Smart Auto Insurance Blog

On February 23rd, the OneBeacon Insurance Group Board of Directors announced their first quarter results.  Based on their website information, they declared a $0.21 per share quarterly dividend, paid in cash on March 31st to shareholders of record Common Shares for the close of the business day on March 17th.

OneBeacon Insurance Group is a holding company and they offer a wide range of specialty insurance products sold through independent agencies as well as regional & national brokers, wholesalers, and managing general agencies.  They deal with products such as One Beacon auto insurance, OneBeacon Specialty Property, and services to assigned risk markets.

OneBeacon’s insurance businesses are available throughout the United States and offer competitive prices and unique programs for a variety of customers.  They also offer producers, brokers, and insureds the useful ability to report claims online.  With online expansion and continued success, shareholders should hope to see continued growth and return.

For many years, auto insurance companies have been using a consumer’s credit score to help determine risk and calculate auto insurance quotes.  It has been debated by industry experts and consumer advocates whether or not this is fair and whether or not it makes sense.  Most auto insurance companies agree that this is an accurate way to determine risk, and study after study shows that riskier drivers tend to have lower credit ratings.

The National Association of Insurance Commissioners has been probing insurers continuously about their credit score use and the auto insurers are defending themselves.  This is according to the article “Auto Insurance Companies Defend Use of Credit Scores” found on Insurance NewsNet.com.  With a struggling economy, the issue is even more hot.  People with once excellent credit scores are finding themselves out of work and paying late on bills which is affecting their credit.  Double whammy once they receive an auto insurance quote and see their rates have increased due to the drop in their credit score.

The use of credit scores is supported by most states, which use a model from the National Conference of Insurance Legislators.  Louisiana commissioner of insurance, Jim Donelon, says he doesn’t see anything wrong with the practice and he attended a public hearing with the NAIC’s Property and Casualty Insurance Committee where auto insurance companies defended their use of credit scores when determining auto insurance rates for customers.

Pretty much everyone is looking to save a dollar where they can in this struggling economy and luckily there are companies out there willing to help their customers.  Auto insurance rates are causing many consumers financial stress, and these people often are not aware of the dozens of discounts out there that they may quality for.

Donegal Insurance is an example of a company going above and beyond to offer substantial discounts to their customers.  Their auto insurance policies not only offer a wide variety of options for every type of driver but they give discounts based on good behavior.  Some of these discounts include good student discounts, high chargeable accident thresholds, first accident forgiveness, extra edge discounts for superior drivers and a PACE protector endorsement.

According to the Donegal Group website, you can also save money on your auto insurance if you have passive seat belt restraints and/or airbags in your car.  There are additional discounts for anti-theft devices, and anti-lock brakes.  Even more discounts are made available for those who have completed a driver’s education course or who participate in car pooling.  There’s a multi-car discount and savings if you have multiple product policies with Donegal.  As you can see, there is a long list of readily available discounts for a variety of drivers on auto insurance

offered through Donegal which is headquartered in Pennsylvania.  This is great news for those of us pinching pennies, and it’s useful to know where we can save a little bit of money.  It adds up over time and can make a big difference.

In today’s economic environment people everywhere are trying to save money where they can.  Once it’s time for a new car, many consumer are turning towards used cars as their purchase of choice.  Not only is this because used cars are generally less expensive but auto insurance on used cars is often cheaper as well.  If you compare auto insurance on a used car verses a new car you will find the quotes to be cheaper on the used cars in most instances.  This is because the used cars are on average less expensive to repair and replace.

The government offers a convenient outlet for buyers to search for used cars through auto auctions.  The General Services Administration (GSA) is helping consumers better understand the benefits of using auctions and work hard to make the process smooth.  It can be easy to find a very good deal on a used car through an auction, but it’s important to go through a reputable service to ensure you are getting your money’s worth.

The GSA offers a comprehensive website to prospective buyers that is very user-friendly.  GSA holds public auctions throughout the US at registered auction sites.  By registering at their website you can receive more information on auctions in your area and be well on your way to a quality used car at a competitive price.

Once a child turns 16 and they receive their license they must be covered by auto insurance and that usually occurs by a parent placing them on their policy.  When a teen has divorced parents and has multiple residences, auto insurance coverage can get a little tricky according to the article “Auto Insurance Coverage for Teen Drivers With Divorced Parents” by LVRJ.com.

Auto insurance companies and states have different policies when it comes to covering additional drivers in a household so it’s important to contact your insurer to see how to proceed.  Chances are, if you have a child who has access to driving cars at both parent’s homes then both parents will need to add the child to their policy.  The article says that some auto insurance companies will advise divorced parents that whoever has custody during the school year should add the child onto their policy.  Both parents are encouraged to contact their insurer to see how the requirements may be different.

