Most Recent Auto Insurance News in Headlines

• Lowering auto insurance costs through wisconsin’s law raises many questions

  by Richard Burton
  

  Opponents of the new law as well as experts from the insurance industry have questioned the new Wisconsin law, which was essentially aimed at lowering auto insurance premiums by doing away with the coverage requirements. The opponents claim that the changes that were brought about in 2009 have caused a rise in the auto insurance rates instead of bringing it down. It is difficult to simply look at some legislation and try to understand the changes that it can bring about, stated Steve Witmer, spokesman, American Family Insurance, one of the major insurers in Wisconsin. The 2009 legislation that was … (more) May 28, 2011

• The low-cost auto insurance bill is treated unfairly in the senate

  by Richard Burton
  

  The low-cost auto insurance bill for residents of the Clark County faced some rough questioning at the Senate hearing. According to the bill most Nevada drivers would be charged a fee in order to subsidize the low-cost insurance program. There was some serious vote trading on the bill which was sought by Assemblyman, Kelvin Atkinson, D-North Las Vegas and it received two-thirds of the support that it required to move it out last month, from the Assembly. Two-thirds vote was required by the bill because there would be a 50-cent fee that would be imposed on each insured vehicle annually … (more) May 18, 2011

• Increase in the number of suspicious auto insurance claims can lead to high premiums

  by Richard Burton
  

  The cost of auto insurance premiums could go up drastically due to the suspicious claims that are increasingly seen by auto insurance companies. This is a clear sign of fraud which could spike up the premiums. Most people from the industry blame the financial crisis for this. Bill LeFew, American Family Insurance agent, states that people feel tied up due to the economy. Since these people have lesser options, they have turned to auto insurance fraud. He also states that insurance fraud had become more prevalent ever since the recession. LeFew has been an insurance agent for the last 34 … (more) May 17, 2011

• The most lobbied bill in the legislative session seems to be the tow truck bill

  by Richard Burton
  

  Although this has been termed as the ‘most lobbied bill’ in the legislative session, this really has nothing to do with the taxes. The whole fuss is with regard to the changes in the tow truck and auto salvage industry. The lobbies include the wealthy business owners who are often seen contributing during political campaigns on one side, the auto insurance sector, the AFL-CIO as well as a former speaker of the Assembly. The other segment includes the salvage yards, tow truck companies, Las Vegas Metropolitan Police Department, and the Nevada Tow Car Council. Sandwiched somewhere in the middle are … (more) May 12, 2011

• Students could save lot of money with the low-cost insurance program

  by Richard Burton
  

  A simple message was delivered by the Insurance Commissioner Dave Jones at San Diego City College today. Now students who have financial difficulties can approach the California Department of Insurance for financial aid, by obeying the law. The Insurance Commissioner appeared on the campus and was part of the Cinco de Mayo festivities that took place, where students were introduced to the California Low-Cost Automobile Insurance Program (CLCA). Students are offered automobile insurance at affordable rates especially for those that qualify. Jones stated that in this recovering economy most Californians and mostly students were looking for ways and means to … (more) May 11, 2011

• Concerns over privacy as auto insurers use tracking devices to offer discounts

  by Richard Burton
  

  There is a popular program that offers premium discounts to drivers who agree upon installing devices to record their driving patterns. This has worried the privacy advocates who claim that this is highly intrusive and this could also lead to other infringements in the future. There are around 250,000 Progressive clients who have already participated in the Snapshot Program initiated by the company, and they are now hoping that their good driving habits will help them avail discounts. As part of the Snapshot program, the drivers agree to install a monitoring device in their vehicle’s onboard diagnostic computer which not … (more) May 4, 2011

• As premiums skyrocket new york lawmakers urged to take action

  by Richard Burton
  

  Due to the rising costs of auto insurance, Allstate Insurance has urged New York lawmakers to find ways and means to curb the increasing number of no-fault insurance fraud which according to trade groups, cost drivers over $200 million in 2010. Krista Conte, Spokeswoman from New York’s Allstate made an appeal at the hearing this week at the New York State Senate Insurance Committee, where law enforcement officers, doctors, insurers, industry experts, and the rest presented a whole lot of startling data, facts, as well as expert opinions with regard to the insurance fraud crisis in the state of New … (more) April 29, 2011

• Auto insurance fraud bills approved in the senate despite criticisms

  by Richard Burton
  

  Although the auto insurance fraud bills have been approved in the Senate there have been some critics who claim that this is a direct sellout to the auto insurance companies. The voting by the Banking and the Insurance Committee has been 7-4 and in favor of SB 1930. This bill was sponsored by Sen. Ellyn Bogdanoff, R- Fort Lauderdale and opposing it along with the Democrats was Sen. Mike Fasano, R- New Port Richey. As per the provisions of the bill, the insurers would get 90 days to look into the claims and ensure that they are legitimate before clearing … (more) April 25, 2011

