Smart Auto Insurance Blog

As of April 1st, Massachusetts auto insurance customers will no longer be able to appeal surcharges on their premiums if they are found at fault in an accident, reports Ron Sanders of WBZ. The state’s insurance commissioner wants to eliminate the Auto Insurance Appeal Board, the only one of its kind in the nation, because of inefficiencies and high costs. Instead, auto insurance companies themselves will be allowed to review appeals.

Ron says that legislators are fighting to keep the appeal board active: almost half of Massachusetts drivers win their appeals, saving them $25 million each year. They worry that insurers will be unfairly biased towards rejecting appeals, although the insurance commissioner counters that people can shop around for auto insurance quotes and switch their provider if they are unhappy with the results.

Auto insurance companies warn that a new bill in the Colorado state legislature could increase rates for motorists, claims Bob Mook of the Denver Business Journal. In 2003, the state switched to a tort system (where insurers pay a percentage of costs based on whose fault the accident was, going to court to settle disputes), but the Colorado No-Fault Motor Vehicle Insurance Act would reverse that change.

Governor Bill Ritter says that the tort system saves drivers about $322 per year on average, a 35% decrease from auto insurance rates under the no-fault system. A representative of the Rocky Mountain Insurance Information Association claims that Colorado auto insurance premiums have dropped from being the ninth-highest in the nation to 23rd-highest since the reform. According to Bob, insurance companies believe that no-fault insurance, where each insurer pays all expenses for their driver without assigning blame, is easily defrauded.

Have you bought or plan to buy a smaller car to save money on gas? According to Kevin Ransom of CNN, your total savings may be less than you’d think, because drivers of smaller cars (like the Ford Focus, Mini Cooper, Toyota Yaris, Honda Civic, Nissan Altima, Toyota Prius, and Pontiac G6) tend to be charged higher auto insurance rates than those of larger vehicles.

There are several reasons why smaller cars are more expensive to insure:

1. They are more likely to be used in long, extended commutes; making them more likely to be involved in accidents.
2. Drivers may be more aggressive when driving in a smaller car. For example, they might think that they can squeeze into a small gap in traffic and end up causing an accident. Someone driving a SUV, minivan, or pickup truck probably wouldn’t take that risk.
3. With all the larger cars dominating the road, it’s simply harder for other drivers to see you in a smaller vehicle. This results in a greater chance of them crashing into you.

On average, six-month premiums can differ by several hundred dollars depending on the model of your vehicle. However, rates can vary depending on the insurer. Get auto insurance quote comparisons to find the best price for you.

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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.

Get State Farm quotes for auto insurance.

9 News Colorado reports that a new state law (which came into effect on January 1st) is likely to increase auto insurance rates for Colorado drivers. The law requires insurance companies to automatically enroll policy-holders into a MedPay plan that provides an additional $5,000 in medical coverage. Ever since Colorado repealed its no-fault auto insurance law in 2003, there have been many problems surrounding the reimbursement of medical costs caused by an accident. This program is intended to fix many of these issues. Consumers can only opt out via a written form.

The extra coverage can increase your yearly premiums by $40 to as much as $1,200 per car, depending on your auto insurance rate. MedPay coverage isn’t really necessary if your health insurance covers car accidents, but a lot of policies don’t. Experts say you should think carefully before trying to reduce your auto insurance premiums by dropping out of the program; if you end up in a crash not covered by your health care plan, you may end up paying far more in the end.

More information about Colorado auto insurance.

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