Smart Auto Insurance Blog

Just like the cell phone industry fought for you to be able to take your phone number from one company to another, the auto insurance industry in California wants you to be able to take your discounts with you.  According to “Car insurance discount act could give break in prices,” Nannette Miranda of California’s ABC News10 says that your continuous coverage car insurance discount could become portable.

If the 2012 Automobile Insurance Discount Act passes, any driver who receives a discount for retaining continuous auto insurance coverage from one company would be able to take their discount to another company.  If this does not pass, companies will still be prohibited from giving discounts based on past coverage with another auto insurance company.  This initiative does not take into account any type of discounts for being a good driver.

A campaign consultant argues that this will allow for greater competition in the marketplace as companies can charge better rates.  The Consumer Federation of California disagrees.  They say that people who have been uninsured for any period of time will be hurt by 40-50% surcharges on their insurance coverage, even if they were uninsured because they didn’t have a vehicle.  Mercury Insurance tried to pass a similar initiative two years ago to no avail.  There are some people who believe Mercury is behind this initiative as well.

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

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Spokesperson for the Insurance Information Network of California says that states are turning towards alternatives to pay for traffic violations.  This can save money and prevent increasing California auto insurance quotes for drivers who have a clean record to begin with.

Some counties are offering traffic violation classes instead of a fine and other areas are even offering community service projects such as picking up a litter.  With the economic downturn, many drivers are finding this to be a pretty good deal, especially if it means they can keep their driving record clean.

The article “Pay Your Speeding Ticket by Picking up Litter” by Susan Ladika on the Fox Business website confirms that points on your record matter big time when it comes to auto insurance rates.  As an example, USAA Auto Insurance offers a substantial discount to those with clean driving records for a period of time.  Savings can add up to 5-7% and make a big difference in a yearly premium.

Violations can stay on your record for up to three years, so keeping your record clean is definitely beneficial.  Auto insurance companies are using this as a large factor in calculating quotes for customers.  If an alternative is available you can not only save money on the ticket itself, but in the long run your auto insurance rates may be less.

Written by <a rel=”author” href=”http://www.smartautoinsurance.com/author/sarasmart.html“>Sara Smart</a>

Nevada auto insurance quotes are too expensive for many residents in the state, and Assemblyman Kelvin Atkinson saw the need for the poor to get some help.   According to the article “Opposition Emerges to Bill Offering Low-Cost Auto Insurance to Poor” by Cy Ryan on The Las Vegas Sun website, Atkinson developed a bill to begin a low-cost auto insurance program for those living below poverty level in Clark County.

Although his intentions are good, Atkinson is meeting with some opposition to the bill from the Republicans.  Sen. Michael Roberson, R-Las Vegas isn’t for the bill stating that a similar plan has been tried in California and is not working.  Other Senators such as Sen. Mike Schneider, chairman of the Senate Committee on Commerce, Labor and Energy appreciates what the bill is trying to accomplish and sees the need to help the working poor afford auto insurance quotes.

The bill proposed by Atkinson would offer auto insurance at lower costs for those 250% below poverty level.  The State Insurance Division said approximately only 1000 drivers would sign up for such a program.  Joe Guild from Farmers Insurance said the bill would probably only save a driver $50 on a policy which may not make an impact.  With the uninsured motorist population at 19% according to the SAGE Commission, something needs to be done.  Rates have continued to increase making it harder and harder for the poor to afford to have proper coverage.

California auto insurance has had its ups and downs with auto insurance rates, and for 2011, California ranks 29th in auto insurance affordability according to the article from Mark Glover of The Sacramento Bee.  This was based on a new report released by InsWeb Corp.  This is actually an improvement from their ranking last year which was 34 in the Car Insurance Affordability Index survey.

In order to rank the states in their affordability, InsWeb looked closely at all 50 states and Washington DC.  InsWeb compared household incomes with the average auto insuance costs throughout the state to determine affordability.  For the 2nd year in a row, Massachusetts came in first place with a factor of 2.09%.  Louisiana came in last place with a factor of 6.76%.  California had a factor of 3.34% which was pretty close to average.

Being in one of the more expensive states for auto insurance makes it even more important to compare auto insurance online, or through an agent.  Rates can vary significantly from insurance company to insurance company.  They will look at many factors including location, driving record, and car make.  If you think you are paying too much for auto insurance shop around to make some comparisons.

