Auto Insurance News Archive for October, 2011

  • House committee passes no-fault insurance changes

    by Richard Burton
    House committee passes no-fault insurance changes

    According to the existing laws, if someone gets catastrophically injured in a motor vehicle accident, the no-fault PIP coverage will take care of all the medical and rehabilitation costs. The coverage is unlimited with lifetime benefits if needed. However, the proposed changes will put a cap on the medical fees and even bring about restrictions on the type of care that people can get in case they are involved in an accident. As per the new bill, motorists will have to choose the type of coverage they need and purchase accordingly. The coverage may be worth $500,000, $1 million, or … (more) October 30, 2011

  • Changes in auto insurance face opposition from Michigan democrats

    by Richard Burton
    Changes in auto insurance face opposition from Michigan democrats

    The proposed changes to the auto insurance laws are being vehemently opposed by the Michigan Democrats. This includes putting an end to the unique requirements for covering those injured in accidents. The Democrats have stated that they would be opposing these changes to the auto insurance system in Michigan. Till date, only the state of Michigan mandates that those who are seriously injured in accidents get uncapped medical coverage. As per the new proposals that may be considered in the GOP-led house, the motorists will have to choose between the $500,000, $1 million, or $5 million in PIP or Personal … (more) October 28, 2011

  • Car collisions involving deer may be less frequent but far more expensive

    by Richard Burton
    Car collisions involving deer may be less frequent but far more expensive

    A motorist who was driving home with the kids after school had a narrow miss after having to brake suddenly in order to avoid a herd of deer from getting hit. They were just crossing the road after dusk, and although the kids were excited to see this sight, the motorist was only too relieved for having been able to stop the car in time. These are the peak months for deer-car collisions and October and November are famous for these collisions. This is due to the fact that fall is the mating season, so these animals are always on … (more) October 26, 2011

  • Rise in auto insurers’ loss ratios during second quarter

    by Richard Burton
    Rise in auto insurers’ loss ratios during second quarter

    The second quarter results of 2011 seem to suggest a tumultuous phase due to the thunderstorms and tornadoes in Midwest and the South. The auto insurance industry loss ratio prior to consideration of reinsurance has climbed to 70.6% and has marked the industry’s worst second quarter performance since 2001. This has even outpaced the loss ratios of 58.1% and 56.2% in 2010 and 2009 during the second quarters, according to SNL insurance which is a division of SNL. The industry premium has essentially remained flat and has decreased just 0.2% from the second quarter of 2010. The auto insurance companies … (more) October 24, 2011

  • Rise in auto insurance fraud – economy is partly to blame state experts

    by Richard Burton
    Rise in auto insurance fraud – economy is partly to blame state experts

    Kern County has seen a sharp rise in auto insurance fraud and this is due to the economic downturn state the local law enforcement agencies. Experts claim that auto insurance fraud is pushing up coverage costs, but criminals seem to be finding innovative ways to cheat auto insurance companies to claim the money. Michael Hayward states that this is a bad crime and Kern County is seeing more of it these days. He is the deputy district attorney in Kern County and is involved in the prosecution of auto insurance fraud. Although auto insurance fraud is not something new, there … (more) October 22, 2011

  • PIP auto insurance needs a revamp state official

    by Richard Burton
    PIP auto insurance needs a revamp state official

    Officials from the state Department of Insurance have stated that they need to clamp down on the medical benefits that are paid by the auto insurance companies after the accidents. They claim that this will prevent companies from fleeing N.J. However, the skeptics claim that its anti-fraud net has been cast too wide. A series of changes have been planned for the PIP or Personal Injury Protection in auto insurance. About four hours of testimony was heard on Thursday by the Assembly Financial Institutions and Insurance Committee. The PIP cover offers protection and covers the medical cost regardless of who … (more) October 21, 2011

  • Bid to save Michigan’s no-fault system by various groups

    by Richard Burton
    Bid to save Michigan’s no-fault system by various groups

    Most people seem to be proud of the 33-year history in Michigan’s no-fault insurance, where people of all ranks were assured of state-of-the-art coverage in the event they are involved in a catastrophic accident that may change their lives forever. They would get everything from including the best medical care, wheelchairs, rehabilitation, modified vans, housing, medication, as well as attendant care. At present, it costs motorists around $145 per year to pay for this non-profit fund that is solvent and has certain unique features. All along most motorists in the state of Michigan thought that they will never feel the … (more) October 19, 2011

  • Auto no-fault debate – Michigan voters could be cut out

    by Richard Burton
    Auto no-fault debate – Michigan voters could be cut out

    Michigan’s no-fault insurance law is likely to see dramatic changes as people gathered at the Capitol this week to speak in favor or against the proposed changes. Hundreds gathered at the Capitol to voice their opinion. The majority of people were in favor of retaining the state’s lifetime medical coverage for those who suffered injuries in motor vehicle accidents. In case the law is passed and if the people are not in favor of it, then they could challenge the same with a referendum as there are provisions according to the Michigan Constitution. However, the Republican sponsors seem to have … (more) October 17, 2011

  • Hearings on proposed changes to no-fault auto insurance begins

    by Richard Burton
    Hearings on proposed changes to no-fault auto insurance begins

    A state House panel in Lansing began the hearings on the proposed no-fault auto insurance changes today. The room was packed with wheelchair-bound people who had suffered injuries as a result of car accidents and they were there to request lawmakers to retain the no-fault laws in the state. As per the proposed changes drivers would be allowed to choose lower rates by reducing the amount of coverage. George Sinas is the attorney with a coalition that consists of hospitals, doctors, trial lawyers who have opposed the changes. He states that he is particularly concerned over some particular change in … (more) October 16, 2011

