Smart Auto Insurance Blog

A Nationwide auto insurance survey discovered that 8 out of 10 Americans would support legislation restricting cell phone usage while driving according to the article “Nationwide Insurance, NASCAR Drivers, Encourage Students to Stop Driving Distracted” by Gayle Saunders found on reuters.com.

Nationwide Insurance has teamed up with Johnson C. Smith University, NASCAR’s Kyle Petty, NASCAR Nationwide Series driver Trevor Bayne and NASCAR’s Drive for Diversity Michael Cherry to support the rise of awareness for DWD (Driving While Distracted).  Not only does driving while you are distracted put lives at risk, but it can end up costing you a lot of money on your auto insurance quotes if you are in an accident or pulled over.

The survey that Nationwide auto insurance completed showed that 80% of Americans favor a ban on texting while driving and 2/3 of Americans support the ban of phone calls while over 50% say they support a ban of cell phone use altogether.  Nationwide and their partnerships are bringing together an educational campaign to spread the message about how dangerous it is to drive while distracted.  Nationwide is committed to helping their customers stay safe and protect what matters most to them.

According to the article “The Effects of a DUI on Car Insurance Quotes” by insuranceagents.com, auto insurance quotes can skyrocket after a Driving Under the Influence violation is on your record.

Not only will a DUI on your record cause your auto insurance quotes to increase, but your license may be suspended and your current auto insurance policy may be cancelled, leaving you in a tough spot to find new auto insurance fast. 

There is a zero tolerance for drinking and driving in the United States because of how terribly dangerous it is to the driver, passengers and other people driving on the road.  Not only are you putting lives at risk if you drink and drive, but you are setting yourself up for a potentially very expensive road as well as possible jail time.

According to the article “Auto Insurance: High Auto Insurance Rates? Your Job Might Be To Blame” by Joel Peterson found on officialwire.com, current occupation and education level often factor into determining your auto insurance rates. 

Some auto insurance companies claim that the type of occupation you have can determine how careful of a driver you are.  Engineers, scientists, teachers and pilots tend to get lower quotes because they have proven to get in less accidents.  Other aspects of a particular field may factor into your auto insurance rates as well. 

According to a 2004 study by the Quality Planning Corporation found that drivers with preferred, higher income occupations often get in just as many accidents if not more than other occupations.  Surprisingly this group have lower auto insurance rates.  This is because this group is less likely to file claims which is ultimately what costs auto insurance companies money.

According to the September 8th press release on onlineprnews.com, submitted by insurance-auto-insurance-health-insurance.com, uninsured drivers are on the rise.  In 2007 about 23% of motorists were driving uninsured but now that statistic is closer to 1/2 of all drivers who do not have auto insurance. 

As unemployment rates increase so does the number of uninsured drivers.  But all drivers are at risk on the road when so many do not carry insurance.  A simple auto insurance policy can offer many benefits including property damage, personal injury protection, and many auto insurance companies also offer a term life insurance policy. 

The average payout for a term life insurance policy offered from auto insurance companies is between $10,000 - $25,000.  It’s usually paid in one lump sum to the next of kin.  There is also uninsured motorist insurance which is crucial, now more than ever, since so many other drivers are uninsured.  This type of protection covers you in case you are in an accident with someone who does not have auto insurance.  There are many benefits from auto insurance policies.  It’s just one more reason to ensure you are properly covered.

According to the article “Data Shows Auto Insurance Rates Rise for DWI Convinctions” by Lavonne Kuykendall on CNN Money’s site, auto insurance rates in general are on the rise. 

Information obtained by insurance.com shows that auto insurance rates for male drivers with a DWI or DUI convinction are rising faster.  DWI rates usually stay in effect for 5 years after a DWI conviction.

In 2009, male drivers who had a DWI conviction paid auto insurance which was about 24% more per year than did men without any violations.  This is up from a 22% difference in 2008.  The rate of increase for someone with a DWI has remained the same for women since 2008, at about 28% higher than the rate for women without any violations.

According to the article “Driver Distractions Behind Auto Insurance Rate Hikes” by Danny Workman on examiner.com, 80% of crashes and 60% of near crashes are the result of driver distractions such as spilled coffee, hot soup, tacos and hamburgers.

