Smart Auto Insurance Blog

The Florida Supreme Court has ruled that Geico car insurance must pay for damage and injuries from a rental car crash, even though the driver was not their insured.  Geico argued that they were not liable for the coverage because the person driving was not an authorized driver under the rental contract.  But after all was said and done through multiple courts, Geico lost the battle.  Since the driver who got in the car accident was authorized by another driver who was authorized by the insured driver, that trumps the fact that their name was not on the rental car contract.

Insurance Journal’s article, “Insurer Must Pay for Florida Rental Car Crash by Unauthorized Driver,” shows that car insurance quotes which cover any authorized driver on your vehicle include rental cars.  The rented car was a “temporary substitute auto” for the insured driver, so those authorized to drive the vehicle are covered in the case of an accident.  This trumps the fact that the insured driver was the only one authorized by the actual rental car company.  Sadly, the reason for all of this litigation is that minors were badly injured in the car crash and one passenger lost their life.  Be sure to know the details of your car insurance policy if you are authorizing someone else to driver your vehicle.

Written by Sara Smart

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

Auto insurance fraud continues to be a major problem across the nation and it’s affecting how much everyone pays for their car insurance quotes.  With proper monitoring, it’s possible to decrease the amount of fraud out there but it needs to be a group effort.  South Carolina Attorney General, Alan Wilson, stated that about $12 million was reported in South Carolina alone last year in auto insurance fraud.  This was found in a recently released report according to the article by Jessica M. Karmasek on the Legal Newsline website.  This astounding number needs to come down but it’s hard to determine exactly how to do this.

Falsified claims are the number one cause of auto insurance fraud and this is why most auto insurance companies have a claim review team in place.  Suspicious claims are sent to an expert department for review and if considered possible fraud the claim will be investigated.  Unfortunately, the downside to this process is that not all of the suspicious claims are truly fraud so innocent people end up getting the run around when submitting a claim.

With online auto insurance quotes a popular method for obtaining auto insurance, it’s no surprise fraud on the internet is happening.  Most companies, including First Acceptance Insurance and Progressive, offer quotes online for auto insurance policies.  Checks are in place to ensure the policy being set up is for the right person and the right vehicle.  Credit report information such as social security numbers, addresses and date of birth are used to confirm identity.  This is not a perfect science either and perpetrators can even alter credit reports if access is obtained to the credit reporting agencies.  Hopefully, over the next few years, monitoring will improve and the amount of fraud will decreased, ultimately lowering our auto insurance rates.

Written by Sara Smart

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

We all know that competition generally returns better prices for products but that holds extra true for car insurance quotes.  A survey from Gocompare shows that approximately 25% of consumers do not change companies when it comes to car insurance, homeowners insurance, and other financial accounts.  The article “Consumers Benefit From Competition for Car Insurance Quotes and Bank Rates” by Ed Dixon on Newstaar.com points out how drivers are missing out since car insurance is a highly competitive industry.

Most car insurance companies do not offer loyalty benefits for staying with the same insurer, so with that said, why aren’t more people shopping around to compare quotes?  Awareness is definitely one concern.  Many consumers aren’t aware of how highly competitive the market really is and don’t even think of changing companies.  They inadvertently have loyalty to an insurer and they’re not even sure why.

With so much competition in the car insurance arena, drivers who are no shopping around are missing on a huge opportunity to get lower rates, especially if they have a good driving record.  If you’ve been with the same company for years and years, your rates may have slightly gone up since you first became a customer and you don’t even realize it.  By shopping around you are getting other companies to fight for your business and offer you market low prices.  There’s no downside to shopping around.  If no one can beat your current price then you just stay with your current provider and no harm done.  You’ll likely be surprised how much money you can actually save.

One Beacon Auto Insurance offers insurance products through their exclusive relationship with Hagerty and tailor policies for collectible autos as well as wooden boats.  Hagerty offers auto insurance for thousands of collector cars that are generally used for light driving, car shows or club events.  According to their website they offer a large variety of classic, stock, and safely modified cars.

