Smart Auto Insurance Blog

You may have seen some recent commercials on TV or ads in the paper from Nationwide Auto Insurance discussing their Vanishing Deductible program.  A vanishing deductible sounds appealing but how does it exactly work and is it a good deal?

Basically this benefit will apply to good drivers only.  If you’ve never filed a claim with your auto insurance company you may feel that it’s unfair to pay the same deductible as someone who has filed claims in the past.  Nationwide believes you shouldn’t pay the same deductible if you have a clean record.  That is what motivated them to create this unique plan for good drivers where the deductible “vanishes” with good behavior.

The Vanishing Deductible program drops your deductible by $100 for each year you are a safe driver.  They even offer a $100 discount for signing up.  This optional feature does seem appealing and doesn’t have much of a downside.  According to their website, annual credits are subject to eligibility requirements with a maximum credit of $500.  It’s important to understand that details and availability of the plan vary from state to state so check with a local agent to see if this is an option for you.  Having an insurance company that offers little perks like this can make all the difference since the market is so competitive.

Bristol West Insurance has a link on their page to The Coalition Against Insurance Fraud website with some useful information for consumers discussing how prevalent auto insurance fraud really is.  One particular article discusses how even minor “fudging of details” can be considered fraud and ends up costing insurers and ultimately consumers a lot of money.

Auto insurance fraud is not only committed by hardened criminals or fraud rings.  Many normal and generally honest people commit fraud through leaving out or changing minor details.  Some people feel they are owed more because of all the premiums they have paid so they tell a little white lie to get a little extra money.  They feel it’s a small amount and won’t hurt anyone.  The truth is, with so many people thinking this way, the losses to the insurance companies can really add up and at this point the costs are passed on to the customers through higher auto insurance quotes.

Ask yourself if you may have fudged the details just a bit in your favor.  Here are some questions to determine if you may be guilty of insurance fraud.  Have you ever underestimated the amount of miles you drive to work?  Have you ever said you park your car in a garage when you do not?  Have you let an auto repair shop inflate your bill to recoup your deductible?  Have you ever inflated the value of items in your car or home when filing a claim?  These are just a few examples of minor fraud violations that add up and really do end up costing everyone more money.  When you know better, you do better so, ensure you are as accurate as possible with your insurance company.

If you are already in the military you probably already know about the amazing benefits USAA Auto Insurance gives to their members.  What a lot of people do not realize is that you can become a member of USAA if you have a parent or spouse in the military as well.  Even if they are retired, your military parent or spouse can get you into USAA and you can start reaping the benefits of low rates, superior customer service and top quality products.

You can save hundreds through USAA according to their website.  The average person saves about $450 per year when switching to USAA.  If you own another USAA product such as a checking account or a homeowners policy you could end up saving even more.  They offer accident forgiveness for good drivers for as little as $1 per month.  There’s also good student discounts as well as safe driver savings.  USAA offers flexible payment options at no additional charge, and you can pick your own pay schedule.

USAA has been honoring our military men and women and there families for years by offering such top quality products with easy access and guaranteed renewal.  Additional perks such as roadside assistance, award winning claims services and multiple discounts makes USAA one of the top auto insurance companies and should definitely be considered if you are eligible.  It’s good to know our military has a place to go to ensure they are getting a great deal and being treated with the utmost of respect.  They definitely deserve it.

It’s generally recommended that everyone should compare auto insurance quotes when shopping for a policy, but new research shows that it pays of big time for drivers under the age of 25.  According to the article “Price Comparisons Pay Off for Yonnger Drivers” by The News Tribune, average premiums vary from insurer to insurer but the difference is very large when you are a young driver.  Des Toups, senior managing editor at the CarInsurance website says the difference is massive.

As an example, a 55 year old man can save an average of $456 a year by shopping multiple auto insurance companies, whereas a driver under 25 can save about $1102.  This is an extremely large difference that young drivers should be aware of.  One reason premium quotes vary so much for young people is their driving record.  They often are a question mark and this can be a major driver of auto insurance quotes when shopping around.  Young drivers don’t have a track record yet to prove they are good drivers and each insurer has its own method of determining the risk of these drivers.

