Smart Auto Insurance Blog

If you had to leave GEICO auto insurance when they stopped offering their classic car insurance, you’re in luck because it is back.  The company issued a press release published on MarketWatch, “GEICO re-launches collector car insurance for classic car enthusiasts.”  This specialty insurance for classic and vintage cars is different from traditional car insurance, so some consumers had to take their auto insurance business elsewhere when GEICO wasn’t offering this type of coverage.

Now these consumers can bring their classic cars back to GEICO and reunite with the company or have all of their vehicles covered at the same company again.  The consumer and the auto insurance company agree on a specific value for the classic car at the beginning of the policy term.  This is the value paid out in the unfortunate loss of the classic car when the consumer’s claim is being settled.  Pre-determining the auto’s value up front makes it easier for both consumers and insurance companies when a claim is filed.

Other things are also covered when you purchase classic or vintage car insurance.  Parts may be lost or stolen and you may be more likely to need towing services on a classic car.  Since many auto owners show their classic cars, you can get coverage for a hotel stay if your vehicle breaks down more than fifteen miles away from where you live.  Some people only drive their classic cars on a very limited basis, so comparing classic auto insurance quotes is important to save money.  GEICO insures the full range of vehicles.  The addition of classic car insurance into their line-up will allow drivers to save money by insuring all of their vehicles with the same insurance company.

UPDATE 8/7/2012

A few months ago, we wrote about the changes being made to Florida’s auto insurance laws.  A MarketWatch press release shows how disappointed many Floridians and consumer groups are with these changes.  In “Opponents blast auto insurance reform, medical care cuts,” we learn that many opponents of Governor Scott’s auto insurance changes believe that they are only in the best interest of auto insurance companies.  Governor Scott disputes those claims and says the main purpose for these changes is to cut down on fraud and eventually lower Florida’s cost of living.

In July, around 150 new laws took effect, including the limitation of medical benefits that will be paid out and the stipulation that injuries must be reported within 14 days of a car accident.  The government in Florida says that the $1.4 billion that personal injury protection claims have increased over the past 4 years is largely due to fraud in the insurance market.  Now that PIP benefits are capped at $2,500 unless an “emergency condition” is reported by a valid medical professional, Governor Scott believes there will positive strides in Florida’s auto insurance marketplace.

But opponents say that many terms in the new laws are too vague, such as what constitutes an “emergency medical condition” and what providers can be seen.  Chiropractors, acupuncturists, and physical therapists say they are concerned that people will develop many more chronic conditions after car accidents because they aren’t getting reimbursed for seeing these types of providers.  They government disagrees with these claims and is trying to assure Floridians that they will be treated for their valid medical claims following a car accident.  They say they are just trying to get rid of the rampant fraud caused by many of the things they have changed or banned.

The most important thing to remember if you are a Florida driver is that you have to file any medical claim within 14 days of a car accident.  Once you have done that, follow the exact procedures listed under the new laws so that you will be reimbursed by your car insurance company.  Despite the battle between consumer groups and the government, you need to follow the laws until they change, if they do.

5/5/2012

After years of debate, changes have been finalized for Florida’s PIP auto insurance.  According to Tampa Bay’s Fox 13 News, Jeremy Campbell says “Car insurance changes (are) coming soon.”  Rick Scott, Governor of Florida, signed a bill this week that will take effect on July 1st of this year.  Auto insurance companies and lawmakers have been working for years to battle fraud related to Florida’s Personal Injury Protection (PIP) insurance.  They say that these changes will help to lower auto insurance rates because the fraud was out of control.

What will the new bill change?  First of all, Florida drivers will have to seek medical attention for any injuries related to an automobile crash within fourteen days of the occurrence.  At one point, there was no cap on the amount of time that could lapse between an accident and receiving medical treatment.  Unfortunately, some drivers were abusing the PIP system and seeking treatment for injuries or medical conditions unrelated to the crash quite a time later.

Drivers will also have to seek this medical attention from a certified medical doctor or dentist.  They cannot go to see a chiropractor or a holistic type of healer for care if they have been injured in an automobile accident.  The amount of benefits you can be paid has now been capped at $2,500, unless a certified doctor says that you have an “emergency medical condition.”  The cap used to be $10,000, so this is quite a significant change.  If you live in Florida and need to use your PIP insurance, make sure to have your claim documented by a medical professional within fourteen days of your accident.

Auto insurance fraud is a serious problem and it ends up costing American drivers billions of dollars.  The more auto insurance fraud that is committed, the higher auto insurance rates must be to combat the fraud dollars lost.  The Coalition Against Insurance Fraud estimates that insurance fraud costs Americans around $80 billion per year.  This outrageous statistic worries insurers as they try to keep prices down for their customers.  Not only does it hurt American drivers, but it hurts the insurance company’s bottom line.

First Acceptance Insurance, a provider of quality auto insurance in the industry for over 100 years, is taking steps to limit the amount of fraud affecting their company.  They’ve outlined the necessary steps to take if fraud is suspected.  They offer phone numbers, and emails including information for the National Insurance Crime Bureau.  There’s an email for Special Investigations Unit which is dedicated to stopping fraud in its tracks.  Taking the time to report suspicious behavior is greatly appreciated by these fraud units.

Representatives are available to talk to individuals about potential fraud situations.  They are trained to recognize fraud early in hopes that dollars can be saved and the losses aren’t passed onto honest drivers following the rules.  During these tough times, perpetrators are feeling desperate and are turning to dishonest practices to make money.  Even small embellishments on insurance claims can add up to big costs that hurt the entire insurance industry.

