Most Recent Auto Insurance News in State Insurance News

• Missouri’s Out-Of-State Drivers Targeted by New Auto Insurance Bill

  by Jeanny Hopper
  

  MISSOURI –  A bill has been introduced that aims to bolster automobile insurance laws to cover up a current legislative loophole which compels drivers in Missouri to maintain their liability insurance, but excludes drivers who register their cars outside of the state. Carthage Republican State Rep. Tom Flanigan and Joplin Republican State Sen. Gary Nodler both introduced a bill to expand the liability laws of Missouri beyond state boundaries to cover ‘out-of-state’ car owners. Nodler said that a recent incident given coverage in the news was what brought the loophole to the attention of the lawmakers. He admitted that he … (more) February 13, 2010

• New York’s No-Fault Auto Insurance Policy Reaches Epidemic Proportions

  by Jeanny Hopper
  

  The ‘epidemic’ of auto insurance fraud in New York has prompted a number of insurance trade groups to call the attention of state lawmakers for urgent no-fault insurance reform. This comes amidst the record increases in rates which residents currently have to deal with. At a New York State Senate Standing Committee on Insurance hearing in Albany last February 4, several groups opened up regarding the disturbing trend and gave some proposals to halt it. Kevin M. Ryan, president of the Professional Insurance Agents of New York State, expressed that their group supported the no-fault system, but urged for reform. … (more) February 13, 2010

• Debates Raging Over Proposed Auto Insurance Law in California

  by Jeanny Hopper
  

  Even before the controversial Continuous Coverage Auto Insurance Discount Act goes into ballot on June 8, debates among proponents of the law and those against it have already ensued to obtain popular opinion among California residents. Consumer Watchdog, a non-profit group which advocates consumer and taxpayer interests, disclosed that voters may be fooled by the real purpose of the proposed statute. It even prompted Harvey Rosenfield, founder of the group, to state that the new legislation is fraudulent and full of deception. The main contention of Consumer Watchdog is that the initiative is nothing but an attempt to hike insurance … (more) February 12, 2010

• Fraudulent Auto Insurance Claimant and Conspirator Charged in California

  by Jeanny Hopper
  

  Two California residents who were arrested for auto insurance fraud last month posted bail amounting to $25,000. With this at hand, California Insurance Commissioner Steve Poizner emphasized the importance of having vehicles insured, and the trouble that uninsured motorists would have to face in case of an accident. Michael Gaudenzi, 45, and Robert Carter, 52, were both charged for allegedly falsifying the time of the auto accident. Both of them reside in San Jose, California. Investigators said that on April 10, 2009, Robert Carter, Jr., 19, was allowed to drive an uninsured vehicle owned by Gaudenzi when the car mishap … (more) February 12, 2010

• Numbers Reveal Continuing High Incidence of Auto Insurance Fraud in New York

  by Jeanny Hopper
  

  Amidst the introduction of a bill seeking to cut auto insurance costs and minimize fraudulent acts relating to motor insurance, new information which was released by the New York State Insurance Department would confirm that fraud cases have indeed soared these past few years. The fraud is usually a two-step scheme. As in reported cases before, the strategy employed by fraudsters involve corrupt medical clinics and “staged accidents.” After arranging for a fake mishap, dubious medical clinics would produce excessive and unnecessary treatment fees and medical expenditures. These, in turn, would be presented to insurers for indemnification. Industry insiders have … (more) February 11, 2010

• Insurance Company in Hot Water Over Allegations of ‘Illegal Practices’ in California

  by Jeanny Hopper
  

  State and federal legislators are urging a closer examination of an auto insurance firm which may have involved itself in illegal practices. Mercury Insurance Group was mentioned in a California state report which suggests that the company engaged in discrimination against customers serving in the military (and individuals from other occupations) and ‘deceptive pricing.’ Steve Poizner, State Insurance Commissioner, reported that the Mercury may have ‘repeatedly violated’ Proposition 103. This proposition was passed in 1988 providing legal consumer protections. The state report said that the insurer did not grant coverage immediately to certain applicants. These application included customers serving in … (more) February 9, 2010

• Bill In The Works In Iowa To Protect Auto Insurance Rates From ‘Extraordinary Events’

  by Jeanny Hopper
  

  Bill in the works in Iowa to protect auto insurance rates from ‘extraordinary events’ Iowan lawmakers are discussing a bill that would come to the aid of residents who discover that their insurance rates have spiked due to ‘having a personal financial crisis’ Story City Democrat Rich Olive, who is also an insurance agent, said that many families have been adversely affected by the recession, and many falling victim to unemployment. Olive said that it is during these dire times that insurance companies and several financial institutions investigate their clients’ credit scores. Insurers are most likely to increase their rates … (more) February 8, 2010

• A New York Legislation To Cut Insurance Cost

  by Jeanny Hopper
  

  Senator Charles E. Schumer on Friday announced that he is introducing the cheaper car insurance Act of 2010, legislation that would institute new federal penalties for auto insurance fraud. This bill comes on the heels as a new report revealed the increasing incidence of auto insurance fraud in New York, along with the drivers’ insurance rates. Suspected fraud cases have increased by 33% since 2006 in New York alone, leading to an average rate hikes of 6.3% in 2009. Schumer’s legislation would go after criminals who are committing the fraud, and that they should pay the bill. It would also … (more) February 6, 2010

