Smart Auto Insurance Blog

Mercedes newest protocol, The Experimental Safety Vehicle, offers some impressive features that may drastically reduce injuries and deaths in the case of an accident.  This is according to the article “Mercedes May Help Owners Get Inexpensive Auto Insurance with Safer Car” by Shannon Brown on Cheaper Car Insurance’s website.

If this new safety car is brought to the market and proven effective it will affect the auto insurance quotes for Mercedes drivers.  This unique design basically turns the car into a giant airbag before impact which protects the driver and the passengers.

Mercedes continues to be on the forefront of vehicle safety.  There are even more special safety features in the models coming out soon.  Mercedes make safe driving a priority and it shows in their efforts towards making safer models.  Unfortunately, prices for these types of cars are on the rise, but at least it’s good to know that many auto insurance companies give discounts for cars that are proven extremely safe.

Getting into an accident is a very stressful situation, whether it’s your fault or not.  It’s important to ensure that you know what to do in the case of an auto accident and even more important to remain calm.  The article “5 Steps to Filing Your Auto Insurance Claim” by Bobbie Sage on About.com discusses some key points to remember if you are in an auto accident.

First, evaluate if you actually need to file a claim.  If the damage is minor and you can pay for it out of pocket without any financial stress that may be the way to go to keep your driving record clean.  Second, document every detail of the accident to be sure you have the information to give your insurer if need be.  If deemed necessary, file your claim as soon as possible.  Most auto insurance companies, including Bristol West Insurance, are available 24 hours a day, every day to receive your claim information.

Be sure to prepare for a call from the insurance company of the other driver involved.  There may end up being a dispute in which case you will need to have all your information available.  Once your claim has been accepted you may get a visit from an insurance adjuster to access the damage and let you know where you can go to get your car fixed.  Getting in an accident is a complicated mess many times, but it doesn’t have to be.  Being prepared is the first step to a smooth resolution.

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.

According to the article “Texting While Driving Ban: Texting While Driving Laws Do Not Reduce Accidents” found on khabrein.info/news, a recent study shows that the recent bans on texting has not effectively brought accidents down in California.

The research was conducted by Highway Loss Data Institute, which is a non-profit organization supported by the auto insurance industry.  The research shows that the rate of accidents before and after laws were enacted in California have not significantly changed.  The study also pointed out that accidents in CA haven’t shown any significant changed in comparison to Arizona and Nevada where there are no bans on texting while driving.

The Automobile Club of Southern California finds the research interesting but they do not plan on accepting the study, citing that the samples were not large enough and the study is inconclusive.  It’s still known that any distraction while driving will put you at a higher risk of being in an accident, whether it’s texting, changing the radio, or programming a GPS.

There will be a voter initiative on the June 2010 ballot for Californians aimed at giving discounts to drivers who have had insurance for a long time according to the article “Californians To Vote On Auto Insurance Persistency Discount” by Patricia-Anne Tom on insurancejournal.com.  This discount would apply even if Californians switched carriers confirmed by the Secretary of State.

The Continuous Coverage Auto Insurance Discount Act will mean lower California auto insurance quotes for many but it’s facing criticism by consumer groups because the act will penalize drivers for not having previous auto insurance coverage.  The article says that the measure would legalize surcharges on auto insurance and penalize good drivers for accidents that weren’t necessarily their fault.  The group believes it could ultimately lead to more uninsured drivers on the road.

Kathy Fairbanks of CalFAIR says this ballot proposal will reward over 80% of responsible Californians who keep auto insurance coverage which is required by law by making them eligible for this discount even if they switch auto insurance companies.  Currently, the discount cannot be offered to new customers.  California drivers will be able to carry this discount with them if they choose to shop around for better rates and switch insurers.

According to the article “How Does Cell Phone Use Affect A Cheap Car Insurance Quote?” by Sharon Gibson on youronlineinsurance.com, cell phone safety is a major concern for law enforcement.  More and more traffic incidents are caused by people talking and texting on their cell phones.  Cell phone usage is a huge distraction and directly affects your driving.

