Smart Auto Insurance Blog

According to the article “Credit Scoring Is Hurting Customers” found on sacbee.com from The Dallas Morning News, even if you are a responsible driver you may end up paying higher car insurance rates if you have blemishes on your credit file.  Whether or not this is fair is currently a huge debate.

The Dallas Morning News analyzed the insurance industry and found that people with poor credit paid 35% more on home and car insurance.  In certain cases, the insurance rates were more than double people with good credit, even if they had similar claim history.  This just goes to show how crucial it is to stay on top of your credit score.

Auto insurance companies believe that using credit as a risk factor helps to identify higher risk customers.  They cite The University of Texas research that shows drivers with lower credit ratings file more claims with their insurers.  They say that if it weren’t for the credit rating factor everyone would pay higher rates.  Credit scoring is no where near an exact science and can often hurt good customers. 

As you are shopping around for car insurance quotes try to identify if your credit may be affecting your premiums.

Allstate Auto Insurance recently gathered data that showed an increase in Texas auto insurance claims for hit pedestrians during the week of Halloween.  This is according to the article “Texas Pedestrian Accidents Jump 23% During Halloween” by Kristen Beaman for Allstate found on reuters.com. 

Allstate looked at claims in Texas over the last 5 years and found a large jump in accidents around trick or treating.  Last year, Allstate claims more than doubled over the Halloween week compared with the rest of 2008.  Their data matches up with a report from the Insurance Institute for Highway Safety which showed that October 31 is the 2nd highest day of the year for pedestrian deaths.  The first is Fourth of July.  With Halloween falling on a weekend this year, there may be more people out than normal so it’s crucial that drivers are extra careful. 

The article offers some important tips to follow while out on the road, especially at night when pedestrians are out.  Never drink and drive.  A designated driver should always be assigned before heading out for the evening.  Texting while driving can be very dangerous so keep your phone in your pocket until you can pull over to text or make a call.  As a pedestrian, it’s a good idea to avoid texting while walking.  Anything that takes your eyes off the road can be very dangerous.  Not only will following these steps make you a safer driver but it may eventually lower your car insurance quotes.

A proposed bill to ban higher auto and property insurance rates for those living in Detroit, Michigan and surrounding areas failed in the Senate recently according to the article “Bill to Ban Higher Insurance Rates In Detroit Fails” by Karen Bouffard on detnews.com. 

The Senate brought the bill for a vote by Sen. Martha G. Scott, D-Highland Park, who urged Congress to pass the bill.  She said the state of Michigan pays the 12th highest auto insurance rates, but in the urban area it’s the highest in the country.  Sen. Alan Sanborn, R-Richmond believes the ban would increase rates for people who live in non-urban areas. 

The new bill could result in higher auto insurance rates for 3 out of 4 Michigan drivers according to Sanborn.  He believes there needs to be another way to solve the high cost of Michigan auto insurance.  As many people are struggling in this economy, auto insurance costs are becoming challenging for many residents.  Hopefully something can be worked out to help make auto insurance more affordable for all.

According to the article “Additional Auto Insurance May Not Be Needed For Rental Cars” by Lawrence Shipman on usinsuranceonline.com, rental cars have auto insurance through the state of Minnesota. 

Auto insurance to cover a rental car can be up to $10-$15 per day.  This is a lot of money, especially if you are renting the car for an extended period of time.  That’s why it’s important to understand what type of coverage you have through the state of Minnesota and Minnesota auto insurance.  The minimum coverage for covering a rental car in the state is $35,000.  This is probably plenty to cover the car you are driving but the only thing to consider is that if you wreck multiple cars it could end up costing you more.

You will also want to check with your personal auto insurance policy to see if there is any additional coverage for rental cars.  When you are shopping around for Minnesota auto insurance quotes you can ask if there are any policies that offer such a benefit before making a purchase.  The Insurance Information Institute says consumers are usually covered when they rent a car.

Taxi auto insurance is extremely important for taxi drivers who want to financially protect themselves and their business.  According to the article “Taxi Drivers Can Protect Business With Taxi Insurance” from Insurance Agents Press Release on 1888pressrelease.com, taxi insurance is the only policy that’s designed to protect the taxi company. 

The article points out that over 2 million passengers are injured in the taxi industry which is why it’s so crucial for these drivers to have coverage.  Taxi insurance provides options that are specifically designed for taxi cabs.  Liability coverage is available which protects the taxi company, the driver, as well as the taxi company’s assets.  Comprehensive coverage is also available which protects in case of vandalism, theft, fire or other damages that may be caused by an accident. 

To qualify for a taxi insurance policy companies must have taxis that function as fare based and that keep up with maintenance.  Drivers must be between the ages of 25 and 65 and they need more than 2 years of driving experience in the US and have a current, valid driver license.  You can receive taxi auto insurance quotes online or contact an insurance agent.

