Auto Insurance News Archive for May, 2011

• Myths about auto insurance busted

  by Richard Burton
  

  Auto insurance is a complicated affair for many people. Most people are reluctant to renew their insurance and buy it on item, if it weren’t for the law. Understanding how the premiums are decided is difficult, making it even more complicated. With so much wrong information passing around, it is small wonder that insurance coverage looks unappealing to many. It is possible to crack the common myths about auto insurance and understand it better. Here are some of them: Myth one: Red cars are more expensive to insure. You may believe red cars are often spotted more in speeding and … (more) May 31, 2011

• Low-cost auto insurance program promoted at universities in California

  by Richard Burton
  

  Students are always finding themselves at a disadvantage when it comes to Auto Insurance costs. However, things look quite promising with the Low Cost Automobile Insurance program. This was introduced by representatives from California’s Department of Insurance and the notebook computer maker ASUS. In the current economic situation, people are trying to save money, especially students. Liability auto insurance at affordable rates is a dream-come-true for many students.  The CLCA program is the best one meeting the state’s financial responsibility laws while costing less than $400 a year. The CLCA has been a useful resource for many Californians but its … (more) May 30, 2011

• Be smart in detecting an insurance fraud before you turn a victim

  by Richard Burton
  

  When you are in an accident you may be in too much shock to register every little fact. But sometimes you just get the feeling that something was not quite right. If in the days and weeks following it, you cannot shake off this nagging thought, then chances are that you or your insurer are victims of insurance fraud. Data from many sources say that insurance policy holders and insurance companies are incurring losses in billions every year. There are many common occurrences of insurance fraud, especially during the recession. With every kind of thief from the amateurs to the … (more) May 29, 2011

• Lowering auto insurance costs through wisconsin’s law raises many questions

  by Richard Burton
  

  Opponents of the new law as well as experts from the insurance industry have questioned the new Wisconsin law, which was essentially aimed at lowering auto insurance premiums by doing away with the coverage requirements. The opponents claim that the changes that were brought about in 2009 have caused a rise in the auto insurance rates instead of bringing it down. It is difficult to simply look at some legislation and try to understand the changes that it can bring about, stated Steve Witmer, spokesman, American Family Insurance, one of the major insurers in Wisconsin. The 2009 legislation that was … (more) May 28, 2011

• Insurance premiums could be spiked up due to suspicious claims

  by Richard Burton
  

  Insurance premiums are likely to go up due to the increase in fraudulent or suspicious claims that insurance companies are dealing with. Most people in the insurance industry blame the financial crisis for the rise in scams. Bill LeFew who is an agent with the American Family Insurance in Harvard stated that this was due to the poor economy. He also stated that people felt tied up and had no other option and hence turned to insurance fraud. He went on to state that the auto insurance fraud had increased manifold since the recession. LeFew has worked as an insurance … (more) May 27, 2011

• Young drivers will get better deals by shopping around

  by Richard Burton
  

  Car insurance can be a difficult burden for many youngsters but now if you are below 25 years of age and looking to buy it, you can save a lot by shopping around. Insurance premiums for automobiles do tend to vary from one provider to the next. This does not mean that you cannot save on it if you know how to. When you are a young driver, the differences in prices offered by companies are really huge and considering this variable might make all the difference in cutting the costs. From data available on different websites, there is clearly … (more) May 26, 2011

• Questions rise about financial impact of Wisconsin auto insurance law

  by Richard Burton
  

  There has been talk that the new bipartisan-backed law regarding auto insurance aimed at reducing minimum coverage to pre 2010 levels will not really achieve the primary objective it has been made for. Lowering costs of auto insurance for Wisconsin drivers will not be easily done say insurance experts discussing this law. A spokesman for American Family Insurance said that looking at legislation and trying to predict its impact with changes in premium is not an easy thing. The company is one of the largest among auto insurers in Wisconsin. The law is what will erase the legislation of 2009 … (more) May 25, 2011

• Florida PIP reform comes to an abrupt halt in committee

  by Richard Burton
  

  Florida’s no-fault PIP reform came to an abrupt halt at the House Committee, where the comprehensive reform bill was rejected by a single vote. In spite, of the coordinated effort by the insurance industry, state officials, as well as consumer groups like the Sunshine Alliance to Erase Fraud and the Coalition Against Insurance Fraud, the House Subcommittee on Health Care and Human Services voted down by a 9 to 8 margin, the HB 967/HB1411, which represented the far reaching attempts to bring about reforms in the state’s no-fault law since 2007. These combined bills had contained various provisions that were … (more) May 24, 2011

• Bill to curb insurance fraud in the pipeline

  by Richard Burton
  

  With insurance fraud situations on the rise, lawmakers are being urged by business leaders to pass the legislation that will fight the insurance fraud situation. This is costing the policy holders and the state millions. The call to action came from Fraud Costs New York, which consists of a coalition of lawmakers, consumers and business leaders. They have called on the State legislature to change the auto insurance system in order to cut down on the insurance abuses and fraudulent charges which have run up to 0ver 200 million dollars last year. The New York State business Council president Heather … (more) May 23, 2011

