Smart Auto Insurance Blog

According to the press release “Legislators Take Aim at Ohio Auto Insurance Verification Program” found on OnlinePRNews.com, Ohio state representative Matt Huffman re-introduced a bill that would stop an auto insurance verification program given by the state of Ohio.

The Random Selection program has sent out letters to car owners who are asked to mail in proof of auto insurance to the Bureau of Motor Vehicles since 1998.  The point of the program was to cut down on the number of uninsured drivers on the road.  If the person did not respond within 90 days their license was suspended and they had to pay a fine.  Based on a report from the Columbus Dispatch, approximately 5400 letters were sent out weekly and about 500 of those did not carry auto insurance.

The Insurance Research Council says that about 16% of Ohio drivers were uninsured in 2007 and that number is believed to have risen since unemployment has risen steadily throughout the state.  This may mean that the verification program is not effective in which case the BMV could save a lot of time and money by cutting back on the program.  Rep Huffman advised a panel that there were some unfair instances related to the mailings and this type of problem could be resolved fixing or eliminating the program.

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!

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.

Auto insurance quotes vary greatly from state to state.  According to the article “Where Auto Insurance Is Most Expensive” by Jennifer Saranow Schultz on nytimes.com, Louisiana has the highest average auto insurance in the US and Maine has the lowest.  This data was accumulated by insure.com, which ranked the states based on average auto insurance rates.

This data was released this week and comes from a study completed by Quadrant Information Services which looked for the most and least expensive car to insure across the country.  The information determined average auto insurance quotes for over 2400 cars from the 2010 model year from 6 large companies across 10 zip codes in every state.  This also enabled auto insurance rates in general to be compared from state to state.

It’s surprising how dramatically auto insurance rates can vary from state to state.  Insure.com says the varying laws from state to state is partly to blame.    Regardless of how good someone’s driving record is, a portion of your rates are at the mercy of your states’ insurance laws.  Shopping around is your best bet at getting comparison quotes.  Even smaller companies such as Bristol West Insurance can offer competitive rates.

Currently only 12 states have no-fault laws in place according to the article “How Florida No-Fault Auto Insurance Laws Work” by Robert Fredricks on youronlineinsurance.com.  A no-fault law means that there is a limit on what a driver can sue another driver’s auto insurance company for.

Florida has a qualitative threshold with its no-fault law which means that for particular injuries or death the driver can sue the insurance company for up to a certain dollar amount.  These types of laws can keep auto insurance rates in check because the auto insurance companies are not getting sued for as much as in other states where just about any type of lawsuit is allowed.

Because of this type of regulation, Florida auto insurance tends to be lower which is great news for residents.  There are other states that have much stricter no-fault laws which only allow drivers to sue for the exact amount of injury or damages not already covered by the auto insurance company.  One downside to these types of no-fault laws is that when real permanent damage has been done the victim can be left short of what they truly deserve.  It can be hard for these victims to fight for what they believe is right.

Many question whether or not gap insurance, offered by most auto insurance companies, is worth the money.  If you need it, it will come in extremely handy.  According to the article “Car Gap Insurance: Is it Right For You?” by Russ Heaps on bankrate.com defines gap insurance as the coverage difference between the actual value of your new car and what the value was when you drove off the lot.

This can be a huge benefit if you are in an accident with your new car because the average new car loses 30% of its value the first year after it is purchased.  By the 3rd year that loss in value will be closer to 50% according to the senior consumer advice editor at Edmonds.com, the auto data provider.  If you are protected with gap insurance your insurance company will pay the difference in this high cost, rather than you.

You are a good candidate for gap insurance if you lease a car, finance it for 60 months or more, put down less than 20%, roll negative equity from a previous loan into a new car loan, driver over 15,000 miles a year or buy a new car with a history of high depreciation rates.  Check with your auto insurance company to see if this gap coverage is offered.  Get a quote with Dairyland Insurance to see if their benefits suit your needs.

Identity fraud is a growing problem with the rise in popularity of Internet quotes on auto insurance and online banking.  Although victims can end up not being liable for lost money, it can be very pricey for the victim to prove their innocence.  Their credit rating can also be destroyed which may take years to repair.

Many insurance companies are offering protection to their policy holders to help them avoid this disaster.  Encompass Car Insurance is one of those companies and on their website they outline what their Identity Fraud Protection covers.  They will pay up to $20,000 for expenses incurred as a result of identity theft.  They will also cover lost wages up to $500 per week for up to 4 weeks for time away from work because of the fraud.

Some other benefits of the products are covered loan fees if you are denied a loan due to incorrect information caused by the fraud and any new application fees incurred.  With prior approval from Encompass Car Insurance they will also pay for reasonable lawyer fees.  If a lawyer is used to defend you against any lawsuits are filed against you by any merchants or collection agencies, Encompass will help you.  This is an extremely valuable benefit to have through your insurance company, and not all companies offer it.  Be sure to look into what kind of protection you may have.  It could save you a lot of time and money.

Chicago car insurance quotes are managed by Illinois State Law according to the article “New Minimum State Requirements for Chicago Auto Insurance Quotes” by Cathy Wilson on youronlineinsurance.com.  Some of the mandatory coverage options are discussed in the article.

Car insurance continues to be mandatory in Chicago so anyone driving must be covered.  Liability coverage is also mandatory.  This covers the driver for injuries to other people, other cars and property.  The minimum liability is at $20,000 per driver in a car accident.  The max coverage is $40,000 and property damage excluding the car caps at $15,000.

Illinois drivers who are not insured properly or not insured at all will be responsible for the costs from the injuries up to the state minimum liability amounts.  They may also be responsible for damages that are not covered.  It’s important to be familiar with all of the driver and insurance laws in your state if you plan on operating a vehicle.  They can change from year to year as well, so keep up with the changes. It’s a good idea to periodically get Illinois auto insurance quotes as well.

Prop 17 is a proposal on the California ballot sponsored by Mercury Insurance which will allow auto insurance companies to charge many drivers for various reasons.  This includes military people who did not purchase auto insurance while living on base even if they didn’t own a car at the time.  This is according to the article “Nation’s Leading Insurer of Soldiers, USAA, Criticizes Prop 17; VoteVets.org Announce Opposition” found on InsuranceNewsNet’s website.

USAA, which was formed in 1922, says it cannot support the bill because of the negative impact it will have on active duty men and women.  The rating system does not take into consideration the special circumstances of our military men and women and USAA does not feel this is right.  VoteVets.org signed a ballot argument against Prop 17 and they represent 100,000 veterans and military families.

Under Prop 17 drivers, including soldiers serving stateside, who stop driving and did not need insurance for a certain time period would have to pay hundreds more for their auto insurance when they decided to restart the coverage.  Doesn’t seem fair to people who have legitimate reasons to stop carrying insurance for small periods of time, such as the military.

Wisconsin is now requiring all drivers to carry auto insurance and with increased coverage, it could mean increased premiums.  According to the article “Auto Insurance Changes for June” by Kristin Crowley on fox11online.com the law that was meant to increase driver safety may backfire.

As coverages for Wisconsin auto insurance increases so will premium costs, which may cause more people to go without auto insurance.  This goes against the whole reason for the new law in the first place.  Wisconsin Insurance Alliance President Andy Franken states that about 14% of Wisconsin drivers are currently uninsured.

It is still to be determined how premiums will be affected by the new law, but one thing is for sure.  If you choose to drive without insurance it’s going to cost you.  The Wisconsin Department of Motor Vehicles states that driving without insurance will cost up to $500.  Even more expensive is fraudulent insurance issues which will be fines up to $5,000.