• Insurance commissioner fights to save his role

  by Richard Burton
  

  Wayne Goodwin who is the Insurance Commissioner is fighting to save his role as a regulatory authority to have a say in the car insurance rates. He states that the corporate greed is responsible for driving the auto insurance rates up. He also feels that if the pending bills are passed into law in the legislature then motorists will end up paying higher premiums. However, insurers claim that they are not engineering anything to increase the auto insurance rates and on the contrary doing everything they can to bring down the auto insurance premiums for the customers. The proposal they … (more) April 16, 2011

• Mileage verification methods help cut down premiums for low-mileage drivers

  by Richard Burton
  

  Motorists in California have always been able to avail discounts based on their estimated mileage and for driving less number of miles compared to their estimated mileage. But most people have realized that they can avail further discounts from their insurers irrespective of whether their insurers have the pay-as-you-drive offers. These discounts could be availed through the mileage verification method. There are two ways of going about it – either by self-reporting or by fitting an automatic device. This is entirely up to the motorist. The motorists can also avail discounts if they sign up for the pay-as-you-drive plan. When … (more) April 11, 2011

• Insurance reforms brought about using a two-pronged approach by lawmakers in Florida

  by Richard Burton
  

  Bringing about the insurance reform and tackling fraud seems to be the main concern for lawmakers in Florida, who are finally gearing up to bring about the necessary changes with a two-pronged approach. The Banking Subcommittee and the House Insurance together have approved a bill that will rein-in litigation and medical costs, while the other bill that has been unveiled will help crack down the fraud. According to the state laws motorists in Florida are required to carry $10,000 in PIP cover and the insurers are required to pay up 80% of the PIP claims, irrespective of who is at … (more) April 3, 2011

• The bill aimed at fighting staged accidents gets approval

  by Richard Burton
  

  The House’s insurance committee today approved the bill that aims to reduce staged accidents as well as other fraudulent PIP claims.  The PIP pays a portion of the medical costs to policyholders irrespective of who is at fault.  This was basically intended to protect Floridians who don’t have health insurance and also to avoid lawsuits and associated medical costs due to minor injuries. However, the coalition groups claim that it has been misused by fraudsters who exaggerate injuries in order to hike up the claims or stage accidents.  This has been the prime reason for a hike in auto insurance … (more) March 29, 2011

• Boyd’s bill helps fight auto insurance scams

  by Richard Burton
  

  Several measures have been taken with regard to auto insurance scams as Florida lawmakers are reviewing matters relating the auto insurance scams.  There will be better consumer protection, revisions in the car crash reports and stiffer penalties now. Representative of Bradenton, Jim Boyd, will be introducing the new legislation in accordance with the House Bill 1411. The Bill has been sponsored by Boyd and it aims at bringing in reforms to the PIP or Personal Injury Protection cover or Florida No Fault insurance which has led to a series of auto insurance frauds. PIP has transformed into a prime target … (more) March 26, 2011

• Pay-as-you-drive insurance being offered by progressive in 32 states

  by Richard Burton
  

  The snapshot program PAYD by Progressive offers policyholders a chance to reduce auto insurance rates by about 30%. The future of auto insurance is finally upon the customers.  Progressive has announced its Snapshot Discount which is a PAYD program where drivers will have a chance to lower their auto insurance rates by paying insurance premiums based on their driving habits.  A device would be installed in their vehicles which would provide a real-time analysis and report the driving data to the insurer.  This technology has been available for a while now but Progressive claims to be the first to bring … (more) March 25, 2011

• Unveiling the truth behind common insurance myths

  by Richard Burton
  

  Over 50% of the people who currently hold auto insurance policies have hardly taken a look at their policy terms and conditions. Lack of this knowledge not only puts you in soup when you are in a tight spot, but also prevents you from differentiating facts from myths. Most people purchase their policies without understanding the truth behind certain auto insurance myths plaguing America in recent times. The most common myth making the rounds is that customers have to pay through their nose to get their red colored car insured. Dispelling this myth, Leah Hunger, Tidewater AAA’s director of Insurance … (more) March 16, 2011

• Safe auto declares winners of the third annual “do the jingle” contest

  by Richard Burton
  

  Safe Auto, an auto insurance provider that caters to customer requirements in close to fifteen states in the United States of America conducts an annual “do the jingle” contest that gives customers an opportunity to come with a unique jingle for their advertisement. The results of the third annual “do the jingle” contest was recently declared by the Ohio based auto insurance provider. Chosen based on the votes by other customers, this winner of the contest this year was The Church Band. This band will now feature in the next advertising campaign for Safe Auto that will be televised on … (more) March 15, 2011

• Low-cost auto insurance program formally introduced by insurance commissioner dave jones

  by Richard Burton
  

  The low-cost auto insurance program was formally introduced by the Insurance Commissioner Dave Jones to the students at the East Los Angeles Community College with the new corporate partner – ASUS Computer International.  This program is administered by the California Department of Insurance (CDI). All students are on a tight budget and look for ways to save money.  The California Low Cost Automobile Insurance Program (CLCA) is an affordable liability-only auto insurance program which meets the requirements of the state’s financial responsibility laws and is available for less than $400 per year. Commissioner Jones stated that the CLCA was a … (more) February 20, 2011