There doesn’t seem to be a consensus of what ultimately matters or not.  Some see good grades as a factor while other insurers do not.  There are many factors that go into determining an auto insurance quote and it’s hard to tell for a young driver what will drive the quote the most.  So shop around and compare quotes, especially if you are young with a limited driving record.

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.

Allstate auto insurance announced earlier this week that they are purchasing Esurance and Answer Financial from White Mountains Insurance Group according to the article found on USAToday.com.  Allstate is purchasing the companies for about $1 billion and they said the deal will help them obtain customers who prefer certain brands and value choices.

White Mountains Insurance is based in Hanover, New Hampshire and they expect to see an increase in their book value by $80 per share.  Esurance sells auto insurance directly to drivers through the internet as well as through extensive call centers.  Answer Financial is the independent insurance agency.

This is a big deal and both parties will be affected.  Allstate has agreed to pay $700 million plus the net value of the companies.  The price altogether will be around $1 billion.  Spokeswoman Maryellen Thielen says Allstate expects the deal to reduce earnings the first year or so after the deal closes, but after the first year earning should not drop.  Allstate’s first quarter profit more than quadrupled because it paid out less money for claims.  This profit was way above Wall Street’s expectations.  All in all this is a good step for Allstate who expects to see this acquisition benefit the company in the long term.

If you happen to find yourself in need of a quick SR22 insurance filing many companies can do it for you immediately including Eastwood Insurance headquartered in California.  This is particularly important if you need this information filed by a certain date to get your license or to ensure you have the proper auto insurance coverage in place by a certain time.

An SR22 is a certificate of insurance filed by an auto insurance company or insurance agent directly to the state in either an operator’s certificate or an owner’s certificate.  There is also an operators-owners certificate option.  SR22 isn’t exactly a type of insurance which often confuses consumers.  It is the name of a certain form insurance companies need to file for certain policyholders.  Not all states require SR22 but it is often required if your license has been suspended or revoked.  This makes the SR22 associated with high risk drivers who have somehow broken the law or had an exorbitant amount of violations.

It’s very important to get the SR22 form filed correctly if you are required to do so.  The SR22 insurance certificate is to certify coverage to the Division of Motor Vehicles in a particular state.  The insurance company is then required to notify the Division of Motor Vehicles in the case of the policy being cancelled, terminated, or if there are any lapses in coverage.  If you find yourself needing this type of form filed, check with your insurance company to see if this is something they offer.  Not all auto insurers file this paperwork so you will have to confirm yours does.

Progressive Auto Insurance has been named in Diversity MBA Magazine in its “50 Out Front Diversity Leadership: Best Places for Diverse Managers to Work” list.  The magazine lists the top companies for women and minorities to pursue positions of leadership each year.  Progressive is known for embracing diversity and it shows in this honor.

Neil Lenane, Progressive’s director of employee experience says people with different backgrounds and experiences are crucial to the growth of the business.  He believes it’s the diversity that makes Progressive Auto Insurance Company such a great place to work.  Progressive was named in part because of their consistent commitment to diversity throughout their entire company.  Progressive recruiters advertise with ethnically diverse organizations and job boards to encourage the growth of their diverse community.

Diversity MBA Magazine looks at over 400 employers on the Fortune 500 list and consider a variety of factors including employee retention, recruitment efforts, and the company’s accountability.  The magazine says that it’s a very competitive list with a 30% increase in participation by companies this year.

The provider of affordable auto insurance, Donegal Insurance, has a user-friendly guide on their website outlining fire and home safety.  This is valuable to customers who want basic information on what to look for in their home in order to keep their family as safe as possible.

The article provides a checklist for safety features to look for in any home.  It’s encouraged to go through the checklist as a family and ensure each bullet is addressed.  Some of the items on the checklist include:

• Smoke detectors installed and tested
• Carbon Monoxide detectors installed
• Fire Extinguishers accessible and working
• Fire escapes accessible
• Updated wiring throughout home
• Sidewalks in good condition
• Handrails on all stair cases

These are a handful of examples of what type of safety features every home should have.  Each county has different requirements for what is a must, but in general these items and the rest of the list will ensure you are in a safe home and can have peace of mind that you are doing the right thing to keep your family away from harm.

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.