Auto Insurance News Archive for April, 2011

• Lobbying by NC insurance groups to shrink state’s high-risk auto pool

  by Richard Burton
  

  The two insurance trade groups have been lobbying extensively in the North Carolina legislature to bring in reforms that include an incremental approach to decrease the number of drivers who are in the high-risk auto insurance pool in the state. There are about 1.4 million members in the NC Reinsurance Facility, which is equivalent to the number of people in the high risk groups of all the other states put together. This report has come from the Insurance Federation of North Carolina, which is a coalition of the largest property casualty insurers in the state. North Carolina counsel for the … (more) April 30, 2011

• As premiums skyrocket new york lawmakers urged to take action

  by Richard Burton
  

  Due to the rising costs of auto insurance, Allstate Insurance has urged New York lawmakers to find ways and means to curb the increasing number of no-fault insurance fraud which according to trade groups, cost drivers over $200 million in 2010. Krista Conte, Spokeswoman from New York’s Allstate made an appeal at the hearing this week at the New York State Senate Insurance Committee, where law enforcement officers, doctors, insurers, industry experts, and the rest presented a whole lot of startling data, facts, as well as expert opinions with regard to the insurance fraud crisis in the state of New … (more) April 29, 2011

• Revamp needed In NC auto insurance system

  by Richard Burton
  

  The whole auto insurance system in North Carolina needs to be revamped as it undercharges bad drivers, overcharges the good ones or the low-risk drivers, and guarantees profits to the private insurers. This is an unfair practice and this has got to change. As a result of this there are a variety of government, insurance industry, and advocacy groups which have come forward with plans to modify the system. However, none of these plans are perfect as there are some aspects in the plan that will strip the protections that are offered in the plan, while the others do simply … (more) April 28, 2011

• Drunken driving by teenagers could prove to be costly for entire family

  by Richard Burton
  

  Drunken driving by teenagers could turn out to be a costly affair for the entire family especially if all members are listed on a single auto insurance policy. The rates will go up even if a teenaged kid is caught driving under influence, states Bill Martin, Senior Vice President at Farmers Insurance. This hike in rates would be spread over all the vehicles in the household rather than just on one particular vehicle, he stated. The rise in rates would be quite sharp due to the fact that the teen would not have a long driving history and it would … (more) April 27, 2011

• Auto insurers will profit from changes states NC official

  by Richard Burton
  

  The state’s top insurance regulator has stated that the industry-backed legislation which would allow a hike in rates by auto insurers, by up to 15% per year, will not only lead to increased costs for customers but would also weaken the North Carolina’s regulatory system. As the Insurance Commissioner has put it, ‘the companies want more of your money’ as these proposals are bound to increase insurance costs for customers. Wayne Goodwin stated this in a news conference. He went on to add that the present system is good as it strikes a good balance between consumer interests as well … (more) April 26, 2011

• Auto insurance fraud bills approved in the senate despite criticisms

  by Richard Burton
  

  Although the auto insurance fraud bills have been approved in the Senate there have been some critics who claim that this is a direct sellout to the auto insurance companies. The voting by the Banking and the Insurance Committee has been 7-4 and in favor of SB 1930. This bill was sponsored by Sen. Ellyn Bogdanoff, R- Fort Lauderdale and opposing it along with the Democrats was Sen. Mike Fasano, R- New Port Richey. As per the provisions of the bill, the insurers would get 90 days to look into the claims and ensure that they are legitimate before clearing … (more) April 25, 2011

• An overhaul needed in the auto insurance system in North Carolina

  by Richard Burton
  

  The auto insurance system in North Carolina badly needs an overhaul as the system that was created during the 1920’s was at one point in time very popular across the country. However, now North Carolina is the only state which has maintained its unenviable position of being in this bureaucratic system since then. Hence, the Senate Bill 490 was introduced recently to help create a framework to provide fair rates to their consumers. In the rest of the 49 states, the rates are developed by each insurer and then filed with the government which is later implemented. This is done … (more) April 24, 2011

• Some major potholes in auto insurance policies

  by Richard Burton
  

  There is no need to worry when you are in good hands and when you have insured with some of the major auto insurance companies. However, one must understand that there are some inherent loopholes in most auto insurance policies and there are many ways in which auto insurance companies can reject claims and hand you a bill. This is by design and that’s for sure. If auto insurance companies had to offer blanket coverage for all the mistakes we make when we are behind the wheel, they would have gone out of business quickly. There is no policy that … (more) April 23, 2011

• Rate bills opposed by top auto insurer

  by Richard Burton
  

  Nationwide, North Carolina’s top auto insurer has opposed the rate bills and is not in favor of the dismantling the regulatory powers and regulating auto insurance rates. The insurance major believes that the present system in North Carolina is working efficiently and there is no need to bring about any changes, stated Lee Morton, Regional Vice President at Nationwide for North Carolina. Nationwide made the announcement just a day after Insurance Commissioner Wayne Goodwin addressed a press conference where he denounced the legislation in the Senate and the State House where his role would have limitations with regard to regulating … (more) April 22, 2011

