Smart Auto Insurance Blog

Many companies that offer auto insurance have brokers such as Bristol West Insurance.  When trying to decide if you are going to go through an auto insurance agent or broker it’s important to understand the differences.  There are a few differences between the two and it can make a difference in your overall experience.

Bristol West takes pride that both their agents and brokers are quality and can be trusted.  This may be true but not all companies may have this benefit.  The differences between brokers and agents differs from state to state, but in general, an auto insurance agent will write a policy for a customer on behalf of a broker or company and the broker will simply write the policy on behalf of the customer.

A broker is allowed to have agents under them and often times they own their own auto insurance company.  Brokers tend to be more heavily regulated since they carry more responsibility to this can be to your advantage.  They typically have a strong history of experience and are very knowledgeable in the field.  This can help you make the best decision as you shop around for auto insurance, but be sure you are comparison shopping.  Rates can vary greatly from broker to broker and insurance company to insurance company.  Some brokers will shop around for you, but it doesn’t hurt to do some additional work to ensure you are getting the very best deal you can.

Auto insurance fraud is soon to become a felony in the state of New York.  Legislators are working on harsher penalties for those submitting false claims and other fraudulent activity according to the article “New York Senate Passes Bill Making Auto Insurance Fraud a Felony” found on the US Insurance Corner website.

The New York Senate is hoping that passing harsher penalties against perpetrators will not only encourage less fraud but will ultimately lower costs of auto insurance quotes for everyone in the state.  Fraud losses have to be made up somehow by insurers and unfortunately it ends up coming out of innocent, law-abiding customers.

Republican Senator James Seward sponsored the bill and on the Senate’s insurance committee as a chairman.  He believes the new legislation offers a strong deterrent to those considering fraud against their auto insurance company.  He also sees this bill improving highway safety and dropping auto insurance rates for everyone.  Depending on the history of the perpetrator and the circumstances around the fraudulent activity, a person could face a class B, C or D felony which translates to much harsher punishment.

The bill targets those who stage accidents since that is one of the more egregious acts, but this is not the most common type of fraud.  The State of New York Insurance Department says about 9 out of 10 fraud cases are related to no-fault injury claims.

Auto insurance fraud continues to be a problem across the nation.  For years, auto insurance companies have worked to eliminate fraudulent claims and fraud rings.  Unfortunately, it’s still prevalent and costing consumers a lot of money.  Every time fraud is committed our premiums increase and this is not fair to the customers following the rules.

First Acceptance Insurance is working hard to limit the amount of fraud affecting their bottom line.  According to their website, they suspect fraud costs insurance companies and their customer billions of dollars.  The Coalition Against Insurance Fraud says that approximately $80 billion a year is lost because of fraudulent activity.  This is staggering and extremely frustrating to know it’s happening everywhere, all of the time.

The good news is that most auto insurance companies, including First Acceptance, have fraud departments in place, working around the clock to fight fraud.  First Acceptance, for example, has a specific team and information on their website to report fraud.  They also list information for the National Insurance Crime Bureau, who they work with, to combat this ongoing problem.  If you suspect insurance fraud, contact your insurer with information.  It may end up saving the rest of us a lot of money.

Texas auto insurance quotes and rates are expected to increase over the next few weeks due to a recent regulation change.  There was recently a mandatory minimum liability coverage requirement increase according to the article found on Digital Journal detailing the new regulation.

The Texas Department of Insurance states that liability coverage was much too low and an increase was necessary.  The coverages were barely covering the cost of accidents and this was hurting other drivers involved.  Department of Insurance spokesperson, Jerry Hagins, believes Texas drivers can expect to see an approximate increase of 2%-3% in their current rate.  Charles Law, a local auto insurance agent, estimates this to be around $40 per year on average across the board.  This is a small increase for most people, but it gives us some foreshadowing of where the rates are headed.

Apparently, this minimum liability coverage increase was long overdue.  There hadn’t been an adjustment since 1983 which is simply shocking since medical costs and auto repair costs have skyrocketed since then.  The new rate increase was called for in 2007 law, but it did not take effect until January 2011 and by now consumers are seeing the difference on their statements.  As much as no one wants to pay more for their auto insurance this is a necessary evil to ensure our coverage actually protects us in case we hurt someone or something out on the road.  If it’s too small of an amount we could end up paying out of pocket and no one wants that.

Auto insurance is getting more and more competitive and price is not the only place to compete.  Customer service, reputation, coverage options, SR22 insurance, and extra perks are all something to consider when shopping for auto insurance quotes.  One perk that has received a lot of attention in the past year is accident forgiveness.  This is a sought after benefit as consumers want flexibility in case they happen to have an accident.  The automatic rate increase that has been associated with accidents scares consumers and this makes accident forgiveness very desirable.

More and more auto insurers are making accident forgiveness part of their policy packages.  Nationwide and Allstate have been advertising this perk for awhile and have found great success with the program.  According to the article “Car Accident Forgiveness Policies” found on US Life Daily’s site says accident forgiveness is one of the more highly searched for benefits which indicates it’s a growing need.  The idea that auto insurance rates will not be automatically raised after the first accident appeals to all demographics and ages so it really is a unique benefit.

Accident forgiveness a relatively new concept, but it makes sense.  Auto insurance companies still want to reward good drivers with superior rates, but they recognize even the best drivers can have an accident and they know customers do not want to automatically be penalized if an accident occurs, especially if they have had a perfect driving record for years.  If this is a perk you think would bring you value, check with your insurer to see if that option is available.  If not, it may be time to start to compare auto insurance quotes online.

