Smart Auto Insurance Blog

Missouri auto insurance regulators have updated the public with some storm data about claims throughout the state.  According to the press release found on WiredPRNews.com, Missouri residents have collected approximately $750 million from insurance companies from claims filed throughout the storms that hit Joplin back in May.

John M. Huff, who is the director of the state Department of Insurance encourages consumers to contact their department or their insurance company if they believe they may be eligible to file a claim.  Huff and other officials believe the department and insurance companies have done an excellent job helping the people of Missouri who needed it most through the quick fulfillment of claims.

Area regulators previously announced in June that Missouri insurers of auto insurance as well as other coverages, had paid out around $500 million in claims with auto claims specifically making up over $34 million.  This number has steadily increased throughout the summer as claims were filed and insurers met their needs.  About $250 million was paid out in early July alone says the Department of Insurance.

Altogether, almost 17,000 claims have been submitted as a result of the disastrous tornado that devastated the area.  Huff believes that total claims could hit up to $2 billion altogether.  The claims that are still pending at this point will be difficult to resolve and may take some more time.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Auto insurance quotes can be higher on cars that are the most commonly stolen.  Knowing this can help you make a decision on what type of car you want to purchase when you start to compare auto insurance policies.  The National Insurance Crime Bureau (NICB) recently announced their findings for 2010 in the most commonly stolen vehicle types and consumers are anxious to know.

It’s no surprise that for the third straight year in a row the 1994 Honda Accord is the most stolen car for 2010.  Over 50,000 Accords were stolen in 2010 according to the article “The Most Commonly Stolen Vehicles In The United States” on US Insurance Online.  It’s suggested that weak security systems and a continuously high demand for parts are the two main reasons that the ‘94 Accord continues to be stolen the most.

The spokesperson for NICB, Frank Scafidi, says there is a black market for important parts and sometimes cars are worth more for their parts than they are when they are still in tact.  Between 2002 and 2009 there were many more foreign cars on the top 10 list when compared with domestic models.  In 2010, there were actually six American models on the list which is a turn in the trend.  The Honda Accord, Honda Civic and Toyota Camry were the three top most stolen cars in 2010, so consider this when purchasing your car considering your auto insurance rates many be higher due to the high theft.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Many auto insurance companies have comprehensive coverage packages with great deals, but you have to do your homework to ensure you are getting want you really want.  One overlooked benefit that doesn’t come with all auto insurance policies is towing coverage.  Whether your car gets stuck in the snow, has a flat tire, the battery dies or it randomly will not start, towing coverage is invaluable and many policies offer it at no extra charge.  Unfortunately, many consumers do not realize this.

Specifically speaking, what you should look for when comparing auto insurance quotes is Towing and Labor Coverage according to the article “Does Your Auto Insurance Cover Towing” by Marcia Passos Duffy on FoxBusiness.com.  This type of coverage will often take care of the towing as well as labor to help get the car started again.  Labor generally covers small fixes and not parts so be careful when a mechanic offers to fix everything.  This coverage can also be called roadside assistance and some companies extend other benefits that mimic an auto club membership.

If you are a member of an auto club and paying an annual fee, double check with your auto insurance company to make sure you don’t already have the coverage you’re looking for.  If you have quality roadside assistance through your insurer, you may be able to cancel your auto club membership and save some money.  With this said, auto clubs such as AAA offer unique benefits that can be hard to find with insurers so you will want to be sure and compare the perks side by side and see what is the best fit for your budget and your personal needs.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Auto insurance fraud continues to be a major problem across the nation and it’s affecting how much everyone pays for their car insurance quotes.  With proper monitoring, it’s possible to decrease the amount of fraud out there but it needs to be a group effort.  South Carolina Attorney General, Alan Wilson, stated that about $12 million was reported in South Carolina alone last year in auto insurance fraud.  This was found in a recently released report according to the article by Jessica M. Karmasek on the Legal Newsline website.  This astounding number needs to come down but it’s hard to determine exactly how to do this.

Falsified claims are the number one cause of auto insurance fraud and this is why most auto insurance companies have a claim review team in place.  Suspicious claims are sent to an expert department for review and if considered possible fraud the claim will be investigated.  Unfortunately, the downside to this process is that not all of the suspicious claims are truly fraud so innocent people end up getting the run around when submitting a claim.

With online auto insurance quotes a popular method for obtaining auto insurance, it’s no surprise fraud on the internet is happening.  Most companies, including First Acceptance Insurance and Progressive, offer quotes online for auto insurance policies.  Checks are in place to ensure the policy being set up is for the right person and the right vehicle.  Credit report information such as social security numbers, addresses and date of birth are used to confirm identity.  This is not a perfect science either and perpetrators can even alter credit reports if access is obtained to the credit reporting agencies.  Hopefully, over the next few years, monitoring will improve and the amount of fraud will decreased, ultimately lowering our auto insurance rates.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

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

Follow me on Twitter: http://twitter.com/#!/JoannaCliff78

It’s becoming common knowledge that having a good credit score will save you money on your auto insurance rates, but it’s unclear exactly how much it will save you.  Based on a recent CarInsurance.com study, drivers with credit ratings over 750 save about $783 a year on their auto insurance quotes when compared with a typical driver in the same age group with average credit scores.  The study used 42,809 auto insurance quotes to determine this figure and the results are surprising.

