Smart Auto Insurance Blog

According to the article “Auto Insurance fraud cases surge, commissioner says” on myvalleynews.com, cases of suspected California auto insurance fraud has increased significantly over the past year.  State Insurance Commissioner Steve Poizner discussed the surge during an appearance in San Diego on Tuesday. 

It is suspected that the economic downturn is causing the increase in fraudulent behavior, but Poizner reminds Californians that breaking the law will only compound financial problems.  The state Department of Insurance estimates that fraud claims are up by 25% from 2007 to 2008.  The agency also received 200 more notices about possible auto theft fraud in 2008. 

Poizner advised that state insurance fraud investigators are hard at work to crack down on anyone attempting auto insurance fraud.  Not only does this behavior mean problems for the perpetrator but it also ultimately raises everyone’s auto insurance rates.

By the end of the year California auto insurance may have a new option for their drivers.  According to the article “Pay-as-you-drive auto policies could become an option by year’s end” in the LA Times by Marc Lifsher, paying by the mile may be a reality.

Much like cellphone users have started to purchase talk time per minute, drivers could start buying their auto insurance by the mile.  Regulations proposed Friday by state Insurance Commissioner Steve Poizner, auto insurance companies would be allowed to offer pay as you drive which would lower insurance bills by keeping drivers from behind the wheel. 

There are other possible benefits from such a pay structure.  Less cars would be on the road to potentially curb traffic jams and gloabal warming.  There would be less greenhouse gasses emitted into the atmosphere over time.  No one would be forced to take advantage of the pay as you drive option, so drivers with long commutes to work or drivers who travel a lot may find it cheaper to stick with the conventional auto insurance ploicy.

According to Marc Lifsher at the Los Angeles Times, State Farm plans to lower auto insurance rates in California for 3.3 million drivers.  Customers can expect to see an 8% drop for a total savings of $219 million beginning July 6 as policies are renewed or bought new. 

This couldn’t come at a better time with the way the economy is going.  America is going through one of the toughest economic times in history and every bit of money saved helps.  There’s never been a better time to shop around for auto insurance to ensure you are getting the best deal.

Insurance.com recently announced, via press release, the addition of Infinity Insurance Company to their stable of auto insurers on their platform.

Infinity Insurance will offer comparison car insurance quotes in California both online and by phone, and joins Insurance.com’s impressive group of insurance companies, which now numbers 15.

Other top companies that participate in Insurance.com’s comparison quoting engine include: Hartford, Liberty Mutual, Progressive, Safeco, Travelers and many other leading car insurance companies.

According to insurancejournal.com, the Automobile Club of Southern California has anounced a $101 Million rate reduction for their members in California, which represents a 5.4% decrease on average for all auto insurance policy holders.

The new California auto insurance rates will go into effect on April 1 2009 for policy renewals and new members.

The auto insurance rate decrease was the 2nd major decrease offered by the Automobile Club of Southern California in the last three years.