Smart Auto Insurance Blog

According to the press release “The Impact Accidents Have On Auto Insurance and Keeping Rates Affordable” found on wiredprnews.com, accidents affect auto insurance rates in numerous different ways.  Just because you have an accident doesn’t mean your rates will automatically increase.  It’s beneficial to understand what will ultimately affect your rates.

A very critical aspect of an accident is whose fault was it?  If the policyholder is found to not be at fault then it’s likely their auto insurance rates will not be affected.  Being at fault is what will probably change your rates.  Depending on the company’s underwriting guidelines, one may lose their good driver discount which can be up to 20%.  Injuries can affect your rate as well with the more serious the injury the higher the rate is affected.  If the collision is with an emergency vehicle like an ambulance or police car this can spike rates.  And of course if there are any drugs or alcohol involved rates can be severely affected.

Many insurance companies such as First Acceptance Insurance try to offer fair rates whenever possible.  If you are in an accident and your insurer raises your rates, it may be worth your time to shop around since different insurers have different underwriting policies and an accident may not affect your rate as much.

Identity fraud is a growing problem with the rise in popularity of Internet quotes on auto insurance and online banking.  Although victims can end up not being liable for lost money, it can be very pricey for the victim to prove their innocence.  Their credit rating can also be destroyed which may take years to repair.

Many insurance companies are offering protection to their policy holders to help them avoid this disaster.  Encompass Car Insurance is one of those companies and on their website they outline what their Identity Fraud Protection covers.  They will pay up to $20,000 for expenses incurred as a result of identity theft.  They will also cover lost wages up to $500 per week for up to 4 weeks for time away from work because of the fraud.

Some other benefits of the products are covered loan fees if you are denied a loan due to incorrect information caused by the fraud and any new application fees incurred.  With prior approval from Encompass Car Insurance they will also pay for reasonable lawyer fees.  If a lawyer is used to defend you against any lawsuits are filed against you by any merchants or collection agencies, Encompass will help you.  This is an extremely valuable benefit to have through your insurance company, and not all companies offer it.  Be sure to look into what kind of protection you may have.  It could save you a lot of time and money.

Infinity Auto Insurance has been offering unwavering support for the Haiti relief after the 7.0 earthquake devastated the country and took many, many lives.  Necessities were donated such as tents, clothing, blankets, water, and cleaning supplies.  There were numerous drop off locations throughout Florida.

All donations were shipped to Miami from a cargo ship through “Sow A Seed” which is a small non-profit organization that offers assistance to the most remote areas of Haiti.  Infinity Auto Insurance is extremely thankful for all of the donations and they hope to make a difference in Haiti.

This earthquake tragedy was beyond devastating and the rebuilding of Haiti is going to be a long and stressful process.  Through donations from across the world the effort can be helped.  There are many different ways to offer your support and it’s worth your time to look into what you can do to donate your time or money.

Prop 17 is a proposal on the California ballot sponsored by Mercury Insurance which will allow auto insurance companies to charge many drivers for various reasons.  This includes military people who did not purchase auto insurance while living on base even if they didn’t own a car at the time.  This is according to the article “Nation’s Leading Insurer of Soldiers, USAA, Criticizes Prop 17; VoteVets.org Announce Opposition” found on InsuranceNewsNet’s website.

USAA, which was formed in 1922, says it cannot support the bill because of the negative impact it will have on active duty men and women.  The rating system does not take into consideration the special circumstances of our military men and women and USAA does not feel this is right.  VoteVets.org signed a ballot argument against Prop 17 and they represent 100,000 veterans and military families.

Under Prop 17 drivers, including soldiers serving stateside, who stop driving and did not need insurance for a certain time period would have to pay hundreds more for their auto insurance when they decided to restart the coverage.  Doesn’t seem fair to people who have legitimate reasons to stop carrying insurance for small periods of time, such as the military.

According to the article “Five Auto Insurers Must Recalculate Customer Bills” by Johnny Diaz on boston.com, the Massachusetts Attorney General settled with 5 Massachusetts auto insurance companies that might have charged higher rates to policy holders because of driving record information that was inaccurate.

The state of Massachusetts says the auto insurance companies failed to update at-fault information reported to The Comprehensive Loss Underwriting Exchange.  This is a private database which is used to determine driving histories.  The error may have resulted in higher premiums for some of the customers with these 5 companies.

