Smart Auto Insurance Blog

Men and women are inherently different.  They make different decisions in most facets of life, including choosing a car to drive.  True Car’s Brandy Schaffels just summarized their recent study in “10 cars women love.”  This is the third year such a study has been completed and the results are similar.  The companies with the highest percentages of car sales to women are Mini, Nissan and Kia.  Men, on the other hand, give most of the sales to luxury brands.  Out of the top 20 brands selling the highest percentage to male drivers, 13 of them were either luxury or exotic brands.

Women really think with their brains when shopping for a car.  They are much more likely to purchase a car that is practical, smaller, is fuel efficient, and has better auto insurance rates.  Men are more likely to buy fast cars, big cars and trucks, and sporty vehicles.  The following ten cars had the highest percentage of women buyers in 2011.

Volvo’s S40 has been discontinued in the United States, but women have loved it for its looks, fuel efficiency and fair price.  The Rogue is one of Nissan’s three cars on this list.  Women choose this crossover SUV for its cargo space and roomy interior, as well as affordable price and fuel efficiency.  The Volkswagen Eos convertible is the most luxurious on the women’s list, but is still affordable at under $35,000.  Volkswagen has the next car on the list as well with its Beetle.   This smaller car gets good gas mileage and is very affordable.  Another SUV takes the fifth spot; Hyundai’s Tucson has a great price, good safety features, fuel economy and a nice warranty.

Honda’s CR-V has convenient features, fuel economy, and a top safety rating which could be seen as a bonus by auto insurers like Acceptance Insurance.  The Toyota RAV4 is great for families and very practical, so women flock to it.  Nissan’s Juke is a stylish little car that gets great gas mileage.  The Jeep Compass gives you off-roading capabilities with a smaller price and better fuel economy than its counterparts.  Nissan’s third car on this list, the Versa, is small and practical.  It has a low price tag and great gas mileage, so women who don’t need a lot of extras in their cars love it.  The common denominator for women buying cars seems to be fuel economy and practicality.

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

Auto insurance fraud continues to be a major problem across the nation and it’s affecting how much everyone pays for their car insurance quotes.  With proper monitoring, it’s possible to decrease the amount of fraud out there but it needs to be a group effort.  South Carolina Attorney General, Alan Wilson, stated that about $12 million was reported in South Carolina alone last year in auto insurance fraud.  This was found in a recently released report according to the article by Jessica M. Karmasek on the Legal Newsline website.  This astounding number needs to come down but it’s hard to determine exactly how to do this.

Falsified claims are the number one cause of auto insurance fraud and this is why most auto insurance companies have a claim review team in place.  Suspicious claims are sent to an expert department for review and if considered possible fraud the claim will be investigated.  Unfortunately, the downside to this process is that not all of the suspicious claims are truly fraud so innocent people end up getting the run around when submitting a claim.

With online auto insurance quotes a popular method for obtaining auto insurance, it’s no surprise fraud on the internet is happening.  Most companies, including First Acceptance Insurance and Progressive, offer quotes online for auto insurance policies.  Checks are in place to ensure the policy being set up is for the right person and the right vehicle.  Credit report information such as social security numbers, addresses and date of birth are used to confirm identity.  This is not a perfect science either and perpetrators can even alter credit reports if access is obtained to the credit reporting agencies.  Hopefully, over the next few years, monitoring will improve and the amount of fraud will decreased, ultimately lowering our auto insurance rates.

Written by Sara Smart

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

In many states teenagers can receive their drivers license at age 16 once they have passed a written test as well as a driving test.  At this point you will need to look into auto insurance for your new driver.  Many auto insurers such as Progressive and Acceptance Insurance offer policies to these young drivers, but rates may be higher and if you add the driver onto your existing policy you can expect to see your premium increase, in some cases relatively drastically.

You can see your auto insurance rates come down over the years with your teen on your policy by encouraging good grades which can earn discounts and demanding safe driving habits.  The Department of Motor Vehicles in various states offer teen driving education from everything like passing the written test to the importance of never drinking and driving.  There are online tools for your Internet savvy teen to browse articles and online quizzes to help educate your child on safety guidelines on the road.

Many auto insurance companies also offer online programs for teens.  USAA Auto Insurance explains to your student how to buy a car as well as how to handle distractions while driving.  State Farm has launched a unique campaign called “Not Now, I’m Driving” (NNID) which has teen-friendly YouTube videos and messages from famous actors sending the message about the importance of never texting while driving.  Allstate and Geico also have programs geared towards making your teen a safer driver which will hopefully save lives and as a nice perk, hopefully facilitate lower auto insurance rates for you over time.

