Most Recent Auto Insurance News in Headlines

  • Massachusetts High Court Rules In Favor of DOI’s decision

    by Jeanny Hopper
    Massachusetts High Court Rules In Favor of DOI’s decision

    After two years of legal battle, the Supreme Court of Massachusetts finally ruled on an issue involving the Massachusetts Division of Insurance (DOI) against an insurer and an association of insurance agents. The lawsuit, which was filed in 2008, started after the government agency released a decision exempting new auto insurance companies within the state from covering high-risk motorists. Spearheaded by Arbella Mutual Insurance and the Massachusetts Association of Insurance Agents, they sought to nullify said decision on what they consider to be an “ultra vires act” or an act exceeding authority made by then insurance commissioner Nonnie Burnes. The … (more) February 17, 2010

  • Toyota Car Recall Causes A Stir

    by Jeanny Hopper
    Toyota Car Recall Causes A Stir

    After Toyota announced that it will recall 8.5 million vehicles, the company is facing a wave of problems, primarily from an increasing number of consumer class-action lawsuits. Aside from being worried about the dwindling resale value of their vehicles, concerned owners of recalled Toyota car are now contacting their insurance providers to ensure that their auto policies include coverage for a recalled car. Toyota Motor Corporation has recently announced that it will start its biggest recall in the company’s history to repair sticking gas pedals that have been reported to cause unexpected acceleration in car models and ill-fitting floor mats. … (more) February 16, 2010

  • Dense Areas Benefit More From Ban of Mobile Phone Use While Driving

    by Jeanny Hopper
    Dense Areas Benefit More From Ban of Mobile Phone Use While Driving

    A professor from the University of Illinois had recently conducted a study linking cell phone use with automobile accidents, but it does not overall dispute another study stating that mobile phones are not significantly responsible for collisions. In their research, Sheldon Jacobson used data from 62 counties in the State of New York while looking at the relationship between the “pre and post ban on texting and cell phone use” while driving. They found out that at least 10 counties presented a statistically significant number of reductions in accidents. Out of the 62 counties, 46 of them showed a reduction … (more) February 15, 2010

  • Mistake in Credit Scoring Could Lead to Higher Premium Rates

    by Jeanny Hopper
    Mistake in Credit Scoring Could Lead to Higher Premium Rates

    A credit score is basically a statistical analysis representing a person’s credit files. Banks and credit card companies use this as a tool to determine the following: those who are qualified to take a loan; the interest rates that may be charged; and, the credit limit which may be given to an applicant. Few people know that credit scores are also being used by auto insurance companies. But these three numbers, which could also be prone to mistakes, may eventually lead to paying higher premium rates because of instances when insurers mistakenly interpret credit reports. According to Mississippi Insurance Commissioner … (more) February 11, 2010

  • Pizza Owners Need to Check Their Auto Insurance Coverage

    by Jeanny Hopper
    Pizza Owners Need to Check Their Auto Insurance Coverage

    Pizza delivery “time guarantees” used to be prevalent among pizza shops as well as other fast-food restaurants. Being used mainly as a promotion tool, pizzerias would often incorporate or promise delivery within a pre-determined period. However in 1993, this practice was stopped primarily because of different lawsuits which arose from accidents that pizza drivers figure because of the time limit for delivery. But nonetheless, customers are still attracted by how fast a pizzeria could bring their orders. Auto insurance experts estimate that there are thousands of pizza delivery drivers who ply the road on an everyday basis. On occasions such … (more) February 10, 2010

  • Toyota Recall Stirs Auto Insurance Companies and Consumers

    by Jeanny Hopper
    Toyota Recall Stirs Auto Insurance Companies and Consumers

    The recall of an estimated 5.2 million Toyota vehicles due to floor mat problem and a pedal entrapment is causing a stir in the auto insurance industry. Add to this figure a 2.3 million recall of the same brand of vehicle because of problems on the gas pedal, and we have insurers and consumers wondering what long term impacts the incident would have on premiums and claims. According to a recent report, many insurers are currently piling-up paperwork in order to make Toyota accountable for millions of dollars which may be attributed to the company’s faulty design. In legal parlance, … (more) February 10, 2010

  • Insurer State Farm Claims That They Foresaw Toyota Crisis in ‘07

    by Jeanny Hopper
    Insurer State Farm Claims That They Foresaw Toyota Crisis in ‘07

    DETROIT – The Toyota recall problem may have been averted much earlier, according to U.S. private insurer State Farm. In last 2007, State Farm claims that they noticed ‘worrying trends’ of accidents caused by vehicles involving Toyota car models. They said that they informed a U.S. government regulator, the National Highway Traffic Safety Administration, about their observations. Company Spokesman Kip Diggs said that they saw significant activity and trends on Toyota-related insurance claims back then, which are indicators that should be taken seriously. The Insurance Information Institute reported that State Farm is the largest auto insurance provider in the country, … (more) February 9, 2010

  • $702 is the Current National Median Auto Insurance Rate

    by Jeanny Hopper
    $702 is the Current National Median Auto Insurance Rate

    The median auto insurance rate, for a 6-month policy, is presently $702. This was reported by InsWeb, a premier insurance comparison provider online. The rate has dipped by about 0.5% in the last six months. The Insurance Provider has also provided statistics which break down the median rate data according to specific demographic categories. These categories include women, men, teens and senior citizens. InsWeb said that women shell out a median auto insurance rate that is 5% lower compared to men. For a six-month policy, instead of $720, women pay about $683. Drivers who are 19 years of age (and … (more) February 8, 2010

