Smart Auto Insurance Blog

Iowa auto insurance consumers are in for some price increases.  According to the article “State Farm to Increase Iowa Auto Insurance Rates” by Karen Mracek on desmoinesregister.com, State Farm Auto Insurance is raising some prices in the state by an average of 2.2% by July 27.

Auto insurance rates for comprehensive coverage and collision are increasing the most and the cost of liability is also going up.  The cost of medical payments will be remaining the same for most customers.  The premium changes will vary from customer to customer based on what kind of policy they have, where they live and the type of car they insure.

State Farm is the largest insurer in Iowa, insuring about 1 out of every 5 cars on the road.  The increases are caused by the influx of claims over the year, but even after this increase State Farm’s overall rates are still much lower than they were 5 years ago by over 12%.  State Farm is still committed to keeping prices reasonable for their customers.

By the end of the year California auto insurance may have a new option for their drivers.  According to the article “Pay-as-you-drive auto policies could become an option by year’s end” in the LA Times by Marc Lifsher, paying by the mile may be a reality.

Much like cellphone users have started to purchase talk time per minute, drivers could start buying their auto insurance by the mile.  Regulations proposed Friday by state Insurance Commissioner Steve Poizner, auto insurance companies would be allowed to offer pay as you drive which would lower insurance bills by keeping drivers from behind the wheel. 

There are other possible benefits from such a pay structure.  Less cars would be on the road to potentially curb traffic jams and gloabal warming.  There would be less greenhouse gasses emitted into the atmosphere over time.  No one would be forced to take advantage of the pay as you drive option, so drivers with long commutes to work or drivers who travel a lot may find it cheaper to stick with the conventional auto insurance ploicy.

New York Auto Insurance consumers have a new option to save some money.  According to the article “Humorous Online Course Helps Curb Auto Insurance Rates” by Gary Alexander on bignewsbiz.com, NY is offering an online defensive driver course that uses humor to help teach car safety skills.  It’s completed entirely online and no need for a physical exam.

Drivers who complete the course receive a 10%, 3 year discount on their auto insurance rates and quality for a 4 point reduction on their driving record.  The average auto insurance premium in NY is $2,456 a year so this could add up to over $700 in savings. 

This is the only course that uses humor to get across its message.  It is approved by the New York State DMV and is one of the only courses that has been proven to reduce traffic violations and accidents.  This is according to an efficacy study of Basic Driver Improvement courses in FL which was conducted by the Dept of Highway Safety and Motor Vehicles.  The program is called Improv Aware Driver created in partnership with the Improv Comedy Club.  It’s offered by National Point and Insurance Reduction Course.

We all know that driving while texting while talking on a cell phone is dangerous, studies have shown that it is nearly as dangerous as drunk driving.  Consequently many states have inacted legislation to make various types of cell phone usage unlawlful, and in some cases using a cellphone while driving can earn you a moving violation called “careless driving” or something similar, which can impact your auto insurance rates.

To date

• 6 states have enacted a jurisdiction-wide ban on cell phone usage while driving including:  California, Connecticut, New Jersey, New York, Utah, and Washington) and the District of Columbia
• 6 other states have authorized localities to ban cell phone use including: Illinois, Massachusetts, Michigan, New Mexico, Ohio, and Pennsylvania
• Texting while driving is banned in 14 states & DC

The complete article as well as interactive maps which summarize these laws can be found here: http://www.iihs.org/laws/cellphonelaws.aspx

According to the article “Insurer Groups at Odd with Proposed Wisconsin Auto Insurance Bill” on insurancejournal.com, Wisconsin lawmakers have proposed legislation that would increase Wisconsin auto insurance rates for low and middle income auto insurance customers.  This information is according to the National Association of Mutual Insurance Companies and the Property Casualty Insurers Association of America. 

Twenty to twenty-five percent of all insured drivers in WI would be negatively affected by this new Wisconsin auto insurance provision which is in Governor Doyle’s budget.  The initiative includes increasing the required per-person injury limit 4 times the current level by raising personal auto insurance financial responsibility limits, increasing the minimum on medical payments to $100k and also making UM coverage and UIM coverage mandatory at 100/300 limits. 

PCI shows that low and middle income insurance customers in the west, southwest, north and east central counties of WI would have the highest percentage increase in their liability premiums.  Milwaukee would receive the highest dollar increase.

According to the article “Colmans: Small, Inexpensive Cars May Be Pricier On The Repair End” in the Athens Banner-Herald, The Insurance Institute for Highway Safety (IIHS) released a study comparing repair costs of damage to a handful of small, inexpensive cars.  More and more Americans are turning to cheaper cars as they are trying to save money in this tough economy. 

The study found that surprisingly mini and micro-car bumpers have expensive damage, and none of the seven vehicles tested rated good according to the IIHS.  Just one, the Smart Fortwo, was rated acceptable for bumper performance.  5 out of the 7 earned poor ratings and one earned a marginal rating.

These types of studies directly affect auto insurance rates.  Many auto insurers use a service that develops number symbols based on several variables including the cost of damage repair, to help them in determining the price for insuring a certain model and make of a car.  So if it is determined that it is expensive to repair your particular car, then it may end up affecting what you are paying on your auto insurance.  So while you are saving money on the less expensive make and model, you may end up seeing a rise on your rate.  Shop around if this is the case to ensure you are getting the deal deal.

According to a press release on marketwatch.com from the School Teachers’ Insurance Plan of NJ, 2 graduating students from Toms River High School were awarded $1,000 scholarships as part of the New Jersey Auto Insurance program “Quotes for Cash”. 

The Toms River School District was one of the first to partner with the Teachers’ Insurance Plan of NJ for the Quotes for Cash program.  They have received teacher grants, donations and scholarships in the past few years.  The partnership between the school district and the company is strong.

The Quotes for Cash program donates money into a fund each time an employee of the school district gets auto insurance quotes through New Jersey Auto Insurance with Teachers’ Insurance Plan of NJ.  The program was created in 2007 and since then has raised over $50,000 for locals schools.  Teachers’ Auto Insurance Company of NJ offers auto insurance only to active and retired faculty and staff of NJ licensed educational facilities.

We all know that traffic violations have a negative impact on your auto insurance rates.  The Insurance Institute for Highway Safety (IIHS) has released a map which shows maximum speed limits in each state.

If you are traveleing intrastate for vacation this usmmer you should familiarize yourself with the maximum speed limits in the states for which you will be driving through.  One of the easiest ways to keep your auto insurance premiums down is to make sure you have a clean driving record.

You can visit this url directly to view these speed limit maximums on a state by state basis.  http://www.iihs.org/laws/mapmaxspeedonruralinterstates.aspx

Westfield Insurance has been added to the smartautoinsurance auto insurance directory.

Also underneath the Westfield Group umbrella are: American Select Insurance Company, Old Guard Insurance Company, Westfield National Insurance Company, and Old Farmer’s Insurance Company.

A profile of Ohio Casualty Insurance Company has been added to our auto insurance company directory.  To learn more about the regional insurance company, you can visit the Ohio Casualty profile page here.