Smart Auto Insurance Blog

According to the article “Regulators Shy Away From Imposing Emissions-Cutting Auto Insurance” by Evan Lehmann on NYTimes.com, key insurance regulators recently said they won’t require the auto insurance industry to offer auto insurance policies that help reduce emissions by rewarding drivers who are on the road less.

The regulators also weren’t keen on the new plan to make those policies standard across the county.  This plan is often known as “pay-as-you-drive”.  Joel Ario, Pennsylvania’s insurance commissioner believes they will never require the pay-as-you-drive concept.  Ario and other researchers have promoted the drive less mentality over the years.  They believe drivers will stay off the roads more if they know they will pay less on auto insurance quotes because of it.  This will lead to less environmentally unfriendly emissions from automobiles.

The concepts are similar to other movements such as the Energy Star appliance standards, and the green building code called LEED, or Leadership Energy and Environmental Design.  Auto insurance companies such as Eastwood Insurance, would have to offer some type of policy that rewards drivers for driving less, but in a way this already makes drivers less risky which often translates to lower rates.

According to the article “Allstate: More Customers Buying Auto Insurance Online” by Lavonne Kuykendall found on money.cnn.com, auto insurance companies who have relied on agents to bring in new customers are now adapting quickly to Internet sales.

Thomas J. Wilson, the chief executive of Allstate Corp, says their goal is to have fewer, larger agencies that offer a more consistent experience for policyholders.  He also said that half of its new auto insurance policyholders first make contact through the Allstate website.  Allstate is quickly adjusting to meet customer Internet demands.

The article points out that Allstate’s plan calls for fewer agents with an enhanced local presence.  About 87% of web site shoppers end up closing the deal with an agent so agencies continue to be an important part of their plan.  This is particularly true for homeowners with more than one car who often prefer using an agent because the policy can get complicated.

Dairyland Insurance, which specializes in covering motorcycles has agents in many states.  Like most auto insurance companies they determine your rate by a number of criteria, and when shopping around for motorcycle insurance particularly it’s important to know what factors are being used.

According to the article “Dairyland Motorcycle Insurance” on motorcycle-insurance-tips.com, your car insurance quotes are based on your age, how much experience you have driving a bike, your location, claims history and driving record.  They also considered if you have taken the important MSF training course on motorcycles.

They type of bike you drive is also factored in.  The newer and more expensive the bike, generally the more expensive it will be.  You can have some control over your monthly premium by adjusting your coverage levels for medical and liability protection.  Wealthy drivers with a lot of assets may want more protection then someone with little to no assets.

If Tiger Woods is following state law, he should have some type of auto insurance protection.  But, chances are, he can pay for his most recent accident out-of-pocket.  So the question is raised:  Should auto insurance be mandated for those who can afford to pay for accidents and medical costs out of their own pocket?

According to the article “Health Care Critics Look At Auto Insurance Mandates” by Kristen Wyatt on TimesLeader.com, thousands of drivers in the US do not carry auto insurance even though the law mandates it.  The insurance industry says that even though there have been about 40 years of mandates, the roads are not any safer and auto insurance costs haven’t been affected, so is the mandate bringing any value?  And should someone like Tiger Woods, who is extremely wealthy, be forced to carry auto insurance when over a lifetime it may be more expensive for him to do so?

According to the article “Tiger Woods claims car accident his fault alone; again calls off talk with state troopers,” found in the Cleveland Plain Dealer, Woods has admitted the wreck was his fault.  If Tiger files a claim with his auto insurance company it may affect his auto insurance rates.  Every consumer weighs the cost benefit of filing a claim with their insurer because if the claim is inexpensive it may not be worth the ramifications.

According to the article “Auto Premiums In Ohio Decline for Third Consecutive Year” found on insurancejournal.com, Ohio has the 11th lowest auto insurance rates in the US in 2007.  This is an improvement from its ranking the year before at 13th.  This is great news for Ohio drivers as they shop for Ohio auto insurance quotes.

The Ohio Department of Insurance recently reported that rates in the state have been on the decline for the past 3 years based on the 2006/2007 Auto Insurance Database information.  This was released by the National Association of Insurance Commissioners.  The Ohio Department of Insurance Director, Mary Jo Hudson, believes that Ohio has a healthy and competitive auto insurance market which drives costs down and benefits consumers.

Analysts from the Department of Insurance expect auto insurance rates to slightly increase in 2010 across the country according to the article.  Changes in the costs of auto insurance are due to higher repair costs, soaring medical expense costs, claims related to weather, and the number of drivers who are out on Ohio roads.

State House Democrats announced last week a plan that would cut Michigan auto insurance rates and apply stricter restrictions on auto insurance companies according to the article “House Democrats Unveil Plan to Cut Auto Insurance Rates” by Chris Christoff on freep.com. 

Insurance companies state that this type of regulation will result in higher premiums for drivers.  The government’s plan would require insurers to offer low-cost auto insurance to drivers with lower income and good driving records.  Democrats and the state Insurance Consumer Advocate, Butch Hollowell, say the insurance industry is practicing unfair pricing. 

The article points out that Michigan has the second highest rates in the US just behind New Jersey.  This is despite the fact that accidents and thefts in Michigan have gone down over recent years.  The bill would also prohibit companies from using some discrimatory factors such as a driver’s education, their careers, or their personal credit ratings when determining auto insurance quotes.