Smart Auto Insurance Blog

According to the article “Shops debate the place of insurers in the repair process” by Brian Albright on SearchAutoParts.com, car designs have become more complicated and costly which is causing auto insurance companies to become more involved in the repair process.

Conflicts often arise between repairers and insurers as the insurance companies pressure shops to reduce costs.  The repair shops often see this as unnecessary meddling as they deal with their own financial pressures.  Most shops prefer that the insurance company cut a check and stay our of the repair process, but customers find value in the insurers taking over and the insurance companies want to keep costs down as much as possible. 

Not all insurance companies get in the way.  State Farm auto insurance is generally regarded as cooperative according to this article.  Recently they have engaged in programs looking for efficiencies in the repair business.  While some independent shops see this as intrusive, others see it as positive.  Gene Regan is a general manager at Causeway Collision Center in Manahawkin, NJ and he believes it’s a good thing State Farm is getting involved.  He sees the programs bringing the shops and insurance companies together to practice better business, and that ultimately will benefit the mutual customers.

Iowa auto insurance consumers are in for some price increases.  According to the article “State Farm to Increase Iowa Auto Insurance Rates” by Karen Mracek on desmoinesregister.com, State Farm Auto Insurance is raising some prices in the state by an average of 2.2% by July 27.

Auto insurance rates for comprehensive coverage and collision are increasing the most and the cost of liability is also going up.  The cost of medical payments will be remaining the same for most customers.  The premium changes will vary from customer to customer based on what kind of policy they have, where they live and the type of car they insure.

State Farm is the largest insurer in Iowa, insuring about 1 out of every 5 cars on the road.  The increases are caused by the influx of claims over the year, but even after this increase State Farm’s overall rates are still much lower than they were 5 years ago by over 12%.  State Farm is still committed to keeping prices reasonable for their customers.

The commissioner of the LPGA, Carolyn Bivens, says she has had a series of conversations with State Farm Auto Insurance about the future of the LPGA event in Springfield, IL.  She is optimistic about an agreement being reached between State Farm and the LPGA for a new title-sponsorship contract.  She did not say if or when the agreement would be reached according to The State Journal-Register. 

During these tough economic times, few sports are getting automatic renewals but Bivens is encouraged by State Farm Insurance’s efforts to support the local LPGA tournament event.  As many companies are holding back, State Farm is stepping up to invest in the community and the LPGA.

State Farm Insurance has named their agent Steve Borklund to the Chairman’s Circle, a prestigious award within the company, for the fifth time!  This award not only recognizes top sales, but honors agents with their ability to demonstrate and represent State Farm’s values.  Many go to Borklund to receive their State Farm Insurance quote, and he has met strict criteria and sales goals to receive this award. 

Steve has been with State Farm Insurance for 39 years and joins a small, select number of people in South Carolina to receive the Chairman’s Circle recognition.  And this is his 3rd consecutive year to win this award!  He offers a wide range of insurance and financial products and is extremely knowledgeable in the industry.

State Farm Insurance’s Corporate Headquarters in Bloomington, IL, received the US Environmental Protection Agency’s (EPA) ENERGY STAR for the year 2008.  This certification means that State Farm Auto Insurance is exemplifying superior energy efficiency and prioritizing the environment’s protection. 

The EPA introduced ENERGY STAR in 1992 as a partnership to reduce greenhouse gas emissions through efficient means of running energy.  Today the ENERGY STAR is found on 50 different types of products and is considered an honor by companies to receive.

Georgia auto insurance companies such as State Farm are charging lower auto insurance rates to drivers with better credit ratings, WALB News’ Jim Wallace reports. With these ratings, the higher the better. Insurers believe that lower credit ratings correlate with a higher likelihood of filing auto accident claims. A motorist’s credit rating plays a large part in calculating the insurance score that determines the premiums they charge. (Other factors include your driving record and demographic characteristics like age, location, and marital status.) Unfortunately, the perceived greater risk results in more expensive auto insurance for those with bad credit.

If your credit is good, Jim says that this is the perfect time to take advantage of the competition in the state’s car insurance market. Otherwise, try to improve your credit rating before shopping around for auto insurance quotes. You could save hundreds of dollars per year!

(Photo credit: History.com)

According to an editorial on Ocala.com, Governor Charlie Crist is considering a ban on State Farm selling Florida auto insurance. State Farm will lose almost 3 million auto insurance policyholders in Florida if that provision goes ahead.

Crist, along with state Senator Mike Fasano, is retaliating against the insurer’s announcement that it will phase out its homeowners’ property insurance in the state. State Farm is leaving the market because they were not allowed to increase rates by enough to make it profitable to insure the hurricane-prone region. They are probably hoping State Farm won’t go ahead with their market exit if it means forgoing the auto insurance profits in the state.

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According to a press release, State Farm is lowering its Georgia auto insurance rates next month. As of March 9th, both comprehensive coverage and collision coverage premiums will decrease by an average of 1.5%. (However, medical and liability coverage rates will not change.) This is thanks to State Farm having to pay out fewer insurance claims than expected. This decision by the largest auto insurer in the state could save drivers over $16 million!

Get your own State Farm quote now and see if you will save money under the new rates.

This is pretty shocking, but it’s more proof that you need to read your auto insurance policy very carefully: Stephanie Day of InjuryBoard wrote that State Farm recently denied a claim to pay for the usage of the jaws of life in responding to an car accident. They refused to compensate the fire department because in their view, the jaws (which extricate an accident victim from a car crash) are not included in the medical payments coverage of the insured, since it is technically a non-medical expense.

I hope you never end up in such a situation, but be sure to do your research and make sure exactly what your particular policy does and does not cover, besides just looking at the premium and deductible costs. Your health insurance may cover this, or it may not.

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