Auto insurance is a requirement for all drivers and this is often glossed over by new drivers.  Regardless of who adds the child to the policy, there should be a united front on rules while driving.  Prohibit cell phone use and texting when in the car, limit the number of passengers when your child is driving, strictly require seatbelts and establish a driving boundary where your child can drive at any given time.  Remaining firm on these guidelines will help your child become a safe driver and hopefully cause lower car insurance quotes for you and your family.

Auto insurance companies are constantly changing their policies to compete with other insurers and to ensure they are offering the most up-to-date benefits.  There are many optional benefits that insurance companies use as leverage such as road side assistance, online bill pay and even pet insurance.  American Commerce has numerous unique policies which helps them to stand out.

One of the more interesting policies offered by American Commerce is called the Peace of Mind Package.  This is an optional upgrade to any auto insurance policy that offers immediate accident forgiveness from day one, an automatic deductible credit and the ability to drop your deductible up to $500 for remaining accident free.  This really gives a huge incentive for good drivers to gravitate towards American Commerce.  It makes sense that unique benefits will attract more customers.

Another policy option they offer is called AutoMaster Plus.  This is available for upgrade on standard policies and it provides some extended benefits.  Some of these additional benefits include covering items such as computers, cell phones, child safety seats, pet injury, glass chip and personal belongings.  It can also include death benefits and even more.  Check with your auto insurance company to see how your benefits stack up.

According to the press release “Legislators Take Aim at Ohio Auto Insurance Verification Program” found on OnlinePRNews.com, Ohio state representative Matt Huffman re-introduced a bill that would stop an auto insurance verification program given by the state of Ohio.

The Random Selection program has sent out letters to car owners who are asked to mail in proof of auto insurance to the Bureau of Motor Vehicles since 1998.  The point of the program was to cut down on the number of uninsured drivers on the road.  If the person did not respond within 90 days their license was suspended and they had to pay a fine.  Based on a report from the Columbus Dispatch, approximately 5400 letters were sent out weekly and about 500 of those did not carry auto insurance.

The Insurance Research Council says that about 16% of Ohio drivers were uninsured in 2007 and that number is believed to have risen since unemployment has risen steadily throughout the state.  This may mean that the verification program is not effective in which case the BMV could save a lot of time and money by cutting back on the program.  Rep Huffman advised a panel that there were some unfair instances related to the mailings and this type of problem could be resolved fixing or eliminating the program.

According to the article “Broward County Cracks Down on Car Insurance Fraud” found on MiamiHerald.com, auto insurance fraud is through the roof in Florida where studies indicate 23% of drivers were uninsured in 2007.  Representatives from 17 auto insurance companies throughout Florida joined forces with the Broward County Sheriff’s Office during a crack down on drivers on the road with no auto insurance coverage.

The recent crackdown on insurance fraud in Florida was a one day initiative put together by the sheriff’s office alongside the National Insurance Crime Bureau which works hard to combat insurance fraud.  Auto insurance agents actually waited at the sheriff’s substation as deputies called in to confirm auto insurance information during traffic stops.  They handled 39 calls by 3pm.  Deputy Marty Chastain advises that similar crackdowns are planned for the future and warns they will be random.

Not only is insurance fraud inherently wrong, but it causes Florida auto insurance quotes to rise across the board.  The innocent end up paying for the perpetrators’ schemes.  Auto insurance quotes Florida will need to rise to make up for the losses caused by auto insurance fraud.  Let’s just hope it’s not substantial and the efforts to bring fraud down have an impact.

Many auto insurance companies are offering discounts to customers in this competitive market.  Unfortunately, consumers aren’t always aware of the discounts and may miss out.  Bristol West Insurance clearly outlines their discounts on their website which offers a user-friendly way to inform their customers.

Some of the Bristol West discounts include the following:

• Homeownership
• Proof of prior auto insurance
• Financial responsibility
• Insuring two or more cars
• Prior coverage limits
• Mature driver course completion

Finding an auto insurance policy that is perfect for you is possible, you just have to ensure you are getting the education you need.  Once you understand your state laws, and have determined your personal needs you can put together the different pieces of an individualized auto insurance policy.

The first part of the policy tends to be liability insurance since that is the most important part.  If you only have minimum liability you may be taking a risk in case you hurt someone so understand the financial implications of upgrading to better liability insurance.  Based on the type of car you drive you may want collision coverage and depending on how many drivers you have in your household you may want to combine policies.

Shopping around is definitely important not only for price but for various benefits such as paying online, accessing information through your phone, superior customer service or efficient claim processing.  Companies ranging from First Acceptance Insurance to big companies such as Progressive Auto Insurance offer a wide array of benefits to suit their customers’ needs.  You can find a helpful agent to walk you through the variety of benefits made available and the differences in cost.  With the right research you really can find the most perfect policy suited just for you.