Most Recent Auto Insurance News in Headlines

Oregon Owners of ‘Wrecked’ Cars May Get More Info Due To New Law
by Jeanny Hopper

In an effort to urge Oregon residents and insurers about ‘new’ rights in the event that their car gets totaled in an accident, the state’s Department of Consumer and Business Services (DCBS) issued a reminder last week. Taking effect earlier this month, House Bill 2190 permits car owners to obtain more information for the purpose of greater leverage whenever a settlement for a totaled car is in the middle of negotiation. The DCBS reported that this new law compels insurers to take several considerations. First, drivers should be provided with a written notice that outlines the total loss which includes … (more) January 28, 2010
Cheaper Insurance Rates May Not Be Wise In The Long Run, Says Experts
by Jeanny Hopper

Figuring out the coverage that best suits the needs of any customer is a crucial consideration when searching for the most affordable car insurance rates. Auto insurance guru, John Pirro, explained that although paying the price of quality insurance can be a financial burden, being unable to avail of the best coverage in the face of a costly accident can cause a deeper burden. He urged that taking into account insurers who can provide more ‘extensive protection’ is a wise move on the part of consumers so that damages not taken care of by basic policies can be compensated for. … (more) January 28, 2010
Increasing Deductibles can Bring Auto Insurance Discounts, Says Experts
by Jeanny Hopper

Asking the “right questions” and having a willingness to take risk are good steps in the direction of achieving better rates and unearthing uncommon discounts on auto insurance, according to experts. The Insurance Information Institute said that premiums become an obligation for owners with current deductable of less than $500. Auto insurance expert, Dayana Yochim, suggests that increasing deductibles from $200 to $500 may consequently lessen the cost of comprehensive coverage (and collision coverage) by as much as 15% to 30%. Since the typical yearly premium is valued at about $820, increasing deductibles could amount to $123 to $246 in … (more) January 27, 2010
Bill in Nebraska Seeks to End “Guest Statute”
by Jeanny Hopper

In the State of Nebraska, a guest passenger may recover for damages or injuries caused by a vehicular accident, but not the relative of the insured the driver. This is the statute that the bill introduced by State Senator Norm Wallman seeks to repeal. According to Wallman, an incident involving a constituent brought his attention to this dilemma. The constituent figured in a car mishap driven by a relative. Seeking indemnification, the latter found out that because of an existing law, recovery for damages would not be possible. Being hospitalized for more than seven days, the man had to shoulder … (more) January 26, 2010
Non-Profitability in 2010 Seen By Auto Insurance Industry Insiders
by Jeanny Hopper

If the survey conducted to executives from different insurance companies is true, then the auto insurance industry is in for a big crunch. In a poll conducted at the yearly Property and Casualty Insurance Joint Forum Industry, a total of 51% industry execs said that overall industry profits would remain flat. This is because of expectations that a number of premiums would likely fall. Pessimism on its growth is accentuated by the fact that only 14% polled that any increase in the volume of premiums is likely to happen. When it comes to profit, 51% anticipate increase in revenues in … (more) January 25, 2010
Parents Advised of Options for Auto Insurance Coverage of Teens
by Jeanny Hopper

Every year, and this year included, thousands of teenage drivers would hit the streets. After learning how to drive and most especially after obtaining their driver’s license, teenagers are most often careless and excited while driving. Because of this, they are considered as high risk auto insurance drivers. Case at hand: In a study released by the Insurance Information Institute (III), a quarter of them use cell phones to send text messages and answer calls while driving. About the same percentage also eat and drink behind the wheel. Some attribute this for immaturity or lack of experience. However, the point … (more) January 25, 2010
Bill Seeks to Impound Uninsured Cars in Oklahoma
by Jeanny Hopper

If the bill passed by Oklahoma Rep. Steve Martin is approved, uninsured vehicle owners would have their cars impounded. According to Martin, there is a new verification system that would allow instant confirmation on whether an automobile is insured or not. He stated that this bill plans to take advantage of this technology to help law enforcers and other agencies tasked with road safety and management. In the past, such innovation is unavailable. Department of Safety Captain, Chris West, said that they are open to the idea. He added that such a measure is a welcome step for people to … (more) January 22, 2010
Healthy Competition and Location Help Keep Auto Insurance Costs Low
by Jeanny Hopper

Amidst rising auto insurance rates all-over the country, Kansas State motorists may sleep well at night, consciously knowing that any hike in their car policy this year is very much unlikely. A report made by the National Association of Insurance Commissioners (NAIC) revealed that Kansas placed 6th nationwide in terms of having the lowest average insurance expenditures. This, in turn, is equivalent to one of the lowest rates for vehicle coverage throughout the nation. NAIC is a non-profit organization whose aim is to organize supervisory and regulatory efforts of the various state insurance commissioners from all-over the country. In the … (more) January 22, 2010
Stricter Program Implementation to Compel Drivers to Get Auto Insurance
by Jeanny Hopper

