Most Recent Auto Insurance News in State Insurance News

• Quantifying the effect of territorial rating for auto insurance in California

  by Richard Burton
  

  Consumers are well aware today that the cost of auto insurance in one part of the United States is not the same as the other. Residents of certain states pay premiums which are way above the national average while residents in a few other states pay way below the average. In fact, auto insurance companies are being so keen in evaluating the region in which you live that today rates vary not just across states, but also across various ZIP codes within a state or city. Sacramento is one of the cities in California that stands proof to this fact. … (more) May 14, 2011

• North Carolina considering “pay as you go” insurance

  by Richard Burton
  

  With the cost of the fuel increasing by the day, an increasing number of people are limiting usage of their cars. There are certain states in the United States where people with limited driving can benefit. North Carolina does not fall under this list of states. However, there are signs that this may change in the near future. The General Assembly in the state of North Carolina is considering a bill which can bring a sigh of relief to people who drive less here. One of the sponsors of the bill, state Senator Bob Rucho, also a Republican, said that … (more) May 13, 2011

• Increase in new york auto insurance frauds call for reforms

  by Richard Burton
  

  People in the city of New York are being plagued by increasing auto insurance fraud which has now reached crisis levels. Those advocating reforms in the auto insurance system has voiced their concern loud and clear and certain measures are being taken to curb this menace at the earliest. Senator James Seward, a member of the New York Senate, passed a bill on March 23rd according to which intentional vehicle collision will be termed as “felony”. This bill, aimed at curtailing criminals preying on unwitting motorists to claim auto insurance money, is currently awaiting its passage through the NY State … (more) May 6, 2011

• Florida Senate approves certain bills to combat auto insurance fraud

  by Richard Burton
  

  Despite facing heavy criticism, the Senate in Florida gave its approval to two bills that have been specifically designed to combat the increasing auto insurance fraud in the country. One of the regulations of the bill stipulates that auto insurance companies will get a time from of three months to investigate any auto insurance claim in detail before disbursing payments to cover medical costs. Senator Joe Negron who voted against the bill termed this provision of the bill “ridiculous” and also said that there needs to be certain changes done to the bill for him to vote in favor of … (more) May 5, 2011

• Auto insurance revamp in north carolina is long overdue

  by Richard Burton
  

  The bill that could have reformed North Carolina’s car insurance system might now be rejected as the Observer’s editorial ‘Foul Play’ has urged last Monday. The auto insurance market in the state has needed revamping for a long time now and it has been long overdue. The entire system is outdated and it seems the last of its kind in the entire nation. Under the present system, all the insurance companies come under the direct control of the Rate Bureau that proposes that one standard rate either be approved or disapproved by Wayne Goodwin, the Insurance Commissioner. Once the rate … (more) May 2, 2011

• Sudden crash in PIP bills in Florida

  by Richard Burton
  

  There has been a sudden crash in the PIP bills in Florida – this despite Jeff Atwater being on board. The bill had many supporters in Insurance Commissioner Kevin McCarty, consumer groups, The Coalition Against Insurance Fraud, state insurance organizations, and the Sunshine Alliance to Erase Fraud. But on the 25th of April, this hard-fought battle came to a halt suddenly and all efforts to curb auto insurance fraud went in vain. With the 9-8 vote the House Health and Human Services Committee managed to defeat the merged HB 967 as well as HB 1411 legislation that was designed to … (more) May 1, 2011

• Lobbying by NC insurance groups to shrink state’s high-risk auto pool

  by Richard Burton
  

  The two insurance trade groups have been lobbying extensively in the North Carolina legislature to bring in reforms that include an incremental approach to decrease the number of drivers who are in the high-risk auto insurance pool in the state. There are about 1.4 million members in the NC Reinsurance Facility, which is equivalent to the number of people in the high risk groups of all the other states put together. This report has come from the Insurance Federation of North Carolina, which is a coalition of the largest property casualty insurers in the state. North Carolina counsel for the … (more) April 30, 2011

• Revamp needed In NC auto insurance system

  by Richard Burton
  

  The whole auto insurance system in North Carolina needs to be revamped as it undercharges bad drivers, overcharges the good ones or the low-risk drivers, and guarantees profits to the private insurers. This is an unfair practice and this has got to change. As a result of this there are a variety of government, insurance industry, and advocacy groups which have come forward with plans to modify the system. However, none of these plans are perfect as there are some aspects in the plan that will strip the protections that are offered in the plan, while the others do simply … (more) April 28, 2011

