Smart Auto Insurance Blog

There is a fairly unique system in place regarding auto insurance rates in North Carolina.  The Daily Reflector published an article by Gary D. Robertson of the Associated Press entitled, “NC lawmakers look at auto insurance risks, costs.”  This article explains the current debate in North Carolina over whether it is more important for overall auto insurance rates to be low or for individual drivers to pay more based on their risk.

About 20% of North Carolina’s 7 million insured car owners are in a high risk insurance pool.  Called the North Carolina Reinsurance Facility, the high risk pool is for drivers that cannot otherwise get insurance from companies because of their past history of riskier driving.  Rates are around 30% higher for those in the high risk pool, but 70% of those in the pool haven’t had any type of risky driving is over three years.  These drivers don’t pay the extra 30% premium, so their premiums fall flat of covering their expenses and losses.

There is a clear divide in the state as to whether this pool needs to be altered or dismantled.  Insurers like State Farm, Geico, and Progressive agree with trade associations that want the ability to better match rates with driver risk.  This would call for the elimination of the North Carolina Rate Pool, which sets the rates that North Carolina insurers are allowed to charge.  But Nationwide and other insurance companies think the system works well and point out that North Carolina has the 7th lowest insurance rates in the nation.  North Carolina’s insurance market is competitive, their insurers make profits, and their overall rates are low.  But many believe that their huge high risk pool needs some changes.

Written by Sara Smart

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

If you or someone you know has gotten a DUI, Fox Business article “DUI and car insurance: What happens next?” has some valuable information for you.  Penny Gusner writes that your auto insurance rates will almost definitely increase after a DUI.  Coloradoans will likely pay 30% more, while the 12 points you’ll get taken away in North Carolina could actually cause your rates to increase 240%.  You may need to compare auto insurance from multiple companies once you get your driver’s license back because your company may even cancel your coverage once it expires.

Your auto insurance rates will be increased as long as your DUI is still on your state driving record.  That is three years in many states, but could be five or more years depending on where you live.  California residents are banned from receiving safe driver discounts from companies like Bristol West for ten years.  Sometimes you are required to carry SR-22 insurance after your license is reinstated.  You’ll have to purchase at least the minimum coverage required in your state and have your insurer file the SR-22 form of proof with the state.  There is a cost associated with this paperwork and you’ll have to file this proof for anywhere from one to five years.  The easiest way to avoid all of these headaches and more is to not drink and drive.

Written by Sara Smart

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

More than a year later, the National Transportation Safety Board has determined that a horrible car accident in Missouri was caused by a 19-year old driver texting on his cell phone.  Joan Lowy’s Associated Press article, “Driver was texting in Missouri traffic pileup,” says that the 19-year old was driving a pickup truck while texting on his phone and rear ended a tractor truck.  Because of that collision, one school bus rear ended the pickup truck and was consequently rear ended by another school bus.  The pickup truck driver and a 15-year old in one of the school buses were both killed.

Many states have banned texting or talking on the phone while driving; Pennsylvania was recently the 35th state to put a ban on texting while driving.  The NTSB has recommended bans for commercial drivers, but hasn’t recommended the ban for passenger cars yet.  Missouri auto insurance companies are well aware of all of the additional accidents caused by the use of cell phones for talking, texting, and surfing the internet.  One out of 100 drivers on the road in America are on their phones at any given time of the day.  An accident caused by using your cell phone while driving will likely increase your auto insurance premiums, but more importantly, no one wants to cause a death like those in Missouri for something as ridiculous as texting while driving.

Written by Sara Smart

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

Car and Driver magazine came up with a list of the 10 Best Cars for 2012, according to Yahoo! Auto News.  Their list is compiled all from cars under $80,000 and all of which are available for purchase by next January.  Included in the list are new cars, cars with major updates, winners from their 2011 list, and cars that weren’t yet available for last year’s list.

Before purchasing one of these cars, check out all of the great benefits listed and be sure to check auto insurance quotes and make sure your premiums won’t change too drastically with one of these new cars.  The Audi A6 and A7 top the list because of their excellent power, steering, structure, and bang for the buck.  With 21 years on the Best Cars list, the BMW 3-series and M3 have not even had a close competitor to match their benefits.  Next on the list is the Cadillac CTS-V because of its looks and power.  The Ford Focus is referred to as a “street fighter” and Car and Driver recommends only getting the manual transmission with the SE Sport Package.  The Ford Mustang GT/Boss 302 is on the Best Cars list because of its crazy good value; you get more power for $41,000 than anything else out there.

The Honda Accord is next on the list because of its old-school talent and goodness that has no comparisons in the industry.  The Honda Fit is praised for its huge genius in a little package, the Mazda MX-5 Miata for its unrivaled characteristics, and the Volkswagen Gulf/GTI for their small yet never boring components.  Finally, even though the Porsche Boxter and Cayman may increase your California auto insurance quotes, its well worth it for the amazing and pure sports car experience you’ll get from these vehicles.

Written by Sara Smart

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