More and more auto insurance companies are offering discounts to drivers who are willing to drive safer.  You may get a discount for having a cell phone disabling system which is a device which blocks calls as well as text messages while you are operating the car.  Some companies will flat out ask you what your driving habits are in regards to cell phones.  Your answer may directly affect your car insurance quotes.

In today’s busy world it is becoming increasingly harder to put down the cell phone or personal digital assistant.  It’s important to realize the impact driving while using your phone can have.  Not only are you more likely to be an unsafe driver but it could end up costing you hundreds of dollars in insurance premiums over the years.

California law requires the filing of SR22 Insurance for high risk drivers who have had their license suspended for DWI, reckless driving, or other major violations.  The website SR22Filing.com specializes in filing the SR22 Insurance form and they represent a lot of companies to get you the lowest auto insurance rate, which can be very challenging if you are a high risk driver.

SR22 Insurance simply proves that you are covered by auto insurance.  SR22 Insurance Services claim to get you covered quickly and relatively easily.  By getting the SR22, you are showing the DMV that a company agreed to write you a policy and you are covered to get your license back again.  Once you are deemed a high risk driver getting insurance can be difficult so it’s useful to use a company that specializes in such filings.  It can take many, many years to get a clean driving record once you have major violations.

According to the article “Car Insurance Scofflaws Raise Health Mandate Doubt” by Kristen Wyatt from the Associated Press found on Google, thousands of people on the road do not carry auto insurance even though most states require it.  This raises the question of the effectiveness of a health insurance mandate working.  It is something Congress continues to consider.

There have been auto insurance mandates out there for about 40 years and the insurance industry says it has not necessarily made the roads safer nor has it lowered auto insurance rates.  The President and CEO of the Property Casualty Insurers Association of America believes that a driver’s personal financial situation is a better indicator of whether or not they will carry auto insurance.  High auto insurance rates may force a driver who is strapped for cash to go uninsured. 

States with higher poverty levels have a similar correlation with the amount of uninsured drivers are on the road.  People cut back on auto insurance when they can’t afford it and there is a real possibility that if they make health insurance a requirement the same thing will happen.  People cut costs where they can in times of trouble and although health insurance and auto insurance are both highly important coverages, people risk going without it to put food on the table and keep water in their home.

As to be expected, auto insurance rates are very high for teenage drivers because they are riskier since they are new and in the learning process of driving.  The article “A Crash Course On Auto Insurance” by Diane Giles on kenoshawnews.com points out that adding a teen to an auto insurance policy can double the yearly premium. 

Director of Insurance for the Consumer Federation of America, Robert Hunter, says that data on teen deaths and accidents is very bad.  It’s especially bad for young, male drivers and that is directly related to their auto insurance rates.  Auto insurance companies use this data to determine who is most likely to file a claim.  Car crashes are the number one cause of death among teens in the US.  A driver age 16-19 is 4 times more likely to have a fatal car crash compared to a driver age 25-69.  That is astonishing and extremely concerning. 

Experts agree that it is crucial for parents to get involved and educate their kids on driving safely.  Not only drugs and alcohol are distracting kids.  It’s also talking on the phone, texting, and loud and rambunctious passengers.  By having your teen contribute to their auto insurance bill it can encourage them to drive safely.  They need to understand the direct correlation between a clean driving record and the cost of auto insurance.

According to the article “Credit Scoring Is Hurting Customers” found on sacbee.com from The Dallas Morning News, even if you are a responsible driver you may end up paying higher car insurance rates if you have blemishes on your credit file.  Whether or not this is fair is currently a huge debate.

The Dallas Morning News analyzed the insurance industry and found that people with poor credit paid 35% more on home and car insurance.  In certain cases, the insurance rates were more than double people with good credit, even if they had similar claim history.  This just goes to show how crucial it is to stay on top of your credit score.

Auto insurance companies believe that using credit as a risk factor helps to identify higher risk customers.  They cite The University of Texas research that shows drivers with lower credit ratings file more claims with their insurers.  They say that if it weren’t for the credit rating factor everyone would pay higher rates.  Credit scoring is no where near an exact science and can often hurt good customers. 

As you are shopping around for car insurance quotes try to identify if your credit may be affecting your premiums.