Smart Auto Insurance Blog

Last month a presentation given last month by industry expert, Steven Weisbart, shows that the price of auto insurance has been rising steadily over the past three years.  The article “Report: Car Insurance Price Trends Are Out of Sync With Economy” by Ben Zitney on OnlineAutoInsurance.com discusses the various trends of auto insurance quotes over time.

Steven Weisbart is the Insurance Information Institute’s Senior Vice President and chief economist and he believes the auto insurance market hardened at the end of 2007 after a 4 year period of dropping auto insurance rates.  The national average expenditure on coverage has risen steadily over the past three years.  The report shows an overall increase of about 12% from 2007 to 2010 causing concern for many struggling Americans.

Weisbart’s presentation is entitled “Mega-Trends Influencing the Future of Auto Insurance” was was addressed in October at the National Auto Insurance ExecuSummit held in Connecticut.  It highlighted many emerging trends in the auto insurance industry and helped explain some of the upsetting increases in auto insurance rates that are caused partially by the economy’s various downward trends.

Winter driving has its serious hazards and accidents occur without warning throughout the winter months.  Snow, sleet, black ice, and freezing temperatures can wreak havoc of safe driving.  Ensure you are taking extra precautions to prevent winter accidents.

Reduce your risks of being in an accident this winter by following some simple steps.  Get your tires checked.  Tire tread is important as well as having your tires properly inflated.  Investing in snow tires can make your commute safer through the elements.  Ensure your breaks are in working order and if not, invest in new ones.  Breaks need to respond properly when slammed upon and if they are wearing if may cause an accident.  One last tip is to consistently check your window wiper fluid.  It’s easy to find yourself empty as the sleet starts to come down which can severely impact your view of the road.

In addition to taking these safety steps, winter is a good time to update your auto insurance policy to ensure everything is in place in case of an accident and that you are paying fair auto insurance rates.  You don’t want to find out certain things are not covered in your policy after you slide on some ice causing an accident.  Being prepared is the best way to cover your losses.

Many drivers think the items in their car are covered in their auto insurance policy, but this is often not the case.  Homeowners insurance policies and renters insurance policies often cover these items, but you will have to check with your insurer to be sure.

If you think renters insurance isn’t necessary you should think again if you are renting a property.  Unlike auto insurance, renters insurance is not required by law, but it offers almost as much value.  Many renters think they don’t have much to replace but they may not realize how quickly items such as clothes, furniture, dishes, and toiletries can add up.  Not to mention renters insurance policies can cover liability if someone is injured within the rental property.

More and more landlords are actually making renters insurance a requirement as part of the lease agreement to ensure no liability issues arise.  Fire, theft, and water damage can happen to anyone so making sure you are protected is very important.

It’s no surprise that using your phone while driving can cause accidents since your attention is taken away from the road.  But smartphones have added a new danger to the mix.  Smartphones are addicting and many Americans admit to using their phones to check email, update social sites, and read text messages despite this being against the law.

According to the article “Use Smartphones Smartly Can Help Avoid Car Accidents” by Richard Burton on AutoQuoteNow.com, 72% of people who use their phone while driving say work is what tempts them to break the law.  About 33% are drawn to social sites such as Facebook and Twitter while driving.

Fatal accidents have increased dramatically from drivers using their phones, despite laws being passed to ban such usage.  These handheld computers are a major distraction for many drivers and it takes self-discipline to wait until the drive is over to check the phone.  The good news is that awareness is on the rise and hopefully education will ultimately help to deter using smartphones while driving.

A new survey shows a concerning trend.  Of the 1000 Americans with auto insurance surveyed, many have confusion over what to do in the case of an auto accident according to the press release “New Survey Reveals Uncertainty on How to Respond When Auto Accidents Happen” from State Farm found on PR News Wire’s site.

About half of respondents feel it’s against the law to refuse to report an accident to an insurance company while 41% think it’s ok to not go through insurance.  74% say they are a witness to an accident if they are within 100 ft and 66% say being a witness means not getting involved.

One third of respondents believe that saying “I’m sorry” is more than just an apology and doesn’t admit fault.  83% of Americans stated they are likely to pull over if they witnessed an accident which did not involve them.  These questions don’t necessarily have clear cut answers and need evaluations for each unique situation.  Auto insurance is crucial, but if you don’t know the ins and outs of your policy you can be left confused and misinformed.  Each policy is different as well, so you need to compare auto insurance companies to fully understand what type of coverage you have.

