Smart Auto Insurance Blog

Founders auto insurance is continuing to offer great auto insurance deals to their customers.  This is important to understand as the economy is at a standstill and everyone is looking for ways to save money.  The auto insurance business is very competitive, but Founders is offering up some tips to consumers to ensure they are getting great deals on coverage.

Many auto insurance companies will offer discounts for switching policies to their company.  In many cases you can use a competitors offer as leverage for a good deal with an insurer.

Consider location.  You do not have to use a local auto insurance company, and many times you will find better deals with widespread companies since they have more to offer and a variety of options.  It’s true that where you live impacts auto insurance rates to consider this as you shop around.

Believe it or not, new cars are often cheaper to insure.  If you are considering buying a new car take this into consideration as you shop around.  Many people think rates will increase with the new car, but this isn’t usually the case.  One stop shopping is almost always beneficial.  If you have multiple insurance products with one company you may see huge discounts which will ultimately save you a lot of money.

The Ohio Department of Insurance (DOI) is looking out for its residents as they shop for Ohio auto insurance quotes.  They recently launched the Auto Insurance Sample Premium Calculator according to the article “Ohio Department of Insurance Launches New Online Premium Comparisons Tool” found on Insurance-Business-Review.com.

The calculator is designed to assist Ohio residents in finding affordable auto insurance that fits their personal needs.  The tool is available on the Ohio DOI weblink and can be used to compare sample premium quotes provided by various auto insurance companies throughout the state.  Residents can also receive contact information immediately if they wish to get more information or purchase a policy.

This tool will give the consumer the opportunity to see what rates they may be eligible for as they start looking for auto insurance.  The educated consumer saves more money and this tool will help them with that.  The Ohio Department of Insurance Director Mary Jo Hudson believes this interactive resource will help consumers quickly sort through their research.  This is a great tool that truly looks out for the consumer in a highly confusing industry and will prove invaluable since all drivers must carry auto insurance.

Last month a presentation given last month by industry expert, Steven Weisbart, shows that the price of auto insurance has been rising steadily over the past three years.  The article “Report: Car Insurance Price Trends Are Out of Sync With Economy” by Ben Zitney on OnlineAutoInsurance.com discusses the various trends of auto insurance quotes over time.

Steven Weisbart is the Insurance Information Institute’s Senior Vice President and chief economist and he believes the auto insurance market hardened at the end of 2007 after a 4 year period of dropping auto insurance rates.  The national average expenditure on coverage has risen steadily over the past three years.  The report shows an overall increase of about 12% from 2007 to 2010 causing concern for many struggling Americans.

Weisbart’s presentation is entitled “Mega-Trends Influencing the Future of Auto Insurance” was was addressed in October at the National Auto Insurance ExecuSummit held in Connecticut.  It highlighted many emerging trends in the auto insurance industry and helped explain some of the upsetting increases in auto insurance rates that are caused partially by the economy’s various downward trends.

Auto insurance premiums for high risk drivers through the Texas Automobile Insurance Plan Association (TIAPA) will drop by about 7.6% starting January 1, 2011.  This is according to the article “Rates for High Risk Drivers in Texas Falling; Coverage Minimums to Rise” posted on InsuranceJournal.com.

Texas Insurance Commissioner, Mike Geeslin, has ordered overall auto insurance rates to drop for TIAPA personal auto insurance policies in the state.  In addition to this, the minimum amounts of motor vehicle liability insurance required by law to establish financial responsibility in Texas will increase starting January 1st.

This is important news for Texas auto insurance carriers as they shop around for coverage.  Knowing what coverage is required is important to ensure protection is adequate in case of an accident.  According to OnlineAutoInsurance.com, TIAPA saw a 2.2% increase from 2009 to 2010 in auto insurance rates and with many consumers struggling financially, Texans want to see this trend stop.

InsWeb released earlier this week its yearly report of the most and least expensive cars to insure according to the article “Fun, Luxurious Cars Still Pricey to Insure” by Claes Bell on Bankrate.com.  Insuring new cars can cost you a chunk in auto insurance premiums, but the type of car you drive will have a great impact on your rates.

The most expensive cars to insure based on their repair costs and other factors include the Acura ZDX, Audi TTS, Audi A5, Cadillac Escalade, Chevrolet Corvette, BMW Z4, Lexus SC, Jaguar XF, Cadillac STS, and the Dodge Challenger.  This list includes mostly high-powered luxury and sports cars which is to be expected.

The least expensive cars according to this report include moderately priced, lower powered, family cars such as the Kia Sedona, Mazda 5, Ford Escape, Hyundai Santa Fe, Mercury Mariner, Chrysler PT Cruiser, Ford Explorer, Subaru Outback, Kia Optima, and the Chevrolet Equinox.

