Smart Auto Insurance Blog

Auto insurance premiums for high risk drivers through the Texas Automobile Insurance Plan Association (TIAPA) will drop by about 7.6% starting January 1, 2011.  This is according to the article “Rates for High Risk Drivers in Texas Falling; Coverage Minimums to Rise” posted on InsuranceJournal.com.

Texas Insurance Commissioner, Mike Geeslin, has ordered overall auto insurance rates to drop for TIAPA personal auto insurance policies in the state.  In addition to this, the minimum amounts of motor vehicle liability insurance required by law to establish financial responsibility in Texas will increase starting January 1st.

This is important news for Texas auto insurance carriers as they shop around for coverage.  Knowing what coverage is required is important to ensure protection is adequate in case of an accident.  According to OnlineAutoInsurance.com, TIAPA saw a 2.2% increase from 2009 to 2010 in auto insurance rates and with many consumers struggling financially, Texans want to see this trend stop.

The recent earthquake in Ontario, Canada was felt throughout many states in the US, including Vermont, New York, Illinois, Indiana, and Ohio.  It was a reminder of the vulnerability of the US to this type of the disaster according to the article found on insurancenewsnet.com from a news release by The Insurance Institute.

Earthquakes are not covered under standard US homeowners insurance policies nor auto insurance policies.  Cars and other vehicles may be covered under an optional comprehensive portion of an auto insurance policy.  Ohio auto insurance and companies such as Eastwood Insurance may have various options for you to look into.

Earthquake insurance policies usually carry a deductible in the form of a percent rather than a dollar amount.  The deductible range can vary anywhere from 2% to 20% of the building’s replacement value.  Earthquake insurance rates differ greatly from state to state and company to company.  Several factors are considered such as location, construction materials, and how close a structure is to a fault line.  If you think you may be at risk look into what options are available with your insurance provider.

Not everyone realizes that AARP (formerly known as the American Association of Retired Persons) has an auto and home insurance program through The Hartford.  They offer great coverage at competitive rates geared towards their members.

AARP Auto Insurance offers a unique blend of benefits for their retired members.  Availability of features and benefits varies from state to state but by getting a quote you can see what is offered.  They offer first accident forgiveness which is a great benefit for otherwise very safe drivers.  Lifetime renewability is available where you do not have to worry about losing your auto insurance protection.

Known as a disappearing deductible, AARP reduces your collision deductible by $150 if a clean driving record is maintained.  They even continue to drop your deductible by $50 for each additional year you keep a safe driving record until it reaches $0.  The auto insurance feature called RecoverCare helps pay for the cost of services in the home such as cleaning, shopping and transportation if you are hurt in a car accident.  It’s these types of unique benefits that makes AARP auto insurance a great buy.  They truly look out for their members and that is worth your time and money.

One of the major factors auto insurance companies use when determining your car insurance rates is your driving record.  According to the article “Are You Driving Distracted, and is Your Auto Insurance Suffering” published on lexch.com, even non-fatal crashes are bad to have on your driving record.  Driving safely can end up saving you a lot of money in the long run.

According to Distraction.gov, which is the official US Government site for distracted driving, there are 3 main types of distractions which include visual, manual and cognitive.  In 2008, distracted drivers caused about 5870 fatal car crashes.  This is a staggering statistic which should motivate us all to stop unnecessary distractions while driving such as talking on our phone, texting, or eating.  Even having a conversation with other passengers can distract you from focusing on the road.

Before you get car insurance quotes, be sure to understand where your driving record stands.  Accidents do fall off your record over time as well as tickets and even some DUI’s.  But it’s important to note that the safer you drive, the less likely you are to be in an accident and pay higher car insurance rates.  Not to mention you may save lives, including your own and friends and family, if you are consistently a very safe driver.  There are so many reasons to drive safe, and no good reason to risk it and distract yourself from paying constant attention to the road.

State Farm auto insurance is a proud supporter of Mothers Against Drunk Driving (MADD), whose primary mission is to put an end to drunk driving and support victims of such crimes.  They also fight to put an end to underage drinking.  State Farm is a national sponsor and they share very similar values in educating youth about the dangers of drinking.