Auto insurance premiums for high risk drivers through the Texas Automobile Insurance Plan Association (TIAPA) will drop by about 7.6% starting January 1, 2011.  This is according to the article “Rates for High Risk Drivers in Texas Falling; Coverage Minimums to Rise” posted on InsuranceJournal.com.

Texas Insurance Commissioner, Mike Geeslin, has ordered overall auto insurance rates to drop for TIAPA personal auto insurance policies in the state.  In addition to this, the minimum amounts of motor vehicle liability insurance required by law to establish financial responsibility in Texas will increase starting January 1st.

This is important news for Texas auto insurance carriers as they shop around for coverage.  Knowing what coverage is required is important to ensure protection is adequate in case of an accident.  According to OnlineAutoInsurance.com, TIAPA saw a 2.2% increase from 2009 to 2010 in auto insurance rates and with many consumers struggling financially, Texans want to see this trend stop.

Colorado regulators recently released their report which summarizes the Division of Insurance’s complaint handling activity from 2009-2010.  According to the article “Report: Regulators Recover $2.8M for Auto Insurance Policyholders” by PRWeb found on SFGate.com, the DOI’s mediation of about 5000 formal complaints during this time period led to the recovery of over $12 million for the state of Colorado’s insurance consumers.

$2.8 million of this sum are a result of complaints and protests filed against auto insurance companies operating in Colorado.  Colorado continues to receive the greatest proportion of consumer complaints filed with the DOI for the last 4 years.  Formal complaints and protests made against car coverage providers accounted for about 55% of the total.

Colorado allows policyholders to file complaints about disputes over issues with coverage.  Unlike most other states though, it has a separate category for protests against auto insurance companies which usually handle challenges against surcharges, policy cancellations, as well as coverage reductions.  Formal complaints have a high rate of confirmation while protests are much lower, so this can cause Colorado to have inflated numbers.  At any rate, Colorado auto insurance policy holders will get back some of what they lost from poor relations with their insurer.

InsWeb released earlier this week its yearly report of the most and least expensive cars to insure according to the article “Fun, Luxurious Cars Still Pricey to Insure” by Claes Bell on Bankrate.com.  Insuring new cars can cost you a chunk in auto insurance premiums, but the type of car you drive will have a great impact on your rates.

The most expensive cars to insure based on their repair costs and other factors include the Acura ZDX, Audi TTS, Audi A5, Cadillac Escalade, Chevrolet Corvette, BMW Z4, Lexus SC, Jaguar XF, Cadillac STS, and the Dodge Challenger.  This list includes mostly high-powered luxury and sports cars which is to be expected.

The least expensive cars according to this report include moderately priced, lower powered, family cars such as the Kia Sedona, Mazda 5, Ford Escape, Hyundai Santa Fe, Mercury Mariner, Chrysler PT Cruiser, Ford Explorer, Subaru Outback, Kia Optima, and the Chevrolet Equinox.

According to the article “Auto Claims Customer Satisfaction Still High, But Dips From ‘09″ by NU Online News Service on Property-Casualty.com, overall auto insurance claims satisfaction dropped in 2010 because of a decrease in settlement satisfaction based on a study from JD Power & Associates.

JD Power & Associates released its 2010 US Auto Claims Satisfaction Study recently and it shows the number of consumers who filed claims considered their fair dropped in 2010 when compared with the 2009 results.  Satisfaction with claims service is still higher than it was in 2008 which is a good sign.  For the study, auto insurance companies were ranked based on consumer responses, on first notice of loss, service interaction, repair process, appraisal, settlement, rental experience and overall satisfaction.

The senior director of insurance practice at JD Power & Associates, Jeremy Bowler, says the industry experienced huge improvements in 2009 partly because of a 2 day reduction in overall repair time year over year which is a major feat.  In 2010 repair times increased slightly but overall satisfaction is still good.

According to the press release found on PRNewswire.com “Auto Insurance Report: Prices Have Risen Steadily Since 2007″ a report recently delivered by the Insurance Information Institute’s senior VP and chief economist, Steven N. Weisbart, shows an upsetting trend of increasing auto insurance rates throughout the nation.

This report shows that from 2005-2007 cheaper auto insurance quotes were easier to find and since then rates have been on the rise.  Estimates have national average expenditures rising by a higher and higher percent each year for a total of 12.5% overall.  This trend is problematic since unemployment is up and many Americans are struggling financially.

More than ever it’s important to shop around and the Federal Citizen Information Center released a tip sheet for consumers to learn ways to reduce auto insurance costs.  The strategies in the list offer ways to save many people a lot of money.  Many state regulators are encouraging residents to get multiple quotes to ensure they are getting the best deal on auto insurance rates in this economy.