According to the press release found on PRNewswire.com “Auto Insurance Report: Prices Have Risen Steadily Since 2007″ a report recently delivered by the Insurance Information Institute’s senior VP and chief economist, Steven N. Weisbart, shows an upsetting trend of increasing auto insurance rates throughout the nation.

This report shows that from 2005-2007 cheaper auto insurance quotes were easier to find and since then rates have been on the rise.  Estimates have national average expenditures rising by a higher and higher percent each year for a total of 12.5% overall.  This trend is problematic since unemployment is up and many Americans are struggling financially.

More than ever it’s important to shop around and the Federal Citizen Information Center released a tip sheet for consumers to learn ways to reduce auto insurance costs.  The strategies in the list offer ways to save many people a lot of money.  Many state regulators are encouraging residents to get multiple quotes to ensure they are getting the best deal on auto insurance rates in this economy.

According to the article “Auto Insurance Industry Improving…Will Rates Decrease?” by Brad Ricahrds posted on WorldBreakingNews.com, the auto insurance industry has reported slight growth over their 2009 results.  They are hopeful this means the industry is making an upward turn for the long haul and will result in lower auto insurance rates over time.

During tough times many drivers cut back to the most basic auto insurance coverage possible to save money.  Some carry no coverage at all.  As the economy picks up again, consumers start upgrading their insurance protection which is good news for auto insurance companies.  Many are hoping that this recovery will cause auto insurance rates to go down.

A new bill, Proposition 17, is expected to pass and will require auto insurance companies to give discounts to car owners that have had auto insurance protection for periods of time.  It’s expected to work as a reward system for loyal customers but is could reduce overall auto insurance rates for many drivers on the road.

Progressive Auto Insurance has been named by CIO Magazine to its 2010 CIO 100 this week according to the article on Powernewsnetwork.com by Magan Salano.  This is the second year in a row that Progressive has received this award.  The CIO Awards give this honor to 100 companies that use innovative technology to enhance their business.

Progressive currently uses Microsoft NET with their company’s systems.  This type of technology is used by Progressive to provide an infrastructure that enables easy expansion for their products and services.  Ray Voelker, Progressive’s Chief Information Officer says their goal is to provide their customers with access to a large range of products, including the ones developed by other services.

This type of recognition lends to the success of Progressive.  They were one of the first auto insurers that offered to compare auto insurance quotes for the customer, and they continue to be very successful.  They are one of the nation’s largest auto insurance groups, and they are the largest seller of motorcycle policies and are a leader in commercial auto insurance based on their policies written.

Not everyone realizes that AARP (formerly known as the American Association of Retired Persons) has an auto and home insurance program through The Hartford.  They offer great coverage at competitive rates geared towards their members.

AARP Auto Insurance offers a unique blend of benefits for their retired members.  Availability of features and benefits varies from state to state but by getting a quote you can see what is offered.  They offer first accident forgiveness which is a great benefit for otherwise very safe drivers.  Lifetime renewability is available where you do not have to worry about losing your auto insurance protection.

Known as a disappearing deductible, AARP reduces your collision deductible by $150 if a clean driving record is maintained.  They even continue to drop your deductible by $50 for each additional year you keep a safe driving record until it reaches $0.  The auto insurance feature called RecoverCare helps pay for the cost of services in the home such as cleaning, shopping and transportation if you are hurt in a car accident.  It’s these types of unique benefits that makes AARP auto insurance a great buy.  They truly look out for their members and that is worth your time and money.

According to the article “Mandatory Auto Insurance Hits Wisconsin” by Hilary Dickinson on beloitdailynews.com, as of Tuesday Wisconsin drivers face a $500 fine maximum if they are caught driving without auto insurance.  This is a big change for Wisconsin auto insurance policy holders.

Wisconsin is the 49th state to make auto insurance mandatory and some auto insurance agents question whether or not the new law will be effective.  The new law requires drivers to carry proof of insurance with them when they are driving and one policy card should be kept in the vehicle at all times.  If a driver is pulled over and has insurance, but cannot prove it with a policy card then they may face a ticket.

Some experts wonder if the fines are going to be enough of an incentive for them to purchase auto insurance.  With auto insurance rates for high risk drivers being relatively high, it may be cheaper for them to take the risk of not having insurance at all.  There hasn’t been a huge increase in Wisconsin drivers shopping for auto insurance.  People who would abide such law already have auto insurance because it’s the responsible thing to do since Wisconsin already mandates drivers to be responsible for an accident financially.