Auto Insurance News Archive for November, 2010

• Hybrid cars may have high auto insurance premiums this year

  by Richard Burton
  

  As advertised to consumers, hybrid cars are less expensive because of its energy efficient quality. It uses less gas, is eco-friendly, and can have discounts in an auto insurance policy. However, recent studies have been conducted showing that despite its good quality, it is actually a more expensive liability than a regular gas-fueled car and the attitude of their drivers have something to do with it. Mitchell International Inc., an information provider for automotive industry, has conducted a research about how the cost of repair of hybrid cars and the change in their owner profile change auto insurance premiums. When … (more) November 13, 2010

• Animal-vehicle collision rate becoming higher as mating season arrives

  by Richard Burton
  

  According to Highway Loss Data Institute or HLDI, animal-vehicle collision rates increase during deer mating season. Because of its large population, the number of deer in highways and roads also increase contributing to a higher rate of colliding with a vehicle. Auto insurance companies have confirmed that during this time, they receive an amplified number of claims regarding deer-vehicle impact. Their records show that from spring, it will gradually increase through fall; they have November as the prominent month where reports of collisions are at its peak. Last year, according to USAA, a leading auto insurance company, a 70% increase … (more) November 12, 2010

• New proposed laws for car repair received opposition for auto insurance companies

  by Richard Burton
  

  There have been new legislation proposals on car repair that auto insurance companies strongly oppose. Insurance Networking News said that there were two types of bills that they do not want to agree with. The first type was prohibiting car insurance companies in using DRP or direct repair program. According auto insurance companies who uses this type of repair measure, direct repair program is an agreement between a car insurance company and an automobile collision or crash repair shop in case of an accident. Whenever a car crash happens and the car insurance policyholder will approach his or her car … (more) November 11, 2010

• Teen driver advocates fight for tougher laws and less expensive car insurance

  by Richard Burton
  

   Last week, advocates for teen drivers all over the country met at the Capitol to fight for tougher laws that governs teen drivers and the licensing system. The group was petitioning for the STANDUP act or the Safe Teen and Novice Driver Uniform Protection act. This act aims to push for new tougher regulations ensuring the safety of teen drivers and set high standard on the implementation of state graduated licensing system.  The group emphasized that if laws for teen drivers are stricter, it could keep teens safe from dangerous roads and most importantly save more teen lives. This can … (more) November 10, 2010

• Auto insurance companies’ collision fees opposed by motorists

  by Richard Burton
  

  A survey by the Insurance Information Network of California (IINC) was delivered concerning collision fees imposed on out-of-town and at-fault motorists during an accident. This includes fees charged when the state’s emergency team responds to the incident. The poll shows that only one in five people living in California agree to the fees. According to the data gathered by the IINC, fifty percent of the participants do not agree with it while 26 percent of them are unsure. Several California cities suggested the enforcement of such charges. Huntington Beach for example has agreed to charge out-of-town motorists who are at … (more) November 9, 2010

• Auto Insurance Investigators – Ban in Texting Does Not Lower Accident Rate

  by Richard Burton
  

  A study was conducted by the Highway Loss Data Institute or HLDI regarding the effects of banning texting while on the road driving to the rate of auto insurance car crash claims in four states namely Louisiana, Washington, Minnesota, and California. They have found out that in these four states, the number of accidents were not reduced as well as the number of claims being filed for car collisions. Even three of the states demonstrated an increase in car crash rates when the time the law of banning texting while driving was put into practice. The increase in rate ranged … (more) November 8, 2010

• Car insurance fraud schemes exposed

  by Richard Burton
  

  According to the report made by the National Insurance Crime Bureau or NICB, there were five cities with the most number of owner give-ups, a car insurance fraud scheme delivered by the owner of the cars themselves. These cities are namely, Los Angeles, Houston, Chicago, Phoenix, and Las Vegas. And the rate of these crimes seems to increase as New York Fraud Bureau reports a 33% escalation on the number of car insurance fraud cases. NICB has listed common types of car insurance fraud schemes that are under the category of owner give-ups. The bureaus investigators said that owners of … (more) November 7, 2010

• An auto insurance company awarded for safe driving program for teenagers

  by Richard Burton
  

  An auto insurance company, namely American Family Insurance, was awarded the 2010 Teen Driving Safety Leadership Award by the National Safety Council for their Teen Safe Driver Program. They were recognized because of their program’s efforts to reduce the rate of teen driving accidents in the country. Teen Safe Driver program is in partnership with DriveCam Inc., a company that is dedicated to improving driving skills. Since 2007, they have been offering this program to people who have teen auto insurance for free. With safety driving methods from DriveCam, this program puts a video camera in the teen’s vehicle to … (more) November 6, 2010

• Keeping Costs Low for Young Adults’ Auto Insurance

  by Richard Burton
  

  Despite the high insurance costs parents of young adults are advised to take the auto insurance as it is a must because the statistics are quite startling.  Youngsters in their teens, especially 16-year-olds seem to be the first in the list of fatalities.  Motor accidents are the first major cause of death in youngsters.  For young adults who are 16 years of age it is a three-fold increase in fatal accidents and hence the high insurance costs.  But despite the high costs, parents are advised to get the insurance cover and there are tips for parents with regard to some … (more) November 5, 2010

• Is Online Auto Insurance The Solution to Credit Problems

  by Richard Burton
  

  People who have bad credit on their auto insurance are often penalized by the insurance companies.  While the government is constantly found bailing out the large companies that are not only wealthy but powerful too, it barely even notices the plight of the common man and the way they are penalized over and over again by the very same companies.  Hence, for people with the ‘damaged credit’ tag, online shopping for auto insurance comes as some relief. It’s much more than what one might think In a free market economy, auto insurance companies face stiff competition this is good … (more) November 4, 2010

• Dispute between ANI and Nevada’s Commissioner Heats Up

  by Richard Burton
  

  The Alliance of Non-profits for Insurance (ANI) plans to sue Nevada’s Insurance Commissioner, Brett Barratt for ordering the company to stop sale of ‘first dollar’ insurance to ANI.  The disputing parties are the ANI and the Nevada Division of Insurance.  It was an upsetting incident for Alliance of Non-profits for Insurance, when the state department rejected registration applications of the vehicles that were insured by ANI.  The insurance company also insisted that ANI could get ‘first dollar’ auto insurance policies if it had a ‘fronting company’ that was authorized.  While regular insurance companies can sell these policies, “captive” insurance companies … (more) November 3, 2010

• California’s Governor Approves Bill for Low-Cost Insurance

  by Richard Burton
  

  Since the poverty levels have peaked in recent years, the Governor Schwarzenegger has approved a bill for low-cost insurance for Californians who belong to the lower income groups and thus rewarding Californians who have a good track record and driving habits.  Car insurance has been provided to approximately 50,000 Californians by the CLCA (California Low Cost Auto insurance) and it would have expired this year without the extension it got from AB 1597’s extension for a 5-year period.  With CLCA there was an increase in policyholders despite high poverty and recession in the economy. It’s a no-frills program where the … (more) November 2, 2010

• A Ten-Point Guide to Understanding Auto Insurance

  by Richard Burton

  At least around 77% of Americans surveyed by MetLife Auto & Home’s insurance literacy survey believe that they would not mind paying a little more to the insurance company in order to get peace of mind and better insurance coverage.  However, there were many surprises in store while the survey was carried out.  For instance, more than half the population believed they would get full coverage for their new vehicles in case their vehicle was totaled.  While most people think that it is insufficient if one gets just some basic coverage from the plan.  Instead, they are looking for better … (more) November 1, 2010