalties for automobile insurance fraud. Sen. Schumer said that the Cheaper Car Insurance Act would be able to prosecute fraudulent criminals with specific penalties. The Act was triggered by a recent report which shows that automobile insurance fraud incidents have been rising in New York which consequently increased insurance rates … (more) February 20, 2010