  • Voter Initiate Set To Evaluate Auto Policy Discount System In California

    by Jeanny Hopper
    Voter Initiate Set To Evaluate Auto Policy Discount System In California

    A voter initiative in California is set to appear on the June 8, 2010. This initiative will evaluate the continuous discount in auto policies offered by providers in the state. Authorities are trying to find out if the current regulations on discount offering are still fair for both drivers and insurers. According to the California Department of Insurance, ballot aims to reward motorists who have been insured for a long period of time by making them eligible for what they call a “persistency discount”. The Department adds that for drivers can still be qualified of the said discount even if … (more) February 6, 2010

  • Cal State Low Cost Auto Insurance Sees 18.9% More Participants in ‘09

    by Jeanny Hopper
    Cal State Low Cost Auto Insurance Sees 18.9% More Participants in ‘09

    Participation in the California Low Cost Automobile Insurance Program (CLCA) in 2009 increased by about 19% compared to 2008. Steve Poizner, California Insurance Commissioner, said that the 18.9% increase was due to the efforts of the commission’s outreach program as well as the dire economic situation in the country. The program, established in 1999, has been offered to every county in California since 2007. The Commissioner explained that the law requires every single driver in the state to carry automobile liability insurance. However, he admits that the dire economic situation at the current time causes citizens to cut costs. The … (more) February 3, 2010

  • Things to Remember When Applying for Car Accident Insurance

    by Jeanny Hopper
    Things to Remember When Applying for Car Accident Insurance

    The moment you buy a car, first thing to think about is not getting a new set of mufflers, rims or spoilers. Think first of getting insurance because that may be the best thing you can get for your car at the moment. There is no limit to benefits you get from availing of a car accident insurance early on. You have decided to get covered by an indemnity policy; first thing to do is to look for a reputable insurance provider. Normally, a car dealer will attempt to sell you insurance, whether for a profit or not. This is … (more) February 2, 2010

  • Get a Student Car Insurance Loan to Ease Your Financial Burden

    by Jeanny Hopper
    Get a Student Car Insurance Loan to Ease Your Financial Burden

    As a student, the greatest bulk of your finances go to your education. A portion goes to allowances and transportation. If you are working, a lot more is set aside for family expense. This does not mean, however, that you cannot get insurance on your car. In this case, it is advisable for you to avail of a student car insurance program. Not only is it more convenient on your part, it is also more practical and economical. Coverage for contingencies is a must for every car owner. This is because of the amount of road mishaps and accidents that … (more) February 2, 2010

  • Cell Phone Use Is Not Significantly Responsible For Collisions, Study Says

    by Jeanny Hopper
    Cell Phone Use Is Not Significantly Responsible For Collisions, Study Says

    A nonprofit organization funded by the auto insurance has conducted a study that says that the introduction of laws which ban cell phone use while driving may not significantly lessen the risk of accidents on the road. Highway Loss Data Institute, the organization responsible for the study which was published in late January, says that the problem may actually lie with ‘distracted drivers’ themselves. Monthly collision claims take from four US states which bans cell phone use while driving were the focus for the research. Comparisons were made before and after the bans took effect in the respective states. The … (more) February 1, 2010

  • Dealing With Used Car Auto Insurance

    by Jeanny Hopper
    Dealing With Used Car Auto Insurance

    Those who are driving pre-owned cars may be distressed because their car insurance premium would be more costly because of the higher risk involved in a used (not to mention older) vehicle. These worries can be qualified. However, owners of a used car need not to worry because anyone can get proper coverage for their used vehicle. First of all, you must know that a lot of factors are present when you are dealing with your auto insurance premium. You should know what these factors are so that you will have more freedom in dealing with the costs of your … (more) January 31, 2010

  • Factors Shaping Auto Insurance

    by Jeanny Hopper
    Factors Shaping Auto Insurance

    Affordable auto insurance is something that a lot of drivers yearn for, especially these days now that costs of vehicle insurance are higher. A lot of insurance policies are out in the market. The challenge is getting one with a lower price. There are a few tips you can do to make it more affordable. You should always remember that plenty of factors determine your insurance price. If you are a low risk driver (one with a good track record), expect a lower car insurance premium. When companies see that you have a good record, they will see you as … (more) January 31, 2010

  • Insurance Info Institute Outlines Tips to Lower Auto Insurance Costs

    by Jeanny Hopper
    Insurance Info Institute Outlines Tips to Lower Auto Insurance Costs

    Other than having a good record as a driver to keep auto insurance costs down, the Insurance Information Institute has outlined nine recommendations in a report entitled, “9 Ways to Lower Your Auto Insurance Costs.” First, owners are urged to ‘shop around’ to find the best valued price quotes. Collecting information through direct phone calls or through the internet is a good start. Even local state insurance departments may be able to offer information regarding major insurers. It would be wise to pick an insurer with a track record of financial stability by looking into consumer periodicals and rating companies. … (more) January 30, 2010

  • Rep. Byrum, Dabbs: Pass Urgent Reforms for Michigan Car Owners

    by Jeanny Hopper
    Rep. Byrum, Dabbs: Pass Urgent Reforms for Michigan Car Owners

    The vehicle owners of Michigan have been scrimping economically due for a long time to the unfriendly policies of auto insurers, and the situation is ‘only getting worse.’ This is according to an enjoinder by Michigan State Rep. Barb Byrum and Michael Dabbs, president of the Brain Injury Association of Michigan and spokesperson for the Coalition Protecting Auto No-Fault. The new law compels Michigan residence to purchase auto insurance at rates which rank ‘among the highest’ in the US. The state’s rates have spiked by as much as 70 from 1989 to 2005. Wage drops and a rising unemployment rate … (more) January 30, 2010