Smart Auto Insurance Blog

Surprisingly, over half of respondents to a recent survey from LexisNexis Risk Solutions, believe that auto insurance rates should be driven by actual driving data obtained through ob-board devices monitoring how someone drives.  According to the article “Survey Shows Mixed Views of Data-Driven Auto Insurance Rates” by Ben Zitney on onlineautoinsurance.com, privacy concerns are holding back consumers from accepting auto insurance companies’ desire to collect information directly from the vehicle to set rates.

The monitoring device placed in the car can detect a variety of information such as speed, mileage, and braking data.  Most auto insurance companies already use personal information like ticket history and credit history when determining rates, but this might take the privacy issue over the edge.  The use of these devices is getting more and more common and could eventually be the norm.

GMAC has been collecting data from OnStar devices for some time now and having great success with their information gathered.  Since 2008 Progressive has been offering discounts to policyholders who agree to have the devices placed in their car for monitoring.  They measure information such as speed, braking, times of day driven, and distance traveled.  Allstate announced that they have launched a similar program called Drive Wise to use data when calculating auto insurance policies.  Compare auto insurance options to see if this might be something that could save you money in the long run.  If you’re a good driver but haven’t proven through your driving record, this could be a plan for you.

The Freeman Auto Report found that new car sales in the greater Austin area increased 10% in 2010 compared to 2009.  This is still far off pace from new car sales in 2007, when over 100,000 new cars were sold in Austin according to the article “Texas New Car Sales Increase in 2010″ on USInsuranceonline.com.

General Manager of Jaguar Land Rover Austin said in an interview with the Austin American-Statesman that this is a good sign and that 2011 will be a good year for everyone.  The economy is slowly picking up and this is definitely affecting new car sales as well as car insurance quotes in Texas.

The Texas Department of Insurance says the market has recently added 9 new providers which could make prices more competitive for Texas auto insurance rates.  This is just in time since minimum liability rates just increased causing overall premiums to increase.  With more providers in the market, hopefully they will compete for consumer business making rates stay flat or even decrease.

Texas is not the only state to feel the economy creep back through car sales and car insurance policies.  At this point there may be a light at the end of the tunnel for the economic slump that’s been keeping us down for the past few years.

There are a few coverages included in most auto insurance policies across the nation that would surprise the average person.  According to the article “4 Things You Didn’t Know Your General Auto Insurance Covers” on TheAutoInsurance.com, you should always check with your insurer to ensure you have basic coverages, but there’s a good chance they offer the following great benefits:

1. Legal expenses are offered covered including a lawyer
2. Your car is probably covered in the case of a terrorist attack
3. Damage caused when someone else drives your car
4. Roadside Assistance

Again, it is possible that your coverage does not offer these 4 benefits, but if they don’t it may be time to shop around for better auto insurance rates with more benefits.  Many discount auto insurance companies are known for having lack luster benefits, so it’s worth getting a run down of the benefits your policy offers.  Do a side by side comparison of various policies to get a good understanding of what you may be missing.  Most auto insurance agents will happily sit down with you to explain the difference in policies to ensure you find a policy that best suits your needs.  If they don’t, then they might not be the insurer for you.

According to the article “Florida Lawmakers Seek to Reduce Costly Court Battles Over Auto Insurance” by Sally Kestin on OrlandoSentinel.com, Florida auto insurance lawsuits are out of control and need to be reined in.  Florida auto insurance quotes are increasing and insurance regulators agree that pricey court battles are partly to blame.

Rep. Bryan Nelson believes something must be done soon.  He says it’s critical they take a hard look at ways Florida can reduce costs over time.  There is currently a proposal under consideration in Tallahassee which would limit the fees lawyers can collect when they win a personal injury protection suit.  Fees can be upwards of $100,000 for disputes of just a few thousand according to the Sun Sentinel in Florida.

Sen. Ellyn Bogdanoff, a Fort Lauderdale Republican and a chief negotiator in legislation passed in ‘07 that revised the state of Florida’s no fault insurance system, says Personal Injury Protection has become a multibillion industry.  She said the original purpose was to reduce suits, but it is actually increasing them causing serious financial stress on the state of Florida.

Founders auto insurance is continuing to offer great auto insurance deals to their customers.  This is important to understand as the economy is at a standstill and everyone is looking for ways to save money.  The auto insurance business is very competitive, but Founders is offering up some tips to consumers to ensure they are getting great deals on coverage.

Many auto insurance companies will offer discounts for switching policies to their company.  In many cases you can use a competitors offer as leverage for a good deal with an insurer.

