Most Recent Auto Insurance News in Headlines

• Experts Tell Parents that They Can Avoid Rise in their Auto Insurance Premium

  by Jeanny Hopper
  

  Insuring a teenage driver is quite expensive, with their premium bills sometimes costing three times more than adult drivers. But car insurance companies say they can provide discounts to parents that would keep their teenage driver’s bill from hurting their pocket. Teenagers are at their safest if they keep off the road, but that is impossible for students living in large metropolitan areas. They often have to drive on their way to school, sporting events, and part-time jobs. Once they start turning on the ignition, parents know that they need to get their teenager covered. However, adding a teenager to … (more) November 3, 2009

• Consumers Urged to Choose the Right Auto Insurance Deductible

  by Jeanny Hopper
  

  Uncertain about how well the United States economy will do in the coming months, most car owners expressed willingness to undertake all means that would help them save on auto insurance cost. But many policy holders neglect one thing that could significantly lower their premium cost—choosing the right deductible. According to experts, paying higher deductibles could reduce the premium by a huge percentage. But they advise consumers to consider several factors first before spending on deductibles unnecessarily. Industry specialists explain that carriers require policy holders to pay a certain amount of money out of their pocket when filing a claim. … (more) November 2, 2009

• Advocates Have High Hopes for Auto Insurance Initiative

  by Jeanny Hopper
  

  Lobbyists greatly affect state legislations. But with the new auto insurance initiative, consumers can finally speak what is on their mind. At least that is what consumer advocacy groups believe. Since the signature gathering began this week for an auto insurance initiative, advocates have expressed high hopes over the initiative ballot in 2010. Advocates say the initiative will help trim down costs for millions of California motorists who maintain auto insurance coverage. State laws allow insurers to give a discount to policyholders who have maintained continuous coverage with them. This is usually referred to as a loyalty discount. But consumers … (more) October 31, 2009

• Auto Insurance Claims Involving Pedestrians Rise During Halloween

  by Jeanny Hopper
  

  An independent auto insurance provider in the state reports that the number of Texans hit by cars increase during Halloween week by 23 percent. According to company records, the number of claims involving pedestrians dramatically increase during the trick-or-treat season over the last five years. During 2008’s Halloween celebration, the number of pedestrians who were hit by a vehicle have more than doubled during the last week of October and the first week of November, compared with the rest of the year. The car insurance company’s records coincide with a report from the Insurance Institute for Highway Safety. The study … (more) October 31, 2009

• Wisconsin Legislators Shift Blame to Each Other

  by Jeanny Hopper
  

  Auto insurance providers in Wisconsin began mailing policyholders that their premium rates are likely to go up soon because of new state legislations. But no legislator would take responsibility for the increase and as consumer groups would note it, politicians are scrambling to avoid blame. Changes that will affect premium rates will begin taking place on November 1. More cost increases are expected to come next year when all motorists will be required to carry liability insurance. Minimum levels of coverage are also increasing, so Wisconsin drivers have more reasons to expect to pay more when they renew their policy. … (more) October 30, 2009

• Cheaper Insurance Would Have to Wait for Hi-Tech Safety Cars

  by Jeanny Hopper
  

  Volvo, which has been leading car industry when it comes to safety features, has recently developed an accident avoidance technology that uses radar to detect an oncoming vehicle and automatically steer its driver out of trouble.  But like any other state-of-the-art safety devices, Volvo’s innovations will have to prove itself before meriting auto insurance discounts. Industry specialists say time is the ultimate measure for insurers and giving huge discounts to newly introduced safety devices is not their practice. Without hard data, advanced car safety features will not merit any cut on premium rates. Experts explained that safer cars lead to … (more) October 29, 2009

• Lawyer Barred from Practice after Auto Insurance Fraud

  by Jeanny Hopper
  

  Charles L. Lonardo was once the top personal injury lawyer in Lawrence, Massachusetts. But he made a mistake few years ago that would permanently bar him from practicing law in the state. He was convicted for auto insurance fraud in 2006 and has recently been disbarred through a Supreme Court decision. Lonardo maintains his innocence but it is still a long way to go before he could appear once more in court as a lawyer. On September 14, the Board of Bar Overseers voted to disbar Lonardo after being convicted of conspiracy to commit auto insurance fraud in April 2006 … (more) October 29, 2009

• Car Rental Insurance May Not be Needed

  by Jeanny Hopper
  

  Many companies scare clients into buying additional auto insurance when renting a car. But experts tell consumers who are travelling this Holiday Season that additional coverage may not be necessary. In Minnesota, a person would have to spend $10 to $15 on car rental insurance each day in order to meet the state’s minimum coverage of $35,000. But that amount is only enough to cover the vehicle they are driving. If they do end up wrecking another car, $35,000 most likely would not be enough. According to a 2007 study by the National Association of Insurance Commissioners (NAIC), 42 percent … (more) October 28, 2009

