Smart Auto Insurance Blog

Based on five factors used by J.D. Power & Associates, they determined that customer satisfaction is at an all-time high with auto insurance companies.  Suzanne Kane of The Car Connection talks about some of the study’s findings in “Customer satisfaction with auto insurance at all-time high: J.D Power.”  The five things researched in the 2012 U.S. Auto Insurance Study were price, billing, claims process, policy choices, and interaction with the auto insurer.  The first of this study was administered in 2000, and this year showed the highest customer satisfaction since then.

The satisfaction with price was pretty steady until you added in a significant price increase in auto insurance premiums.  Of those surveyed, 1/5 of them had received a price increase in the past year.  Customer satisfaction was 8% lower when price increases were above $50 than when they were below $50.  J.D. Power found that if insurance companies were up front with customers before a price increase and gave them alternatives to help change their pricing, satisfaction would not decrease as much.

Seven different regions were researched and ranked in the J.D. Power study.  The California Region’s highest ranking auto insurance company is Wawanesa.  State Farm ranked highest in the West Region.  The Texas Farm Bureau is the highest rated insurer in the Central Region and in the Southeast Region, it is the Farm Bureau Insurance Tennessee.  There is a tie in the North Central Region between State Farm and Auto-Owners Insurance.  Amica Mutual is the highest rated insurance company in the Northeast Region.  Finally, Erie Insurance took the top spot in the Mid-Atlantic Region.

Even though Memorial Day has already passed, you can still get the auto deals that were offered over the weekend.  U.S. News & World Report’s Rachel Smith says that you can still get the “Best Memorial Day Car Deals” through the end of this month.  One of the best deals this Memorial Day weekend is from Chrysler Group LLC.  They are offering new customers 90 days without making any payments when they buy a new Chrysler, Jeep, RAM, Dodge, or FIAT.  The new 2012 autos have to be financed by Chase Auto Finance or Ally Financial.  Chrysler is also giving military members an added $500 off, in addition to the $500 that they always offer the military.

In addition to deals like 0% financing or $2,000 in customer cash, Chevrolet has a $750 Memorial Day cash offer on the Cruze, Malibu, Traverse, and two Silverado models.  GMC has another $750 cash offer, which can also be combined with their other offers.  If you are looking at a Buick, you can get between $500 and $2,250 in Memorial Day cash, depending on the model.  The Enclave is offering 0% financing and $750 cash back or a combination offer of $2,250 cash back.

Nissan’s yearly National Tent Event offers 0% financing on certain autos, as well as $500 holiday cash on the Altima sedans and coupes, Juke, Frontier, Rogue, Maxima, and the Versa hatchback.  Acura is offering .9% financing for five years on six of their models.  Honda is also offering .9% financing for 2-5 years on their Accord and Civic sedans and coupes, Pilot, Crosstour, and Odyssey.  After a busy driving weekend, consumers might have realized that their car was a gas guzzler or too small for travel.  Take these factors, as well as changes in auto insurance premiums, and look for a deal on a new car if you are in the market.

I just read about some really cool new car features in Forbes.  Some of these features are likely to reduce your auto insurance premiums, because they can help ensure that you avoid an automobile accident.  In Jim Gorzelany’s article, “Eight ‘Killer New Car-App’ Features for 2013,” the unique new features are pictured and described.

Infiniti is expanding on the rear camera we see on many new vehicles for its JX35 SUV.  Their ‘backup collision intervention’ will give a 360 degree view around the vehicle and even put the brakes on if the driver doesn’t when there is an object, such as another vehicle or child, in the way.  Three vehicles from different manufacturers will now have a center airbag in between the driver and passenger in the front seat to protect against collisions from multiple sides.

Anyone trying to load or unload an SUV will appreciate the Ford Escape’s hands-free power liftgate, where you just tap your foot on the bottom of the bumper to open or close the liftgate.  The Dodge Dart will now have an inductive wireless charging system so that you can just place any electronic in the designated area to keep it charged while driving.  Lincoln’s MKX is one of the first vehicles to bring back a push button gear selector, leaving more room in the center console for other things.

Car insurance companies may lower rates if you drive Cadillac’s XTS with a tactile-warning safety seat.  Drivers are alerted through seat vibrations on either side when veering too close to something or if another vehicle is approaching rapidly.  The Nissan Altima will now have a hands free text message assistant that can respond to your text messages via voice control or automatic texts, such as “driving, can’t text now.”  The Altima will also introduce zero-gravity seats to keep drivers more comfortable and work to reduce fatigue.  A lot of these cool, new features will help reduce accidents and keep you safer on the road.

