Smart Auto Insurance Blog

Hurricane Irene has devastated many areas of the US and its estimated that at least 18 people have died as the storm moved from the Caribbean all the way up to New England.  The article “Hurricane Irene’s Damage, State by State” by Drew Armstrong on Bloomberg.com states that about $3 billion in damages have occurred and power was out in over 6 million homes and businesses throughout the east coast.

State Farm Mutual Automobile Insurance Company is the largest US home and auto insurance company in the nation and they’ve reported about 1600 homeowners insurance claims and about 500 auto insurance claims in just North Carolina and Virgina.  The number of claims will surely increase over the coming weeks.  State Farm received reports of siding and roofs blown off of houses and much destruction from the falling of trees.  There have even been claims for loss of food since the power outages have made food in refrigerators spoil quickly.

In the New York area, where the storm had weakened, claims are standing at about 360 homeowners’ claims and 60 auto insurance claims, but this is only after a few days.  People are still getting settled and assessing damage before calling their insurance company.  Storms such as Irene can cause slight increases in auto insurance quotes to account for all of the claims, but this generally happens over time.  Insurers across the nation are working hard to fulfill claims as efficiently as they can to ensure costs do not soar.  Sometimes, when there are heavy claims filed, insurers are quick to give out money to save time.  Hopefully insurance companies were prepared enough for this storm that it will not happen this way across the board.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Missouri auto insurance regulators have updated the public with some storm data about claims throughout the state.  According to the press release found on WiredPRNews.com, Missouri residents have collected approximately $750 million from insurance companies from claims filed throughout the storms that hit Joplin back in May.

John M. Huff, who is the director of the state Department of Insurance encourages consumers to contact their department or their insurance company if they believe they may be eligible to file a claim.  Huff and other officials believe the department and insurance companies have done an excellent job helping the people of Missouri who needed it most through the quick fulfillment of claims.

Area regulators previously announced in June that Missouri insurers of auto insurance as well as other coverages, had paid out around $500 million in claims with auto claims specifically making up over $34 million.  This number has steadily increased throughout the summer as claims were filed and insurers met their needs.  About $250 million was paid out in early July alone says the Department of Insurance.

Altogether, almost 17,000 claims have been submitted as a result of the disastrous tornado that devastated the area.  Huff believes that total claims could hit up to $2 billion altogether.  The claims that are still pending at this point will be difficult to resolve and may take some more time.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Florida has not had a hurricane for years, yet Florida auto insurance quotes continue to rise.  It’s been six years since the devastating Hurricane Wilma took it’s toll and since then every day claims for homeowners and auto insurance, including reopened claims, have risen 80%.  At this point insurers feel like there is not choice but to ask for higher homeowners and auto insurance rates according to the article “Soaring Claims Drive Florida Insurance Rates Higher” by Kenric Ward on SunshineStateNews.com.

Insurance companies are asking for rate increased for a couple of reasons.  First, there is a certain projection of future claims due to natural disasters and most states witness this type of increase.  Secondly, they are raising rates due to claims that have already been paid out that went above and beyond previous predictions.  Lynne McChristian, a Florida representative for the Insurance Information Institute confirms that these rate increases are due to future and past claims.

Just recently, Allstate Insurance Co and two of their affiliates asked for rate increases averaging 30%.  Castle Key Insurance Co. and Castle Key Indemnity Co. reported that there could be rates increases as high as 68% for individual customers.  These astronomical rate increases can devastate families financially, but it seems to be a no-win situation for everyone involved.  Some industry officials are blaming such increases on a new law, only affecting the state of Florida, which says insurers must pay full replacement costs for home repair upfront.  In addition to this, policyholders have up to five years to file a claim due to a particular hurricane which is throwing projections off.  The Insurance Information Institute reports that claims costs are increasing on average around 17% per year, and if this continues, no one will be able to afford a quality home or auto insurance policy.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Many insurance companies across the nation felt the harsh effects of the spring storms throughout April and May including Donegal Insurance.  Donegal Group, INC, expects to feel a $13 million to $15 million hit in the 2nd quarter from all of the recent claims brought upon by the devastating storms the swept the mid-west and affecting many areas of the US.

The article “Donegal Sees $13M-$15M Effect From Claims” by Tim Stuhldreher on CentralPennBusiness.com points out that claims of about $7 million to $8 million will be paid due to mid-Atlantic hail and storm damages and another $4 million to $5 million paid to the South due to the tornadoes that hit this area.  Another $2 million is going to the mid-west for wind and hail.

Donegal plans on covering additional losses through their reinsurance programs.  This is to help the blow of the loss be less painful.  Their subsidiaries will give about $3 million to keep their reinsurance coverage throughout the rest of 2011.  Many companies have felt the impact of all of these home and auto insurance claims, but Donegal remains positive that they are handling the situation and their preparation for such events has paid off.