State Farm auto insurance offers pay-as-you-drive auto insurance policies in California, Ohio, Texas and Illinois.  Progressive Insurance offers it as well throughout the US.  It’s getting more and more popular.  According to the article “Low-Mileage Drivers Benefit From Insurers’ Pay-As-You-Drive Plans” by Eve Mitchell on BellinghamHerald.com, auto insurance rates are tied to part of the actual number of miles driven and many consumers are seeing big savings.

State Farm specifically calls their program the Drive Safe & Save program and drivers can self-report their mileage online or at an agent’s office before they renew their policy.  Customers who drive General Motors, Saab, and Saturn vehicles with OnStar technology and have a diagnostics account can have their actual mileage sent right to State Farm for updating.  Drivers are paying better attention to how they drive in hopes that it will ultimately save them money on their quotes on auto insurance.

The pay-as-you-drive momentum is party due to California’s Proposition 103 which was the landmark auto insurance reform bill passed by voters back in 1988.  It requires insurance companies to base rates primarily on the customer’s driving record, number of miles driven per year, and driving experience.  More recent regulations allow actual mileage to be a voluntary alternative to estimated mileage and it makes it possible for auto insurance companies to obtain mileage verification from devices inside the car.  Any savings from actual miles driven are applied once the policy is renewed.  Drivers who are not on the road that often really appreciate this initiative and are hoping to see big savings over time on their auto insurance.

California auto insurance companies continue to debate Prop 17.  According to the article “Consumer Advocates, Insurers Battle Over Prop 17″ by Sue Kwon on cbs5.com The Yes on Prop 17 campaign is spending millions in ads to spread their message.

With Prop 17, the clean record discount would follow the driver if they chose to switch companies.  Insurance broker, John Morton, with the Alliance of Insurance Agents and Brokers wants the measure to pass.  He believes it’s a win-win for his clients.  He sees the good driver discount as something a driver should have ownership over regardless of what company they go with.  Morton also thinks Prop 17 will cause companies to compete and drive down California auto insurance quotes.

The Executive Director of the Consumer Federation of California, Richard Holober, believes the opposite will happen.  California auto insurance companies, such as Infinity Auto Insurance, may end up charging more to certain customers including students, military, unemployed, or low-income drivers because they break continuous coverage within 90 days.  This is detrimental to drivers in these groups who may have perfect driving records and otherwise would not get their rates raised on them.

According to the article “Insurance Changes Would Help 80% of Drivers” by Mike D’Arelli on sfgate.com, California auto insurance is about to see some major changes.  Thousands of auto insurance agents support Proposition 17 which will extend an auto insurance discount to millions of drivers in California who are forced to pay hundreds of dollars more every year for their auto insurance rates if they switch insurers.  It looks to reward good drivers and save them as much as $250/year.

Prop 17 plans to fix an underlying issue current in the auto insurance system.  Drivers who keep auto insurance with the same company are eligible for a continuous coverage discount.  If a consumer decides to switch carriers they do not get this benefit and Prop 17 will fix this flaw.  Drivers who follow the law and keep coverage continuously will still get the discount even if they change insurance companies.

Prop 17 will also increase competition among carriers and provide California drivers with many more options.  It will benefit up to 80% of drivers who keep continuous coverage.  It also contains some consumer protections to help those suffering from the economic downturn.  In addition, Prop 17 will protect our military men and women who are serving abroad and do not carry continuous coverage because they are not driving.  All of these provisions may seem like common sense, but it’s been the current law for awhile and it’s time for changes.  SR22 insurance will need to be still be carried by those high risk drivers who are required to carry this type of coverage.

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.

California Auto Insurance quotes are lower if you qualify for a special program that can get you affordable auto insurance.  According to the article “State Program Helps Connect Drivers With Low-Cost Auto Insurance” by Steve E. Swenson found on bakersfield.com says that the program offered in Kern County since 2006 is saving eligible drivers money.

The program is called The California Low Cost Auto Program and it offers coverage limits of $10,000 per person, $20,000 per accident, and $3,000 for property damage for as little as $254/year.  Quotes on auto insurance in California can be pricey and tickets for not carrying auto insurance can be extremely expensive, up to $786 according to court officials.

To qualify for the program applicants must be 19 years old or older, have a license for 3 years continuously, and have no more than 1 at-fault accidents, or 1 point for a moving violation in the last 3 years.  California Insurance Commissioner Steve Poizner believes the program needs to be supported, especially during the tough economy and high rate of unemployed drivers.