• Virginia Speed Limits to Increase by as much as 70mph

  by Jeanny Hopper
  

  Speed limits on certain portions of rural interstate highways in Virginia will be raised to 70 miles per hour due to bills passed by both the House and Senate last February 2. Senate voted 29-11 in favor of the bill while the House voted 71-26. Virginia Gov. Bob McDonnell was part of the leading initiators in the recent bill passage since this was one of his priorities to increase the speed limits as a component in his transportation proposals from his campaign last year. The House and the Senate passed bills to raise the speed limit from 65 mph to … (more) February 5, 2010

• Auto Insurance Costs in Florida are Going Up

  by Jeanny Hopper
  

  State Farm, the biggest auto insurance provider in Florida, has reported an average auto insurance rate increase of 9.2% which includes 2.7 million clients in the state. Chris Neal, State Farm spokesman, explains that the trend of spiking rates excludes their company since they have reduced their rates for several years in a row. He admits that there has been an increase in the filing of auto claims. State Farm controls 20% of the state auto insurance market. In January, Allstate Fire and Casualty clients had to deal with a 16% rake hike. On average, their customers deal with an … (more) February 5, 2010

• Massachusetts Toyota Owners May Appeal Their Auto Insurance Surcharges

  by Jeanny Hopper
  

  The Massachusetts Division of Insurance has ruled that Toyota owners who are involved in accidents due to gas pedal problems can appeal their recent or even old auto insurance surcharges to have a re-hearing. The regulators decided late last month that drivers who are covered by the massive recall by Toyota may request to have their surcharges reversed if proof can be provided that shows that auto acceleration was the cause of the accident. Toyota decided to recall some 4.2 million vehicles with gas pedal mechanisms which are potentially dangerous. This also covers the Pontiac Vibe and several Lexus car … (more) February 4, 2010

• Mercury Insurance Funded ‘Prop 17’ May Usher Higher Surcharges in California

  by Jeanny Hopper
  

  The Mercury Insurance fully funded initiative which aims to increase auto insurance rates was assigned Proposition 17 on the ballot for the June 8 California elections, announced Debra Bowen, Secretary of State. The Campaign for Consumer Rights, campaign affiliate of Consumer Watchdog, said in a press release that the proposition would penalize drivers, including seniors and soldiers, with surcharges if they are found to have a lapse in auto insurance coverage for ‘virtually any reason’ in the last five years. The proposal will compel drivers to pay hundred of dollars more for auto coverage, especially when they stopped driving for … (more) February 4, 2010

• Fair Auto Insurance Rates Up For Grabs in June 8 California Ballot

  by Jeanny Hopper
  

  By June 8 this year, California residents will be able to vote for an auto insurance persistency discount. Consumer watchdog group Californians for Fair Auto Insurance Rates (CalFAIR) was able to gather enough clout to place a voter initiative on the June ballot. The Secretary of State certified that the initiative intends to reward drivers who possess car insurance for a certain period of time to be eligible for a persistency discount even if they switched to another insurer. The Continuous Coverage Auto Insurance Discount Act gained the financial support of Mercury Chairman George Joseph as well as other company … (more) February 3, 2010

• Lessening the Rate of Auto Insurance In Detroit May Scare Away Insurers

  by Jeanny Hopper
  

  At $5,000 annually, the fact the drivers in Detroit pay the highest average automobile insurance premiums is unfair, according to an advocacy group. The group called the Fair and Affordable Insurance Rates (FAIR), has gained the support of Detroit Democrat Sen. Hansen Clarke for a ‘ballot initiative’ to lessen the rate of premiums for Detroit drivers. However, this action may not reach its idealistic potential, according to Michelle Minton, insurance studies director Of Washington, D.C.-based Competitive Enterprise Institute. FAIR aims to lessen business, home and auto premiums by 20% and give an additional 20% cut for drivers with good records. … (more) February 1, 2010

• Ban on Texting While Driving Soon to Become Law in Wisconsin

  by Jeanny Hopper
  

  A bill prohibiting texting while driving would soon become a law in the State of Wisconsin. According to reports, Governor Jim Doyle, gave his nod of approval into a legislation backed by different groups including the auto insurance industry. Last January 19, a vote of 89 against 6 sealed the Senate’s version of this proposed law on a mainly bipartisan contest. The only hurdle before it could be signed by the governor is its difference between the Senate’s version of this bill to that of the Assembly which proposed a higher penalty for a second offense. Because of this, another … (more) January 29, 2010

• Many Motorists Still Uninsured in Colorado in Spite of Law

  by Jeanny Hopper
  

  Despite rigid laws already being implemented, Colorado still ranks among states with the highest number of uninsured motorists. According to a data released by the Insurance Research Council (IRC), the probability of being caught in a vehicular accident with an uninsured driver in Colorado is as high as 15%. This pales in comparison to only 10% of the over-all probability that a motorist might figure in a car mishap. IRC is an independent, non-profit research organization whose aim is to provide timely data and information which affects insurers and consumers. It also performs analysis on data to study the statistical … (more) January 29, 2010

• El Paso Tagged as a ‘Hot Spot’ for Auto Theft, Auto Insurance Premiums may Remain Unaffected

  by Jeanny Hopper
  

  EL PASO, TEXAS – The National Insurance Crime Bureau (NICB) reported that El Paso, Texas is becoming a ‘hot spot’ for automobile theft. Insurance Information Institute vice president of media relations, Michael Barry, said that insurance companies are least likely to include NICB data when factoring in risk calculations for premiums. El Paso is already struggling with the stigma that the drug war which roots all the way to Mexico is stimulating a crime rate spike. The NICB, a nonprofit organization that addresses insurance related violations, keeps track of thefts and even recovers stolen cars on behalf of auto insurers. … (more) January 27, 2010