Smart Auto Insurance Blog

According to the article “How Does Cell Phone Use Affect A Cheap Car Insurance Quote?” by Sharon Gibson on youronlineinsurance.com, cell phone safety is a major concern for law enforcement.  More and more traffic incidents are caused by people talking and texting on their cell phones.  Cell phone usage is a huge distraction and directly affects your driving.

More and more auto insurance companies are offering discounts to drivers who are willing to drive safer.  You may get a discount for having a cell phone disabling system which is a device which blocks calls as well as text messages while you are operating the car.  Some companies will flat out ask you what your driving habits are in regards to cell phones.  Your answer may directly affect your car insurance quotes.

In today’s busy world it is becoming increasingly harder to put down the cell phone or personal digital assistant.  It’s important to realize the impact driving while using your phone can have.  Not only are you more likely to be an unsafe driver but it could end up costing you hundreds of dollars in insurance premiums over the years.

If Tiger Woods is following state law, he should have some type of auto insurance protection.  But, chances are, he can pay for his most recent accident out-of-pocket.  So the question is raised:  Should auto insurance be mandated for those who can afford to pay for accidents and medical costs out of their own pocket?

According to the article “Health Care Critics Look At Auto Insurance Mandates” by Kristen Wyatt on TimesLeader.com, thousands of drivers in the US do not carry auto insurance even though the law mandates it.  The insurance industry says that even though there have been about 40 years of mandates, the roads are not any safer and auto insurance costs haven’t been affected, so is the mandate bringing any value?  And should someone like Tiger Woods, who is extremely wealthy, be forced to carry auto insurance when over a lifetime it may be more expensive for him to do so?

According to the article “Tiger Woods claims car accident his fault alone; again calls off talk with state troopers,” found in the Cleveland Plain Dealer, Woods has admitted the wreck was his fault.  If Tiger files a claim with his auto insurance company it may affect his auto insurance rates.  Every consumer weighs the cost benefit of filing a claim with their insurer because if the claim is inexpensive it may not be worth the ramifications.

As to be expected, auto insurance rates are very high for teenage drivers because they are riskier since they are new and in the learning process of driving.  The article “A Crash Course On Auto Insurance” by Diane Giles on kenoshawnews.com points out that adding a teen to an auto insurance policy can double the yearly premium. 

Director of Insurance for the Consumer Federation of America, Robert Hunter, says that data on teen deaths and accidents is very bad.  It’s especially bad for young, male drivers and that is directly related to their auto insurance rates.  Auto insurance companies use this data to determine who is most likely to file a claim.  Car crashes are the number one cause of death among teens in the US.  A driver age 16-19 is 4 times more likely to have a fatal car crash compared to a driver age 25-69.  That is astonishing and extremely concerning. 

Experts agree that it is crucial for parents to get involved and educate their kids on driving safely.  Not only drugs and alcohol are distracting kids.  It’s also talking on the phone, texting, and loud and rambunctious passengers.  By having your teen contribute to their auto insurance bill it can encourage them to drive safely.  They need to understand the direct correlation between a clean driving record and the cost of auto insurance.

The state of California has seen suspected California auto insurance theft and arson fraud increase over the past year according to The California Department of Auto Insurance which released information on Friday.  This was found in the article “State Sees Rise In Suspicious Auto Insurance Claims” on Sacramento Biz Journal by Kelly Johnson.

The agency recently gathered data that showed criminals may be committing more auto insurance fraud to obtain insurance cash during these tough times.  Insurance Commissioner Steve Poizner stated in a news release that fraud is on the rise.  In 2008, the California Department of Insurance found a 25% increase in suspected car arson fraud cases from the year before.  They also received about 200 more suspected car theft fraud cases in 2008 compared to 2007. 

The department receives regular referrals of suspected fraud from auto insurance companies, law enforcement agencies as well as consumers and each case is researched to determine if it is actually a fraud situation.  Other kinds of auto fraud such as inflated damages, vandalism, and hit and run accidents have remained somewhat constant since 2007 according to the Department. 

This increase in suspected fraud may continue as the recession remains.  Consumers are feeling strapped for cash and desperate and this seems like the only road for many.  Of course, any type of fraud will end up costing you much more in the end, including possible jail time.

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.