This year, uninsured motorists in Texas would have to get their vehicles insured, or they would have to face the prospect of having to face sanctions. The Texas Department of Insurance (TDI) reported that there are about 4.8 million registered family-owned cars in the state which remains uninsured. This is roughly about 22% of the 22 million automobiles recorded in the Texas Department of Motor Vehicles. Because of this large number, notices are being planned by TDI to notify and compel these drivers to get auto insurance. By law, drivers of this state are already mandated to have minimum liability … (more) January 20, 2010
Insurance Claims Process Explained to Motorists
by Jeanny Hopper

Experts from the auto insurance industry are now reminding car owners and policyholders of the proper procedures in the event of an accident. Recent statistics from studies sponsored by insurance providers have shown that a large majority of American car owners lack the sufficient knowledge regarding their car insurance. The surprising figures have prompted many insurance experts to call on motorists to refresh their memories of what to do when claiming for insurance. After assessing for any potential injuries, drivers should immediately contact their insurance providers or agents to inform them of the situation. Analysts say that many car owners … (more) January 17, 2010
Getting Your Auto Insurance Claim
by Jeanny Hopper

Statistics say that over $150 billion worth of auto insurance claims are filed per year. Despite these figures, Americans actually find filing an auto insurance claim a tiring and somewhat intimidating process. However, vehicular accidents are very real so no excuses can be made for not knowing how to file an auto insurance claim. In fact, it would be the responsibility of a driver. In the long run, this will save him a lot of money, time, and effort—the whole point of having auto insurance. The first step in filing an insurance claim is assessment. In this case, a driver … (more) January 16, 2010
Minimum Liability Coverage is Up, So are Insurance Rates
by Jeanny Hopper

In Louisiana, drivers are required to at least have “10-20-10” liability coverage. These numbers simply correspond to liability limits. However, with the passage of a new law approved January 1, a vehicle owner is now compelled to obtain a minimum “15-30-25” coverage and with this comes higher rates, or more fees to be paid. According to Richard Piazza, actuary head for the Louisiana Department of Insurance, policy holders would need to cough-up $71 more a year for car insurance. Proponents of this law had cited a need to increase minimum liability requirement to meet rising costs associated with accidents such … (more) January 16, 2010
Reforms Working Despite Auto Insurance Rate Increases
by Jeanny Hopper

Auto insurance rates in New Jersey are expected to rise this year. However, instead of looking at it as bad news, take it as a sign that reforms in the industry are working as intended. In 2003, NJ Governor Jim McGreevey called for a sweeping legislation to overhaul the State’s auto insurance regulatory structure. Among its purpose is to create a more competitive marketplace for insurers, and to give consumers more choices, protection and empowerment. This law enabled attainment of higher profits by insurance companies. Because of the reduction of time frame given to state regulators to decide on requests … (more) January 15, 2010
24 Interstate Scammers Charged of Auto Insurance Fraud
by Jeanny Hopper

A total of 24 individuals have been reported to be charged with interstate auto insurance fraud. According to reports, 17 of them are New York citizens, 6 are from New Jersey, and 1 is a driver from Pennsylvania. Charges have been filed against the unnamed individuals for committing car insurance fraud and other charges of insurance felony for falsely identifying themselves as Pennsylvania drivers in an attempt to receive lower premium rates on auto policies. Each of the 24 defendants are facing charges including one count of auto insurance fraud and one count of false application for registration or certificate … (more) January 15, 2010
Extra Steps Urged to Maximize Insurance for Teens
by Jeanny Hopper

25% of teenagers use their cell phones to send text messages and answer calls while they are driving, according to the Insurance Information Institute. In the same report, according to auto insurance expert Phil Mulkins, 25% of these same teenagers also eat and drink while they drive. The two main factors attributed to this are inexperience and the lack of maturity – both contributing to high teenage crash rates. The institute, according to Mulkins, has several recommendations in choosing a safer car which not only offers crash protection but is also relatively easy to drive. High performance vehicles should be … (more) January 13, 2010
Twenty Four People Arrested for Insurance Fraud
by Jeanny Hopper

Twenty four people, majority of which are New York City residents, with the rest coming from the state of New Jersey have been caught making false claims that they are from certain areas of Pennsylvania in order to get cheaper insurance premiums. They are now facing criminal charges for falsification of identity and other related cases. This practice is known as rate evasion wherein non-Pennsylvania residents would make false claims that they are from the state so that they could get a driver’s license or vehicle registration from the Pennsylvania Department of Transportation. They would then use this information to … (more) January 12, 2010
24 Auto Insurance Rate Evaders Arrested in Penn State
by Jeanny Hopper

A total of 24 individuals were charged with insurance fraud, among other related violations, after masquerading as residents of Pennsylvania so that they could capitalize on significantly cheaper rates for their auto insurance. Gen. Tom Corbett, Pennsylvania Attorney General, took charge of the capture of these alleged perpetrators which includes one Pennsylvania resident, 17 from New York and six New Jersey residents. The crime, referred to as “rate evasion,” included collaboration of the outsiders providing fictitious personal information to the Department of Transportation of Pennsylvania State. These fake identities were used for the purpose of getting vehicle registration or PA … (more) January 11, 2010