Consider location.  You do not have to use a local auto insurance company, and many times you will find better deals with widespread companies since they have more to offer and a variety of options.  It’s true that where you live impacts auto insurance rates to consider this as you shop around.

Believe it or not, new cars are often cheaper to insure.  If you are considering buying a new car take this into consideration as you shop around.  Many people think rates will increase with the new car, but this isn’t usually the case.  One stop shopping is almost always beneficial.  If you have multiple insurance products with one company you may see huge discounts which will ultimately save you a lot of money.

According to the article “Insurance Study Sees Widespread Fraud in NYC” by Erik Holm, New York City residents are much more likely to file false claims driving up the cost of auto insurance quotes in NYC.  This is based on some research conducted by the Insurance Research Council, a nonprofit group funded by insurance companies.

New York state’s “no fault” system was implemented in 1974 and it allows someone injured in a crash to file up to $50,000 worth of claims for medical expenses or even lost wages with their own insurance company regardless of who is at fault.  The purpose of this was to speed up processes by eliminated the argument over who whose fault the accident was.  Through this system, perpetrators have figured out how to bank on false claims and take home cash.

The state insurance department has been working for over a year to revise the no-fault insurance regulation.  The Insurance Fraud Bureau estimates no-fault fraud has increased dramatically from 2006 at 10,117 instances to 13,433 instances in 2009.  Auto insurance companies are hoping that the insurance department’s changes will make it easier to deny fraud claims, but it’s going to be a process that may take years to make a difference.

Safe Auto, a popular Columbus-based auto insurance company, is rolling out its jingle contest for the third year in a row.  Anyone interested in competing in the contest can simply upload a video to enter.

There is a lot of leeway when it comes to submissions according to the article “Safe Auto Launching Jingle Contest” by Adrian Burns on BizJournals.com.  Safe Auto is looking for unique interpretations of the original jingle and it can even include the actual jingle in the video.  Whatever video gets the most votes by February 28th wins.  The winner receives $5,000 as well as an appearance in the Safe Auto advertising campaign.

There are additional prizes for other highly voted videos.  It’s a fun way for Safe Auto to get consumers involved in the highly competitive advertising world of auto insurance.  The winner from 2010 received 58,415 votes so people are really getting involved.  The winner was featured in an actual Safe Auto commercial so it may be a way to get your foot in the door if advertising is your interest.

According to the article “Auto Insurers Take On Pets” by Donna Goodison on BostonHerald.com, more and more Boston auto insurance companies are offering insurance policies for customers’ pets.  Pets can actually be covered in the case of an accident.

Ever since Massachusetts deregulated the auto insurance industry back in 2008, at least 5 total companies have included pet injury coverage as an optional choice for policies.  This is becoming a common practice among auto insurance companies as more customers express their desire for this type of protection.  Many people consider their pets like part of the family and a pet insurance policy gives them the comfort they need to ensure their pets are taken care of in case of an accident.  If you think you would find this option valuable check with your insurer to see if they have something similar available.

SmartAutoInsurance.com is proud to announce the launch of its new ‘Auto Insurance City Guide’.  The Guide provides city-specific information including minimum coverage requirements and DMV locations.  Vehicle thefts, percentage of uninsured motorists, and number of auto accidents reported are also presented for each city.

The purpose of the City Guide is to simplify the auto insurance shopping process by providing consumers only with the information relevant to the city in which they live.  Statistics including ‘average commute time’ and other city-specific factoids aim to make the guides more interesting and informative.

The Auto Insurance City Guide launched with 25 U.S. cities, and intends on expanding to others in the near future.  Check out your city today!

Toyota is still feeling the brunt from their huge recall of defective cars across the nation.  Seven auto insurance companies are filing suit against Toyota Motor Corporation to retrieve funds they paid out in claims cause by the accidents attributed to the Toyota cars’ defects.  This is according to the article “Seven Additional Car Insurers Sue Toyota” by Naota Hayashi on Automobile.com.

RIght now the National Highway Traffic Safety Administration is looking into claims that about 89 accident deaths since 2000 may have resulted from sudden acceleration in certain Toyota cars.  Toyota could face up to $10 billion in civil liability in the US courts from wrongful death, consumer fraud, and personal injury.

A recent litigation filed in Los Angeles County Superior Court, makes claims related to those in other cases filed in other areas that Toyota disregarded and tried to hide the defect that caused several engines to accelerate, and did not put in a particular brake override technology that may have prevented crashes.  The seven auto insurance companies are requesting minimum compensatory damages of $188,000.