Smart Auto Insurance Blog

According to the article “Auto Insurance: High Auto Insurance Rates? Your Job Might Be To Blame” by Joel Peterson found on officialwire.com, current occupation and education level often factor into determining your auto insurance rates. 

Some auto insurance companies claim that the type of occupation you have can determine how careful of a driver you are.  Engineers, scientists, teachers and pilots tend to get lower quotes because they have proven to get in less accidents.  Other aspects of a particular field may factor into your auto insurance rates as well. 

According to a 2004 study by the Quality Planning Corporation found that drivers with preferred, higher income occupations often get in just as many accidents if not more than other occupations.  Surprisingly this group have lower auto insurance rates.  This is because this group is less likely to file claims which is ultimately what costs auto insurance companies money.

According to the article “State auto insurance program plans to raise rates” by Purva Patel from the Houston Chronicle, Texas drivers covered through The Texas Automobile Insurance Plan Association will experience higher auto insurance quotes and premiums starting November 1. 

The insurer, often known as the last resort auto insurance company, assigns auto insurance coverage for those who cannot get insurance through private insurers in Texas.  They are also known as the “assigned auto insurance market”.  They issue policies which offer basic liability insurance required by Texas state law.  They also offer limited collision and personal injury protection.

The Association plans to increase auto insurance rates statewide by an average of 2.2%.  Jerry Johns, a spokesman for the company says the increases come because of the need to cover damaged vehicles and doctor and hospital fees.  They assigned 12,000 policies in ‘08 and plan on assigning 10,000 for the current year.

State Farm, a leader in life, homeowners, and auto insurance, continues to have a successful marketing relationship with basketball superstar, LeBron James.  According to State Farm’s website, in their newsroom article, State Farm is part of an integrated campaign supporting the company’s sponsorship of LeBron’s new documentary “More Than a Game”. 

This Lionsgate documentary tells the true story of five gifted basketball players, one of which is LeBron James who plays for the Cleveland Cavaliers and won 2009 NBA MVP.  It documents their true and unique story growing up in Akron, Ohio.  It opens in select cities October 2. 

There is going to be a commercial airing on TV, the Internet and in theaters called “Memories” to promote the film.  There is also a link set up on State Farm’s page where fans can view behind the scene footage as well as scenes never seen before.  State Farm is very excited about this movie and they believe that James’ inspirational story transcends sport.

It is against the law to drive without auto insurance in Arizona and most of the country.  You also must carry proof of insurance.  According to the article “Proof of auto insurance requirements changing in Arizona” by Delane Cleveland on fox11az.com, the law is getting stricter when it comes to carrying proof of Arizona auto insurance. 

Tony Riojas, the presiding magistrate for Tucson City Court says no proof of insurance is one of the most common citations that come through court.  Currently, if someone has to go to court to prove insurance, charges are often dropped or reduced but starting October 1 that will change.  Before you can get any reduction in fine not only must you show proof of insurance but you will also need to prove that you have not gotten an insurance violation within the past two years, or only one citation in the past three years. 

Repeat offenders can face fines up to $1,000.  Governor Jan Brewer signed the bill back in July to approve these provisions and insurance companies across Arizona approved.  They believe this bill will reduce the number of uninsured drivers on the road.

It has been a common practice of auto insurance companies to use location as a factor in determining auto insurance rates.  According to the article “Proposal would eliminate ZIP codes as factor in Wisconsin car insurance rates” by Paul Gores of the Journal Sentinel, WI state legislature wants auto insurance companies to stop using zip codes.

Some of the Democratic legislators have brought this plan back despite a similar plan being vetoed by Gov. Jim Doyle back in June.  Auto insurance rates can be up to 60% higher in areas that are heavily populated.  This may seem unfair for those living in urban areas, but the auto insurance companies claim it is part of mitigating risk.  The current system gives higher rates to those in bigger cities because more theft, accidents and vandalism generally occurs in these areas.

