Smart Auto Insurance Blog

Last month, we talked about California’s Proposition 33, which went to vote along with the Presidential election on Tuesday.  Prop. 33 would have let auto insurance companies offer discounted rates to drivers who have maintained a long history of coverage, regardless of which company was covering their vehicle.  The San Francisco Chronicle’s Drew Joseph gives us the results of California’s vote in “Prop. 33: Car insurance changes defeated.”

Insurance companies are able to offer lower car insurance quotes to drivers who have maintained insurance coverage with their company, but continuous coverage discounts were not allowed to be transferred to another insurer.  Voters have rejected Prop. 33, so nothing will change in that respect, much to the dismay of Mercury Insurance’s George Joseph.  He offered $16.9 million, or 99% of the funds used to campaign for Prop. 33.  Opponents of the Proposition raised less than $300,000.

Two years ago, Prop. 17 asked Californians to pass a similar law regarding the transfer of car insurance coverage discounts.  That failed as well, although it was close to passing.  George Joseph of Mercury and other supporters said that even more residents would get insurance discounts with Prop. 33 than would have with Prop. 17.  But opponents of both issues said that too many people would be punished with higher auto insurance premiums to make up for the discounts offered to others.  They pointed specifically to the large amount of unemployed Californians that may be without auto insurance for a significant period of time.  The discounts offered to some drivers would have to be financed by others getting punished.  It remains to be seen whether Prop. 33 will be put on the ballot again under a different number, but George Joseph seems to have a lot of funds to put towards his cause.

I found an article on NASDAQ that gives six good tips to keep in mind when looking for an auto insurance policy.  In “You might have less car insurance than you think,” Barbara Marquard says that some of the coverage you carry probably has exclusions and limits of which you are unaware.  It’s a good idea to keep these six things in mind not only when shopping for auto insurance quotes, but also check with your current auto insurance company, such as American Commerce, and see if any of these limits apply to your policy.  That way you can make changes before it is too late and you have to file a claim.  A consumer analyst recommends reading through your car insurance policy cover to cover.  While you may have more interesting reading materials in mind, this can save you quite a bit of hassle when filing a claim.

Some insurance companies lower your liability coverage to state minimum levels if a driver who isn’t on your policy uses your car.  Many people carry 100/300/50 liability coverage, but state minimums are much less than that coverage.  If someone uses your car and gets into an accident, you might be covered for far less than the 100/300/50 that you are paying for in your premiums.  Underinsured motorist coverage is important when you get into an accident with someone who is at fault and only carries state minimum coverage.  But when it comes time for your underinsured motorist coverage to kick in, car insurance companies deduct anything paid by the underinsured motorist’s coverage from what they owe you.  For example, if your medical bills are $50,000 and you were paid $25,000 by the other driver’s insurance, your insurance company will deduct that $25,000 from the $25,000 they owe you.  Therefore, you wouldn’t get anything for your underinsured motorist coverage!

The majority of states have a law that allows auto insurance companies not to pay your medical bills if you were under the influence of drugs or alcohol at the time of your car accident.  If someone without a driver’s license crashes your car while driving it, some insurance policies will not cover any damage in the case of an accident.  A lot of policies do not include coverage when you are using your vehicle for any kind of business.  This includes pizza delivery, newspaper delivery and all other types of business.  If you are using your vehicle for any kind of business driving, make sure to compare auto insurance policies so that you include coverage while you are working.  There are also some restrictions related to car theft.  If there is no sign of forced entry, maybe because you didn’t lock your doors, many auto insurance companies will not pay out.  Also, if you have added things to your car that are not standard, like a new stereo system, some companies don’t cover those additions.

You may be surprised by some of the exclusions and limits related to your car insurance policy.  Check with your insurer and shop for new policies with these six tips in mind.

There are many reasons why your needs change during the retirement phase of your life.  Which vehicle you choose to drive is one of the facets of life that may change once you reach your retirement.  This could be for financial reasons, space or comfort.  Fox Business published a Bankrate article by Donna Fuscaldo with some great cars for retirees entitled “Seven Safe and Smooth Cars for Seniors on a Budget.”  You have to put a little more time and energy into your car search, but you can still find a car that is safe, affordable, stylish, and comfortable.

Take any potential health concerns into account when looking for a car in retirement.  If your vision is beginning to show problems, look for large controls, sun visors that extend, and larger side mirrors.  For those with arthritis, four door cars work best as well as those with keyless entry, power seats, and thick steering wheels.  All seven of the cars listed in this article are less than $20,000 to purchase.  You can also get a reasonable auto insurance quote, another way to help retirees with an often limited monthly budget when they stop working full time.

The Jeep Patriot 4 x 4 has top safety features and an electronic information center that makes it easy to monitor gas levels and other statistics.  Subaru’s Impreza 2.0i Premium has been voted the best compact car as well as the all-wheel-drive car with the best fuel economy in the United States.  The Ford Focus S has top safety features and an optional parking assist system that parks the car for you with the press of a button.  Chrysler’s 200LX is larger than the compact cars and offers comfort and a quiet ride.  Another Ford, the Fusion, is the most expensive on the list, but offers the title of the most dependable midsize car.  High safety and high technology abound with the Kia Sportage, which also offers a ton of optional additions.  Finally, the Hyundai Elantra GT has a lot of cargo space for retirement hobbies, as well as standard satellite radio.  As auto and insurance needs change in retirement, shopping around is the best way to make sure you find the right products for your needs and price.

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.