Written by Sara Smart
Follow me on Twitter: http://twitter.com/#!/SaraSmart55

State Auto Financial is an Ohio auto insurance and property/casualty insurance company and they saw a huge influx of claims throughout Ohio and the rest of the mid-west in May due to devastating storms.  They expect a pre-tax loss of around $45 million to $50 million from the storms throughout May.  Three specific catastrophes affected 23 of the states they operate in, including the massive tornado that hit Joplin, Missouri on May 22nd.  Auto insurance claims as well as property claims from tornadoes, wind and hail poured in quickly in a very short period of time.

State Auto plans on having over 9000 claims on cars and homes filed throughout the coming months due to the storms.  They confirmed previously that $75 million to $85 million in losses were experienced from April storms.  Before 2011, State Auto’s historic 5 year average loss ratio for the 2ndQ is around $50 million of losses so they are feeling a huge impact from these storms.  Bob Restrepo, State Auto Financial president and chairman CEO said that these storms continued a deadly pattern of destruction throughout the mid-west.

The article “State Auto Financial Expects May Catastrophe Loss Up To $50m” found on claims.insurance-business-review.com points out that State Auto employees are working endlessly to respond to claims quickly and efficiently in the best effort to help out struggling victims.  Some agents who even lost their offices due to storms are working to help customers through this tough time.

According to the article “Who Crashes the Most?  Car Accidents By Occupation” by Kat Zeman on insure.com, doctors have the most auto accidents per year, at about 109 accidents for every 1000 doctors.  They also receive about 44 tickets per 1000 doctors on the road.  This information may cause their occupation to affect their auto insurance rates.  Here’s the ranking for the top 10 most accidents:

1. Doctors
2. Lawyers
3. Architects
4. Real estate brokers
5. Enlisted military personnel
6. Social workers
7. Manual Labor
8. Analysts
9. Engineers
10. Consultants

Other occupations that made the list but rank below the 10th ranking are nurses, librarians, insurance agents, dentists, accountants, politicians, firemen, law enforcement, and salespeople.  Occupations can already affect interest rates on certain loans, so it makes sense that it may affect your auto insurance.

Getting into an accident is a very stressful situation, whether it’s your fault or not.  It’s important to ensure that you know what to do in the case of an auto accident and even more important to remain calm.  The article “5 Steps to Filing Your Auto Insurance Claim” by Bobbie Sage on About.com discusses some key points to remember if you are in an auto accident.

First, evaluate if you actually need to file a claim.  If the damage is minor and you can pay for it out of pocket without any financial stress that may be the way to go to keep your driving record clean.  Second, document every detail of the accident to be sure you have the information to give your insurer if need be.  If deemed necessary, file your claim as soon as possible.  Most auto insurance companies, including Bristol West Insurance, are available 24 hours a day, every day to receive your claim information.

Be sure to prepare for a call from the insurance company of the other driver involved.  There may end up being a dispute in which case you will need to have all your information available.  Once your claim has been accepted you may get a visit from an insurance adjuster to access the damage and let you know where you can go to get your car fixed.  Getting in an accident is a complicated mess many times, but it doesn’t have to be.  Being prepared is the first step to a smooth resolution.

Allstate Auto Insurance recently gathered data that showed an increase in Texas auto insurance claims for hit pedestrians during the week of Halloween.  This is according to the article “Texas Pedestrian Accidents Jump 23% During Halloween” by Kristen Beaman for Allstate found on reuters.com. 

Allstate looked at claims in Texas over the last 5 years and found a large jump in accidents around trick or treating.  Last year, Allstate claims more than doubled over the Halloween week compared with the rest of 2008.  Their data matches up with a report from the Insurance Institute for Highway Safety which showed that October 31 is the 2nd highest day of the year for pedestrian deaths.  The first is Fourth of July.  With Halloween falling on a weekend this year, there may be more people out than normal so it’s crucial that drivers are extra careful. 

The article offers some important tips to follow while out on the road, especially at night when pedestrians are out.  Never drink and drive.  A designated driver should always be assigned before heading out for the evening.  Texting while driving can be very dangerous so keep your phone in your pocket until you can pull over to text or make a call.  As a pedestrian, it’s a good idea to avoid texting while walking.  Anything that takes your eyes off the road can be very dangerous.  Not only will following these steps make you a safer driver but it may eventually lower your car insurance quotes.

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.

According to the article “Leading insurance grievance: delays in claims handling” by Becky Yerak on chicagotribune.com, Illinois consumers have been filing less complaints about their insurance companies. 

Illinois auto insurance complaints were down 10%, individual accident and health complaints were down 13%, and homeowners insurance was down 5%.  But complaint ratios, which compares the number of complaints with each $1 million in written policies, vary widely among insurers.

According to The National Association of Insurance Commissioners, the leading complaint was delays in the handling of claims at 18.7%.  The next most popular complaint was claims denials coming in around 18.2%. 

Policyholders complained most about accident and health coverage at 37.5% of complaints.  Auto insurance accounted for approximately 35% and homeowners insurance only accounted for 12.5% of complaints.