Smart Auto Insurance Blog

Auto insurance fraud is a serious problem and it ends up costing American drivers billions of dollars.  The more auto insurance fraud that is committed, the higher auto insurance rates must be to combat the fraud dollars lost.  The Coalition Against Insurance Fraud estimates that insurance fraud costs Americans around $80 billion per year.  This outrageous statistic worries insurers as they try to keep prices down for their customers.  Not only does it hurt American drivers, but it hurts the insurance company’s bottom line.

First Acceptance Insurance, a provider of quality auto insurance in the industry for over 100 years, is taking steps to limit the amount of fraud affecting their company.  They’ve outlined the necessary steps to take if fraud is suspected.  They offer phone numbers, and emails including information for the National Insurance Crime Bureau.  There’s an email for Special Investigations Unit which is dedicated to stopping fraud in its tracks.  Taking the time to report suspicious behavior is greatly appreciated by these fraud units.

Representatives are available to talk to individuals about potential fraud situations.  They are trained to recognize fraud early in hopes that dollars can be saved and the losses aren’t passed onto honest drivers following the rules.  During these tough times, perpetrators are feeling desperate and are turning to dishonest practices to make money.  Even small embellishments on insurance claims can add up to big costs that hurt the entire insurance industry.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

The continuous stream of auto insurance commercials on TV bragging about their lower rates may have consumers believing rates are down.  Unfortunately, this is not the case.  Auto insurance rates have increased about 10% between 2008 and 2010 based on smartmoney.com’s report from the Insurance Information Institute.  It doesn’t stop here.  Rates are expected to rise further this year by around 4%.  In the last 10 years, rates have risen by 30% causing financial strain on millions of Americans.

The executive director of advocacy group Consumer Watchdog, Douglas Heller, points out that this is a very different picture than what is painted in the media.  Many consumers don’t even realize they are paying so much more for their auto insurance coverage.  Larry Thursby, vice president of personal auto insurance for Nationwide Mutual Insurance says it’s cost-based pricing and as costs increase for the insurers, price hikes are passed on to the consumer.

The article “Auto Insurance Rates On the Rise” by Jason Collazo on Forbes.com talks about how increasing medical costs are making auto insurance rates higher.  Exorbitant medical bills auto insurance companies have to cover for injuries due to auto accidents are making rates increase.  This is in addition to more expensive parts and more expensive labor.  These high rates are pushing more drivers to go without auto insurance even though that is against the law.  About 16% of drivers are currently unemployed, and this number could increase as rates go up further and the economy continues to struggle.

Written by Sara Smart

Follow me on Twitter: SaraSmart55

With the economy remaining somewhat stagnant, it’s always great to hear about major promotions at big companies.  Founders Insurance has recently promoted two outstanding employees to new positions with the hope of making the insurance company stronger.

Sharon A. Poradzisz was promoted to vice president of personal lines claims.  Poradzisz has over 16 years of experience in the insurance industry and joined Founders Auto Insurance in 1997 and quickly was promoted to claims customer service manager.  She then was promoted to senior claims manager and then commercial claims manager.  She is actively pursuing the Chartered Property Casualty Underwriter (CPCU) professional designation to further her experience.

Wade D. Rankin has been promoted to commercial claims manager at the Founders Insurance Co of Des Plaines, Illinois.  Rankin has been with the company since 2010 as a senior claim analyst in the commercial division of the insurer’s claims department.  He has valuable previous experience in the legal and insurance industries.  Previously, he was a law clerk at an insurance defense law firm.  Before coming to Founders he worked in the excess casualty unit of another insurer.

This information was obtained from the Insurance Journal website, notifying the public of these newly promoted employees, recognizing all of their hard work.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55