Most Recent Auto Insurance News in Headlines

• Ailing GMAC to Receive Another Shot in the Arm from the Government

  by Jeanny Hopper
  

  The Federal Reserve has infused another tranche of capital to GMAC with the approval of additional $6.5 billion bailout money.  However, the beleaguered financial company appears to be almost relying purely on government funds to keep it afloat, and does not show any clear signs of making a turnaround. The government has already shelled out huge amounts of bailout money to ailing companies in light of this economic downturn that hit the country recently.  GMAC has yet to show signs of recovery and was the only one of 19 major financial institutions that received financial assistance from the government which … (more) November 16, 2009

• Maryland Insurance Companies Fined for Mishandling Premiums

  by Jeanny Hopper
  

  Almost half of the 119 automobile insurance companies in Maryland have been reprimanded and charged with fines by state insurance authorities during the second quarter of 2009 for mishandling of auto insurance premiums and other fees. According to reports, Insurance authorities in Maryland fined the approximately 59 auto insurance companies nearly $400,000 in reimbursement to car owners and a total of 235,000 in penalties. Insurance authorities say that the mishandling of insurance fees came mainly as a result of the changes made to the state law during the last quarter of 2008. Although reports say that most insurance companies were … (more) November 15, 2009

• Private Companies and Non-Profit Groups in Virginia Find Ways to Stop Distracted Driving

  by Jeanny Hopper
  

  Auto insurance companies and non-profit organizations in Virginia team up to call the public’s attention to the ramifications of distracted driving. Drive Smart Virginia, a non-profit organization composed of car insurance companies that serves more than roughly 85% of the state’s policyholders, decided to act on the growing concern regarding distracted driving. As more and more private companies join the organization, the goal of Drive Smart Virginia to make the state’s public roads safe for motorists is slowly coming true. Reports say that Drive Smart Virginia even conducted a thorough research to uncover the real causes of near-crash and crash … (more) November 15, 2009

• Prolonged Recession Causes Increase in Maryland Fraud Reports

  by Jeanny Hopper
  

  The Maryland Insurance Administration has been receiving almost twice the normal number of complaints involving fraud for this year compared to 2008. This may be attributed to the ongoing recession and an increasing popularity of the use of technology. According to Carolyn Henneman, Fraud Division Head of the Maryland Insurance Administration, their division has recorded around 1,400 reports for the fiscal year 2008. For fiscal year 2009, ending on June 30, more or less 2,600 insurance fraud reports have been received – almost double the previous number. Current statistics regarding fraud complaints is not an exact value, according to an … (more) November 14, 2009

• Men, Women and Car Insurance – Who Gets the Cheaper Deal?

  by Jeanny Hopper
  

  One of the highest expenses you can expect to shoulder when owning a car or vehicle is insurance. Usually, automobile insurance costs far exceed expenses or money spent for gasoline, permits, licenses, registration, routine maintenance and spare parts. Out of all drivers on the road, those who have been driving for a short while can expect higher costs or premium rates, to the extent that the total may even be equal to the price of a car. This is true even for basic insurance coverage or policy. Some insurance companies or firms offer a type of coverage especially designed for … (more) November 14, 2009

• By-the-Mile Auto Insurance Raises Privacy Concerns

  by Jeanny Hopper
  

  The insurance commissioner for California has recently approved regulations for by-the-mile auto insurance which measures the premium of drivers according to the mileage they clock in annually. But critics say legislators have to consider the practice more carefully, saying the savings it gives to motorists may also cause privacy issues and security concerns. The concept of usage based auto insurance has been around for years and is already practiced by several states in America such as Alabama, Colorado, Michigan, Louisiana, and Minnesota. Pay-as-you-drive (PAYD) has been proposed in California a few years ago but was rejected. Last year, state legislators … (more) November 13, 2009

• Auto Insurance Fraud Reports Increase in Maryland

  by Jeanny Hopper
  

  The Insurance Administration in Maryland reports that auto insurance fraudulent activity have doubled in 2009. Increase in car insurance fraud in Maryland is blamed chiefly to the abused use of technology and the country’s current fiscal situation. According to reports, Maryland Insurance Administration (MIA) fraud division head, Carolyn Henneman, announced that as her department concluded the 2009 fiscal calendar last June 30, they received an estimated 2,600 complaints regarding auto insurance fraud. When asked if the department has the exact number of complaints received, an MIA representative said that exact figures are still unavailable as fraud data is still being … (more) November 11, 2009

• Public Knowledge on Auto Insurance Policies Reinforced

  by Jeanny Hopper
  

  The more you know about something, the more prepared you will be about it, and the better you can do to take full advantage about it. In the car insurance industry, local efforts to strengthen public knowledge about auto insurance policies are mobilized. If the public knows more about car policies, the more they can take full advantage of it. Starting November, meetings with public officials in the state of New York have been initiated to plan programs on how to reinforce public knowledge regarding auto insurance coverage policies. Reports say that recent surveys conducted on New York policy holders … (more) November 10, 2009