“Protecting You/Protecting Me” is a comprehensive program offered through MADD which uses an approach to stop underage drinking through effective, educational efforts to stop the access of alcohol to our youth.  This excellent program is a research-based plan which is nationally recognized nationally.  The Substance Abuse and Mental Health Services Administration, Center for Substance Abuse Prevention named it a “Model Program”.

State Farm and Meharry Medical College also came together to research why seat belt and child safety is lower among African Americans.  They plan on using the findings to influence legislation to further support cultural public awareness programs.

Driver safety continues to be a priority of State Farm.  If you choose to disregard any safety provisions put forth by the law, then not only are you putting yourself and other drivers lives at risk but you are increasing your chances of paying higher auto insurance rates or having to carry SR-22 insurance.  There are no benefits to breaking the law when it comes to driving.

Bristol West Auto Insurance, along with many other auto insurance companies are getting hit with fraudulent claims.  According to the article “Report: Staged Car Wrecks On the Rise” by James Hart on blogs.kansascity.com, there has been a 40% jump in car accidents since 2007 staged on purpose with the sole purpose of ripping off insurers like Bristol West.  This statistic comes from a report from The National Crime Insurance Bureau.

Many of the fraud accidents are committed by all knowing parties, but sometimes the perpetrators target innocent drivers.  To avoid becoming a target, follow these simple tips:

• Avoid tailgating
• Always call the police immediately if you are involved in an accident
• Use your phone camera to document any damage as soon as it happens
• Never admit fault

Protecting yourself on the road is very important and knowing this type of fraud is going on can help you be more prepared if you are involved in an accident.  Avoiding the accident altogether is obviously ideal so your car insurance quotes are not affected.

According to the article “Who Crashes the Most?  Car Accidents By Occupation” by Kat Zeman on insure.com, doctors have the most auto accidents per year, at about 109 accidents for every 1000 doctors.  They also receive about 44 tickets per 1000 doctors on the road.  This information may cause their occupation to affect their auto insurance rates.  Here’s the ranking for the top 10 most accidents:

1. Doctors
2. Lawyers
3. Architects
4. Real estate brokers
5. Enlisted military personnel
6. Social workers
7. Manual Labor
8. Analysts
9. Engineers
10. Consultants

Other occupations that made the list but rank below the 10th ranking are nurses, librarians, insurance agents, dentists, accountants, politicians, firemen, law enforcement, and salespeople.  Occupations can already affect interest rates on certain loans, so it makes sense that it may affect your auto insurance.

Allstate Auto Insurance, which is a very well respected insurance company, has created an innovative policy for their customers.  The policy is called Your Choice Auto and it provides high quality auto insurance.  Their website provides more details, but here are the highlights:

• Accident forgiveness helps to keep rates low even after one accident
• Safe driving bonus earns you cash for safe driving
• Deductible rewards gives you up to $500 off your deductible for safe driving
• New car replacement gives you a new car if yours is totaled within the 1st three model years

There are numerous different packages offered through the Your Choice Auto program.  According to their website, those who switched to Allstate from another carrier saved on average $480 per year.  Getting auto insurance quotes from a few different companies is the best way to ensure you are getting the most competitive auto insurance rate.

Auto insurance companies are getting more and more strict with paying out claims as the recession is forcing consumers to request more money to cover damages.  This is according to the article “Under-Insurance Hitting Thin Wallets” by Roeland Van Der Bergh on stuff.co.nz.

Another downside to this economy from the viewpoint of the auto insurance company is the rising rates of insurance fraud according to the article “Recession is Fueling a Boom in Insurance Fraud” found on the Times Dispatch website.  This increase in fraud is keeping state regulators and law enforcement very busy across the nation.

A recent survey conducted by the Coalition Against Insurance Fraud of 37 state insurance fraud bureaus found that the down economy has had a significant effect on the amount of fraud.  The bureaus reported an increase in fraud referrals and new investigations in all 15 categories of fraud covered in the survey.  Other tough financial times such as the influx in gas prices a few years ago.  As gas prices went up, so did the number of automobile fraud cases where people fraudulently reported their cars as stolen, or destroyed just to get the insurance payout from the auto insurance company.  People will do extreme things when faced with financial adversity.

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.