The state of California has seen suspected California auto insurance theft and arson fraud increase over the past year according to The California Department of Auto Insurance which released information on Friday.  This was found in the article “State Sees Rise In Suspicious Auto Insurance Claims” on Sacramento Biz Journal by Kelly Johnson.

The agency recently gathered data that showed criminals may be committing more auto insurance fraud to obtain insurance cash during these tough times.  Insurance Commissioner Steve Poizner stated in a news release that fraud is on the rise.  In 2008, the California Department of Insurance found a 25% increase in suspected car arson fraud cases from the year before.  They also received about 200 more suspected car theft fraud cases in 2008 compared to 2007. 

The department receives regular referrals of suspected fraud from auto insurance companies, law enforcement agencies as well as consumers and each case is researched to determine if it is actually a fraud situation.  Other kinds of auto fraud such as inflated damages, vandalism, and hit and run accidents have remained somewhat constant since 2007 according to the Department. 

This increase in suspected fraud may continue as the recession remains.  Consumers are feeling strapped for cash and desperate and this seems like the only road for many.  Of course, any type of fraud will end up costing you much more in the end, including possible jail time.

Auto insurance rates are expected to rise up to 19% for Ontario drivers.  The average Toronto area driver may see rates increase by up to 14% according to the article “Auto insurance rates to rise as much as 19% in Ontario” on GlobalToronto.com. 

Ten auto insurance companies, which serve more than a fourth of Ontario drivers, have been approved to raise their auto insurance rates once again.  One of the reasons for the increased rates is the cost pressures being placed on insurers. 

It’s important to keep prices in perspective though because auto insurance rates are still relatively low when compared to previous years.  When compared to the cost of living, rates are reasonable.  Finance Minister Dwight Duncan plans to announce changes to auto insurance rates during the government’s 5 year review.

The average auto insurance rate in Texas has decreased by more than 14% since the beginning of 2009 according to insurancerates.com.  This was found on the press release “Texas Auto Insurance Rates Decline 14.2 Percent in 2009″ on marketwire. 

This is good news for Texans as all Americans are trying to save money.  Texas auto insurance quotes are lower and by shopping around you can find competitive rates.  Some other statistics to keep in mind while shopping around are that men in Texas have an average auto insurance rate which is 7% higher than women according to the press release.  Drivers in Texas who are 19 years old or younger pay an average of 140% higher than drivers over the age of 75. 

The press release also points out that Texas is currently the 18th most expensive state for auto insurance so the decreasing rates are helpful.  Massachusetts auto insurance is the most affordable and Louisiana is the most expensive.  The best thing that you can do to ensure you are getting a good deal on your auto insurance is to shop around and compare rates.  You may be surprised how much money you end up saving.

According to the article “Pay-as-you-drive auto insurance gets green light” by Kelly Johnson from msn.com, California Insurance Commissioner Steve Poizner announced Friday that the state Office of Administration Law has passed regulations which allow auto insurance companies to base rates on how much drivers drive and they are now in effect.

Poizner opposed the pay-as-you-drive regulation a year ago, but now he believes it’s an innovative way to give California drivers rewards for driving less.  This will ultimately lead to lower auto insurance, less air pollution and eventually less dependence on foreign oil. 

The Association of California Insurance Companies supports the new regulation calling it “pro-consumer”.  The new regulation will give auto insurance companies and drivers an additional tool to assure that auto insurance rates reflect the driver’s actual risk of getting into an accident and filing a claim.  Insurers will have the option to offer estimated mileage, but they will now also have the option to offer verified mileage plans.

A Nationwide auto insurance survey discovered that 8 out of 10 Americans would support legislation restricting cell phone usage while driving according to the article “Nationwide Insurance, NASCAR Drivers, Encourage Students to Stop Driving Distracted” by Gayle Saunders found on reuters.com.

Nationwide Insurance has teamed up with Johnson C. Smith University, NASCAR’s Kyle Petty, NASCAR Nationwide Series driver Trevor Bayne and NASCAR’s Drive for Diversity Michael Cherry to support the rise of awareness for DWD (Driving While Distracted).  Not only does driving while you are distracted put lives at risk, but it can end up costing you a lot of money on your auto insurance quotes if you are in an accident or pulled over.

The survey that Nationwide auto insurance completed showed that 80% of Americans favor a ban on texting while driving and 2/3 of Americans support the ban of phone calls while over 50% say they support a ban of cell phone use altogether.  Nationwide and their partnerships are bringing together an educational campaign to spread the message about how dangerous it is to drive while distracted.  Nationwide is committed to helping their customers stay safe and protect what matters most to them.