Smart Auto Insurance Blog

Auto insurance companies are always competing to win business, but MetLife had more in mind when they started their new “Teens on the Road to Safety Program”.  This program is specifically designed to encourage young drivers to make safe driving a priority.  The press release on Business Wire details how the program is expected to work.

MetLife Auto Insurance knew something needed to be done to reign in the number of accidents being caused by teenagers on the road.  One in three teenage deaths occur in car crashes and MetLife believes that can be prevented through education and awareness.  The program encourages young drivers to stay safe on the road by offering drivers who go a full year without accidents, claims or moving violations a $50 gift card from American Express.  If their commitment to safe driving continues, they can earn another $50 gift card the second year they avoid accidents, claims and moving violations.

In order to be eligible for the program, teens must complete 20 driving trips weekly with a guardian and submit a list of the trips to MetLife.  MetLife Auto Insurance has learned through research that practicing good driving skills with an experienced driver is an effective way to become safer on the road.  This will ultimately decrease the number of teen deaths on the road.  The program is available to 16 and 17 year olds who are covered under MetLife and live in a participating state.

Written by Sara Smart

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Purchasing auto insurance coverage can be complicated and is not as straightforward and some might think.  There is a lot to consider when shopping around for a policy and knowing the facts upfront will help you make the best decision.  J. Edward Knight & Co helps to put some rumors to rest out there about auto insurance in the article “Fact vs Fiction: Uncovering Auto Insurance Myths” on Waldo.VillageSoup.com.

The first myth discussed is that full coverage will include everything if you happen to be in an accident.  In most states, only liability insurance is required so be sure to understand what is actually covered in your policy.  Next, many people think you are required to get three estimates when looking for someone to fix your wrecked car.  While some insurers require this, many don’t so it might be a perk to look out for when you compare auto insurance quotes.

The next myth is that your auto insurance rates will automatically increase if you are in an accident.  The truth is, more and more auto insurance companies are giving graces to good customers so their rates don’t automatically jump after just one accident.  Definitely worth looking into.  Also, do not assume your car is covered if you lend it to someone and they are involved in an accident.  Sometimes it involves having a specific addition to your policy.  And the last myth talked about in the article deals with purchasing a new car.  Most auto insurance companies require that you notify them with the purchase of a new vehicle and despite what many people think, the DMV does not automatically update vehicle information with insurance companies.

Written by Sara Smart

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Many states are still working under the no-fault auto insurance ruling and experts believe this is causing a crisis in the auto insurance industry.  The laws were originally put into place to stop ambulance chasing lawyers from submitting small-claims cases, and it helped car accident victims receive funds quickly instead of waiting for the determination as to who was at fault.

Unfortunately, these laws are backfiring since many believe its contributing to fraud, rising medical costs, large benefit payouts, and excessive lawsuits.  Auto insurance quotes in Florida are skyrocketing and many are blaming their no-fault laws according to “Why Does Everyone Hate No-Fault Car Insurance?” by Barbara Marquand on FoxBusiness.com.  Some insurance companies have actually limited their business in states with no-fault insurance laws since it ends up being so much more expensive for the insurer.  This ends up affecting competition and can drive up auto insurance rates.

Currently, 12 states and Puerto Rico have no-fault auto insurance laws including Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.  The laws allow policyholders to collect funds for car accidents from their own insurance company regardless of who was at fault.  The laws also prevent people from suing for pain and suffering unless their injuries are a certain extreme.  Florida is the nation’s staged-accident capital and this of course drives up Florida auto insurance quotes.  Many industry experts believe no-fault auto insurance needs to be eliminated altogether or the crisis will continues and rates will keep going up.

Many people often wonder what type of coverage they have if someone they lend their car to gets in an accident.  Unfortunately, most do not consider this when they compare auto insurance benefits.  This is an important benefit to consider though, especially if you think you may be lending out your car to any friends or family members during the life of your policy.

In general, auto insurance policies follow the car.  This doesn’t always make sense to drivers since rates are based on their driving record, not the person they lend their car to, but most insurers follow this rule.  It is possible that you would be responsible for coverage if you are driving someone else’s car and they do not have auto insurance.  This is unfortunate situation that can confuse drivers.

According to the article “Lending Your Car Can Bring Auto Insurance Concerns” by William Pirraglia on E-Wisdom.com, when you lend out your car to someone, you take on ‘vicarious liability’.  Your auto insurance is responsible for property damage, bodily injury, as well as other possible damage charges.  Since you gave permission to for someone else to drive your car, you have to accept liability for your friend’s activity.  Legally the borrower has no classic insurance liability unless the car has no insurance on it.  If someone steals your car and gets in an accident then you would not be considered responsible for liability so that at least is a good thing.

There are a lot of complex exceptions based on a variety of scenarios, so be sure to check with your specific auto insurance policy to see how your insurer will respond to each situation.  Knowledge is key in preparation for accidents if you do decide to lend out your car to someone you know.

