Smart Auto Insurance Blog

Donegal Insurance reported on April 24, 2009, that its first quarter net income was $169,804, or $.01 per share of Class A common stock on a diluted basis.  It was previously announced that the Company’s net income was negatively affected by severe winter weather and an unusual amount of fire loss. 

Donegal Insurance has insurance subsidiaries that offer personal and commercial property & casualty lines of insurance in 18 states across the country.

Allstate stopped selling auto insurance in Massachusetts back in 1988 because of the auto insurance environment being extremely regulated.  But with the state’s recent system change back in April of 2008, Allstate would like to serve Massachusetts again.  The new system allows more flexibility for customers and a greater competition between auto insurance companies. 

Massachusetts is currently the only state that Allstate does not serve so this comes as a great opportunity for them.  The targeted date to offer products to customers would be November 2, 2009 assuming they are successful with the Massachusetts Division of Insurance. It will be important to shop around for auto insurance at this time if you live in MA, and of course all drivers should be shopping to ensure they have the best rate.

On Wednesday, May 13, Florida Cabinet members refused to stop auto insurance companies from charging new policy holders higher rates if they have been in not at fault accidents. 

Industry representatives say that charges for new customers with accidents on their driving record is a common practice, even if the customer didn’t cause the accident.  They say it’s justified because research shows these drivers are at higher risk of filing claims and it’s often difficult to determine who is at fault for the accident. Auto insurance companies need to consider all facets of the driving record to understand the customer’s risk and charge the most appropriate rates.

According to Marc Lifsher at the Los Angeles Times, State Farm plans to lower auto insurance rates in California for 3.3 million drivers.  Customers can expect to see an 8% drop for a total savings of $219 million beginning July 6 as policies are renewed or bought new. 

This couldn’t come at a better time with the way the economy is going.  America is going through one of the toughest economic times in history and every bit of money saved helps.  There’s never been a better time to shop around for auto insurance to ensure you are getting the best deal.

If you have credit problems you could end up paying more on your auto insurance despite your perfect driving record. Credit histories are just one of many factors used to determine auto insurance rates. Research has shown that drivers with poor credit history are more likely to file claims which in turn cost the auto insurance companies money.

The credit report is used as a predictor of risk, and it’s believed that it’s less likely for a person who is inherently financially irresponsible to suddenly change their behavior. But through repairing your credit and shopping around for auto insurance as your credit history changes over time, you may be able to lower your rate and save yourself money. Pay your bills on time and keep your debt level in check, and it could keep your auto insurance rates down.

Drivers by the thousands across the state of North Carolina could enjoy some relief from the recent spike they have experienced in their auto insurance rates due to a bill that recently passed through the senate with flying colors.

Essentially the bill would eliminate the recent added requirement that all automobile insurance provide the same level of uninsured and underinsured protection  as it does liability coverage.  The bill, which pased the senate by a 48-0 vote passes the house, it will go into effect October 1.

Other information about North Carolina Auto Insurance.

Car crashes are the #1 killer of our nation’s teens. Through education, teens can learn how to be safer and prevent devastating accidents.

It’s crucial to talk about road safety with your teen as well as establish rules and consequences you can agree on. Discuss when, where, how and with whom your teen is allowed to drive. Limit the number of passengers in the car and enforce a curfew. Insist that all passengers wear seat belts and encourage your teen to call for a ride home if any alcohol or drugs are involved.

Ensure your teen understands the enormous responsibility that comes with having their license. With the proper information and rules, lives may be saved. When it has been determined that your teen is a safe driver and you have to add them to your auto insurance policy, be sure to shop around for the best price.

I’m not sure why, but [the third largest private passenger auto insurance company] has contacted our company and asked that we remove a page from our website that contains general factual information about their company.  The information was publicly available summary information about them, and similar information can be found at many other websites such as Hoover’s etc.

We do not buy any paid search advertising for this site, let alone bidding on their trademarked terms?

Apparently [this auto insurance company] is not in favor of free speech that is the internet, but in any event, the content that we were providing about their company was completely harmless, so their behavior seems paranoid to say the least.

In any event, before you purchase auto insurance coverage from them, based on their brand recognition or the cute little lizard, be sure to shop around first and see if you can find a better deal.

The current economy has Americans keeping their cars longer and delaying purchasing new cars.  A higher number of older cars on the road increases risk and makes having the proper coverage that much more important.  The age of your car does factor into your auto insurance rate so shopping around can be to your benefit. 

If you are considering keeping your car longer than originally anticipated, keeping up with proper maintenance is crucial.  Oil services and regularly checking timing belts, water pumps, and brake pads can extend the life of your car and save you money in the long run.   If you delay routine maintenance on an older car it can accelerate wear and tear putting you at higher risk for accidents.

About 300,000 NJ residents who have New Jersey auto insurance coverage through Allstate will soon see their rates increase by 8.9% on average.  Allstate had requested a 15.4% average increase but only a 8.9% increase was approved by the state.  The 8.9% increase was still the highest increase approved by the state in six years.

Overall New Jersey auto insurance rates increased 3.7% across from March 2009 to April 2009.  In addition, insurance.com’s monthly RateWatch report singled out New Jersey as having a large disparity in prices between auto insurance carriers for similar coverage levels, and that shopping for auto insurance in New Jersey could be particularly profitable.