Did you know that your auto insurance company can charge you higher rates if you are close to the limits on your credit cards or have filed bankruptcy in the past?  In most states, they can.  In 47 states and the nation’s capital, credit-based car insurance pricing is allowed and is commonly used.  This so-called insurance scoring has been used for more than a decade, but will be outlawed soon if some opponents have their way.  According to Insurance News Net’s “OAI: Auto Insurance Scoring Bill Highlights Controversial Practice,” three Democratic House members have a bill they hope will end the process of insurance scoring.

Currently, when you are looking to get a quote on auto insurance, in most states insurers will look into your financial history before making your quote.  They can increase your premium based on your applications for new credit, how close you are to your debt limits, and other financial factors.  Many different states have already tried this type of bill on the state level to no avail.  If state auto insurance legislation is any indicator of how this bill will fare federally, it has quite a difficult path to follow.  Massachusetts is the only state that has passed a recent ban, but it was just an update of an existing ban on this insurance practice.

There are two hotly debated sides to this issue and both have their points to be made.  Supporters of insurance scoring say that studies show that people with bad finances tend to file more auto insurance claims and bigger claims than those with a sound financial history.  Based on this they say that pricing is more fair and accurate when insurance scoring is used.  Without it, those with strong financial backgrounds would be paying more than they should to compensate for those with poor financial histories.  Opponents of the program say that lower income drivers are already struggling and this will catastrophically hurt those who are trying to do the right thing by carrying auto insurance.  We’ll keep you updated with where this bill goes.

Most of us are getting ready to celebrate Independence Day tomorrow, which includes watching or riding in a parade for quite a few Americans.  If you plan to drive your car in any type of 4th of July parade tomorrow, there may be some auto insurance considerations for which you need to prepare.  Those driving in parades often take a lot of time to decorate their cars, but they should also contact their car insurance companies to make sure they are covered in a parade.

I found some neat ideas for car decorating on eHow’s “Ideas for Cars in Parades.”  They suggested using convertibles when possible because those riding inside seem more approachable and welcoming.  I can see that.  Not everyone has a convertible though, so signs are a great way to garner attention.  Make sure anything you attach to your car is not going to ruin your paint job or interfere with the driver’s vision.  You can also use balloons and bullhorns to draw attention from the crowd.  The article even suggests using a cardboard cutout of a celebrity; that is pretty funny.  From personal experience, I think throwing candy is one of the best ways to make spectators happy and get their attention.

Driving your car in a parade can open it up to damage from spectators, other cars and floats, and any type of things being thrown to the crowd.  Some classic cars are only driven a few times in parades.  That is also true for vehicles that tend to tow floats or personal cars that need to be used yearly to promote a cause.  According to the Classic Car Insurance Guide from Only Mustang Fords, you can actually get parade auto insurance quotes for cars that are only driven in parades throughout the year.  If you are using your daily car in a parade, just double check with your auto insurance company that they will cover any damage or injury that might occur.  Enjoy your Independence Day and Happy Birthday to America!

Car and Driver magazine came up with a list of the 10 Best Cars for 2012, according to Yahoo! Auto News.  Their list is compiled all from cars under $80,000 and all of which are available for purchase by next January.  Included in the list are new cars, cars with major updates, winners from their 2011 list, and cars that weren’t yet available for last year’s list.

Before purchasing one of these cars, check out all of the great benefits listed and be sure to check auto insurance quotes and make sure your premiums won’t change too drastically with one of these new cars.  The Audi A6 and A7 top the list because of their excellent power, steering, structure, and bang for the buck.  With 21 years on the Best Cars list, the BMW 3-series and M3 have not even had a close competitor to match their benefits.  Next on the list is the Cadillac CTS-V because of its looks and power.  The Ford Focus is referred to as a “street fighter” and Car and Driver recommends only getting the manual transmission with the SE Sport Package.  The Ford Mustang GT/Boss 302 is on the Best Cars list because of its crazy good value; you get more power for $41,000 than anything else out there.

The Honda Accord is next on the list because of its old-school talent and goodness that has no comparisons in the industry.  The Honda Fit is praised for its huge genius in a little package, the Mazda MX-5 Miata for its unrivaled characteristics, and the Volkswagen Gulf/GTI for their small yet never boring components.  Finally, even though the Porsche Boxter and Cayman may increase your California auto insurance quotes, its well worth it for the amazing and pure sports car experience you’ll get from these vehicles.

Written by Sara Smart

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

Even though auto insurance quotes are quick and easy to obtain, and almost every state requires coverage, 1 in 7 people still choose to go without auto insurance.  This surprising number has increased slowly over the years, probably due to the economic downtown that is affecting so many Americans.  According to industry experts, 13.8% of motorists are uninsured and these causes higher rates for everyone who follows the rules and remains insured.

The article “One In Seven Drivers Have No Insurance” by Larry Copeland on USA Today, points out that insured drivers end up paying more because of uninsured drivers.  This came out to around $10.8 billion in 2007 based on recent data from the National Association of Insurance Commissioners.  David Corum, vice president of the Insurance Research Council, a non-profit group, says the number of uninsured drivers has been studied closely.  The consequences for not carrying coverage do not appear effective even though most states do require insurance coverage.

Loretta Worters, vice president of the Insurance Information Institute says auto insurance is compulsory in every state but New Hampshire but laws have proven ineffective in reducing the number of uninsured drivers on the road.  The state with the lowest uninsured rate is Massachusetts at 4% and the highest is Mississippi at 28%.  This huge difference is also surprising.  Obtaining auto insurance quotes has never been easier with the Internet instantly comparing multiple quotes, but this isn’t powerful enough to combat the fact that many Americans simply cannot afford the rising costs of auto insurance.  It will be interesting to see if these statistics change as the economy repairs itself.

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

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.