Smart Auto Insurance Blog

An article on bignews.biz entitled “3 Signs That Your Auto Insurance Company is Overcharging You” by Ryan McGavin discusses three signs to look for to determine if you are being overcharged for your auto insurance policy.  More than ever people are in need of affordable auto insurance so it’s important to know you are receiving the best price.

Here are the three signs to keep your eyes open for:

1. Driving record has shown improvement but your rates have increased or stayed the same.  Infractions usually fall off around three years.
2. Your bill has fees or additional charges on top of your premium price such as a “convenience charge” or charges for certain payment methods.
3. You are a typical driver yet you are paying well above the national average which is about $70 per month according to the Insurance Information Institute

If you notice any of these trends, shop around.  Auto insurance companies can have very different quotes so be proactive and take charge of your auto insurance bill.  It can end up saving you a significant amount of money.

According to the article “Hurricane Ike raises Ohio home, auto insurance rates” on Cantonrep.com from the Associated Press, Ohio auto insurance and homeowners insurance is on the rise.  The Ohio Department of Insurance show that rates are up 6.9% for homeowners and up .8% for auto insurance most likely due to Hurricane Ike from last fall.

The storm crushed much of Ohio in the fall of 2008 and caused a very large number of claims which in turn affect everyone’s insurance rates.  Officials say this is a common reason for premiums to increase.  The Insurance Department’s analysts predict homeowner and auto insurance rates will continue to increase throughout 2009.  The director, Mary Jo Hudson states that Ohio still has some of the lowest insurance rates in the U.S.  As an example Ohioans pay an average of $542 a year for homeowners insurance, but the national average is $801.  So, Ohio policyholders shouldn’t be too discouraged.  It is definitely worth shopping around for quotes if you feel you do not have affordable auto insurance.

According to the article “Driver Distractions Behind Auto Insurance Rate Hikes” by Danny Workman on examiner.com, 80% of crashes and 60% of near crashes are the result of driver distractions such as spilled coffee, hot soup, tacos and hamburgers.

Many of these accidents occur when the lead automobile is stopped and is rear ended by a driver who is distracted.  Statistics from the National Highway Traffic Safety Administration and Virgina Tech Transportation Institute find that these crashes and near crashes happen within 3 seconds of a driver being distracted.

Some other distractions that are causing auto insurance rates to increase are talking on the phone, text messaging, tuning the car radio, reading a map, lighting a cigarette and applying makeup or shaving.  While it may seem obviously dangerous to do many of these tasks while driving it happens all the time and many of these items are becoming illegal in an attempt to make the roads safer.

California auto insurance policy holders are in for some good news as California implements a $34 million statewide rate reduction announced by California Insurance Commissioner Steve Poizner on Wednesday.  This is according to the article “21st Century to cut premiums for California drivers an average of $50″ by Marc Lifsher on LATimes.com. 

21st Century Insurance, which was recently acquired by Farmers Insurance Group, insures over a million California cars.  This is about 5% of the private passenger car insurance market, so this is a big deal that they will be experiencing an average of $50 in cut costs on their auto insurance rates. 

A Farmers Insurance Group spokesperson stated that they were able to drop rates because of less accidents and less severe accidents being claimed over the past years.  Annual dollars saved will average $80 in Los Angeles county, $62 in Sacramento county and $58 in San Francisco.  This is great news as California residents are trying to save money in this challenging economy.

According to the article “Shops debate the place of insurers in the repair process” by Brian Albright on SearchAutoParts.com, car designs have become more complicated and costly which is causing auto insurance companies to become more involved in the repair process.

Conflicts often arise between repairers and insurers as the insurance companies pressure shops to reduce costs.  The repair shops often see this as unnecessary meddling as they deal with their own financial pressures.  Most shops prefer that the insurance company cut a check and stay our of the repair process, but customers find value in the insurers taking over and the insurance companies want to keep costs down as much as possible. 

Not all insurance companies get in the way.  State Farm auto insurance is generally regarded as cooperative according to this article.  Recently they have engaged in programs looking for efficiencies in the repair business.  While some independent shops see this as intrusive, others see it as positive.  Gene Regan is a general manager at Causeway Collision Center in Manahawkin, NJ and he believes it’s a good thing State Farm is getting involved.  He sees the programs bringing the shops and insurance companies together to practice better business, and that ultimately will benefit the mutual customers.

A profile of High Point Insurance Company has been added to the smartautoinsurance.com auto insurance company directory.  High Point Insurance Company is a New Jersey based auto insurance company that is focused on providing high quality insurance coverage specifically to New Jersey residents.  They are the 6th largest auto insurance provider in the state.