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.

When comparing similar auto insurance companies such as Encompass Car Insurance and and Acceptance Insurance it’s important to be sure to understand exactly what you are comparing.  Bankrate recommends focusing in on four insurers to start off with.

Start off by picking four reputable auto insurance companies and visit their websites for detailed information.  Educate yourself on the companies and read through consumer reviews.  Although price is a very important part of an insurance policy, customer service is crucial and it’s helpful to know what you are getting into.

There is a lot of value to face-to-face business.  If this is something you think will bring you value in the long run, visit your local auto insurance offices and speak to an agent directly.  Developing a relationship with a local agent can help your chances of getting the best deal possible on your auto insurance rates.

Once you have locked into a new auto insurance policy, review it annually and ensure you are still getting the best rate possible.  Continue your search online to keep it simple and use comparison sites to help save you time.

Government research shows that both women and men have the same accident rates per million miles driven.  But men do have more accidents overall according to the press release from MileMeter on businesswire “Men vs Women: Who Pays Less for Auto Insurance”.  This is because men drive more miles than women on average.

Even though men drive more, many auto insurance companies such as Acceptance Insurance, are charging the same yearly premiums to adult men and women.  This means that women are paying more per mile driven than men.  Insurance discrimination occurs against all people whose cars are driven less than average.  The main way to end the group discrimination against women and other lower mileage groups and individuals is to charge by the mile, which more and more companies are turning to.

MileMeter is a company that specializes in per mile auto insurance.  This Texas based company is the first to apply per mile prices to the miles recorded on odometers.  This helps to ensure equal treatment towards men and women drivers.  They offer this benefit without installing vehicle tracking devices which many view as an invasion of privacy.  The miles are bought in advance, and more miles are purchased as needed to ensure full coverage.

According to the press release “The Impact Accidents Have On Auto Insurance and Keeping Rates Affordable” found on wiredprnews.com, accidents affect auto insurance rates in numerous different ways.  Just because you have an accident doesn’t mean your rates will automatically increase.  It’s beneficial to understand what will ultimately affect your rates.

A very critical aspect of an accident is whose fault was it?  If the policyholder is found to not be at fault then it’s likely their auto insurance rates will not be affected.  Being at fault is what will probably change your rates.  Depending on the company’s underwriting guidelines, one may lose their good driver discount which can be up to 20%.  Injuries can affect your rate as well with the more serious the injury the higher the rate is affected.  If the collision is with an emergency vehicle like an ambulance or police car this can spike rates.  And of course if there are any drugs or alcohol involved rates can be severely affected.

Many insurance companies such as First Acceptance Insurance try to offer fair rates whenever possible.  If you are in an accident and your insurer raises your rates, it may be worth your time to shop around since different insurers have different underwriting policies and an accident may not affect your rate as much.

Auto insurance quotes have been increasing over the past 2 years and they are expected to keep increasing in 2010 according to the article “Be Prepared For an Increase in Car Insurance Premiums” by Justin Vasquez on cheapercarinsurance’s website.

The Office of National Statistics estimate insurance premiums to increase substantially.  States such as Montana can expect increases up to 12%.  There are certain types of cars that will experience high increases in auto insurance quotes.  Some  of these include the Kia Sportage, Hyundai Sonata, and Kia Lotze.

Most companies will be experiencing higher premiums, but many will still be competitive including Acceptance Insurance.  National US averages show that about 23 states have already seen an increase in auto insurance quotes since January ‘10.  Because of these increases many are driving uninsured and the Institute Research Council says about 16% of drivers will not renew their policies which is bad news for insured drivers and insurance companies.

First Acceptance Insurance has a very useful section on their website that outlines your auto insurance policy in simple terms.  To summarize, there are generally 5 parts to a typical auto insurance contract.

Part 1 is called the Declaration section, which is unique from customer to customer.  Part 2 is the Coverage Parts or Insuring Agreement.  This sections discusses the coverage options and coverage limits.  Part 3 is Exclusions which highlights your policy’s limitations.  Part 4 is Conditions which outlines legal responsibilities.  Then there is Part 5 Definitions.  This section goes over terms and rights of the customer and insurer.  This section is sometimes referred to as fine print.

The names of the various sections may vary from company to company but the general points are discussed.  It’s beneficial to understand each section of your auto insurance policy so you can easily compare benefits as you shop around for auto insurance rates.