Smart Auto Insurance Blog

The Freeman Auto Report found that new car sales in the greater Austin area increased 10% in 2010 compared to 2009.  This is still far off pace from new car sales in 2007, when over 100,000 new cars were sold in Austin according to the article “Texas New Car Sales Increase in 2010″ on USInsuranceonline.com.

General Manager of Jaguar Land Rover Austin said in an interview with the Austin American-Statesman that this is a good sign and that 2011 will be a good year for everyone.  The economy is slowly picking up and this is definitely affecting new car sales as well as car insurance quotes in Texas.

The Texas Department of Insurance says the market has recently added 9 new providers which could make prices more competitive for Texas auto insurance rates.  This is just in time since minimum liability rates just increased causing overall premiums to increase.  With more providers in the market, hopefully they will compete for consumer business making rates stay flat or even decrease.

Texas is not the only state to feel the economy creep back through car sales and car insurance policies.  At this point there may be a light at the end of the tunnel for the economic slump that’s been keeping us down for the past few years.

According to the article “New Year Brings New Insurance Requirements for Texas Drivers” by Spencer Lubitz on KRISTV.com, car insurance quotes are increasing in 2011 in the state of Texas.  Bodily injury and property damage limits are increasing minimum requirements according to Michael Morgan, an agent with State Farm Auto Insurance.

Under Texas’s current minimum liability limits each policy must cover at least $25,000 worth of damages for each individual injured in an accident, $50,000 for everyone hurt in the accident, and $25,000 for property damage for each accident.  After January 1st, 2011, each policy will need to cover $30,000, $60,000 and $25,000 respectively.  The change will only affect policies which currently carry the minimum requirement.  This equates to approximately 50% of Texas drivers.

It’s hard to say exactly how much policyholders will have to pay extra, but any increase in cost is not welcome.  Factors will include car type, age of the driver, and the individual’s driving record.  Although increases aren’t expected to be drastic, insurers recognize in these times every dollar counts with customers and they will be doing their best to ensure competitive prices remain for policyholders.

According to the press release “The Hartford Tops Ranking of Auto Insurance Web Sites” found on Business Wire, Hartford Auto Insurance has one of the most user-friendly websites.

The Hartford Financial Services Group, INC, announced recent research put forth by Change Sciences Group, which gives their website top marks for consumer use.  The study looked at ease-of-use, content quality, the use of social media, and persuasiveness compared with the top 17 auto insurance companies.  Based on this information, this would be an easy site to use to get quotes on auto insurance as well as purchase a policy. 

Pam Pavliscak, a partner at Change Sciences Group says The Hartford scored the best in the research because the site requires lower user effort and simultaneously providing valuable information.  They practice hyper usability, which is working to ease the burden of entering data and navigating the site.  They provide the appropriate information at the right time, making it easier for consumers to get through the site with ease.  Hartford Auto Insurance prioritizes the improvement of their online presence because they realize how important it is to an overall successful insurer.

According to the article “Auto Insurance Industry Improving…Will Rates Decrease?” by Brad Ricahrds posted on WorldBreakingNews.com, the auto insurance industry has reported slight growth over their 2009 results.  They are hopeful this means the industry is making an upward turn for the long haul and will result in lower auto insurance rates over time.

During tough times many drivers cut back to the most basic auto insurance coverage possible to save money.  Some carry no coverage at all.  As the economy picks up again, consumers start upgrading their insurance protection which is good news for auto insurance companies.  Many are hoping that this recovery will cause auto insurance rates to go down.

A new bill, Proposition 17, is expected to pass and will require auto insurance companies to give discounts to car owners that have had auto insurance protection for periods of time.  It’s expected to work as a reward system for loyal customers but is could reduce overall auto insurance rates for many drivers on the road.

According to the article “AAA Hawaii Lowers Car Insurance Rates” posted on USInsuranceonline.com, car insurance quotes are going down in Hawaii.

Auto insurance from AAA Auto Insurance in Hawaii will be costing drivers about 10% less because of a recent approval from the state insurance commissioner.  AAA says the lower rates will save residents about $120 per year on average.

State insurance Commissioner Jeffrey Schmidt says The Insurance Division carefully reviewed the rate filing and they were happy to approve a discount for Hawaii drivers.  In addition to the drop in auto insurance rates, AAA states that drivers could get even more discounts for various different reasons.  Discounts will be available for having more than one car on a policy, holding more than one policy, and having a history of safe driving.  This is great news as many try to save money during these tough times.

Progressive Auto Insurance has been named by CIO Magazine to its 2010 CIO 100 this week according to the article on Powernewsnetwork.com by Magan Salano.  This is the second year in a row that Progressive has received this award.  The CIO Awards give this honor to 100 companies that use innovative technology to enhance their business.