USAA just performed their second annual study of the vehicles offering consumers the Best Value.  In Online Auto Insurance News’s article, “Four Cars Noted for Low Insurance Costs in USAA Best Value List,” Charles Nguyen gives the list of the sixteen new cars giving consumers the Best Value.  USAA takes many factors into account when making their list including auto insurance premiums, fuel economy, vehicle cost, and safety ratings.

There is a top car listed in sixteen different categories.  In order, the best value large, medium, and small sedans were the Dodge Charger, the Toyota Camry hybrid, and the Hyundai Elantra.  The Hyundai Genesis and Volvo S60 were the best large and midsize luxury sedans.  The SUV category was also broken up in large, medium, and small with the winners being the Chevrolet Traverse, the Dodge Journey, and the Kia Sportage.  The Audi Q7 and the Lexus RX 450h hybrid were the top large and midsize luxury SUVs.  The best large and small pickup trucks were the Toyota Tundra 2WD and the Nissan Frontier.  Ford’s Mustang took the best sports car spot and Honda’s CRZ hybrid was the best coupe.  The Nissan Juke took the top spot in the wagon category and the Dodge Caravan was the best minivan.

Auto insurance premiums were a big consideration when looking for the best value of automobiles for USAA’s list.  In combination with the car’s MSRP, reliability, safety ratings, and fuel economy; auto insurance costs are important to consumers.  A full one-third of USAA’s clients went with a Best Value car when they were buying a new 2012 vehicle.  The top 16 vehicles were narrowed down from a list of 80.  On that list, the four cars with the cheapest auto insurance were the Nissan Juke, the Kia Sportage, the Dodge Journey, and the Audi Q7.  Take a look at a Best Value car and see if it will work for your needs.

Some basic tips for understanding auto insurance and choosing auto insurance companies are available on CNN’s website through a collaboration with Fortune and Money.  They first want you to know that you are often a statistic, rather than a person.  Auto insurance companies tend to see you as a risk based on certain risk factors like your job and where you live.

Even if the coverage appears the same, prices are always different through different auto insurance companies.  Shopping around is one of the best tips related to finding the best auto insurance premiums.  Don’t shop only on price though.  Just because a company has the cheapest price, it doesn’t mean that they have quick and reliable customer service.  Those are very important as well.

It’s smart to get more than the minimum coverage required in your state because most state requirements are really just the bare minimum.  Always ask your insurer for discounts.  They are available and most companies will lower your auto insurance rates if you have a good driving record and you simply ask.

Some auto insurance companies force you to use replacement parts that are not made by the original equipment manufacturers.  This can cause problems in your vehicle, so make sure that your insurer will cover original parts.  The article reminds the reader that while the insurance company does want you to recoup your financial losses, you may not have the same ideas of what is fair compensation.  Make sure that your plan is updated and that you know all of the details before filing a claim.

As the winter weather advisories pick up, make sure to check your auto insurance policies to ensure coverage before going out in that snow.  In Rhode Island, “RI Regulators Give Guidance on Snowplow Insurance Implications,” according to Ben Zitney of Online Auto Insurance News.  If you have a snowplow on your truck, your personal auto insurance policy should cover you plowing your own driveway or that of neighbors or relatives. Make sure that your auto insurance premiums cover liability and property damage.

But that assumes that you are doing the plowing for free.  If you accept money to plow anyone’s driveway, parking lot, or walkways, you need to have separate Rhode Island auto insurance to cover commercial work.  The Department of Business Regulation has guidelines on their website and urges you to look there or contact your auto insurance company to make sure you are covered.  The Department also reminds Rhode Island residents to make sure that their snowmobiles are covered before riding on them, especially if they are rentals.  Homeowner and auto policies do not typically cover snowmobile damage.

More than a year later, the National Transportation Safety Board has determined that a horrible car accident in Missouri was caused by a 19-year old driver texting on his cell phone.  Joan Lowy’s Associated Press article, “Driver was texting in Missouri traffic pileup,” says that the 19-year old was driving a pickup truck while texting on his phone and rear ended a tractor truck.  Because of that collision, one school bus rear ended the pickup truck and was consequently rear ended by another school bus.  The pickup truck driver and a 15-year old in one of the school buses were both killed.