• Auto fraud ring case in Massachusetts – three persons convicted

  by Richard Burton
  

  Three men have been convicted in the auto fraud ring case by the Massachusetts jury and this includes a chiropractor and a lawyer as well. They have been accused of staging a number of fraudulent accidents, according to reports from the attorney general’s office. Michael H. Kaplan from Hampstead, N.H., Omar Castillo from Methuen, and James C. Hyde from Boxford were found guilty following a jury trial that lasted for six weeks. They were charged with insurance fraud, attempted larceny, and larceny. The additional charges of conspiracy to commit larceny and conspiracy to commit auto insurance fraud are still on, … (more) May 22, 2011

• Auto insurance must be updated before holiday travel suggests AAA

  by Richard Burton
  

  Millions of motorists generally hit the roadways especially during the summer travel season in order to get away for a vacation or even on weekend getaways. So, with so many motorists on the roads and highways, it becomes all the more essential to check on the auto insurance and make necessary changes to the policy to ensure that motorists have adequate coverage in case of an involvement in an accident. There were more than 5.5 million Motor Vehicle Traffic Clashes which involved injuries, fatalities, as well as damage to property in 2009, as per reports from the U.S. Police Departments. … (more) May 21, 2011

• $1 billion deal struck by allstate as it will buy esurance to add online sales

  by Richard Burton
  

  The largest auto insurer in the US, Allstate has struck a $1 billion deal and agreed to buy Esurance and Answer Financial from White Mountains Insurance Group Ltd and plans to expand the sales through the internet. Thomas Wilson, CEO is now seeking to add on more customers through other channels such as the internet since the younger generation simply shuns agents. Since most of the online shoppers are opting for insurance coverage from the smaller companies, Allstate has lost a lot of customers since the last three years. Paul Newsome, analyst, Sandler O’Neill & Partners LP, states that these … (more) May 20, 2011

• Wisconsin’s auto insurance law and its financial impact has been questioned

  by Richard Burton
  

  Opponents of the bipartisan-backed auto insurance law as well as insurance experts state that there is very little evidence that this measure of reducing minimum coverage to the pre-2010 levels will lower auto insurance costs for the motorists in Wisconsin. Looking at a piece of legislation and trying to correlate that with the premium changes is a very complex affair, stated Steve Witmer, spokesman for American Family Insurance, which is one of the biggest auto insurance companies in Wisconsin. According to the new law the minimum coverage standards signed by Jim Doyle in 2009, would be erased. He had signed … (more) May 19, 2011

• The low-cost auto insurance bill is treated unfairly in the senate

  by Richard Burton
  

  The low-cost auto insurance bill for residents of the Clark County faced some rough questioning at the Senate hearing. According to the bill most Nevada drivers would be charged a fee in order to subsidize the low-cost insurance program. There was some serious vote trading on the bill which was sought by Assemblyman, Kelvin Atkinson, D-North Las Vegas and it received two-thirds of the support that it required to move it out last month, from the Assembly. Two-thirds vote was required by the bill because there would be a 50-cent fee that would be imposed on each insured vehicle annually … (more) May 18, 2011

• Increase in the number of suspicious auto insurance claims can lead to high premiums

  by Richard Burton
  

  The cost of auto insurance premiums could go up drastically due to the suspicious claims that are increasingly seen by auto insurance companies. This is a clear sign of fraud which could spike up the premiums. Most people from the industry blame the financial crisis for this. Bill LeFew, American Family Insurance agent, states that people feel tied up due to the economy. Since these people have lesser options, they have turned to auto insurance fraud. He also states that insurance fraud had become more prevalent ever since the recession. LeFew has been an insurance agent for the last 34 … (more) May 17, 2011

• California colleges promote low-cost auto insurance programs

  by Richard Burton
  

  Colleges in California are now promoting low-cost insurance programs as representatives from California’s Department of Insurance as well as notebook computer marker ASUS Computer International are making visits to the community colleges and introducing students to the California Low-Cost Automobile Insurance Program (CLCA) that is run by the state. In the present economy, most Californian’s especially students are looking for ways and means to save money. According to the CLCA program the state provides affordable liability-only insurance which meets the state’s requirements of less than $400 year. Chris Shultz states that the CLCA is a great plan for most Californians … (more) May 16, 2011

• Abrupt end to the PIP reform effort in Florida

  by Richard Burton
  

  The bid to bring about a change in reforms in Florida’s PIO insurance cover came to an abrupt end after the House committee rejected the comprehensive reform bill by a single vote. In spite of widespread efforts and coordination from the state officials, insurers, and consumer forums such as the Coalition Against Insurance Fraud as well as the Sunshine Alliance to Erase Fraud, the House Subcommittee on Health Care and Human Services by a margin of 9 to 8 voted down the HB 967/HB1411 which made a far-reaching attempt to bring about reforms to the no-fault laws in the state … (more) May 15, 2011