Smart Auto Insurance Blog

According to the article “Louisiana Auto, Property Insurance Rates Highest in US” by Christopher Tidmore on Bayou Buzz, an average quote for Louisiana auto insurance is $1,111 which is the highest in the nation.  This is based on a recent survey conducted by InsWeb.

There was a drastic difference between Louisiana and other southern states.  For example, North Carolina’s average rate is $495 and Virgina’s average rate was $521.  This is about half of what the state of Louisiana is experiencing which is making it difficult for Louisiana residents to afford auto insurance coverage.

The closest southern state was Florida coming in at about $750 on average.  Louisiana also ranked high for very high property insurance rates as well.  The average premium for home owners insurance for the whole nation is $690.62 which is significantly cheaper than Louisiana’s average which is $1392.  This is up .2% from the previous year.

The south typically has higher insurance rates because of the devastating threats of hurricane season, but Louisiana consistently is one of the most expensive states for insurance in the United States.

The Wisconsin auto insurance bill mentioned in the previous blog has been passed according to the article on BadgerHerald.com by Andrew Averill.  The bill will lower coverage limits for auto insurance which were originally raised in an attempt to save consumers money, but the Democrats have other suggestions to repair the budget.

Currently the law requires auto insurance companies to cover $50,000 for accidents causing bodily injury, $100,000 for two or more persons and $15,000 for property damage.  The limits will be changed to $25,000, $50,000 and $10,000 respectively with the passing on this new bill in Wisconsin.  Assembly Speaker, Jeff Fitzgerald, believes the previous law raised auto insurance rates for families and limited choices to the consumer shopping around to compare auto insurance.

Fitzgerald also goes on to say that the new bill will help consumers decide for themselves what level of coverage is best for their family, and it should make auto insurance more affordable for lower to middle class income families.  He believes it’s the perfect blend of consumer choice and consumer responsibility.  Others argue that the new bill will take away some consumer protections, but now that’s it is going to be signed into law people are focusing on the positives and hoping for the best.

Many consumers associate the term “non-standard” auto insurance with high risk, but this isn’t always the case.  According to the Founders Auto Insurance website the terms are often synonymous.  They do point out however that “non-standard” simply means not adhering or conforming to the standard policy.

Many of Founder’s forms, classes, and territories do actually conform to auto insurance industry standards, but some aspects do not making part of it “non-standard”.  Most non-standard auto insurance companies start off with a standard methodology, and make appropriate modifications to suit their customer’s needs which are always changing.  They take into consideration the economy, the market demand, and consumer needs and tailor the policies to fit the times.

Founders Insurance offers vehicle surcharging, modified territories, and they create classes based on what is going on in the market.  There is a unique risk selection criteria, but a very high percent of new business at Founders has been previously insured with a clean driving record.  Founders also follow similar models for their homeowners insurance and commercial liability & property policy options.

Pretty much everyone is looking to save a dollar where they can in this struggling economy and luckily there are companies out there willing to help their customers.  Auto insurance rates are causing many consumers financial stress, and these people often are not aware of the dozens of discounts out there that they may quality for.

Donegal Insurance is an example of a company going above and beyond to offer substantial discounts to their customers.  Their auto insurance policies not only offer a wide variety of options for every type of driver but they give discounts based on good behavior.  Some of these discounts include good student discounts, high chargeable accident thresholds, first accident forgiveness, extra edge discounts for superior drivers and a PACE protector endorsement.

According to the Donegal Group website, you can also save money on your auto insurance if you have passive seat belt restraints and/or airbags in your car.  There are additional discounts for anti-theft devices, and anti-lock brakes.  Even more discounts are made available for those who have completed a driver’s education course or who participate in car pooling.  There’s a multi-car discount and savings if you have multiple product policies with Donegal.  As you can see, there is a long list of readily available discounts for a variety of drivers on auto insurance

offered through Donegal which is headquartered in Pennsylvania.  This is great news for those of us pinching pennies, and it’s useful to know where we can save a little bit of money.  It adds up over time and can make a big difference.

