Smart Auto Insurance Blog

If you had to leave GEICO auto insurance when they stopped offering their classic car insurance, you’re in luck because it is back.  The company issued a press release published on MarketWatch, “GEICO re-launches collector car insurance for classic car enthusiasts.”  This specialty insurance for classic and vintage cars is different from traditional car insurance, so some consumers had to take their auto insurance business elsewhere when GEICO wasn’t offering this type of coverage.

Now these consumers can bring their classic cars back to GEICO and reunite with the company or have all of their vehicles covered at the same company again.  The consumer and the auto insurance company agree on a specific value for the classic car at the beginning of the policy term.  This is the value paid out in the unfortunate loss of the classic car when the consumer’s claim is being settled.  Pre-determining the auto’s value up front makes it easier for both consumers and insurance companies when a claim is filed.

Other things are also covered when you purchase classic or vintage car insurance.  Parts may be lost or stolen and you may be more likely to need towing services on a classic car.  Since many auto owners show their classic cars, you can get coverage for a hotel stay if your vehicle breaks down more than fifteen miles away from where you live.  Some people only drive their classic cars on a very limited basis, so comparing classic auto insurance quotes is important to save money.  GEICO insures the full range of vehicles.  The addition of classic car insurance into their line-up will allow drivers to save money by insuring all of their vehicles with the same insurance company.

Did you know that your auto insurance company can charge you higher rates if you are close to the limits on your credit cards or have filed bankruptcy in the past?  In most states, they can.  In 47 states and the nation’s capital, credit-based car insurance pricing is allowed and is commonly used.  This so-called insurance scoring has been used for more than a decade, but will be outlawed soon if some opponents have their way.  According to Insurance News Net’s “OAI: Auto Insurance Scoring Bill Highlights Controversial Practice,” three Democratic House members have a bill they hope will end the process of insurance scoring.

Currently, when you are looking to get a quote on auto insurance, in most states insurers will look into your financial history before making your quote.  They can increase your premium based on your applications for new credit, how close you are to your debt limits, and other financial factors.  Many different states have already tried this type of bill on the state level to no avail.  If state auto insurance legislation is any indicator of how this bill will fare federally, it has quite a difficult path to follow.  Massachusetts is the only state that has passed a recent ban, but it was just an update of an existing ban on this insurance practice.

There are two hotly debated sides to this issue and both have their points to be made.  Supporters of insurance scoring say that studies show that people with bad finances tend to file more auto insurance claims and bigger claims than those with a sound financial history.  Based on this they say that pricing is more fair and accurate when insurance scoring is used.  Without it, those with strong financial backgrounds would be paying more than they should to compensate for those with poor financial histories.  Opponents of the program say that lower income drivers are already struggling and this will catastrophically hurt those who are trying to do the right thing by carrying auto insurance.  We’ll keep you updated with where this bill goes.

After reading The San Francisco Chronicle’s “What insurance companies can do to you” by Jon Carroll, I am left scratching my head.  It’s quite apparent that comparing auto insurance companies is more important than ever, not only for good premium prices, but to find a company with ethical practices.  The author received a legal form letter from his auto insurance company after filing a claim detailing Insurance Code 790.03.

The code has long, wordy sentences that seem to go around in a circle without really getting to a definitive point.  Carroll says that it basically infers that auto insurance companies should not lie to their consumers or cheat them at all.  But it is quite vague and doesn’t say that insurance companies should never lie or cheat.  It states that they shouldn’t do it as a common practice.  It’s almost saying that it is okay to deceive consumers once in awhile, just not regularly.

Sixteen items are listed on the form detailing what California auto insurance companies should not do.  One of the items says that insurers should not push consumers to take legal action in order to receive their settlement if the court will simply deem that what the consumer was fighting for was actually a fair amount.  To me, the chances that someone will take an insurance company to court to prove they were expecting a fair amount of reimbursement is absurd.  That costs a lot of money.

There is even a code saying that insurance companies shouldn’t alter your paperwork, making it so that you don’t get paid as much or at all.  The author points out that this should actually be fraud or illegal, not simply a frowned upon practice.  The bottom line is that you want to make sure you choose an auto insurance company that is ethical and follow all of your claims closely.  Let’s hope that these Codes don’t actually need to be used by many consumers in fighting their insurer.

Most of us are getting ready to celebrate Independence Day tomorrow, which includes watching or riding in a parade for quite a few Americans.  If you plan to drive your car in any type of 4th of July parade tomorrow, there may be some auto insurance considerations for which you need to prepare.  Those driving in parades often take a lot of time to decorate their cars, but they should also contact their car insurance companies to make sure they are covered in a parade.

I found some neat ideas for car decorating on eHow’s “Ideas for Cars in Parades.”  They suggested using convertibles when possible because those riding inside seem more approachable and welcoming.  I can see that.  Not everyone has a convertible though, so signs are a great way to garner attention.  Make sure anything you attach to your car is not going to ruin your paint job or interfere with the driver’s vision.  You can also use balloons and bullhorns to draw attention from the crowd.  The article even suggests using a cardboard cutout of a celebrity; that is pretty funny.  From personal experience, I think throwing candy is one of the best ways to make spectators happy and get their attention.

Driving your car in a parade can open it up to damage from spectators, other cars and floats, and any type of things being thrown to the crowd.  Some classic cars are only driven a few times in parades.  That is also true for vehicles that tend to tow floats or personal cars that need to be used yearly to promote a cause.  According to the Classic Car Insurance Guide from Only Mustang Fords, you can actually get parade auto insurance quotes for cars that are only driven in parades throughout the year.  If you are using your daily car in a parade, just double check with your auto insurance company that they will cover any damage or injury that might occur.  Enjoy your Independence Day and Happy Birthday to America!