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.

Pretty much everyone is looking to save a dollar where they can in this struggling economy and luckily there are companies out there willing to help their customers.  Auto insurance rates are causing many consumers financial stress, and these people often are not aware of the dozens of discounts out there that they may quality for.

Donegal Insurance is an example of a company going above and beyond to offer substantial discounts to their customers.  Their auto insurance policies not only offer a wide variety of options for every type of driver but they give discounts based on good behavior.  Some of these discounts include good student discounts, high chargeable accident thresholds, first accident forgiveness, extra edge discounts for superior drivers and a PACE protector endorsement.

According to the Donegal Group website, you can also save money on your auto insurance if you have passive seat belt restraints and/or airbags in your car.  There are additional discounts for anti-theft devices, and anti-lock brakes.  Even more discounts are made available for those who have completed a driver’s education course or who participate in car pooling.  There’s a multi-car discount and savings if you have multiple product policies with Donegal.  As you can see, there is a long list of readily available discounts for a variety of drivers on auto insurance

offered through Donegal which is headquartered in Pennsylvania.  This is great news for those of us pinching pennies, and it’s useful to know where we can save a little bit of money.  It adds up over time and can make a big difference.

Surprisingly, over half of respondents to a recent survey from LexisNexis Risk Solutions, believe that auto insurance rates should be driven by actual driving data obtained through ob-board devices monitoring how someone drives.  According to the article “Survey Shows Mixed Views of Data-Driven Auto Insurance Rates” by Ben Zitney on onlineautoinsurance.com, privacy concerns are holding back consumers from accepting auto insurance companies’ desire to collect information directly from the vehicle to set rates.

The monitoring device placed in the car can detect a variety of information such as speed, mileage, and braking data.  Most auto insurance companies already use personal information like ticket history and credit history when determining rates, but this might take the privacy issue over the edge.  The use of these devices is getting more and more common and could eventually be the norm.

GMAC has been collecting data from OnStar devices for some time now and having great success with their information gathered.  Since 2008 Progressive has been offering discounts to policyholders who agree to have the devices placed in their car for monitoring.  They measure information such as speed, braking, times of day driven, and distance traveled.  Allstate announced that they have launched a similar program called Drive Wise to use data when calculating auto insurance policies.  Compare auto insurance options to see if this might be something that could save you money in the long run.  If you’re a good driver but haven’t proven through your driving record, this could be a plan for you.

There are a few coverages included in most auto insurance policies across the nation that would surprise the average person.  According to the article “4 Things You Didn’t Know Your General Auto Insurance Covers” on TheAutoInsurance.com, you should always check with your insurer to ensure you have basic coverages, but there’s a good chance they offer the following great benefits:

1. Legal expenses are offered covered including a lawyer
2. Your car is probably covered in the case of a terrorist attack
3. Damage caused when someone else drives your car
4. Roadside Assistance

Again, it is possible that your coverage does not offer these 4 benefits, but if they don’t it may be time to shop around for better auto insurance rates with more benefits.  Many discount auto insurance companies are known for having lack luster benefits, so it’s worth getting a run down of the benefits your policy offers.  Do a side by side comparison of various policies to get a good understanding of what you may be missing.  Most auto insurance agents will happily sit down with you to explain the difference in policies to ensure you find a policy that best suits your needs.  If they don’t, then they might not be the insurer for you.

According to the article “Insurance Study Sees Widespread Fraud in NYC” by Erik Holm, New York City residents are much more likely to file false claims driving up the cost of auto insurance quotes in NYC.  This is based on some research conducted by the Insurance Research Council, a nonprofit group funded by insurance companies.

New York state’s “no fault” system was implemented in 1974 and it allows someone injured in a crash to file up to $50,000 worth of claims for medical expenses or even lost wages with their own insurance company regardless of who is at fault.  The purpose of this was to speed up processes by eliminated the argument over who whose fault the accident was.  Through this system, perpetrators have figured out how to bank on false claims and take home cash.

The state insurance department has been working for over a year to revise the no-fault insurance regulation.  The Insurance Fraud Bureau estimates no-fault fraud has increased dramatically from 2006 at 10,117 instances to 13,433 instances in 2009.  Auto insurance companies are hoping that the insurance department’s changes will make it easier to deny fraud claims, but it’s going to be a process that may take years to make a difference.

According to the article “Auto Insurers Take On Pets” by Donna Goodison on BostonHerald.com, more and more Boston auto insurance companies are offering insurance policies for customers’ pets.  Pets can actually be covered in the case of an accident.

Ever since Massachusetts deregulated the auto insurance industry back in 2008, at least 5 total companies have included pet injury coverage as an optional choice for policies.  This is becoming a common practice among auto insurance companies as more customers express their desire for this type of protection.  Many people consider their pets like part of the family and a pet insurance policy gives them the comfort they need to ensure their pets are taken care of in case of an accident.  If you think you would find this option valuable check with your insurer to see if they have something similar available.