Smart Auto Insurance Blog

A new study estimates that one in five drivers go without Tennessee auto insurance, and that the rate of uninsured motorists is set to rise. The Chatanooga Times Free Press’  Brian Lazemby writes that increasing joblessness in the state is to blame for the expected increase, as unemployed people have to choose between paying their auto insurance premiums and covering the cost of essentials like food and housing. Even more uninsured drivers could be on the road, if you count drivers from other states passing through Tennessee. 

While times are tough, the jump in uninsured drivers makes it even more important that you have auto insurance with uninsured motorist coverage. You can get auto insurance quotes to find an inexpensive policy you can afford, so you don’t drive without insurance.

Georgia auto insurance companies such as State Farm are charging lower auto insurance rates to drivers with better credit ratings, WALB News’ Jim Wallace reports. With these ratings, the higher the better. Insurers believe that lower credit ratings correlate with a higher likelihood of filing auto accident claims. A motorist’s credit rating plays a large part in calculating the insurance score that determines the premiums they charge. (Other factors include your driving record and demographic characteristics like age, location, and marital status.) Unfortunately, the perceived greater risk results in more expensive auto insurance for those with bad credit.

If your credit is good, Jim says that this is the perfect time to take advantage of the competition in the state’s car insurance market. Otherwise, try to improve your credit rating before shopping around for auto insurance quotes. You could save hundreds of dollars per year!

(Photo credit: History.com)

According to a recent press release, Ford Motor Company is opening a Paint & Body Technology Center in Inkster Michigan that will be dedicated to uncovering design solutions and repair procedures that will keep vehicle repair costs down and ultimately lower auto insurance rates.

The new technology center is funded by a $650,000 investment made by multiple suppliers and partners. The partners, as well as auto insurance companies (including Allstate Insurance Company) are collaborating with Ford by providing repair recommendations in early stages of development.

In a previous project, Ford was able to successfully reduce auto insurance premiums for Mustang owners.  The cost of insuring a 2008 Mustang is 25% less than the 2006 model and 50% less than the 2004 model, according to a leading auto insurance company.

That Motown classic was right: you better shop around, especially for Delaware auto insurance. KYW-TV’s eye-opening study shows how there can be wild swings in premiums between companies. Everything else can be exactly the same! Some examples:

A couple and teenage son in Wilmington, with one accident on their record can pay…

• $4,528 per year with Progressive Insurance
• or $2,776 per year with a Liberty Mutual quote

They would save hundreds of dollars per year by switching their insurer! What about basic coverage for a couple in Landsdale, Delaware? They could pay…

• $2,643 per year with Nationwide Insurance
• or just $1,054 per year with a Travelers Insurance quote.

As you can see, the savings could be substantial; especially important during these tough times. Unfortunately, research has found that most consumers don’t compare auto insurance before they buy a policy, and don’t often switch policies.

According to an editorial on Ocala.com, Governor Charlie Crist is considering a ban on State Farm selling Florida auto insurance. State Farm will lose almost 3 million auto insurance policyholders in Florida if that provision goes ahead.

Crist, along with state Senator Mike Fasano, is retaliating against the insurer’s announcement that it will phase out its homeowners’ property insurance in the state. State Farm is leaving the market because they were not allowed to increase rates by enough to make it profitable to insure the hurricane-prone region. They are probably hoping State Farm won’t go ahead with their market exit if it means forgoing the auto insurance profits in the state.

Get State Farm quotes here.

Scott Bauer from the Associated Press has reported on the impact Governor Jim Doyle’s new budget could have on Wisconsin auto insurance. The Wisconsin Insurance Alliance is against the provision that would require an increase in the lowest level of coverage available to buy:

• $300,000 in total coverage (formerly $50,000)
• $100,000 in coverage per person (formerly $25,000)
• $25,000 in property damage coverage (formerly $10,000)

The state Attorney General has proposed a law that would prevent Connecticut auto insurance companies from charging different rates to drivers based on their credit rating or where they live. Steve Kobak of The Hour writes that rates are especially excessive in urban areas, where residents are more likely to earn lower incomes. According to Att. General Richard Blumenthal, denying auto insurance to customers based on their credit ratings is absurd and will result in a vicious economic cycle. If that practice is not banned, there will probably be more uninsured drivers on the road, causing greater risk and higher auto insurance premiums for all.

Rates for car insurance in Connecticut are already among the most expensive in the nation, says Steve, and cost even more in Fairfield County compared to the rest of the state. The act was recently introduced in the state legislature.

According to insurancejournal.com, the Colorado Division of Insurance has announced that Allstate Insurance Company is lowering their auto insurance rates in Colorado.  The rate reduction will save Colorado drivers almost $7million in premiums.

Allstate cited favorable claims loss experience over the past few years which has allowed them to profitably lower their rates for private passenger auto insurance.

Based on 2003 market share data, the top automobile insurance companies in Colorado were:  State Farm (23.3% market share), Farmers (14.4%) American Family (10.4%) and Allstate (8.1%)

More information about Colorado Auto Insurance.

Over the past 6 months Arizona auto insurance rates have decreased by 1.9% on average, claims an AutoQuoter press release. Greater competition for business in the Phoenix area is credited for the decrease in premiums. It’s possible that the speed enforcement cameras recently installed on state highways have also played a role. Consumers appear to be looking for basic auto insurance with no frills.

Insurance premiums in Arizona are among the top-third most expensive in the nation.

Following up on Michigan Governor Jennifer Granholm’s request that auto insurers in her state freeze their rates for 12 months, the Insurance Journal reports that 5 companies have complied. So far, the Michigan auto insurance providers that have frozen their rates are:

• Electric Insurance
• American International South Insurance
• Merchants Mutual Insurance
• Wolverine Mutual Insurance
• IDS Property Casualty Insurance

More insurers may soon follow, allowing Michigan drivers to pay a lower auto insurance rate.