If you calculate this out over a lifetime of driving, a person with excellent credit can save approximately $22,815 on their auto insurance premiums.  Credit is only one factor out of many that insurers use to calculate quotes but it’s becoming increasingly important.  Auto insurance companies strongly defend their use of the score despite many consumers finding it unfair.  Insurers have found a direct correlation between someone’s credit rating and the chances of them filing a claim.  Regardless of the reasoning behind this connection, there is a connection and it makes sense for insurers to use this information.

The good news is that you have control over your credit score.  Even if you have filed bankruptcy or charged off some accounts, you can repair your credit through time and bill management.  It’s important to keep your credit card debt down and make all of your payments on time.  It may take a few years, but once your credit score has improved you can start to compare auto insurance quotes and hopefully see a difference in the rates you receive.

Many people wonder if using an agent is the best way to purchase auto insurance.  It’s true that using an agent can save you some time and possibly save you some money.  If you aren’t internet savvy, then using an agent may be the way to go.  Many companies offer agents to help customers with their needs.  One of these companies is Founders Insurance.

Founders auto insurance is offered in Illinois, Indiana, Ohio and Wisconsin with limits up to $100,000/300,000/50,000.  They offer quick, electronic SR22 filing and take international and out-of-state drivers license.  According to their website, Founders Insurance is a preferred choice of agents for higher risk policies.  Whether you have a poor driving record, poor credit rating, or coverage lapses, Founders will work with you to try to get you the best coverage possible.  This is where an agent can come in especially handy.  High-risk drivers often have a harder time finding quality auto insurance online or on their own.  An agent knows where to look to get deals for non-preferred customers.

Founders Insurance also has complete online capabilities including quoting, binding, and policy issuance, payments, endorsements, document reprinting, renewals, claim reporting and form downloads.  You can even chat online or over the phone with an underwriter with any questions you may have about your policy and quote.  Founders works hard to have state-of-the-art imaging systems for underwriting and claim handling and are constantly working to improve their business.  Speak with an agent to see if this might be the right option for you.

You may have seen some recent commercials on TV or ads in the paper from Nationwide Auto Insurance discussing their Vanishing Deductible program.  A vanishing deductible sounds appealing but how does it exactly work and is it a good deal?

Basically this benefit will apply to good drivers only.  If you’ve never filed a claim with your auto insurance company you may feel that it’s unfair to pay the same deductible as someone who has filed claims in the past.  Nationwide believes you shouldn’t pay the same deductible if you have a clean record.  That is what motivated them to create this unique plan for good drivers where the deductible “vanishes” with good behavior.

The Vanishing Deductible program drops your deductible by $100 for each year you are a safe driver.  They even offer a $100 discount for signing up.  This optional feature does seem appealing and doesn’t have much of a downside.  According to their website, annual credits are subject to eligibility requirements with a maximum credit of $500.  It’s important to understand that details and availability of the plan vary from state to state so check with a local agent to see if this is an option for you.  Having an insurance company that offers little perks like this can make all the difference since the market is so competitive.

We all know that competition generally returns better prices for products but that holds extra true for car insurance quotes.  A survey from Gocompare shows that approximately 25% of consumers do not change companies when it comes to car insurance, homeowners insurance, and other financial accounts.  The article “Consumers Benefit From Competition for Car Insurance Quotes and Bank Rates” by Ed Dixon on Newstaar.com points out how drivers are missing out since car insurance is a highly competitive industry.

Most car insurance companies do not offer loyalty benefits for staying with the same insurer, so with that said, why aren’t more people shopping around to compare quotes?  Awareness is definitely one concern.  Many consumers aren’t aware of how highly competitive the market really is and don’t even think of changing companies.  They inadvertently have loyalty to an insurer and they’re not even sure why.

With so much competition in the car insurance arena, drivers who are no shopping around are missing on a huge opportunity to get lower rates, especially if they have a good driving record.  If you’ve been with the same company for years and years, your rates may have slightly gone up since you first became a customer and you don’t even realize it.  By shopping around you are getting other companies to fight for your business and offer you market low prices.  There’s no downside to shopping around.  If no one can beat your current price then you just stay with your current provider and no harm done.  You’ll likely be surprised how much money you can actually save.

Alabama has been one of the leaders in uninsured motorists for years according to the press release found on OnlinePRNews.com.  Alabama auto insurance leaders and state lawmakers want to change this statistic and are pushing through legislation to reduce the rate of uninsured drivers throughout the state.

Alabama state law says that residents must have a liability policy in place if they want to legally drive an auto.  They are also required to carry proof of insurance with them in the car.  Even though there is a $500 fine for first time offenders, many drivers still choose to go uninsured.  The Insurance Research Council says that about 1 in 5 drivers in Alabama were uninsured in 2009.  To discourage this stat, lawmakers are trying to put in place an electronic auto insurance verification database which would match up policies with autos registered in the state allowing officials and the Department of Revenue to quickly determine whether or not a given car is insured.

In order to register your car you must check a box confirming you carry auto insurance for the car, but this database would actually verify this information rather than taking the driver at their word.  Obviously a handful of drivers are blatantly lying about this information so something needs to be put in place to prevent this from going on.  Hopefully this type of system will encourage more drivers to keep their policy valid and choose to be truthful on their registration application.