• Auto insurers will profit from changes states NC official

  by Richard Burton
  

  The state’s top insurance regulator has stated that the industry-backed legislation which would allow a hike in rates by auto insurers, by up to 15% per year, will not only lead to increased costs for customers but would also weaken the North Carolina’s regulatory system. As the Insurance Commissioner has put it, ‘the companies want more of your money’ as these proposals are bound to increase insurance costs for customers. Wayne Goodwin stated this in a news conference. He went on to add that the present system is good as it strikes a good balance between consumer interests as well … (more) April 26, 2011

• An overhaul needed in the auto insurance system in North Carolina

  by Richard Burton
  

  The auto insurance system in North Carolina badly needs an overhaul as the system that was created during the 1920’s was at one point in time very popular across the country. However, now North Carolina is the only state which has maintained its unenviable position of being in this bureaucratic system since then. Hence, the Senate Bill 490 was introduced recently to help create a framework to provide fair rates to their consumers. In the rest of the 49 states, the rates are developed by each insurer and then filed with the government which is later implemented. This is done … (more) April 24, 2011

• Some major potholes in auto insurance policies

  by Richard Burton
  

  There is no need to worry when you are in good hands and when you have insured with some of the major auto insurance companies. However, one must understand that there are some inherent loopholes in most auto insurance policies and there are many ways in which auto insurance companies can reject claims and hand you a bill. This is by design and that’s for sure. If auto insurance companies had to offer blanket coverage for all the mistakes we make when we are behind the wheel, they would have gone out of business quickly. There is no policy that … (more) April 23, 2011

• Insurance commissioner opposes proposed legislation in North Carolina

  by Richard Burton
  

  Wayne Goodwin, Insurance Commissioner, North Carolina, has strongly opposed the 3 legislative proposals stating that it would impact the overall insurance rates for the motorists. As per the changes that were proposed, in the Senate Bill 477 & 490 and House Bill 834 the Insurance Commissioner will cease to have any regulatory authority with regard to auto insurance rates. Goodwin stated that these proposals were pushed by those out-of-state insurance firms who wanted to increase their profits out of the motorists in North Carolina. He also stressed on the fact that the car insurance rates would see a hike if … (more) April 20, 2011

• Auto insurance bills moves through florida senate panels

  by Richard Burton
  

  A couple of auto insurance bills that were aimed at putting a stop to the auto insurance fraud managed to move through the Florida Senate on Tuesday. The auto insurers had suffered severe losses due to these auto insurance frauds during recent times. The measures were narrowly approved by the Senate Banking and Insurance Committee after a series of lively debates where lawmakers tried to find ways and means to eliminate these fraudsters and provide lower rates for motorists. These bills have moved forward with the backing from the insurance industry as the insurers will now have more teeth to … (more) April 18, 2011

• Mandatory auto insurance premiums will now be lowered as state senate & house approve bill

  by Richard Burton
  

  Now, the mandatory auto insurance premiums will be rolled back as the State Senate & the House has approved a bill. In 2009 as per the law there was a hike in auto insurance premiums for some of the motorists. It is important to have a better understanding of what this law entails for motorists. The Wisconsin motorists would still be required to carry insurance but this new law could help them decide the amount of coverage that would be required. According to the bill that has been passed in the legislature the state’s mandatory liability premiums that were raised … (more) April 17, 2011

• Auto insurance fraud thrives in Tampa until detected

  by Richard Burton
  

  Tampa has become a hot spot for auto insurance fraud which has been going on undetected for quite a while now. There are many stories that have come to light and one involves Dr. Alex Petro who claimed disability as a result of a car accident in Hillsborough County. He claimed that he could not even cut grass or even remove the garbage. Thus, he managed to collect $300,000 from the insurers through disability payments. However, Petro ran out of luck when he was arrested on certain prescription drug charges. When the Pinellas Sheriff’s deputies delved further into their investigations … (more) April 15, 2011

• There is a need for a new auto insurance policy in North Carolina

  by Richard Burton
  

  North Carolina’s Auto Insurance System desperately needs a facelift.The present system is overcharging the good drivers, undercharging the bad ones, while guaranteeing profits to the private companies. This is totally outrageous and needs to be revamped. Hence, this has brought about the need for change and the government, advocacy groups, and the insurance industry have all woken up and come forward with some modification plans. But all of these plans are far from perfect because there are some of them that take away the protections and there are the others that don’t go all the way in changing the system. … (more) April 14, 2011

• The same old auto insurance companies continue to rule the roost

  by Richard Burton
  

  Consumer mindsets have not changed here in Massachusetts especially in the auto insurance sector. Consumers seem to prefer the old players in the auto insurance industry despite the sweeping changes that were brought about by the state’s insurance commissioner in April 2008. The main aim was to relax the rules and regulations in the market in order to make Massachusetts like the rest of the states. The major players like Geico and Progressive were to set up shop with their mascots and come up with much more attractive offers for the consumers. Although the companies did turn up along with … (more) April 13, 2011