• Insurance controls can remain the way they are and don’t require any fixing

  by Richard Burton
  

  Raleigh’s new ascendant Republicans would do well if they tried doing something extraordinary by helping the poor man instead of trying to clip his wings and further empowering and enriching the rich corporations. This is certainly not evident in the bills that are pending before the State Legislature, where there are modification plans to eliminate the regulatory controls in auto insurance rates. These sponsors are trying to do some window dressing in order to make it look like they are doing something in your interest, but it is a well-known fact that this is far from the truth. This prescription … (more) April 21, 2011

• Insurance commissioner opposes proposed legislation in North Carolina

  by Richard Burton
  

  Wayne Goodwin, Insurance Commissioner, North Carolina, has strongly opposed the 3 legislative proposals stating that it would impact the overall insurance rates for the motorists. As per the changes that were proposed, in the Senate Bill 477 & 490 and House Bill 834 the Insurance Commissioner will cease to have any regulatory authority with regard to auto insurance rates. Goodwin stated that these proposals were pushed by those out-of-state insurance firms who wanted to increase their profits out of the motorists in North Carolina. He also stressed on the fact that the car insurance rates would see a hike if … (more) April 20, 2011

• An effort to repeal state’s no-fault law faces a roadblock

  by Richard Burton
  

  The 37-year-old no-fault law survived despite a repeal attempt on Tuesday at the State Capitol. However, later on the Senate Committee approved some significant changes to be brought about in the law. Minnesota was witnessing higher insurance premiums and also some evidence of insurance scams and hence the law needed to be dumped. There were more uninsured motorists on road stated Deputy Senate Majority leader Geoff Michel, R – Edina and this could be bomb that was waiting to explode. Talking about repealing the law, the leader asked the members what they were all getting out of this no-fault system. … (more) April 19, 2011

• Auto insurance bills moves through florida senate panels

  by Richard Burton
  

  A couple of auto insurance bills that were aimed at putting a stop to the auto insurance fraud managed to move through the Florida Senate on Tuesday. The auto insurers had suffered severe losses due to these auto insurance frauds during recent times. The measures were narrowly approved by the Senate Banking and Insurance Committee after a series of lively debates where lawmakers tried to find ways and means to eliminate these fraudsters and provide lower rates for motorists. These bills have moved forward with the backing from the insurance industry as the insurers will now have more teeth to … (more) April 18, 2011

• Mandatory auto insurance premiums will now be lowered as state senate & house approve bill

  by Richard Burton
  

  Now, the mandatory auto insurance premiums will be rolled back as the State Senate & the House has approved a bill. In 2009 as per the law there was a hike in auto insurance premiums for some of the motorists. It is important to have a better understanding of what this law entails for motorists. The Wisconsin motorists would still be required to carry insurance but this new law could help them decide the amount of coverage that would be required. According to the bill that has been passed in the legislature the state’s mandatory liability premiums that were raised … (more) April 17, 2011

• Insurance commissioner fights to save his role

  by Richard Burton
  

  Wayne Goodwin who is the Insurance Commissioner is fighting to save his role as a regulatory authority to have a say in the car insurance rates. He states that the corporate greed is responsible for driving the auto insurance rates up. He also feels that if the pending bills are passed into law in the legislature then motorists will end up paying higher premiums. However, insurers claim that they are not engineering anything to increase the auto insurance rates and on the contrary doing everything they can to bring down the auto insurance premiums for the customers. The proposal they … (more) April 16, 2011

• Auto insurance fraud thrives in Tampa until detected

  by Richard Burton
  

  Tampa has become a hot spot for auto insurance fraud which has been going on undetected for quite a while now. There are many stories that have come to light and one involves Dr. Alex Petro who claimed disability as a result of a car accident in Hillsborough County. He claimed that he could not even cut grass or even remove the garbage. Thus, he managed to collect $300,000 from the insurers through disability payments. However, Petro ran out of luck when he was arrested on certain prescription drug charges. When the Pinellas Sheriff’s deputies delved further into their investigations … (more) April 15, 2011

• There is a need for a new auto insurance policy in North Carolina

  by Richard Burton
  

  North Carolina’s Auto Insurance System desperately needs a facelift.The present system is overcharging the good drivers, undercharging the bad ones, while guaranteeing profits to the private companies. This is totally outrageous and needs to be revamped. Hence, this has brought about the need for change and the government, advocacy groups, and the insurance industry have all woken up and come forward with some modification plans. But all of these plans are far from perfect because there are some of them that take away the protections and there are the others that don’t go all the way in changing the system. … (more) April 14, 2011