Smart Auto Insurance Blog

Have you bought or plan to buy a smaller car to save money on gas? According to Kevin Ransom of CNN, your total savings may be less than you’d think, because drivers of smaller cars (like the Ford Focus, Mini Cooper, Toyota Yaris, Honda Civic, Nissan Altima, Toyota Prius, and Pontiac G6) tend to be charged higher auto insurance rates than those of larger vehicles.

There are several reasons why smaller cars are more expensive to insure:

1. They are more likely to be used in long, extended commutes; making them more likely to be involved in accidents.
2. Drivers may be more aggressive when driving in a smaller car. For example, they might think that they can squeeze into a small gap in traffic and end up causing an accident. Someone driving a SUV, minivan, or pickup truck probably wouldn’t take that risk.
3. With all the larger cars dominating the road, it’s simply harder for other drivers to see you in a smaller vehicle. This results in a greater chance of them crashing into you.

On average, six-month premiums can differ by several hundred dollars depending on the model of your vehicle. However, rates can vary depending on the insurer. Get auto insurance quote comparisons to find the best price for you.

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In a recent press release, Esurance, has indicated that they will begin selling private passenger auto insurance in Oklahoma.  Earlier this month, we reported here that Esurance had begun offering auto insurance in Utah.  Now with the addition of Oklahoma to their footprint, Esurance offers affordable auto insurance coverage in 30 states which comprise nearly 90% of the US population.

Oklahoma drivers who get auto insurance quotes online or purchase a policy online are eligible for a 5% discount off of their first policy term.  In addition, customers who switch from their exisiting auto insurer to Esurance can get a 5% discount as well.  Additional discounts are available as well.

A Business Wire press release has announced that Geico plans to lower its rates for Georgia auto insurance! The company’s representative states that on average, the same policies will cost 2.3% less than they did previously. She credits greater efficiency with better Geico insurance quotes at the same time other insurers in Georgia are increasing premiums.

The decreases go into effect on February 8th for existing policies. They apply to newly bought policies immediately.

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A change in state regulations may be resulting in higher auto insurance rates for people in New Jersey based on their education or occupation, states Larry Higgs of the Ashbury Park Press. Since January 1, New Jersey auto insurance companies are formally allowed to use factors other than an individual’s driving record in determining premiums.

According to a study of quotes, having a high school education as opposed to a college degree resulted in quotes up to 61% more expensive. Opponents of the new regulations contend that they will lead to an unregulated free-for-all: insurers will be able to reject individuals without explanation, and those individuals might choose to illegally drive without insurance. Larry says that some groups also consider this rule discriminatory against blue-collar workers and those with lower incomes, whom are least likely to afford higher auto insurance premiums.

Bills that would eliminate the usage of factors like a person’s job, education, and credit rating in calculating quotes for a policy have been introduced in both the state Senate and Assembly, but the former has remained stuck in committee for several years.

Arizona’s private passenger car insurance rates have traditionally been among the most expensive in the country, however in 2008 they actually declined by nearly 2% wheras the country experienced an average car insurance rate increase of about 8%.   In addition, auto insurance rates in Arizona on average fell by 3% in the 4Q of 2008 (compared to 3Q).

Speculation as to what is driving the rate reductions ranges from 1) fewer drivers on the road in Arizona vs. past years 2) a highly competitive car insurance marketplace in Arizona, and 3) an increase in speed enforcement activities which have kept traffic accidents down.

Thus far in 2009, 17 auto insurance companies have already filed to change their Arizona car insurance rates.  The magnitude of the changes range from a decrease of .05% to an increase of 10%.

This is pretty shocking, but it’s more proof that you need to read your auto insurance policy very carefully: Stephanie Day of InjuryBoard wrote that State Farm recently denied a claim to pay for the usage of the jaws of life in responding to an car accident. They refused to compensate the fire department because in their view, the jaws (which extricate an accident victim from a car crash) are not included in the medical payments coverage of the insured, since it is technically a non-medical expense.

I hope you never end up in such a situation, but be sure to do your research and make sure exactly what your particular policy does and does not cover, besides just looking at the premium and deductible costs. Your health insurance may cover this, or it may not.

Get State Farm quotes for auto insurance.

In Newsday, Tom Incantalupo reported that the Insurance Research Council, and industry group, is predicting an increase in uninsured drivers for 2010. Their projection is that 16.1% of all drivers in the United States will be driving around without auto insurance, an increase from 13.8% in 2007.

The IRC blames this state of events on the economy, because consumers are trying to cut back on expenses. With the unemployment rate rising at a similar clip, it’s somewhat understandable that keeping up with your auto insurance premiums may fall to the wayside. Still, it’s a bad idea to let your policy lapse. For one, when you eventually buy insurance again, your premiums could see a sharp increase. Not only do uninsured drivers risk fines and other legal punishment in most states; they also cause the rates of insured drivers to go up when they’re involved in a crash, Tom says.

According to Nevada Department of Insurance (DOI) Liberty Mutual Fire Insurance company received approval to increase their Nevada auto insurance rates by an avg. of 6.9%.  In addition, Liberty Insurance Co.  received approval for a 7.0% avg. increase and First Liberty Insurance Co. 7.6%.  These rate increases were each slightly lower than what was requested by the companies respectively.

The three insurance companies above, which collectively make up Liberty Mutual Insurance Companies Group, maintain a 2.9% market share of all private-passenger automobile insurance in Nevada.

These private-passenger auto insurance rates became effective on December 15, 1008.

RateWatch recently released its fourth quarter 2008 report, which highlights the poor consumers in states with the greatest increase auto insurance rates. Believe it or not, during this recession premiums actually increased by 8% over the past year!

Highest auto insurance premium increases:

1. Washington, D.C. auto insurance rates increased by 10.5% in Q4.
2. Utah auto insurance rates followed close behind with a 10.2% increase.
3. Colorado auto insurance rates saw a less severe, but still significant 6.1% increase.
4. Delaware auto insurance rates went up by 5.6% in Vice President Joe Biden’s home state.
5. Wyoming auto insurance rates increased by 5.5% in the fourth quarter.

Progressive Insurance is launching its MyRate tracking device in Kentucky this week, according to Alex Davis from the Courier-Journal. The product is a small computer that plugs into a car’s diagnostic port under the dashboard (for cars built after 1996) and tracks a person’s driving habits. Based on those results, individual auto insurance premiums will be calculated

Behaviors tracked by MyRate include:

• How often a driver slams on the brakes
• How often a driver accelerates rapidly
• When a vehicle is used
• How many miles are driven