You may be wondering if your classic car qualifies as a collectible.  Some items that may be covered include antique cars, new cars with limited production, modified cars, utility vehicles, retired commercial vehicles, motorcycles, raced cars, trailors, cars under restoration, military vehicles or tractors.  Some items generally not covered by this type of insurance include camping vehicles, cars used for daily use, commercial-used cars, motorcycles with performance modifications, any vehicle with nitrous components, and dune buggies.

If you are unsure if your car would qualify as a collectible car you can contact Hagerty to receive car insurance quotes.  It is possible you have a collectible car and don’t even know it.  It used to be said that any car 20-25 years old was considered a collectible but that is no longer the case.  Many cars from the 70s and 80s are not considered collectible but they might be if they are convertibles, 2-door sports cars, have a unique body, foreign sports cars or big block V8 engines.  Contact One Beacon or Hagerty to determine what category your car may fall into.

Most car insurance companies, including Progressive and American Commerce, have their own calculation for determining car insurance quotes.  You may feel like the rate you end up paying is out of your control but that isn’t necessarily the case.  There are numerous factors insurers use that are within your control and knowing what they are can help you save money.

The biggest factor is often driving record, and although you cannot do anything about the past, you can control your future driving habits and wait until previous driving violations fall of your records, which they eventually do.  You can have a clean slate with a little patience and careful driving practices.  Another big one these days is credit rating.  Again, the past is the past, but derogatory marks fall off your file in about 7 years, and focusing on paying your bills on time and keeping your debt levels down will pay off in the long run.

Of course what type of car you drive is going to have a huge impact on your car insurance quotes.  In general, the more expensive the car the higher your quotes will be.  Take a serious look at how big of a car you need, and how important luxury really is considering the overall costs.  Not only will that actual car cost more money, but maintenance and insurance will be higher.  The extra money can add up to a lot over the years.

And make sure you are shopping around for the best rate.  Just because one car insurance company gives you a hefty price, doesn’t mean they all will.  Get at least 3-4 quotes, if not more, and compare any trends you may see.  You’ll also want to make sure your coverage is sufficient and meets your needs.

It’s well known that you can get car insurance quotes from Donegal Insurance, but many people do not realize how easy it is to get boatowners insurance coverage.

Donegal Insurance offers many types of insurance products, one of which is boatowners insurance protection.  Boatowners insurance provide the extra coverage you need to ensure your boat is protected.  Donegal covers the entire boat from bow to stern and provides coverage on water or land.  Their policy extends to motors, controls, electric equipment, and standard fuel equipment.  They ever cover extras such as boat oars, anchors, life preservers, and additionally a boat trailer.

Legal liability is taken care of with boat liability and medical payment coverage.  Coverage is extended in the case of a boating accident and there are many other optional coverages.  Some of these options include Boater’s Emergency Towing and Labor, Boat Replacement Cost, Uninsured Boaters Protection, and Boater’s Personal Property Coverage.  You can even get discounts through boatowners insurance.

Specifically noted on Donegal’s website are discounts for the completion of certain safety courses, built in fire extinguishing systems, depth finders, and of course if you have other insurance products through Donegal Insurance you can find yourself with an up to 10% off discount on your boatowners insurance.

We are bombarded with car insurance information all the time and it can often be challenging to sort out the facts from fiction.  According to the article “Experts Dispel Common Auto Insurance Myths” by Larry Printz found on The Ledger, AAA and the Insurance Information Institute have gathered the top car insurance myths out there right now and work to set the record straight.

The first myth is that red cars have higher car insurance quotes.  Color typically is not used when car insurers calculate quotes.  The second myth is that insurance costs increase as you get older.  Often times the opposite is true that rates decrease with driving experience.  The elderly can even take courses which will earn them discounts on their car insurance.

