Auto Insurance News Archive for 2011

• Recent Study of U.S. Worst Drivers

  by Richard Burton
  

  It is mandatory for all American citizens to get auto insurance policy when they are driving their own cars. And because of this, auto insurance companies are checking the driver’s driving records to know if they are responsible drivers and they have no traffic records or violations. Drivers with traffic violations are asked by insurance companies to pay high monthly premium. This is because they belong to the group of high risk drivers. The more delinquent you are as a driver, the higher your monthly premium is. There was a recent study of the worst drivers in the U.S. The … (more) November 18, 2011

• Michigan Unlimited Care Will be Limited

  by Richard Burton
  

  There is an ongoing disagreement in Michigan concerning the no-fault insurance system. The state House Insurance Committee is listening to all the opinions of people concerning the issue of changing the maximum coverage of the no-fault insurance system. Under the proposed legislation, the unlimited lifetime medical care will be made an option to policy holders. Michigan has been providing the unlimited medical service for the last 33 years. But the new proposal is saying that the unlimited care will no longer be an option but instead they are offering a maximum coverage of $5 million dollars. According to some people … (more) November 15, 2011

• Huge payouts due to natural disasters can lead to rise in auto insurance rate

  by Richard Burton
  

  The insurance companies had to make large payouts for the damage cause by natural disasters and this may increase the auto insurance rate.

• Great Losses in Auto Insurance Revenues Due to Misinformation

  by Richard Burton
  

  Recent study shows that auto insurance companies are losing billions of dollars in revenues because of the wrong information written by policy holders in auto insurance application forms. The study says that because of the incorrect or misleading information that were supplied by policy holders, the auto insurance companies undercharged policy holders by $15.4 billion. The study was conducted by Quality Planning Corporation, a group connected with Verisk Analytics. They claim that because of discrepancies in the information given by policy holders, the right amount of monthly premiums were not collected by auto insurance companies, resulting in huge amount of … (more) November 10, 2011

• Dangerous Accidents on the Road

  by Richard Burton
  

  The rise in the number of cars around the U.S. and the increasing number of young drivers are the major causes of fatalities on the road. American drivers are mandated by law to have auto insurance. But some Americans are not following the law, resulting to road accidents. According to an Allstate Insurance survey 8 out of 10 American motorist believe that they will not be stranded on the roadside if their cars crash or breakdown. Polls show that 84% are confident that they will not have a serious road accident despite the fact that some of the drivers that … (more) November 6, 2011

• Higher premiums for auto insurance to be paid for natural disasters

  by Richard Burton
  

  Natural disasters cause havoc and damage property, automobiles and lives of innumerable human beings. With increasing rates of disasters, the auto insurance companies are not being able to settle insurance claims. As a result, most of the auto insurance companies have decided to increase premiums for auto insurance so that claims can be settled.

• Guidewire solution endowed with claims management by California state auto group

  by Richard Burton
  

  With California State Auto Group and Guidewire Solution coming together, customers are sure to have the best auto insurance claim management. The auto insurance claims that took a long time to be settled previously would take little time to get solved with this collaboration and the services would be provided at all global locations.

• House committee passes no-fault insurance changes

  by Richard Burton
  

  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
  

  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
  

  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
  

  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
  

  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
  

  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
  

  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
  

  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
  

  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
  

  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