Many of these accidents occur when the lead automobile is stopped and is rear ended by a driver who is distracted.  Statistics from the National Highway Traffic Safety Administration and Virgina Tech Transportation Institute find that these crashes and near crashes happen within 3 seconds of a driver being distracted.

Some other distractions that are causing auto insurance rates to increase are talking on the phone, text messaging, tuning the car radio, reading a map, lighting a cigarette and applying makeup or shaving.  While it may seem obviously dangerous to do many of these tasks while driving it happens all the time and many of these items are becoming illegal in an attempt to make the roads safer.

It’s always important to understand what type of auto insurancecoverage you carry, but now more than ever we need to pay close attention.  This is according to the article “Car Insurance in the New Economy” by Ed Normund on Injuryboard.com.  The recession is causing more and more drivers to cut back on their coverage or eliminate auto insurance altogether and this may cost you in the long run.

The article recommends certain types of coverage that can help protect you during these tough times: 

1. Bodily Injury Liability - pays for injuries that you cause to another based on negligence
2. Property Damage Liability - pays for property damages that you cause due to negligence
3. Umbrella Insurance - covers you for bodily or property damages from auto accidents
4. Uninsured Motorist Protection - covers injuries to you and others when hurt by someone else
5. Comprehensive coverage - covers your car for damage caused by theft or other events
6. Collision insurance - covers you for damage to your car when in a crash with someone else
7. Medical Payments or Personal Injury Protection Insurance - covers you and your car occupants for limited medical payments with no regard to who is at fault

Take the time to understand what is included in your auto insurance policy to ensure you are fully protected.  What type of coverage you have does factor into your rates, so consider closely what you do and do not need to ensure you have adequate and affordable auto insurance.  It’s often better to be safe than sorry in the case of a car accident.

Drivers in twenty-seven states can save money by taking an online course to reduce their monthly premiums and erase disciplinary points resulting from violations from their license.

The online courses cost drivers about $50 to take, and can save drivers about 10% off their auto insurance rates, for about 3 years.

Drivers who have points on their license can drop up to four points when they successfully complete the course, which deals with

1. collision prevention,
2. defensive driving techniques
3. aggressive driving
4. improper lane use and
5. driving under the influence of drugs and alcohol.

Online and in-class sessions are also available from American Safety Council, Inc. and the National Point and Insurance Reduction Course, Inc.   Once drivers complete the online course, the DMV is notified automatically, but individuals must inform their auto insurance company within 90 days to receive the discount.

On Wednesday, May 13, Florida Cabinet members refused to stop auto insurance companies from charging new policy holders higher rates if they have been in not at fault accidents. 

Industry representatives say that charges for new customers with accidents on their driving record is a common practice, even if the customer didn’t cause the accident.  They say it’s justified because research shows these drivers are at higher risk of filing claims and it’s often difficult to determine who is at fault for the accident. Auto insurance companies need to consider all facets of the driving record to understand the customer’s risk and charge the most appropriate rates.

On MainStreet.com, Carl Winfield recently explained important facts about Allstate’s auto accident forgiveness program, which has been available since 2006 but is gaining attention now. It’s a tempting option to prevent increasing auto insurance costs, but it’s not for everyone. Here are some frequently asked questions and answers about their accident forgiveness policy.

Q: What exactly is auto accident forgiveness?

A: It’s a policy that will ensure that your auto insurance premiums do not rise after a car accident.

Q: How much does accident forgiveness normally cost on a policy?

A: There tends to be an additional fee added to accident forgiveness plans; an typical fee is about $43 added to the premium every six months. However, premiums can jump far higher with an accident; sometimes they may even double.

Q: Who is eligible for Allstate’s Your Choice policies with accident forgiveness?

A: 

• Policyholders on the most inexpensive standard plan will have to maintain a clean driving record for five years before being eligible for accident forgiveness.
• Mid-range plan customers can take advantage of accident forgiveness immediately.
• Drivers with Allstate’s top-line, most expensive plan will also have access to accident forgiveness as soon as they buy the policy.