Smart Auto Insurance Blog

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.

The Wisconsin Assembly is voting today on a bill which will eliminate some of the higher minimum levels for auto insurance that Democrats put in place back in 2009.  Wisconsin would still have to purchase Wisconsin auto insurance, but supporters say consumers will have lower auto insurance rates and more options to choose from if all goes as planned.

According to the article “Assembly Set to Roll Back Auto Insurance Levels” found on WTAQ.com, critics of the bill say accident victims could be left with a larger bill because their damages would be more than the person’s auto insurance policy coverage.  The bill would end some major consumer protections as well.  If would end “stacking” which is where a driver can use liability on up to 3 of their cars to claim damages when one car gets in an accident.

This bill would also bring back reducing clauses.  This measure reduces a policyholder’s benefits for drivers who are under-insured and high risk drivers would be placed into a class by themselves with high auto insurance rates than others.  The Governor of Wisconsin, Scott Walker, supports the measure and it will be soon determined which way the vote will go.  Many states are facing similar decisions with their auto insurance laws, but Wisconsin is proactively trying to make changes.

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.

InsWeb released earlier this week its yearly report of the most and least expensive cars to insure according to the article “Fun, Luxurious Cars Still Pricey to Insure” by Claes Bell on Bankrate.com.  Insuring new cars can cost you a chunk in auto insurance premiums, but the type of car you drive will have a great impact on your rates.

The most expensive cars to insure based on their repair costs and other factors include the Acura ZDX, Audi TTS, Audi A5, Cadillac Escalade, Chevrolet Corvette, BMW Z4, Lexus SC, Jaguar XF, Cadillac STS, and the Dodge Challenger.  This list includes mostly high-powered luxury and sports cars which is to be expected.

The least expensive cars according to this report include moderately priced, lower powered, family cars such as the Kia Sedona, Mazda 5, Ford Escape, Hyundai Santa Fe, Mercury Mariner, Chrysler PT Cruiser, Ford Explorer, Subaru Outback, Kia Optima, and the Chevrolet Equinox.

According to the article “State Farm Changes Auto Insurance Rates” by Rapid City Journal.com, State Farm Auto Insurance has increased their insurance rates in South Dakota an average of about .1% as of July 12.

Once this rate change goes into effect, State Farm’s overall average auto insurance rate will be 14.2% lower than they were 13 years ago.  This is fantastic news during this tough times for those struggling with South Dakota auto insurance quotes.

Currently, premiums for comprehensive and collision coverages are increasing.  Comprehensive coverage takes care of losses from theft, fire, damages from weather, vandalism, and broken glass.  The cost of liability as well as medical payments will decrease for many customers.  Rate changes will vary from customer to customer, depending on what type of coverage they choose, where they reside, the type of car they drive, and how often it is driven.

A recently released report from Quality Planning Corp in San Francisco shows that auto insurance companies lost about $15.9 billion in 2008 from premium leakage.  Premium leakage is the loss of revenue because of the inability of insurance companies to keep track of their customers’ situations that influence rates.  This number is about 10% of the total $167 billion in personal auto premiums written.  This is according to the article “The 5 Biggest Lies Told to Car Insurance Companies” by Barbara Marquand on insure.com.

Lying about small information to get a better auto insurance quote may seem harmless but it could mean trouble for you down the road.  Some of the lies told to insurers include under-estimating the number of miles driven, not reporting all the drivers in the household, not giving the correct garage location, claiming discounts that no longer apply, and misstating how the car is used.

You should avoid misstating information when getting your auto insurance quote, not only because it increases rates for everyone over time, but the insurance company could very well find out.  According to Quality Planning every 1% reduction in rating error can cause a 20% profit gain.  This means that it’s worth the insurer’s time to do their homework and ensure their customers are being honest.  The information you give them may end up getting scrutinized so safe yourself the trouble and just be upfront from the start.