Auto Insurance News Archive for May, 2011

• Quantifying the effect of territorial rating for auto insurance in California

  by Richard Burton
  

  Consumers are well aware today that the cost of auto insurance in one part of the United States is not the same as the other. Residents of certain states pay premiums which are way above the national average while residents in a few other states pay way below the average. In fact, auto insurance companies are being so keen in evaluating the region in which you live that today rates vary not just across states, but also across various ZIP codes within a state or city. Sacramento is one of the cities in California that stands proof to this fact. … (more) May 14, 2011

• North Carolina considering “pay as you go” insurance

  by Richard Burton
  

  With the cost of the fuel increasing by the day, an increasing number of people are limiting usage of their cars. There are certain states in the United States where people with limited driving can benefit. North Carolina does not fall under this list of states. However, there are signs that this may change in the near future. The General Assembly in the state of North Carolina is considering a bill which can bring a sigh of relief to people who drive less here. One of the sponsors of the bill, state Senator Bob Rucho, also a Republican, said that … (more) May 13, 2011

• The most lobbied bill in the legislative session seems to be the tow truck bill

  by Richard Burton
  

  Although this has been termed as the ‘most lobbied bill’ in the legislative session, this really has nothing to do with the taxes. The whole fuss is with regard to the changes in the tow truck and auto salvage industry. The lobbies include the wealthy business owners who are often seen contributing during political campaigns on one side, the auto insurance sector, the AFL-CIO as well as a former speaker of the Assembly. The other segment includes the salvage yards, tow truck companies, Las Vegas Metropolitan Police Department, and the Nevada Tow Car Council. Sandwiched somewhere in the middle are … (more) May 12, 2011

• Students could save lot of money with the low-cost insurance program

  by Richard Burton
  

  A simple message was delivered by the Insurance Commissioner Dave Jones at San Diego City College today. Now students who have financial difficulties can approach the California Department of Insurance for financial aid, by obeying the law. The Insurance Commissioner appeared on the campus and was part of the Cinco de Mayo festivities that took place, where students were introduced to the California Low-Cost Automobile Insurance Program (CLCA). Students are offered automobile insurance at affordable rates especially for those that qualify. Jones stated that in this recovering economy most Californians and mostly students were looking for ways and means to … (more) May 11, 2011

• Spotting auto insurance fraud to avoid being a victim

  by Richard Burton
  

  If you are involved in an accident and if something tells you that there is something odd, then there probably is. It could either be the accident itself or the events that unfold in the days and weeks following the accident. There is every possibility that you and your insurer are being fooled. Staged accidents cost insurers and policyholders billions of dollars annually according to the Insurance Information Institute (I.I.I). These staged accidents had become very common especially during the recession. Insurance scams can take many forms. There might be the involvement of local street thugs, entry level thieves, organized … (more) May 10, 2011

• Insurance fraud reforms need to be brought in while exercising caution

  by Richard Burton
  

  In order to bring about better protection against auto insurance fraud, lawmakers have called for an overhaul in the no-fault auto insurance in the state.  There have been multiple bills that have been introduced by the Senate Republicans in order to protect the auto insurance sector from fraudulent claims, which are seriously impacting the auto insurance costs in the state and causing a steep rise in premiums. The Senate Insurance Committee member, Martin Golden, R-Brooklyn stated that the system needed to be fixed and also emphasized that there were simple steps that could be taken to do the same. He … (more) May 9, 2011

• Debunking myths to get better auto insurance policies

  by Richard Burton
  

  Auto insurance is expensive and complicated and not many like buying auto insurance. But it is important to understand the premiums and the way they are determined. There is a lot of misinformation with regard to the premiums and insurance coverage. Insurance Information Institute a non-profit has helped debunk a few common auto insurance myths: –          It costs more to insure red cars – there may be some who believe that those who drive red cars are far more aggressive and get many more speeding tickets. While this may make sense to a select few, there is no evidence to … (more) May 8, 2011