The next myth has to deal with your credit score.  Some people think it has no bearing on car insurance but it usually does.  If you have trouble paying your bills, car insurance companies can worry about you paying your premiums and some studies have shown a link between driving record and credit rating.  The fifth myth discussed clarifies that your policy does not automatically cover you for theft or damage to your car.  You have to carry comprehensive and collision.  Another myth is that the car insurance policy does not follow the car but it does.

One myth circulating is that soldiers end up paying more for car insurance, but this is not the case.  Many auto insurance companies actually offer discounts to military men and women.  The final myth says car insurance will cover you for business use of your car.  Depending on your situation you could find yourself uncovered if you happen to be using your car for business purposes, so double check to see what is included in your policy if you do use if for work purposes on occasion.

Hopefully dispelling some of these auto insurance myths out there will help consumers make more educated decisions and will carry the coverage that works best for their individual situation.

Auto insurance companies have been using gender as a pricing mechanism for many years when determining auto insurance quotes.  Women typically get lower auto insurance quotes because they are less likely to be in an accident, but despite this fact, many view this type of risk-based pricing as discrimination.

Things are looking to change in Europe when it comes to using gender in pricing.  According to the article “EU Court Bans Gender Basis for Insurance Cost” on DW-World by Andrew Bowen, the European Union’s highest court banned using gender as a factor when determining price.  The European Court of Justice ordered insurance companies to adopt a way of calculating rates without useing gender by December 21st of 2012.

This could have a negative effect on consumers over time.  EU law already banned using gender but the insurance industry had an exemption as long as the insurers regularly published statistical information on which their rates were based.  CEA, Europe’s insurance industry lobby, is against the decision and say the impact on price, benefits and consumer options could be huge.  Is this a trend that will make its way to the United States?  Only time will tell, but if it does it’s fair to say it will have a big impact on the way auto insurance rates are calculated and many will end up paying more for their policy.

In today’s economic environment people everywhere are trying to save money where they can.  Once it’s time for a new car, many consumer are turning towards used cars as their purchase of choice.  Not only is this because used cars are generally less expensive but auto insurance on used cars is often cheaper as well.  If you compare auto insurance on a used car verses a new car you will find the quotes to be cheaper on the used cars in most instances.  This is because the used cars are on average less expensive to repair and replace.

The government offers a convenient outlet for buyers to search for used cars through auto auctions.  The General Services Administration (GSA) is helping consumers better understand the benefits of using auctions and work hard to make the process smooth.  It can be easy to find a very good deal on a used car through an auction, but it’s important to go through a reputable service to ensure you are getting your money’s worth.

The GSA offers a comprehensive website to prospective buyers that is very user-friendly.  GSA holds public auctions throughout the US at registered auction sites.  By registering at their website you can receive more information on auctions in your area and be well on your way to a quality used car at a competitive price.

Once a child turns 16 and they receive their license they must be covered by auto insurance and that usually occurs by a parent placing them on their policy.  When a teen has divorced parents and has multiple residences, auto insurance coverage can get a little tricky according to the article “Auto Insurance Coverage for Teen Drivers With Divorced Parents” by LVRJ.com.

Auto insurance companies and states have different policies when it comes to covering additional drivers in a household so it’s important to contact your insurer to see how to proceed.  Chances are, if you have a child who has access to driving cars at both parent’s homes then both parents will need to add the child to their policy.  The article says that some auto insurance companies will advise divorced parents that whoever has custody during the school year should add the child onto their policy.  Both parents are encouraged to contact their insurer to see how the requirements may be different.

Auto insurance is a requirement for all drivers and this is often glossed over by new drivers.  Regardless of who adds the child to the policy, there should be a united front on rules while driving.  Prohibit cell phone use and texting when in the car, limit the number of passengers when your child is driving, strictly require seatbelts and establish a driving boundary where your child can drive at any given time.  Remaining firm on these guidelines will help your child become a safe driver and hopefully cause lower car insurance quotes for you and your family.