Smart Auto Insurance Blog

Texas auto insurance quotes and rates are expected to increase over the next few weeks due to a recent regulation change.  There was recently a mandatory minimum liability coverage requirement increase according to the article found on Digital Journal detailing the new regulation.

The Texas Department of Insurance states that liability coverage was much too low and an increase was necessary.  The coverages were barely covering the cost of accidents and this was hurting other drivers involved.  Department of Insurance spokesperson, Jerry Hagins, believes Texas drivers can expect to see an approximate increase of 2%-3% in their current rate.  Charles Law, a local auto insurance agent, estimates this to be around $40 per year on average across the board.  This is a small increase for most people, but it gives us some foreshadowing of where the rates are headed.

Apparently, this minimum liability coverage increase was long overdue.  There hadn’t been an adjustment since 1983 which is simply shocking since medical costs and auto repair costs have skyrocketed since then.  The new rate increase was called for in 2007 law, but it did not take effect until January 2011 and by now consumers are seeing the difference on their statements.  As much as no one wants to pay more for their auto insurance this is a necessary evil to ensure our coverage actually protects us in case we hurt someone or something out on the road.  If it’s too small of an amount we could end up paying out of pocket and no one wants that.

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.

SmartAutoInsurance.com is proud to announce the launch of its new ‘Auto Insurance City Guide’.  The Guide provides city-specific information including minimum coverage requirements and DMV locations.  Vehicle thefts, percentage of uninsured motorists, and number of auto accidents reported are also presented for each city.

The purpose of the City Guide is to simplify the auto insurance shopping process by providing consumers only with the information relevant to the city in which they live.  Statistics including ‘average commute time’ and other city-specific factoids aim to make the guides more interesting and informative.

The Auto Insurance City Guide launched with 25 U.S. cities, and intends on expanding to others in the near future.  Check out your city today!

Toyota is still feeling the brunt from their huge recall of defective cars across the nation.  Seven auto insurance companies are filing suit against Toyota Motor Corporation to retrieve funds they paid out in claims cause by the accidents attributed to the Toyota cars’ defects.  This is according to the article “Seven Additional Car Insurers Sue Toyota” by Naota Hayashi on Automobile.com.

RIght now the National Highway Traffic Safety Administration is looking into claims that about 89 accident deaths since 2000 may have resulted from sudden acceleration in certain Toyota cars.  Toyota could face up to $10 billion in civil liability in the US courts from wrongful death, consumer fraud, and personal injury.

A recent litigation filed in Los Angeles County Superior Court, makes claims related to those in other cases filed in other areas that Toyota disregarded and tried to hide the defect that caused several engines to accelerate, and did not put in a particular brake override technology that may have prevented crashes.  The seven auto insurance companies are requesting minimum compensatory damages of $188,000.

According to the article “Vehicle Thieves Rarely Take a Holiday” found on CarInsurance.com, the most cars are stolen on New Year’s Day and Halloween.  In 2009, New Year’s Eve was once again the leader in car thefts based on an analysis by the National Insurance Crime Bureau.  Christmas Day continues to be the day with the fewest cars stolen.

Thieves are not respecting holidays the way most Americans are.  They do seem to have some sort of respect for Christmas Day which is interesting, but other holidays, thieves are out and about looking for targets to steal.  Of the 11 holidays looked at in 2009, a total of 22,991 cars were reported stolen while 24,676 cars were stolen total in 2008.

The good news is that car thefts have been steadily decreasing for the past six years, possibly seven with the preliminary 2010 FBI Theft Data coming out soon.  It’s important that car owners remain aware and take the necessary precautions to prevent car thefts even though the crime is down.  Quotes on auto insurance can even fluctuate based on how likely it is your car type will be stolen.

According to the article “New Year Brings New Insurance Requirements for Texas Drivers” by Spencer Lubitz on KRISTV.com, car insurance quotes are increasing in 2011 in the state of Texas.  Bodily injury and property damage limits are increasing minimum requirements according to Michael Morgan, an agent with State Farm Auto Insurance.

Under Texas’s current minimum liability limits each policy must cover at least $25,000 worth of damages for each individual injured in an accident, $50,000 for everyone hurt in the accident, and $25,000 for property damage for each accident.  After January 1st, 2011, each policy will need to cover $30,000, $60,000 and $25,000 respectively.  The change will only affect policies which currently carry the minimum requirement.  This equates to approximately 50% of Texas drivers.

It’s hard to say exactly how much policyholders will have to pay extra, but any increase in cost is not welcome.  Factors will include car type, age of the driver, and the individual’s driving record.  Although increases aren’t expected to be drastic, insurers recognize in these times every dollar counts with customers and they will be doing their best to ensure competitive prices remain for policyholders.

Winter driving has its serious hazards and accidents occur without warning throughout the winter months.  Snow, sleet, black ice, and freezing temperatures can wreak havoc of safe driving.  Ensure you are taking extra precautions to prevent winter accidents.

Reduce your risks of being in an accident this winter by following some simple steps.  Get your tires checked.  Tire tread is important as well as having your tires properly inflated.  Investing in snow tires can make your commute safer through the elements.  Ensure your breaks are in working order and if not, invest in new ones.  Breaks need to respond properly when slammed upon and if they are wearing if may cause an accident.  One last tip is to consistently check your window wiper fluid.  It’s easy to find yourself empty as the sleet starts to come down which can severely impact your view of the road.

In addition to taking these safety steps, winter is a good time to update your auto insurance policy to ensure everything is in place in case of an accident and that you are paying fair auto insurance rates.  You don’t want to find out certain things are not covered in your policy after you slide on some ice causing an accident.  Being prepared is the best way to cover your losses.

It’s no surprise that using your phone while driving can cause accidents since your attention is taken away from the road.  But smartphones have added a new danger to the mix.  Smartphones are addicting and many Americans admit to using their phones to check email, update social sites, and read text messages despite this being against the law.

According to the article “Use Smartphones Smartly Can Help Avoid Car Accidents” by Richard Burton on AutoQuoteNow.com, 72% of people who use their phone while driving say work is what tempts them to break the law.  About 33% are drawn to social sites such as Facebook and Twitter while driving.

Fatal accidents have increased dramatically from drivers using their phones, despite laws being passed to ban such usage.  These handheld computers are a major distraction for many drivers and it takes self-discipline to wait until the drive is over to check the phone.  The good news is that awareness is on the rise and hopefully education will ultimately help to deter using smartphones while driving.

A new survey shows a concerning trend.  Of the 1000 Americans with auto insurance surveyed, many have confusion over what to do in the case of an auto accident according to the press release “New Survey Reveals Uncertainty on How to Respond When Auto Accidents Happen” from State Farm found on PR News Wire’s site.

About half of respondents feel it’s against the law to refuse to report an accident to an insurance company while 41% think it’s ok to not go through insurance.  74% say they are a witness to an accident if they are within 100 ft and 66% say being a witness means not getting involved.

One third of respondents believe that saying “I’m sorry” is more than just an apology and doesn’t admit fault.  83% of Americans stated they are likely to pull over if they witnessed an accident which did not involve them.  These questions don’t necessarily have clear cut answers and need evaluations for each unique situation.  Auto insurance is crucial, but if you don’t know the ins and outs of your policy you can be left confused and misinformed.  Each policy is different as well, so you need to compare auto insurance companies to fully understand what type of coverage you have.