More information abotu New Jersey auto insurance.

As of June 1, 2010, Wisconsin will become the 49th state in the US to require drivers to have auto insurance coverage.  The only state left to not have this requirement will be New Hampshire.  This is according to the article “Are you a Wisconsin driver? You’ll need auto insurance by June” by Paul Gores on JSOnline.com. 

It is surprising to many that there are still 2 states that do not require auto insurance since 48 states have required it for years.  Senator John Lehman (D-Racine) believes having auto insurance is viewed as a responsibility of being a good US citizen.  If you cannot manage affordable auto insurance, then you probably cannot afford to pay if you are in an accident, therefore should not be on the road to begin with. 

But the Insurance Information Institute in NY is questioning the effectiveness of having an auto insurance mandate anywhere.  A study by the Insurance Research Council estimates that in 2007, 15% of Wisconsin drivers were uninsured, and that is only slightly higher than the national average of 13.8%.  Even in the states where proof of insurance is required to register a car or get a license, it doesn’t mean the driver is keeping the insurance once they walk out the door.  They can very easily turn around and cancel their policy or just not pay their premiums to save money.  The only way they would get caught is if they were in an accident or got pulled over.  This is of course against the law in 48, soon to be 49 states.  Whether your state requires auto insurance or not, there is no question that it’s important to be covered for your financial safety and for the safety of other drivers on the road. Getting multiple auto insurance quotes is the best way to see what’s available.

According to the article “NC Auto Insurers to cut rates, provide refunds” from the Triangle Business Journal, North Carolina insurance commissioner Wayne Goodwin signed a settlement with the NC Rate Bureau ensuring that North Carolina auto insurance rates will be set back to just below 2006 levels.  In addition, up to $50 million in refund checks will be paid out to policyholders.  The rate bureau represents auto insurance companies throughout NC.

This settlement will eliminate the 9.4% increase that occurred last year as well as reduce rates by another .5% this year.  Also part of the agreement is that the bureau cannot file for changes to auto insurance rates until 2011.  Goodwin’s office figures this will save NC policyholders around $545 million in premiums. 

The refund checks will start to arrive in the middle of 2010.  They stem from a dispute over rates ordered in 2008.  During the appeals process, the bureau increased rates beginning January 1.  In cases where insurers charged customers more than the rates agreed upon in the settlement, auto insurance companies have to refund the difference between the rates charged and the settlement rates with interest.  North Carolina drivers are getting a great deal as rates go down and refunds are delivered.

It’s always important to understand what type of auto insurancecoverage you carry, but now more than ever we need to pay close attention.  This is according to the article “Car Insurance in the New Economy” by Ed Normund on Injuryboard.com.  The recession is causing more and more drivers to cut back on their coverage or eliminate auto insurance altogether and this may cost you in the long run.

The article recommends certain types of coverage that can help protect you during these tough times: 

1. Bodily Injury Liability - pays for injuries that you cause to another based on negligence
2. Property Damage Liability - pays for property damages that you cause due to negligence
3. Umbrella Insurance - covers you for bodily or property damages from auto accidents
4. Uninsured Motorist Protection - covers injuries to you and others when hurt by someone else
5. Comprehensive coverage - covers your car for damage caused by theft or other events
6. Collision insurance - covers you for damage to your car when in a crash with someone else
7. Medical Payments or Personal Injury Protection Insurance - covers you and your car occupants for limited medical payments with no regard to who is at fault

Take the time to understand what is included in your auto insurance policy to ensure you are fully protected.  What type of coverage you have does factor into your rates, so consider closely what you do and do not need to ensure you have adequate and affordable auto insurance.  It’s often better to be safe than sorry in the case of a car accident.

The article “Jacksonville tops Florida for car crashes” by the Jacksonville Business Journal gives a brief overview of the report from the Florida Highway Patrol.  In the report it is found that Jacksonville has the highest incidents of car crashes in 2008 which may affect the city’s auto insurance rates.

Jacksonville crashes were shockingly 50% higher than Miami.  Jacksonville totaled about 14,000 car crashes throughout the year.  The 2009 GMAC Insurance National Drivers Test released a report ranking Florida 43rd in the country based on exam scores.  Florida’s average driving exam score was 74.1%. 

The good news is that statewide there were less crashes that resulted in death in 2008 from 2007.  There were less than 3,000 fatalities for the first time in 8 years.  Pedestrian deaths fell about 5%, but pedestrian injuries were up about 4% overall.  These types of reports are used by Florida auto insurance companies to assist in determining rates.