• Using Credit Scores To Determine Premium Rates Argued To Save The Day

  by Jeanny Hopper
  

  Drivers are split as to whether they want to be judged based on their credit. According to experts in the auto insurance industry, the use of the credit scoring method to determine premium rates saves insurance companies and policyholders time, money, and effort. University Professors who specialize in insurance and financial services suggest that a very good way to determine the premium rates to be paid is by credit scoring. As soon as the idea is presented, a number of critics who are against the credit scoring method argued that using such method will be detrimental to the poor and … (more) November 9, 2009

• Tough Times Heighten Auto Insurance Fraud

  by Jeanny Hopper
  

  The number of car insurance fraud caused by economic difficulties and recession is starting to increase in now scary numbers. Insurance companies report catching fake insurance claims or “Give-ups”. Increasing incidents of faking car theft or make believe fire by fraudsters in an effort to collect insurance money on any discarded vehicles have been reported. Insurance industry insiders say that the numbers have gone up since 2008, roughly by around 23%. On the other hand, the numbers of insurance claims arising from suspicious vehicle arson have gone up by 27%. Auto insurance companies are now afraid that the economy will … (more) November 9, 2009

• Congress Confused On Who Should Be the Key Decision Makers

  by Jeanny Hopper
  

  Recent meetings the United States Congress still show confusion and indecisiveness as to what role should each state play in regulating auto insurance. In recent Congress meetings, members of the Congress appear to remain in a state of confusion and are unable to decide on whether they should limit the extent on how state powers can control and regulate car insurance. Reports say that the Congress wants the states to have the power to make key decisions in car insurance, particularly in auto insurance reforms. On the other hand, some members of the Congress want to maintain the key powers … (more) November 8, 2009

• Drivers Cut Back on Auto Insurance Coverage

  by Jeanny Hopper
  

  With less purchasing power and with money spent more on gas bills, motorists are cutting back on auto insurance coverage. Regional insurance companies reported that much of their clients had trimmed on coverage policies. Some drivers have canceled policies they originally purchased when they have the chance and leave only the coverage required by state jurisdiction. Reports show that a major US insurance company that serves motorists from Delaware, Maryland, Washington, Pennsylvania, New Jersey, Virginia, and D.C. experienced having clients who “trim” their auto insurance policies. The same company has reported to have said that a huge number of their … (more) November 8, 2009

• Teen Drivers Risky To Insure

  by Jeanny Hopper
  

  United States annual statistics showed about 400,000 drivers age 20 and below figured in car accidents, which translates to $26 billion total damage costs of road mishap. In fact, vehicular accidents ranked as No. 1 cause of death among teen Americans. The number of death for teen drivers is four times higher than drivers whose ages are between 25 to 69 years. Statistics also showed that more teen male drivers get killed in car accidents than teen female drivers. About 19 get killed for every 100,000 male drivers, while 11 get killed for every 100,000 female drivers. First time teen … (more) November 7, 2009

• Consumers Prepare for Planned Rate Hikes Come 2010

  by Jeanny Hopper
  

  Car owners are putting on their seatbelts in preparation for another bumpy ride as auto insurance providers plan to increase premium rates again. Although it has been reported that a 15% increase has been made from 2008 to 2009, a number of insurance companies still feel the need for a 10% increase from 2009 to 2010. These companies blame it on delinquencies of their current customers and the unsteady market forecasts. A survey conducted by an auto insurance consultancy firm showed that almost 50% of auto insurance companies in the United States have scheduled a premium increase next year from … (more) November 6, 2009

• Local Communities and Car Companies Help Solve Insurance Rate Problems

  by Jeanny Hopper
  

  In most  parts of the country, a growing concern is the continued increase in auto insurance premium rates. State after State, authorities are on their necks in preparing drivers on how they can be responsible enough to save on auto insurance. In New Jersey, local medical centers are offering courses on defensive driving on November 17 and 18, 2009. The event, scheduled to run from 10 in the morning to 3 in the afternoon, is organized by New Jersey’s local organizations who are concerned about the growing premium rates motorists pay in the state. Drivers and car owners who will … (more) November 6, 2009

• Business Owners Advised to Pick the Right Policy

  by Jeanny Hopper
  

  Some small business owners and self-employed individuals report that they are confused whether to choose a commercial or personal policy when insuring their vehicles. Experts say car owners should choose the right auto insurance in order to avoid paying unnecessarily and to avoid having problems when filing for a claim. Being a business owner does not necessarily mean that a person has to purchase commercial auto insurance, since the type of policy to apply for depends on several factors. According to industry specialists, needing a commercial policy depends on how a vehicle is used and what company it is insured … (more) November 5, 2009

• Pay-as-you-drive Auto Insurance Makes another Mile

  by Jeanny Hopper
  

  California legislators have moved a step forward in pushing a policy that will determine the auto insurance rate of a motorist according to the number of miles he drives. Usage based auto insurance, more popularity known as a pay-as-you-drive (PAYD) policy, was initially proposed several months ago to help drivers save on their policy costs. PAYD is not new concept in the auto insurance industry. There are many countries that are practicing, among them United Kingdom, Canada, Australia, South Africa, and Japan. 30 states in the country are currently allowing carriers to offer the plan to consumers as a limited … (more) November 5, 2009