The auto insurance companies also point out that if zip code was not allowed to be a factor, rates would increase substantially for those living in rural areas.  There would simply be an overall redistribution of premiums.  Auto insurance companies look at many different factors including driving record and credit score.  The Governor will have to review this bill and see if it will be considered.

According to the article “Lower Score? You Will Pay More” by Richard Burnett on sun-sentinel.com, auto insurance companies can increase auto insurance rates upwards of 50% if a policyholder’s credit score drops.

The article states that government regulators and consumer groups are trying to get the auto insurance industry to stop using the credit score as a factor in determining auto insurance quotes.  Credit scores have dropped as the economy struggles and banks tighten their lending qualifications making scores drop further.  TransUnion is one of the three big credit reporting agencies and they found that consumers in Florida and other large states have seen drops in their credit scores by about 10% and this will in turn affect Florida auto insurance quotes.

The insurance companies want to continue to use the credit score as a factor.  They claim if they stop using the credit score when calculating rates, premiums could rise by as much as 70%.  The credit score is only one of many factors used to determine a rate but the credit score actually carries more weight than your driving record.

The Hartford Financial Services Group has some helpful tips on how to save money on auto insurance found on courant.com in the article “Tips for Saving $$ On Your Auto Insurance” by Korky Vann. 

Many auto insurance companies will offer discounts to long time customers so it’s worth checking with your current provider to see what you may qualify for.  Also, some providers offer group plans from employers.  These are usually available from business, professional or alumni groups.  Discounts may be available through these associations when more than one car is insured on a policy or other products such as home owners insurance is used through the company.

Auto insurance quotes can also be lowered by paying your bills on time.  Your credit score is an important factor in determining auto insurance rates.  You can also raise your deductible for a lower monthly payment if you are looking to save money month to month.  The most common advice is to shop around to see what competitive offers may be out there.

According to the article “DMV Requires a New Auto Insurance Policy When You Move to a New State” found on bestsyndication.com, your driver’s license cannot be updated with a new state until you change your auto insurance.

The Department of Motor Vehicles (DMV) requires drivers who are moving to a new state to take out a new and updated auto insurance policy.  Without the new policy in place you will be unable to obtain a new license.  If you are staying within state lines you still need to contact your auto insurance company since part of your rate is based on where you live, but the policy may not be redone at that time. 

When moving, there is already a long to do list, but be sure to make updating auto insurance a priority.  It can cost you a lot of time and money if you get stuck driving without insurance and you are pulled over.

Texas auto insurance rates are on the rise.  According to the article “Auto Insurance Rates Jump 10% In Dallas-Fort Worth” by Terrence Stutz from DallasNews.com, Dallas drivers have seen rates jump by double digits in the last year.  Homeowners insurance has also increased, but only by about 5%.

The mandatory rate filing by the top 25 insurance companies in Texas showed that auto insurance rates for liability coverage jumped 10% in most areas of Dallas County.  In 6 Dallas County areas including North Dallas, South Dallas, Duncanville, Garland, Irving, and Richardson rates ranged from $556 to $574 for a married male driver with average credit and no violations, age 25-65. 

According to insurance industry experts, the higher rates are because of medical costs that have spiked during a slow economy, in additon to low inflation.  Consumer groups believe the increase is excessive and not justified.  In some cases, they believe the high rates resulted from poor returns on their investments.

According to the article “High Point to Offer Jets’ Fans Discounted Auto Insurance Rates” by Bob Graham on ifawebnews.com, auto insurance rates will be discounted for those supporting the New York Jets. 

This discounted auto insurance rates program is being offered through Red Bank, NJ based High Point, which offers specially discounted auto insurance through over 90 associations throughout NJ.  Jim Tignanelli is the president of High Point and is very pleased with the association with the Jets.  It’s been 18 months that they have been committed to developing affinity sales. 

The discount will be available to New York Jets New Jersey based season ticket holders.  They intend to market this program through mail, email and internet marketing.  They will also market through on site efforts at training camps, headquarters and preseason.  It’s a great relationship for both the insurer as well as ticket holders.