Smart Auto Insurance Blog

As online auto insurance quotes are getting more popular so are the concerns over giving personal information over the internet in order to shop around.  According to the article “No Personal Information Needed For Online Auto Insurance Quotes” by John Pirro found on emailwire.com, auto insurance companies are recognizing these concerns and are making the process easier.

Many insurers allow online quotes without sensitive personal information such as a social security number or driver’s license number.  It’s important for consumers to understand though that the less information they share, the more of an “estimate” the quote really is.  A quote is no guarantee since most insurers use driving records and credit information in calculating auto insurance rates.

It can be beneficial to use certain websites where you only have to enter in your information once and the site will generate numerous quotes for you.  Limiting the amount of times you enter in your personal information can be helpful in keeping it safe.  Visit www.smartautoinsurance.com to learn more about obtaining online auto insurance quotes.

There are 6 main reasons why you should shop around for auto insurance quotes according to the article “305 Compelling Reasons To Compare Car Insurance” by Neil Faulkner on lovemoney.com. 

Reason number 1 is that you may get ripped off if you don’t shop around for auto insurance quotes.  The article points out that one insurer to another can often be 7 times the cost.  Reason 2 is that prices vary widely from one company to another.  It’s not just the difference from company to company, but price varies widely from year to year as your profile and demographic changes.

The 3rd reason points out that loyalty does not pay in the auto insurance industry.  If insurance is getting cheaper in the market, your price will stay the same if you do not request a recalculation.  Reason 4 discusses the value of your actual policy.  It’s important to ensure you have the best benefits possible in your policy.  Reason 5 is that rates may be increasing so you want to lock into a low rate when you can.  And reason 6 is obvious, but extremely important…you will save money if you shop around for auto insurance quotes.  The internet makes this quick and simple so there is no reason you shouldn’t take advantage of the opportunity to compare rates.

According to the article “NICB: Suspicious insurance claims up” by Susan R. Miller found on bizjournals.com, the number of questionable insurance claims increased to 41,619 in the first half of 2009, up from 36,743, in the first half of 2008. 

NICB member insurance companies refer these claims to the Des Plaines, IL based bureau for investigation based on certain indicators of fraudulent activity.  The report does not determine how many of these referrals end up being true fraud.  It also does not look at causal factors.  It’s only looking at raw data. 

Suspicious auto insurance claims increased by 21% in the first half of 2009.  Auto glass fraud is the number one type.  Suspicious car theft claims were 6,852, up 10% from 6,216 in the first half of 2008.

Residents may be in for a surprise when they obtain their California auto insurance quotes.  According to the article “State considers revised mileage-based auto insurance” on Central Valley Business Times’ website there is a new draft of pay as you drive regulations that has recently been released.  This revised plan may cause auto insurance quotes in California to consider how much a driver is in the car when determining the cost of a policy.  This has been in the works for months, and is backed by Insurance Commissioner, Steve Poizner. 

This article states that Poizner believes the pay as you drive concept is a cutting edge program which will create motivation for California drivers to drive less.  This will eventually lead to lower auto insurance costs, less pollution in the air, and less dependence on foreign oil. 

Some are concerned about the intrusion on privacy that the pay as you drive might create.  The Electronic Frontier Foundation says the original regulation would allow auto insurance companies to install electronic devices into their policy holders’ cars to track how much they drive.  It will also track a variety of other information such as location and seat belt wearing.  The revised plan will prohibit black boxes to track location.  Companies will use odometer readings and estimates from the policy holder as well.  It’s still to be determined how this new regulation will all pan out in the end.

According to the article “Hurricane Ike raises Ohio home, auto insurance rates” on Cantonrep.com from the Associated Press, Ohio auto insurance and homeowners insurance is on the rise.  The Ohio Department of Insurance show that rates are up 6.9% for homeowners and up .8% for auto insurance most likely due to Hurricane Ike from last fall.

The storm crushed much of Ohio in the fall of 2008 and caused a very large number of claims which in turn affect everyone’s insurance rates.  Officials say this is a common reason for premiums to increase.  The Insurance Department’s analysts predict homeowner and auto insurance rates will continue to increase throughout 2009.  The director, Mary Jo Hudson states that Ohio still has some of the lowest insurance rates in the U.S.  As an example Ohioans pay an average of $542 a year for homeowners insurance, but the national average is $801.  So, Ohio policyholders shouldn’t be too discouraged.  It is definitely worth shopping around for quotes if you feel you do not have affordable auto insurance.

California auto insurance policy holders are in for some good news as California implements a $34 million statewide rate reduction announced by California Insurance Commissioner Steve Poizner on Wednesday.  This is according to the article “21st Century to cut premiums for California drivers an average of $50″ by Marc Lifsher on LATimes.com. 

21st Century Insurance, which was recently acquired by Farmers Insurance Group, insures over a million California cars.  This is about 5% of the private passenger car insurance market, so this is a big deal that they will be experiencing an average of $50 in cut costs on their auto insurance rates. 

A Farmers Insurance Group spokesperson stated that they were able to drop rates because of less accidents and less severe accidents being claimed over the past years.  Annual dollars saved will average $80 in Los Angeles county, $62 in Sacramento county and $58 in San Francisco.  This is great news as California residents are trying to save money in this challenging economy.

It’s always important to understand what type of auto insurancecoverage you carry, but now more than ever we need to pay close attention.  This is according to the article “Car Insurance in the New Economy” by Ed Normund on Injuryboard.com.  The recession is causing more and more drivers to cut back on their coverage or eliminate auto insurance altogether and this may cost you in the long run.

The article recommends certain types of coverage that can help protect you during these tough times: 

1. Bodily Injury Liability - pays for injuries that you cause to another based on negligence
2. Property Damage Liability - pays for property damages that you cause due to negligence
3. Umbrella Insurance - covers you for bodily or property damages from auto accidents
4. Uninsured Motorist Protection - covers injuries to you and others when hurt by someone else
5. Comprehensive coverage - covers your car for damage caused by theft or other events
6. Collision insurance - covers you for damage to your car when in a crash with someone else
7. Medical Payments or Personal Injury Protection Insurance - covers you and your car occupants for limited medical payments with no regard to who is at fault

Take the time to understand what is included in your auto insurance policy to ensure you are fully protected.  What type of coverage you have does factor into your rates, so consider closely what you do and do not need to ensure you have adequate and affordable auto insurance.  It’s often better to be safe than sorry in the case of a car accident.

A profile for non-standard auto insurer United Automobile Insurance Company (UAIC) has been added to the auto insurance company directory.

More information about non standard auto insurance for high-risk drivers

On Wednesday, May 13, Florida Cabinet members refused to stop auto insurance companies from charging new policy holders higher rates if they have been in not at fault accidents. 

Industry representatives say that charges for new customers with accidents on their driving record is a common practice, even if the customer didn’t cause the accident.  They say it’s justified because research shows these drivers are at higher risk of filing claims and it’s often difficult to determine who is at fault for the accident. Auto insurance companies need to consider all facets of the driving record to understand the customer’s risk and charge the most appropriate rates.

If you have credit problems you could end up paying more on your auto insurance despite your perfect driving record. Credit histories are just one of many factors used to determine auto insurance rates. Research has shown that drivers with poor credit history are more likely to file claims which in turn cost the auto insurance companies money.

The credit report is used as a predictor of risk, and it’s believed that it’s less likely for a person who is inherently financially irresponsible to suddenly change their behavior. But through repairing your credit and shopping around for auto insurance as your credit history changes over time, you may be able to lower your rate and save yourself money. Pay your bills on time and keep your debt level in check, and it could keep your auto insurance rates down.