A survey released earlier this week revealed some good news for Florida residents.  Insure.com released a survey which found Florida’s average annual premium for auto insurance was $1,476 which is $85 less than the national average.

Florida does happen to be one of the most expensive markets for property insurance, but the auto insurance market stays competitive according to the article “Florida Auto Insurance Cheaper Than Average, Survey Finds” found on FloridaTrend.com.  Compared to all of the other states and Washington DC, Florida ranks 29th overall in expensive auto insurance.  The most expensive states from the survey were Michigan at $2541, and Louisiana at $2453.  The cheapest auto insurance rates will be found in Vermont with an average premium of $995 and South Carolina at $1095.

Florida auto insurance quotes being lower is great news for residents since they are already paying higher rates for property insurance.  This is probably due to hurricanes which can devastate properties and cause homeowners insurance rates to soar.  Lower auto insurance quotes Florida help offset those costs.

We are bombarded with car insurance information all the time and it can often be challenging to sort out the facts from fiction.  According to the article “Experts Dispel Common Auto Insurance Myths” by Larry Printz found on The Ledger, AAA and the Insurance Information Institute have gathered the top car insurance myths out there right now and work to set the record straight.

The first myth is that red cars have higher car insurance quotes.  Color typically is not used when car insurers calculate quotes.  The second myth is that insurance costs increase as you get older.  Often times the opposite is true that rates decrease with driving experience.  The elderly can even take courses which will earn them discounts on their car insurance.

The next myth has to deal with your credit score.  Some people think it has no bearing on car insurance but it usually does.  If you have trouble paying your bills, car insurance companies can worry about you paying your premiums and some studies have shown a link between driving record and credit rating.  The fifth myth discussed clarifies that your policy does not automatically cover you for theft or damage to your car.  You have to carry comprehensive and collision.  Another myth is that the car insurance policy does not follow the car but it does.

One myth circulating is that soldiers end up paying more for car insurance, but this is not the case.  Many auto insurance companies actually offer discounts to military men and women.  The final myth says car insurance will cover you for business use of your car.  Depending on your situation you could find yourself uncovered if you happen to be using your car for business purposes, so double check to see what is included in your policy if you do use if for work purposes on occasion.

Hopefully dispelling some of these auto insurance myths out there will help consumers make more educated decisions and will carry the coverage that works best for their individual situation.

The Wisconsin auto insurance bill mentioned in the previous blog has been passed according to the article on BadgerHerald.com by Andrew Averill.  The bill will lower coverage limits for auto insurance which were originally raised in an attempt to save consumers money, but the Democrats have other suggestions to repair the budget.

Currently the law requires auto insurance companies to cover $50,000 for accidents causing bodily injury, $100,000 for two or more persons and $15,000 for property damage.  The limits will be changed to $25,000, $50,000 and $10,000 respectively with the passing on this new bill in Wisconsin.  Assembly Speaker, Jeff Fitzgerald, believes the previous law raised auto insurance rates for families and limited choices to the consumer shopping around to compare auto insurance.

Fitzgerald also goes on to say that the new bill will help consumers decide for themselves what level of coverage is best for their family, and it should make auto insurance more affordable for lower to middle class income families.  He believes it’s the perfect blend of consumer choice and consumer responsibility.  Others argue that the new bill will take away some consumer protections, but now that’s it is going to be signed into law people are focusing on the positives and hoping for the best.

The Wisconsin Assembly is voting today on a bill which will eliminate some of the higher minimum levels for auto insurance that Democrats put in place back in 2009.  Wisconsin would still have to purchase Wisconsin auto insurance, but supporters say consumers will have lower auto insurance rates and more options to choose from if all goes as planned.

According to the article “Assembly Set to Roll Back Auto Insurance Levels” found on WTAQ.com, critics of the bill say accident victims could be left with a larger bill because their damages would be more than the person’s auto insurance policy coverage.  The bill would end some major consumer protections as well.  If would end “stacking” which is where a driver can use liability on up to 3 of their cars to claim damages when one car gets in an accident.

This bill would also bring back reducing clauses.  This measure reduces a policyholder’s benefits for drivers who are under-insured and high risk drivers would be placed into a class by themselves with high auto insurance rates than others.  The Governor of Wisconsin, Scott Walker, supports the measure and it will be soon determined which way the vote will go.  Many states are facing similar decisions with their auto insurance laws, but Wisconsin is proactively trying to make changes.

Auto insurance companies have been using gender as a pricing mechanism for many years when determining auto insurance quotes.  Women typically get lower auto insurance quotes because they are less likely to be in an accident, but despite this fact, many view this type of risk-based pricing as discrimination.

Things are looking to change in Europe when it comes to using gender in pricing.  According to the article “EU Court Bans Gender Basis for Insurance Cost” on DW-World by Andrew Bowen, the European Union’s highest court banned using gender as a factor when determining price.  The European Court of Justice ordered insurance companies to adopt a way of calculating rates without useing gender by December 21st of 2012.

This could have a negative effect on consumers over time.  EU law already banned using gender but the insurance industry had an exemption as long as the insurers regularly published statistical information on which their rates were based.  CEA, Europe’s insurance industry lobby, is against the decision and say the impact on price, benefits and consumer options could be huge.  Is this a trend that will make its way to the United States?  Only time will tell, but if it does it’s fair to say it will have a big impact on the way auto insurance rates are calculated and many will end up paying more for their policy.