Auto Insurance News Archive for December, 2010

• Mercury auto insurance cuts insurance premium hike after challenge

  by Richard Burton
  

  Mercury Insurance cuts an estimated total of 72 million dollar in rates for drivers. This happened after the company was challenged by the Consumer Watchdog, a non-profit group closely working with the Department of Insurance. Consumer Watchdog’s challenge to Mercury Insurance came at a time when Mercury Insurance planned to increase their car insurance premiums. Mercury Insurance proposed a car insurance premium hike amounting to a total of $32 million. The insurance provider sought approval from the Department of Insurance in California. California’s Department of Insurance, upon the Consumer Watchdog’s request for investigation, took action after Mercury Insurance’s submission of … (more) December 31, 2010

• Progressive’s 30% auto insurance discount explained

  by Richard Burton
  

  Progressive General Manager Of Usage-Based Insurance Richard Hutchinson recently explained about the company’s transformative discount system. This is in response to the growing market curiosity about how the discounts entitle the drivers and how they are applied. In Hutchinson stated that the Snapshot program primarily considers a car owner’s driving safety. Hutchinson first clarified that Progressive requires its insured car owners to plug in an authorized device under their 30 percent car insurance discount system. He added that the requirement to plug in the tiny device in a car’s on-board diagnostic (OBD) port must be done periodically. This will give … (more) December 30, 2010

• Lower auto claims satisfaction rating for 2010

  by Richard Burton
  

  The 2010 Auto Claims satisfaction study was recently released by J.D Power and its associates and the results show the satisfaction rate of claimants this year is slightly lower than that of 2009. In the 1000-point scale, the satisfaction rate, this year is only 837 compared to last year’s 842. Although this year’s satisfaction rate was lower than that of last year’s, there has been a 19-point improvement when compared to the year 2008 when the registered claimant satisfaction rate was only 818 points. J.D Power Insurance Practice Senior Director Jeremy Bowler said that the main reason for 2009’s high … (more) December 29, 2010

• Car rental agencies charging more

  by Richard Burton
  

  Motorists were surprised by the new charges that the car rental agencies came up with. Car insurance advisor Bob Lapthal said that car rental agencies may be out to get back lost revenues, which may have been caused by the unrelenting inflation and rapidly diminishing demand. Lapthal said that it had been a tough time for the auto insurance industry. He noted however, that the car rental agencies were the ones most hardly affected. With increasing gas prices, these agencies are forced to find new ways to earn more. However, the biggest factor in the increase in car rental prices … (more) December 28, 2010

• Increase in auto insurance rates questioned

  by Richard Burton
  

  People in America use their cars less compared to last year because of increasing gasoline prices. This has led to lower road accident rates, which are advantageous for auto insurance providers because there are fewer accident claims. Unfortunately, the benefits have not been translated to insurance owners because insurance rates are now much more expensive. In New York alone, auto insurance companies are asking for a 5 to 7 percent increase in auto insurance premiums according to Michael Moriarty, deputy insurance property superintendent in New York. Moreover, the industry auto insurance industry in North Carolina is requesting for an 11 … (more) December 27, 2010

• New progressive ad features a passionate insurance buyer

  by Richard Burton
  

  A new advertisement by Progressive—the fourth largest, commercial car, and motorcycle insurance seller in the country—features a non-traditional insurance. “The Messenger” television ad character not only spreads the word about Progressive’s new insurance programs but also revolutionizes the way he advertises his favorite auto insurer. In the words of Progressive’s Chief Marketing Officer Jeff Charney, the new advertisement works with previously created campaigns by the company. He referred to the Superstore campaign designed to make the consumers buy insurance from Progressive. Charney said that with the new advertisement titled “The Messenger”, the goal takes on a different light by making … (more) December 26, 2010

• Progressive offers revolutionary 30% car insurance discount for Virginia’s residents

  by Richard Burton
  

  Progressive general manager of usage-based insurance Richard Hutchinson recently said that more than 100,000 car owners across the US benefit from personalized auto insurance rates. He added that these drivers reveal to their insurance providers the “real picture” of how much, and when they drive their cars. Hutchinson added that with Progressive’s 30 percent discount on auto insurance rates, drivers nationwide will surely gain greater opportunities to save regularly. He said that through the Snapshot auto insurance program, drivers will have the chance to be rewarded for responsible and safe driving. Hutchinson said that the Snapshot discount is indeed “revolutionary” … (more) December 25, 2010

• Telematics based insurance program welcomed by auto insurance holders

  by Richard Burton
  

  According to a recent survey, almost 3/4ths of the auto insurance policy customers would be more than happy to accept an insurance program based on telematics, if sharing data about their driving could help reduce their insurance premium to certain extent. The survey aimed to judge the level of comfort that most policy holders have with regards to sharing their driving data with the auto insurers compared to sharing other types of personal information on mobiles or on the internet. More than half of the people were comfortable enough to share data about various traffic accidents they were involved in … (more) December 24, 2010