• Shopping Instead of Dropping

  by Jeanny Hopper
  

  Economic recession has pushed many drivers off the road, at least when it comes to auto insurance. Majority of motorists nationwide are having a tough time paying premium rates as costs rose greatly during the height of recession. Job losses and other financial difficulties made many drivers drop their coverage. But experts say driving uninsured is about the riskiest thing a car owner could do. They remind motorists that driving without car insurance is against the law for all but two states in America and could put them into greater trouble in case they meet an accident. Experts advise drivers … (more) October 27, 2009

• Double-Digit Rise in Auto Insurance Fraud

  by Jeanny Hopper
  

  The California Department of Insurance (CDI) has recorded a huge increase in the number of fraudulent auto insurance claims. The most common methods used by scammers to trick car insurers are vehicle arson and auto theft fraud referrals. Commission Steve Poizner says scams are used by financially trouble individuals who want to cash in on insurance money while California experiences tougher economic times. CDI records a 25 percent increase in fraudulent claims. Poizner warns scammers that they are cracking down hard on anyone who attempts such fraud on California car insurers. He adds that CDI will not allow individuals to … (more) October 26, 2009

• Discount for Senior Motorists Questioned

  by Jeanny Hopper
  

  New Massachusetts auto insurance data confirm that drivers over 65 are safer behind the wheel but probably do not deserve the full 25 percent auto insurance discount they are enjoying through state law. Some legislators are planning to change the privileges for senior motorists, which could trim down discounts received by drivers of that age statewide. The Automobile Insurers Bureau of Massachusetts (AIB) revealed through a recently compiled data that, as a group, drivers over 65 are lower insurance risks than drivers from all the other age brackets. However, a subset of the 65-over group, drivers aged 75 and above, … (more) October 26, 2009

• Parents Urged to Keep Children Safe, Auto Insurance Rates Down

  by Jeanny Hopper
  

  As the last quarter of 2009 approaches, Center for Disease Control and prevention notes that road accidents remain as the primary cause of death for United States teenagers. The same is true two years ago, when 11 teens aged 16 to 19 die each day because of vehicle crashes. That is a total of 4,200 teens dying from crashes in 2007. That is why advocacy groups are calling out to parents to reach out to their kids and them how to save lives and money as well. In the United States, teen drivers pay highest premiums, up to three times … (more) October 25, 2009

• US Teens Encouraged to Driver Safer, Good Passengers for Lower Auto Insurance Rates

  by Jeanny Hopper
  

  Vehicle crashes are the leading cause of death among teenagers. Among policyholders, they are at the highest risk for accidents. That is why auto insurance providers charge them very high rates when applying for policies. US Congress acknowledges this fact and has initiated a safety campaign two years ago that aims at educating teens about safer driving. This year’s National Teen Driver Safety Week focuses on encouraging American teenagers to become good passengers in order not to distract their fellow teen drivers. Safety specialists note that the more passengers a teen driver travels with, the higher his risks for meeting … (more) October 22, 2009

• Auto Insurance Group Reminds Car Makers about Older People’s Risk

  by Jeanny Hopper
  

  Older people are frail and are more likely to get seriously injured or killed in a road crash. This is the reminder issued by the Insurance Institute for Public Safety, a non-profit organization funded by auto insurance providers, upon noting that most vehicles manufactured these days are designed for younger motorists. As noted by the organization, senior citizen population is set to double in the next decades so they encourage carmakers to build vehicles which would be safer for the age group. Steering balance, antilock brakes, visibility from the driver’s seat and many other safety features are needed by older … (more) October 19, 2009

• NASCAR Stars Advise Teenage Drivers to Keep Eyes, Head on the Road

  by Jeanny Hopper
  

  Drivers from the National Association for Stock Car Auto Racing (NASCAR) to inform teenage motorists another road peril: DWD or driving while distracted. They encourage young drivers to put down their phones while driving so nothing gets in between them and the road. Road safety advocates believe that decreasing accident rates in the age group will trim down high auto insurance rates for teens. A recent study conducted by an independent auto insurance firm revealed that majority of Americans favor cell phone ban while driving. 8 out of every 10 correspondents say they would support a legislation that would reinforce … (more) October 18, 2009

• Auto Insurance Rates Diminishing, Decade-Old Law Gets Credit

  by Jeanny Hopper
  

  A recently published report by California auto insurance regulators reveals that premiums have significantly gone down during the past two years. Observers note that regulatory efforts along with several economic factors contributed to downshifting rates. Fewer road accidents, lesser driving by Californians because of increased gas prices, and competition among insurers are some of the factors specialists attribute to decreased insurance rates. As further noted by observers, insurers have placed greater value on attracting consumers because of the very competitive insurance industry in California.  They say policyholders are more aware of their options largely because of Internet advertisements. Consumers are … (more) October 17, 2009

• Nationwide Campaign against Cell Phone Use while Driving Launched, 18 States Join Call

  by Jeanny Hopper
  

  If driving under influence is serious enough to cost lives, so does using cell phones while driving. This is the message of a new awareness campaign launched by different organizations all over United States. Advocates say crashes do not only result in casualties but they also push auto insurance premium rates up. But road safety organizations are not alone in their pursuit. Just last week, President Barack Obama signed a bill prohibiting federal employees from using their mobile phones while operating government vehicles. Reading and sending messages will be banned as well as encoding address into one’s GPS device. There … (more) October 17, 2009