• North Carolina’s auto insurance system long due for a change

  by Richard Burton
  

  The editorial in “The Observer”, last Monday, advocated that the bill to bring about changes to the auto insurance system in North Carolina be rejected. However, in reality the auto insurance system in this state is among the most outdated systems in the country and is in desperate need of a significant overhaul. As per the current system that is in existence in this state, the insurance providers in this region have to be Rate Bureau’s members. This bureau is in-charge of proposing rates that can either be approved or rejected by Wayne Goodwin, the Insurance Commissioner. Goodwin also sets … (more) May 7, 2011

• Increase in new york auto insurance frauds call for reforms

  by Richard Burton
  

  People in the city of New York are being plagued by increasing auto insurance fraud which has now reached crisis levels. Those advocating reforms in the auto insurance system has voiced their concern loud and clear and certain measures are being taken to curb this menace at the earliest. Senator James Seward, a member of the New York Senate, passed a bill on March 23rd according to which intentional vehicle collision will be termed as “felony”. This bill, aimed at curtailing criminals preying on unwitting motorists to claim auto insurance money, is currently awaiting its passage through the NY State … (more) May 6, 2011

• Florida Senate approves certain bills to combat auto insurance fraud

  by Richard Burton
  

  Despite facing heavy criticism, the Senate in Florida gave its approval to two bills that have been specifically designed to combat the increasing auto insurance fraud in the country. One of the regulations of the bill stipulates that auto insurance companies will get a time from of three months to investigate any auto insurance claim in detail before disbursing payments to cover medical costs. Senator Joe Negron who voted against the bill termed this provision of the bill “ridiculous” and also said that there needs to be certain changes done to the bill for him to vote in favor of … (more) May 5, 2011

• Concerns over privacy as auto insurers use tracking devices to offer discounts

  by Richard Burton
  

  There is a popular program that offers premium discounts to drivers who agree upon installing devices to record their driving patterns. This has worried the privacy advocates who claim that this is highly intrusive and this could also lead to other infringements in the future. There are around 250,000 Progressive clients who have already participated in the Snapshot Program initiated by the company, and they are now hoping that their good driving habits will help them avail discounts. As part of the Snapshot program, the drivers agree to install a monitoring device in their vehicle’s onboard diagnostic computer which not … (more) May 4, 2011

• Changes in auto insurance and the negative impact it is likely to have on consumers

  by Richard Burton
  

  The whole purpose of obtaining auto insurance is to protect the driver and the rest of the passengers and the family members in the vehicle in the event of an accident and if anyone sustains grievous injuries. Auto accidents in the year 2009, caused a loss of $2.55 dollars in Wisconsin. During that time at least 41,589 people suffered injuries and 532 people got killed. There were 79,596 crashes that resulted in property damage as per the statistics provided by the Wisconsin Department of Transportation. The economic losses in Wausau alone amounted to around $19.1 million. The two most important … (more) May 3, 2011

• Auto insurance revamp in north carolina is long overdue

  by Richard Burton
  

  The bill that could have reformed North Carolina’s car insurance system might now be rejected as the Observer’s editorial ‘Foul Play’ has urged last Monday. The auto insurance market in the state has needed revamping for a long time now and it has been long overdue. The entire system is outdated and it seems the last of its kind in the entire nation. Under the present system, all the insurance companies come under the direct control of the Rate Bureau that proposes that one standard rate either be approved or disapproved by Wayne Goodwin, the Insurance Commissioner. Once the rate … (more) May 2, 2011

• Sudden crash in PIP bills in Florida

  by Richard Burton
  

  There has been a sudden crash in the PIP bills in Florida – this despite Jeff Atwater being on board. The bill had many supporters in Insurance Commissioner Kevin McCarty, consumer groups, The Coalition Against Insurance Fraud, state insurance organizations, and the Sunshine Alliance to Erase Fraud. But on the 25th of April, this hard-fought battle came to a halt suddenly and all efforts to curb auto insurance fraud went in vain. With the 9-8 vote the House Health and Human Services Committee managed to defeat the merged HB 967 as well as HB 1411 legislation that was designed to … (more) May 1, 2011