Smart Auto Insurance Blog

As of April 1st, Massachusetts auto insurance customers will no longer be able to appeal surcharges on their premiums if they are found at fault in an accident, reports Ron Sanders of WBZ. The state’s insurance commissioner wants to eliminate the Auto Insurance Appeal Board, the only one of its kind in the nation, because of inefficiencies and high costs. Instead, auto insurance companies themselves will be allowed to review appeals.

Ron says that legislators are fighting to keep the appeal board active: almost half of Massachusetts drivers win their appeals, saving them $25 million each year. They worry that insurers will be unfairly biased towards rejecting appeals, although the insurance commissioner counters that people can shop around for auto insurance quotes and switch their provider if they are unhappy with the results.

Brooke Thatcher from KUSA reports that the number of drivers without Colorado auto insurance is growing, from an already shocking 15% in 2007. The economy is causing people to cut back on car insurance, but doing so could be more dangerous to their finances in the long run. If you get into an accident while driving uninsured, your income and assets could be garnished!

Thatcher suggests safer ways to save money on auto insurance:

• Raise the deductibles for comprehensive and collision coverage, and or/lower their coverage limits. (However, don’t skimp on uninsured motorist or liability coverage.)
• Talk to your insurance provider; they may be willing to help you modify your plan.
• Get auto insurance quote comparisons from several companies, and see if you can get a better deal on your rates.

RateWidget

Insurance.com is introducing a new tool, called a RateWidget.   The tool is available at www.insurance.com and essentially gives auto insurance shoppers the range of rates that have been quoted to similar drivers in their areas.

Auto insurance shoppers enter a minimum amount of information (zip code, # of cars, and # of  drivers) and they will be presented with the lowest, highest and average auto insurance rates over the past three months, that were quoted from twelve of the nations top auto insurance companies.

Auto insurance rates can only be as accurate as the information provided to generate the rates.  This tool provides a useful tool as a broad guide, but clearly wide swings in actual rates can result from car makes and models, driving record, and even credit scores etc.

Insurance.com has also recently launched a monthly rate watch report.

North Carolina insurance commissioner Wayne Goodwin said Monday that auto insurance companies in North Carolina are requesting a 1.4% average rate increase on average via the North Carolina Rate Bureau, the organization that represents Auto Insurance companies in the state.  The 2009 auto insurance rate increase request is in addition to the 9.4% increase that was requested in 2008.

More North Carolina auto insurance information and resources.

According to a press release, State Farm is lowering its Georgia auto insurance rates next month. As of March 9th, both comprehensive coverage and collision coverage premiums will decrease by an average of 1.5%. (However, medical and liability coverage rates will not change.) This is thanks to State Farm having to pay out fewer insurance claims than expected. This decision by the largest auto insurer in the state could save drivers over $16 million!

Get your own State Farm quote now and see if you will save money under the new rates.

According to insurancejournal.com, the Automobile Club of Southern California has anounced a $101 Million rate reduction for their members in California, which represents a 5.4% decrease on average for all auto insurance policy holders.

The new California auto insurance rates will go into effect on April 1 2009 for policy renewals and new members.

The auto insurance rate decrease was the 2nd major decrease offered by the Automobile Club of Southern California in the last three years.

A new program from Progressive Insurance allows drivers to go online and pick their own auto insurance premium. The Name Your Price tool on their website will show you the most package that best fits the price you entered. Then, you can gradually change the desired level of coverage with a slider (Want lower auto insurance rates? Up your deductible or lower your coverage limit). Pretty simple, right?

The insurer plans to take the Name Your Price tool nationwide this year. It’s currently available in these states:

• California
• Ohio
• Texas
• Florida
• Connecticut
• Kansas
• Georgia
• Maryland
• Indiana
• Illinois
• Oklahoma
• Michigan
• Pennsylvania
• Missouri
• Wisconsin
• Washington

Get your own Progressive Insurance quotes.

In an effort to fight global warming, the Washington State legislature is considering a bill that would allow auto insurers to use electronic monitoring devices to charge different rates based on a person’s actual driving habits, reports the Seattle Times‘ Chantal Anderson. Individuals who have reduced their car usage (by using bikes or public transportation to commute to work, for example) could save up to 15% on their Washington auto insurance premiums.

Auto insurance companies that are offering or planning to offer pay-as-you-drive programs in other states include Progressive Insurance (through its Progressive MyRate program), Allstate auto insurance, Hartford insurance, and Unigard. Progressive wants to keep its proprietary rating information confidential, and the senate bill will be rewritten to reflect those concerns.

Chantal reports that the bill looks likely to pass the state Senate, but could face opposition in the House. Privacy advocates are worried about the “Big Brother” potential of the tracking devices, although the data allowed to be collected and the ways in which it can be used must be approved by the insurance commissioner.

According to the Insurance Journal, Mich. Governor Jennifer Granholm is asking for a year-long freeze in auto insurance rates. Michigan auto insurance is some of the most expensive in the country, and state legislators want the time to figure out reforms.

The Office of Financial and Insurance Regulation will have the ability to penalize any auto insurance companies that refuse to refrain from increasing premiums during the next 12 months, the Democrat says.

Michigan residents have been hard hit by this recession, especially those in the Detroit auto industry. This request will offer them a measure of relief.

Insurance.com, who previously published their Auto Insurance RateWatch Report quarterly, has increased the frequency of the report to monthly based on the success of the initial launch.

January’s RateWatch report included the following nuggets:

• Private passenger auto insurance rates held steady for most states in January.
• Auto insurance rates were up 5% or more in Montana, Nebraska, North Dakota, Oregon, South Dakota and Washington.
• Average auto insurance rates were lower than December rates in 10 states, and rates were essentially unchanged in 14 other states.

Insurance.com’s RateWatch  Report is a fantastic resource for aggregate data on monthly auto insurance fluctuations on a state level.  For more frequent and specific auto insurance updates (daily) on a state level, as well as on a carrier by carrier basis.  Please come back to visit the Smart Auto Insurance Blog.