Smart Auto Insurance Blog

According to the article “New Year Brings New Insurance Requirements for Texas Drivers” by Spencer Lubitz on KRISTV.com, car insurance quotes are increasing in 2011 in the state of Texas.  Bodily injury and property damage limits are increasing minimum requirements according to Michael Morgan, an agent with State Farm Auto Insurance.

Under Texas’s current minimum liability limits each policy must cover at least $25,000 worth of damages for each individual injured in an accident, $50,000 for everyone hurt in the accident, and $25,000 for property damage for each accident.  After January 1st, 2011, each policy will need to cover $30,000, $60,000 and $25,000 respectively.  The change will only affect policies which currently carry the minimum requirement.  This equates to approximately 50% of Texas drivers.

It’s hard to say exactly how much policyholders will have to pay extra, but any increase in cost is not welcome.  Factors will include car type, age of the driver, and the individual’s driving record.  Although increases aren’t expected to be drastic, insurers recognize in these times every dollar counts with customers and they will be doing their best to ensure competitive prices remain for policyholders.

Winter driving has its serious hazards and accidents occur without warning throughout the winter months.  Snow, sleet, black ice, and freezing temperatures can wreak havoc of safe driving.  Ensure you are taking extra precautions to prevent winter accidents.

Reduce your risks of being in an accident this winter by following some simple steps.  Get your tires checked.  Tire tread is important as well as having your tires properly inflated.  Investing in snow tires can make your commute safer through the elements.  Ensure your breaks are in working order and if not, invest in new ones.  Breaks need to respond properly when slammed upon and if they are wearing if may cause an accident.  One last tip is to consistently check your window wiper fluid.  It’s easy to find yourself empty as the sleet starts to come down which can severely impact your view of the road.

In addition to taking these safety steps, winter is a good time to update your auto insurance policy to ensure everything is in place in case of an accident and that you are paying fair auto insurance rates.  You don’t want to find out certain things are not covered in your policy after you slide on some ice causing an accident.  Being prepared is the best way to cover your losses.

Many drivers think the items in their car are covered in their auto insurance policy, but this is often not the case.  Homeowners insurance policies and renters insurance policies often cover these items, but you will have to check with your insurer to be sure.

If you think renters insurance isn’t necessary you should think again if you are renting a property.  Unlike auto insurance, renters insurance is not required by law, but it offers almost as much value.  Many renters think they don’t have much to replace but they may not realize how quickly items such as clothes, furniture, dishes, and toiletries can add up.  Not to mention renters insurance policies can cover liability if someone is injured within the rental property.

More and more landlords are actually making renters insurance a requirement as part of the lease agreement to ensure no liability issues arise.  Fire, theft, and water damage can happen to anyone so making sure you are protected is very important.

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.

Colorado regulators recently released their report which summarizes the Division of Insurance’s complaint handling activity from 2009-2010.  According to the article “Report: Regulators Recover $2.8M for Auto Insurance Policyholders” by PRWeb found on SFGate.com, the DOI’s mediation of about 5000 formal complaints during this time period led to the recovery of over $12 million for the state of Colorado’s insurance consumers.

$2.8 million of this sum are a result of complaints and protests filed against auto insurance companies operating in Colorado.  Colorado continues to receive the greatest proportion of consumer complaints filed with the DOI for the last 4 years.  Formal complaints and protests made against car coverage providers accounted for about 55% of the total.

Colorado allows policyholders to file complaints about disputes over issues with coverage.  Unlike most other states though, it has a separate category for protests against auto insurance companies which usually handle challenges against surcharges, policy cancellations, as well as coverage reductions.  Formal complaints have a high rate of confirmation while protests are much lower, so this can cause Colorado to have inflated numbers.  At any rate, Colorado auto insurance policy holders will get back some of what they lost from poor relations with their insurer.

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.

Auto insurance quotes have been increasing over the past 2 years and they are expected to keep increasing in 2010 according to the article “Be Prepared For an Increase in Car Insurance Premiums” by Justin Vasquez on cheapercarinsurance’s website.

The Office of National Statistics estimate insurance premiums to increase substantially.  States such as Montana can expect increases up to 12%.  There are certain types of cars that will experience high increases in auto insurance quotes.  Some  of these include the Kia Sportage, Hyundai Sonata, and Kia Lotze.

Most companies will be experiencing higher premiums, but many will still be competitive including Acceptance Insurance.  National US averages show that about 23 states have already seen an increase in auto insurance quotes since January ‘10.  Because of these increases many are driving uninsured and the Institute Research Council says about 16% of drivers will not renew their policies which is bad news for insured drivers and insurance companies.

According to the article “Regulators Shy Away From Imposing Emissions-Cutting Auto Insurance” by Evan Lehmann on NYTimes.com, key insurance regulators recently said they won’t require the auto insurance industry to offer auto insurance policies that help reduce emissions by rewarding drivers who are on the road less.

The regulators also weren’t keen on the new plan to make those policies standard across the county.  This plan is often known as “pay-as-you-drive”.  Joel Ario, Pennsylvania’s insurance commissioner believes they will never require the pay-as-you-drive concept.  Ario and other researchers have promoted the drive less mentality over the years.  They believe drivers will stay off the roads more if they know they will pay less on auto insurance quotes because of it.  This will lead to less environmentally unfriendly emissions from automobiles.

The concepts are similar to other movements such as the Energy Star appliance standards, and the green building code called LEED, or Leadership Energy and Environmental Design.  Auto insurance companies such as Eastwood Insurance, would have to offer some type of policy that rewards drivers for driving less, but in a way this already makes drivers less risky which often translates to lower rates.

According to the article “Allstate: More Customers Buying Auto Insurance Online” by Lavonne Kuykendall found on money.cnn.com, auto insurance companies who have relied on agents to bring in new customers are now adapting quickly to Internet sales.

Thomas J. Wilson, the chief executive of Allstate Corp, says their goal is to have fewer, larger agencies that offer a more consistent experience for policyholders.  He also said that half of its new auto insurance policyholders first make contact through the Allstate website.  Allstate is quickly adjusting to meet customer Internet demands.

The article points out that Allstate’s plan calls for fewer agents with an enhanced local presence.  About 87% of web site shoppers end up closing the deal with an agent so agencies continue to be an important part of their plan.  This is particularly true for homeowners with more than one car who often prefer using an agent because the policy can get complicated.