Many states have banned texting or talking on the phone while driving; Pennsylvania was recently the 35th state to put a ban on texting while driving.  The NTSB has recommended bans for commercial drivers, but hasn’t recommended the ban for passenger cars yet.  Missouri auto insurance companies are well aware of all of the additional accidents caused by the use of cell phones for talking, texting, and surfing the internet.  One out of 100 drivers on the road in America are on their phones at any given time of the day.  An accident caused by using your cell phone while driving will likely increase your auto insurance premiums, but more importantly, no one wants to cause a death like those in Missouri for something as ridiculous as texting while driving.

Written by Sara Smart

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

New Jersey auto insurance consistently ranks as one of the highest states for auto insurance rates and regulators are looking to curb some of the rising costs through new regulations.  The article “What the New Car Insurance Rules Mean for NJ” found on NECN.com answers some of the top questions New Jersey residents have about how the new regulations will affect them.

New Jersey auto insurance is looking at a big overhaul from the proposed regulation changes for the personal injury protection component of auto insurance policies.  The changes will essentially change how and what physicians can charge for treatments and there will be a restructuring of the process for appealing a denied claim.  This is all in hopes that rising premiums will be slowed down and New Jersey auto insurance will become more affordable.

The article is very useful in answering questions many residents have.  It answers some details about personal injury protection and outlines why the system needs a makeover at this time.  The changes to medical services are discussed and gives an understanding of the changes being made to the approval and dispute process that New Jersey has long known.  Insurers will be benefiting from these changes in addition to the consumer so hopefully this encourages auto insurance companies to support the proposed changes and regulations are put into place quickly.  The regulations are not quite a done deal since the public has until the end of September to comment and a decision will be made at that time.

Many auto insurance companies have comprehensive coverage packages with great deals, but you have to do your homework to ensure you are getting want you really want.  One overlooked benefit that doesn’t come with all auto insurance policies is towing coverage.  Whether your car gets stuck in the snow, has a flat tire, the battery dies or it randomly will not start, towing coverage is invaluable and many policies offer it at no extra charge.  Unfortunately, many consumers do not realize this.

Specifically speaking, what you should look for when comparing auto insurance quotes is Towing and Labor Coverage according to the article “Does Your Auto Insurance Cover Towing” by Marcia Passos Duffy on FoxBusiness.com.  This type of coverage will often take care of the towing as well as labor to help get the car started again.  Labor generally covers small fixes and not parts so be careful when a mechanic offers to fix everything.  This coverage can also be called roadside assistance and some companies extend other benefits that mimic an auto club membership.

If you are a member of an auto club and paying an annual fee, double check with your auto insurance company to make sure you don’t already have the coverage you’re looking for.  If you have quality roadside assistance through your insurer, you may be able to cancel your auto club membership and save some money.  With this said, auto clubs such as AAA offer unique benefits that can be hard to find with insurers so you will want to be sure and compare the perks side by side and see what is the best fit for your budget and your personal needs.

Written by Sara Smart

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

The American Automobile Association (AAA) released its 2011 Your Driving Costs research which indicated that the price of auto insurance quotes on a sedan is down 6.1% but driving costs overall increased by about 3.4% since last year.

The AAA report shows that the average annual auto insurance premium for a sedan is $968 which is down $63 from 2010 according to the article “AAA: Insurance Costs Down, Overall Driving Costs Up in 2011″ by Matthew Morisset on the Online Auto Insurance News Team.  This decline cancels out the auto insurance increase from 2010.  The 2010 report showed that policy costs had gone up by 5.7% from 2009.

The insurance costs were based on a 47 year old man with a good driving record and drives between 3-10 miles each day.  The coverage for this sample policy included adequate coverage of $100,000/$300,000 with a $500 deductible for collision and a $100 deductible for comprehensive coverage.  This gives an average look of what a common policy price looks like for an individual but would obviously vary if the coverage, mileage or age were different.

The average yearly costs to own and operate a sedan is $8776 based on 15,000 miles per year.  This number actually increased from 2011 most likely due to the rise in gas prices, the costs of tires and the increase in depreciation rates.  A variety of cost categories were looked at including auto insurance, fees for licensing, taxes, finance charges, depreciation, gas, maintenance and tires.