  • Auto insurance fraud – San Diego county DA to help fight the menace

    by Richard Burton
    Auto insurance fraud – San Diego county DA to help fight the menace

    There has been a sharp rise in auto insurance fraud in the San Diego County due to the economic downturn. This has prompted the DA’s office to step in to educate the general public about the repercussions of being involved in such crimes, stated a Deputy District Attorney on Wednesday. Dominic Dugo, who is the deputy district attorney as well as director of fraud grants in the San Diego County, has stated that the fraud generally went up when the unemployment levels rose. He added that it was not merely limited to auto insurance fraud but all types of fraud. … (more) October 15, 2011

  • Proposed insurance changes may result in reduced care and higher costs – victims tell lawmakers

    by Richard Burton
    Proposed insurance changes may result in reduced care and higher costs – victims tell lawmakers

    Ted Vonk testified along with his Spectrum Health Orthopedic Specialist on Tuesday. He told the state House Insurance Committee that he was still recovering from the injuries he suffered in an accident. However, he also stated that he had managed to return to his duties as the Vice Chairman of Kent County Commission only because of the care he had received after the accident. He fears that the others may not receive similar care if any changes are made to the no-fault auto insurance system in Michigan. Ted Vonk was involved in a serious motor vehicle accident in 2009 and … (more) October 13, 2011

  • Grants of $23 million given to California DA’s to battle auto insurance fraud

    by Richard Burton
    Grants of $23 million given to California DA’s to battle auto insurance fraud

    Grants of about $23 Million would be given to the District Attorney’s offices in and around the state of California to battle auto insurance fraud. Maria Ramirez who heads the division has stated that their department has literally been ‘operating on fumes’ due to the scaled-down budgets as well as the rise in crime. She has a tough job fighting insurance fraud in one of the most populous counties in the state. This announcement seems to have brought in a lot of cheer to her department. Insurance Commissioner, Dave Jones had announced funds, which totaled to $15.2 million and this … (more) October 12, 2011

  • Insurance companies are dictating our legislation say some sections that are opposed to the proposed changes

    by Richard Burton
    Insurance companies are dictating our legislation say some sections that are opposed to the proposed changes

    Michigan currently offers it residents, reasonable and necessary medical cover for victims involved in motor vehicle accidents as per the no-fault law. However, the proposed House Bill 4936 is aimed at bringing about reforms in the current auto insurance systems, which allow us to choose the level of PIP protection. This proposal is meant to bring about changes that will help save money for the Michigan residents and will make auto insurance far more affordable for thousands of drivers who remain uninsured. While there are some sections that are opposing these new changes, insurance companies are happy to see these … (more) October 11, 2011

  • Grants of $23m have been given to California DA’s to tackle auto insurance fraud

    by Richard Burton
    Grants of $23m have been given to California DA’s to tackle auto insurance fraud

    The District Attorney’s offices around the state of California will now get grants of about $23 million to tackle the auto insurance fraud. Maria Ramirez has a tough job fighting auto insurance fraud in the most populous county in the state. Her division had been going through a lot of hurdles due to the rise in crime and the scaled-down government budgets. Hence, this announcement brought in a lot of cheer. Dave Jones, Insurance Commissioner in the state announced funds that totaled to $15.2 million. This was distributed to around 35 counties as part of the regular auto insurance fraud … (more) October 9, 2011

  • Proposed changes in auto insurance likely to be debated in Michigan legislature

    by Richard Burton
    Proposed changes in auto insurance likely to be debated in Michigan legislature

    The auto insurance system in Michigan is quite unique and this is a privilege that they have enjoyed for quite some time now. However, proposals have been made to change the auto insurance system in Michigan and that does not seem to have gone down too well with some people. This issue is likely to be debated in the Michigan Legislature. Michigan is the only state that mandates unlimited coverage for individuals who suffer catastrophic injuries in accidents. This is the only state in the US where they follow this system. Now, proposals are being made to change this system … (more) October 7, 2011

  • No credit check auto insurance – where has it gone

    by Richard Burton
    No credit check auto insurance – where has it gone

    Not so long ago we had the privilege of being able to get a no credit check auto insurance policy if we had a good driving record, paid insurance on time, had good credit history etc. However, that does not seem to be the case anymore, as insurance providers don’t really care if you have kept up your payment schedule nor have a good credit history etc. Today, even if you or your spouse end up losing your job due to the economic downturn, the auto insurance companies can still nail you with hiked premiums or worse they can even … (more) October 6, 2011

  • Lawmakers in Michigan trying hard to exempt insurance claims resulting from use of medical marijuana

    by Richard Burton
    Lawmakers in Michigan trying hard to exempt insurance claims resulting from use of medical marijuana

    None of the companies that offer health insurance policies cover medical marijuana cost. If the lawmakers in Michigan get their way, even the auto insurance companies in this state will not cover the cost of treatment for accidents caused due to use of medical marijuana. The Senate Judiciary committee of this state unanimously voted to pass the law the prohibits auto insurance providers from paying out claims for mishaps that are related to usage of medical marijuana. Insurance Institute of Michigan’s executive director, Peter Kuhnmuench, has said that the response was really surprising. Most of the auto insurance companies in … (more) October 4, 2011