Written by Sara Smart

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

Hurricane Irene has devastated many areas of the US and its estimated that at least 18 people have died as the storm moved from the Caribbean all the way up to New England.  The article “Hurricane Irene’s Damage, State by State” by Drew Armstrong on Bloomberg.com states that about $3 billion in damages have occurred and power was out in over 6 million homes and businesses throughout the east coast.

State Farm Mutual Automobile Insurance Company is the largest US home and auto insurance company in the nation and they’ve reported about 1600 homeowners insurance claims and about 500 auto insurance claims in just North Carolina and Virgina.  The number of claims will surely increase over the coming weeks.  State Farm received reports of siding and roofs blown off of houses and much destruction from the falling of trees.  There have even been claims for loss of food since the power outages have made food in refrigerators spoil quickly.

In the New York area, where the storm had weakened, claims are standing at about 360 homeowners’ claims and 60 auto insurance claims, but this is only after a few days.  People are still getting settled and assessing damage before calling their insurance company.  Storms such as Irene can cause slight increases in auto insurance quotes to account for all of the claims, but this generally happens over time.  Insurers across the nation are working hard to fulfill claims as efficiently as they can to ensure costs do not soar.  Sometimes, when there are heavy claims filed, insurers are quick to give out money to save time.  Hopefully insurance companies were prepared enough for this storm that it will not happen this way across the board.

Written by Sara Smart

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

Auto insurance quotes in Florida continue to rise and this is causing some serious concern for consumer advocate groups in the state.  According to the article “Fla. Consumer Advocate Focusing on Auto Insurance” by The Associated Press on MiamiHerald.com, Florida’s insurance consumer advocate is forming a solid group to address the issue of increasing auto insurance rates.

Robin Westcott, appointed by Chief Financial Officer Jeff Atwater, points out that one of the main reasons rates continue to soar is because of the no-fault coverage for personal injuries layout of Florida auto insurance law.  Westcott is encouraging those who have stake in the personal injury protection system including lawmakers to considering these groups and join to show support.  This would be a huge move in the industry to work towards bringing rates down for the residents of Florida.

Westcott says she hopes to submit the group’s research to Atwater and the Florida Legislature by November of 2011 and make serious strides towards a solution.  Florida’s rising rates have been an issue for many years now and the way the law is set up is encouraging rates to keep rising.  Something needs to change to protect Florida drivers from experiencing some of the highest auto insurance quotes in history.  The time and effort it will take to implement changes is huge, so the more support they can rally the better.  Florida residents need a voice to ensure rates are kept affordable.  Times are tough enough without the rising costs of auto insurance.  Since auto insurance costs are necessary for most Florida residents, it should be a top priority for lawmakers.  Time will tell if their efforts will pay off in the end.

Written by Sara Smart

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

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

New Jersey auto insurance consistently ranks as one of the highest states for auto insurance rates and regulators are looking to curb some of the rising costs through new regulations.  The article “What the New Car Insurance Rules Mean for NJ” found on NECN.com answers some of the top questions New Jersey residents have about how the new regulations will affect them.

New Jersey auto insurance is looking at a big overhaul from the proposed regulation changes for the personal injury protection component of auto insurance policies.  The changes will essentially change how and what physicians can charge for treatments and there will be a restructuring of the process for appealing a denied claim.  This is all in hopes that rising premiums will be slowed down and New Jersey auto insurance will become more affordable.

The article is very useful in answering questions many residents have.  It answers some details about personal injury protection and outlines why the system needs a makeover at this time.  The changes to medical services are discussed and gives an understanding of the changes being made to the approval and dispute process that New Jersey has long known.  Insurers will be benefiting from these changes in addition to the consumer so hopefully this encourages auto insurance companies to support the proposed changes and regulations are put into place quickly.  The regulations are not quite a done deal since the public has until the end of September to comment and a decision will be made at that time.

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

Florida has not had a hurricane for years, yet Florida auto insurance quotes continue to rise.  It’s been six years since the devastating Hurricane Wilma took it’s toll and since then every day claims for homeowners and auto insurance, including reopened claims, have risen 80%.  At this point insurers feel like there is not choice but to ask for higher homeowners and auto insurance rates according to the article “Soaring Claims Drive Florida Insurance Rates Higher” by Kenric Ward on SunshineStateNews.com.

Insurance companies are asking for rate increased for a couple of reasons.  First, there is a certain projection of future claims due to natural disasters and most states witness this type of increase.  Secondly, they are raising rates due to claims that have already been paid out that went above and beyond previous predictions.  Lynne McChristian, a Florida representative for the Insurance Information Institute confirms that these rate increases are due to future and past claims.

Just recently, Allstate Insurance Co and two of their affiliates asked for rate increases averaging 30%.  Castle Key Insurance Co. and Castle Key Indemnity Co. reported that there could be rates increases as high as 68% for individual customers.  These astronomical rate increases can devastate families financially, but it seems to be a no-win situation for everyone involved.  Some industry officials are blaming such increases on a new law, only affecting the state of Florida, which says insurers must pay full replacement costs for home repair upfront.  In addition to this, policyholders have up to five years to file a claim due to a particular hurricane which is throwing projections off.  The Insurance Information Institute reports that claims costs are increasing on average around 17% per year, and if this continues, no one will be able to afford a quality home or auto insurance policy.

Written by Sara Smart

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