In today’s economic environment people everywhere are trying to save money where they can.  Once it’s time for a new car, many consumer are turning towards used cars as their purchase of choice.  Not only is this because used cars are generally less expensive but auto insurance on used cars is often cheaper as well.  If you compare auto insurance on a used car verses a new car you will find the quotes to be cheaper on the used cars in most instances.  This is because the used cars are on average less expensive to repair and replace.

The government offers a convenient outlet for buyers to search for used cars through auto auctions.  The General Services Administration (GSA) is helping consumers better understand the benefits of using auctions and work hard to make the process smooth.  It can be easy to find a very good deal on a used car through an auction, but it’s important to go through a reputable service to ensure you are getting your money’s worth.

The GSA offers a comprehensive website to prospective buyers that is very user-friendly.  GSA holds public auctions throughout the US at registered auction sites.  By registering at their website you can receive more information on auctions in your area and be well on your way to a quality used car at a competitive price.

According to the press release “Legislators Take Aim at Ohio Auto Insurance Verification Program” found on OnlinePRNews.com, Ohio state representative Matt Huffman re-introduced a bill that would stop an auto insurance verification program given by the state of Ohio.

The Random Selection program has sent out letters to car owners who are asked to mail in proof of auto insurance to the Bureau of Motor Vehicles since 1998.  The point of the program was to cut down on the number of uninsured drivers on the road.  If the person did not respond within 90 days their license was suspended and they had to pay a fine.  Based on a report from the Columbus Dispatch, approximately 5400 letters were sent out weekly and about 500 of those did not carry auto insurance.

The Insurance Research Council says that about 16% of Ohio drivers were uninsured in 2007 and that number is believed to have risen since unemployment has risen steadily throughout the state.  This may mean that the verification program is not effective in which case the BMV could save a lot of time and money by cutting back on the program.  Rep Huffman advised a panel that there were some unfair instances related to the mailings and this type of problem could be resolved fixing or eliminating the program.

Many auto insurance companies are offering discounts to customers in this competitive market.  Unfortunately, consumers aren’t always aware of the discounts and may miss out.  Bristol West Insurance clearly outlines their discounts on their website which offers a user-friendly way to inform their customers.

Some of the Bristol West discounts include the following:

• Homeownership
• Proof of prior auto insurance
• Financial responsibility
• Insuring two or more cars
• Prior coverage limits
• Mature driver course completion

Finding an auto insurance policy that is perfect for you is possible, you just have to ensure you are getting the education you need.  Once you understand your state laws, and have determined your personal needs you can put together the different pieces of an individualized auto insurance policy.

The first part of the policy tends to be liability insurance since that is the most important part.  If you only have minimum liability you may be taking a risk in case you hurt someone so understand the financial implications of upgrading to better liability insurance.  Based on the type of car you drive you may want collision coverage and depending on how many drivers you have in your household you may want to combine policies.

Shopping around is definitely important not only for price but for various benefits such as paying online, accessing information through your phone, superior customer service or efficient claim processing.  Companies ranging from First Acceptance Insurance to big companies such as Progressive Auto Insurance offer a wide array of benefits to suit their customers’ needs.  You can find a helpful agent to walk you through the variety of benefits made available and the differences in cost.  With the right research you really can find the most perfect policy suited just for you.

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 “Florida Lawmakers Seek to Reduce Costly Court Battles Over Auto Insurance” by Sally Kestin on OrlandoSentinel.com, Florida auto insurance lawsuits are out of control and need to be reined in.  Florida auto insurance quotes are increasing and insurance regulators agree that pricey court battles are partly to blame.

Rep. Bryan Nelson believes something must be done soon.  He says it’s critical they take a hard look at ways Florida can reduce costs over time.  There is currently a proposal under consideration in Tallahassee which would limit the fees lawyers can collect when they win a personal injury protection suit.  Fees can be upwards of $100,000 for disputes of just a few thousand according to the Sun Sentinel in Florida.

Sen. Ellyn Bogdanoff, a Fort Lauderdale Republican and a chief negotiator in legislation passed in ‘07 that revised the state of Florida’s no fault insurance system, says Personal Injury Protection has become a multibillion industry.  She said the original purpose was to reduce suits, but it is actually increasing them causing serious financial stress on the state of Florida.