• New law to make uninsured driver more compliant

  by Richard Burton
  

  In order to make some of the drivers more compliant towards the state laws, a new law has been passed with regards to the minimum requirements relating to auto insurance coverage. This law gives traffic officials the power to tow the vehicles of those drivers who do not have any insurance coverage or have been found to violate the traffic laws. The law also aims to get hold of those people who have been banned in the past but still have been driving. States like Oklahoma would be benefited from the strict implementation of this law. Oklahoma is one of … (more) December 23, 2010

• New auto insurance discounts in Pennsylvania offered by unitrin direct

  by Richard Burton
  

  Unitrin Direct, a direct to consumer group has come up with a new auto insurance program for customers in Pennsylvania. Drivers with a very good track record will receive the benefits of this insurance program. New types of coverage packages ensure that there is improved protection for the customers. This particular business model of Unitrin is quite unique in the sense that there is a great reduction in the overhead costs. As a result there are savings in the costs which are shared with the customers while keeping service at the same high levels. Customers in Pennsylvania are offered a … (more) December 22, 2010

• Motorists who crash and receive aid to be billed by FDNY

  by Richard Burton
  

  Motorists who meet with an accident and need the help of FDNY should now be expecting a bill. Under serious concerns relating to the budget, FDNY has decided to go along with an increasing number of municipalities across the country, which charge motorists that meet with accidents and avail the emergency services of FDNY. The bills will be sent starting July 1st. Also known as accident tax or crash tax, this bill has left a lot of people across the country furious. In fact, some states have banned the practice too. According to a statement released by the FDNY, it … (more) December 21, 2010

• Michigan laws and teen insurance rates

  by Richard Burton
  

  Teen drivers and their guardians, if they pay the premium know that the auto insurance rates for teens are much higher than the average. There are some logical reasons for this disparity. Firstly teen drivers usually tend to be more reckless. They also involve in behaviour that could be considered dangerous, such as racing and over speeding. Teen drivers are also more distracted because of text messaging or phone calls or by friends going together. All these reasons result in teenagers making up the high risk poll from an auto insurance company’s perspective. There has been a change in recent … (more) December 20, 2010

• Mercury to lower auto insurance rates and raise benefits

  by Richard Burton
  

  For some policy holders there could be a reduction in auto insurance rates as early as this Thursday according to an announcement from the company. The automobile coverage rates offered by the auto industry insurance giant could be cut by 10% from next week. This announcement comes on the back of approval received from regulators of the state. The company based in Los Angeles had requested for a 72 million dollar reduction for all those customers who would be buying or renewing their policies before next Wednesday. According to the company announcement, this reduction will lead to a saving of … (more) December 19, 2010

• Growing popularity of pay by mile auto insurance

  by Richard Burton
  

  Chris Gay had launched MileMeter in 2008 as the only company in the country that offers auto insurance based on how much the individual drives. This was done through a vehicle tracking device. Although this company has license to offer auto insurance only in Texas, it is about to expand into other states with new options as well. The concept of auto insurance based on mileage hasn’t caught up very speedily, although it has been around for a while. But the situation is now about to change with as many as 10 auto insurance companies starting to test these pay … (more) December 18, 2010

• Auto insurance claimants less satisfied with auto insurance policies this year

  by Richard Burton
  

  A recent survey was conducted regarding the satisfaction that the claimants have as far as auto claims are concerned. Claimants seem to be less satisfied than they were last year. The current level of satisfaction is down by 0.005% from last year. Although the rate of satisfaction is less compared to the previous year, it is definitely more than the satisfaction level of claimants, couple of years back in 2008. The main reason behind the claimants’ satisfaction with auto insurance companies when it comes to claims is the reduction by 2days in the average time taken for repair. The satisfaction … (more) December 17, 2010

• Older driver safety awareness week exhorts families to plan in advance

  by Richard Burton
  

  Seniors constitute the fastest growing part of the population. Apart from teenagers they are also at the greatest risk of meeting with an accident and being killed while they are behind the wheel. AAA is offering information and tools to assist seniors as well as their families to plan ahead, on the eve of the Older Driver Safety Awareness Week kicking off. AAA is a specialist insurance company at coverage for floods, home insurance, life, rental and car insurance and various other personal umbrella policies. According to an AAA spokesperson from Northern California, the issue of ensuring safety of older … (more) December 16, 2010

• Low mileage drivers to benefit from new policies

  by Richard Burton
  

  A lot of motorists in California could end up paying a lot less for their insurance premiums every month, come February, which will see some new policies being witnessed. The biggest advantage lies with those policy holders who drive the least every year. This pay as your drive insurance policy is going to be offered by two major insurance companies in California, State Farm Mutual and Auto Club of Southern California. These insurance giants are offering a handsome reward for those customers who drive less, expecting that other drivers will follow in their footsteps. As per the plan to be … (more) December 15, 2010