The auto insurance companies will need to pay the state over $100,000 within 10 days as part of the settlement.  They also must identify affected customers within 120 days and recalculate their rates.  If this problem was not caught as soon as it was, quotes on auto insurance may have been inflated for these certain customers for years to come.

Bristol West Insurance is a leading provider of liability and physical damage auto insurance which focuses on private passenger cars throughout the nation.  Bristol West is sold through agents and brokers which provide customers the security of a variety of auto insurance products at great prices.

Bristol West has recently upgraded their various services through advanced online and electronic payment options.  This is a great perk for customers looking for quick and easy payment methods.  According to the agents and brokers, Bristol West’s continuing investment in technology advancements gives them a leading edge to manage a competitive business.  Because of their technological advances their efficiencies are improved and they deliver services that are quick and accurate which improves the valuable customer service.  You can locate a Bristol West Insurance broker or agent on their website.

First Acceptance Insurance has a very useful section on their website that outlines your auto insurance policy in simple terms.  To summarize, there are generally 5 parts to a typical auto insurance contract.

Part 1 is called the Declaration section, which is unique from customer to customer.  Part 2 is the Coverage Parts or Insuring Agreement.  This sections discusses the coverage options and coverage limits.  Part 3 is Exclusions which highlights your policy’s limitations.  Part 4 is Conditions which outlines legal responsibilities.  Then there is Part 5 Definitions.  This section goes over terms and rights of the customer and insurer.  This section is sometimes referred to as fine print.

The names of the various sections may vary from company to company but the general points are discussed.  It’s beneficial to understand each section of your auto insurance policy so you can easily compare benefits as you shop around for auto insurance rates.

As more and more consumers become Internet savvy, shopping online for auto insurance quotes is becoming more popular.  People are drawn to the convenience and ease of shopping online.  According to the press release “Shopping for Auto Insurance Online Becoming More Popular in New Year, according to Onlineautoinsurance.com” found on prweb, found a large increase of online shoppers on their site in January 2010 compared to any month in 2009.  This goes to show which way the trend is heading.

The Missouri Department of Insurance encourages the use of online auto insurance shopping.  Their research shows you can get 20 quotes online in the time it may take you to get 3 quotes by calling various auto insurance companies on the phone.  Many insurers are excited about the increase of shoppers online such as Progressive and Eastwood Insurance which both have options to get quotes directly on their website.

Times are changing and it’s important to ensure, as a consumer, you are getting the best deal on your auto insurance quotes.

There are many unknown auto insurance discounts that consumers should be aware of.  The article “Little-Known Auto Insurance Discounts” found on savingadvice.com highlights some of the discounts.

Being a full time student can help you get lower auto insurance quotes.  Not only can being a student help you, but if you carry good grades, usually a B or higher, that can earn you further discounts.  Some auto insurance companies offer discounts for federal employees, members of the military, or members of various groups like AAA.

Discounts are sometimes offered to those who have the VIN number on their car window.  How you pay your bills can affect your auto insurance quote and so does where you live.  Driving less and having safer cars all can warrant you discounts on your auto insurance.  These are just a few of the variables taken into consideration when quotes are determined, but you do have control over them so it’s important to understand what factors are being considered.

There will be a voter initiative on the June 2010 ballot for Californians aimed at giving discounts to drivers who have had insurance for a long time according to the article “Californians To Vote On Auto Insurance Persistency Discount” by Patricia-Anne Tom on insurancejournal.com.  This discount would apply even if Californians switched carriers confirmed by the Secretary of State.

The Continuous Coverage Auto Insurance Discount Act will mean lower California auto insurance quotes for many but it’s facing criticism by consumer groups because the act will penalize drivers for not having previous auto insurance coverage.  The article says that the measure would legalize surcharges on auto insurance and penalize good drivers for accidents that weren’t necessarily their fault.  The group believes it could ultimately lead to more uninsured drivers on the road.

Kathy Fairbanks of CalFAIR says this ballot proposal will reward over 80% of responsible Californians who keep auto insurance coverage which is required by law by making them eligible for this discount even if they switch auto insurance companies.  Currently, the discount cannot be offered to new customers.  California drivers will be able to carry this discount with them if they choose to shop around for better rates and switch insurers.