Progressive currently uses Microsoft NET with their company’s systems.  This type of technology is used by Progressive to provide an infrastructure that enables easy expansion for their products and services.  Ray Voelker, Progressive’s Chief Information Officer says their goal is to provide their customers with access to a large range of products, including the ones developed by other services.

This type of recognition lends to the success of Progressive.  They were one of the first auto insurers that offered to compare auto insurance quotes for the customer, and they continue to be very successful.  They are one of the nation’s largest auto insurance groups, and they are the largest seller of motorcycle policies and are a leader in commercial auto insurance based on their policies written.

One of the major factors auto insurance companies use when determining your car insurance rates is your driving record.  According to the article “Are You Driving Distracted, and is Your Auto Insurance Suffering” published on lexch.com, even non-fatal crashes are bad to have on your driving record.  Driving safely can end up saving you a lot of money in the long run.

According to Distraction.gov, which is the official US Government site for distracted driving, there are 3 main types of distractions which include visual, manual and cognitive.  In 2008, distracted drivers caused about 5870 fatal car crashes.  This is a staggering statistic which should motivate us all to stop unnecessary distractions while driving such as talking on our phone, texting, or eating.  Even having a conversation with other passengers can distract you from focusing on the road.

Before you get car insurance quotes, be sure to understand where your driving record stands.  Accidents do fall off your record over time as well as tickets and even some DUI’s.  But it’s important to note that the safer you drive, the less likely you are to be in an accident and pay higher car insurance rates.  Not to mention you may save lives, including your own and friends and family, if you are consistently a very safe driver.  There are so many reasons to drive safe, and no good reason to risk it and distract yourself from paying constant attention to the road.

Bristol West Auto Insurance, along with many other auto insurance companies are getting hit with fraudulent claims.  According to the article “Report: Staged Car Wrecks On the Rise” by James Hart on blogs.kansascity.com, there has been a 40% jump in car accidents since 2007 staged on purpose with the sole purpose of ripping off insurers like Bristol West.  This statistic comes from a report from The National Crime Insurance Bureau.

Many of the fraud accidents are committed by all knowing parties, but sometimes the perpetrators target innocent drivers.  To avoid becoming a target, follow these simple tips:

• Avoid tailgating
• Always call the police immediately if you are involved in an accident
• Use your phone camera to document any damage as soon as it happens
• Never admit fault

Protecting yourself on the road is very important and knowing this type of fraud is going on can help you be more prepared if you are involved in an accident.  Avoiding the accident altogether is obviously ideal so your car insurance quotes are not affected.

The JD Power 2009 National Auto Insurance Study rankings are out and Amica Mutual stays strong as the award recipient.  The detailed rankings can be viewed on JD Power’s website.  USAA and the New Jersey Manufacturers Insurance Co. both ranked very high as well but are not included in the rankings since they are exclusive auto insurance groups.

Amica Mutual ranked among the best for all the categories which include overall satisfaction, contacting the insurer, policy offerings, billing and payment, and pricing.  Contacting the insurer is a score based on how customers rate their experience dealing with the auto insurance company in terms of an agent, call center representative, website, or an automated phone system.  This may include getting car insurance quotes.

Policy offerings is based on how customers rate the type and variety of coverage options offered by the insurer.  It also factors in the extent in which the company meets their needs.  Billing and payment is based on timeliness, accuracy, and the clarity of billing statements, and the overall payment process whether through regular mail or the internet.  Pricing factors in the actual cost as well as the type of coverage at that price.  Shelter Insurance and State Farm also ranked well in the study.

According to the press release “Progressive Launches Industry’s First Android App for Car Insurance” from Business Wire, Progressive Auto Insurance has a phone application for the Google Android (TM) operating program.  Android happens to be the fastest growing smart phone out there according to data from comScore, Inc.

Matt Lehman, Progressive’s Web experience director says they have seen a 30% increase in visits to their Mobile Website by Android owners over the last 4 months.  They have aimed to simplify the mobile app experience for the Android customers.

Progressive is the first major US auto insurance company to offer an Android app for auto insurance.  They also have an iPhone Apple application as well as their Mobile Website.  You can download the free Progressive app for your Android at the Marketplace on Android phones.

Many companies are leaning towards mobile phone users since more and more consumers want to access their financial information through their phone.  Benefits of these various applications include getting car insurance quotes and purchasing a policy, making payments and updating policy information, and reporting ad tracking claims.  In is the wave of the future, and perhaps smaller auto insurance companies, such as Dairyland Insurance, will offer some sort of similar benefit for their customers.