Smart Auto Insurance Blog

Texas auto insurance quotes and rates are expected to increase over the next few weeks due to a recent regulation change.  There was recently a mandatory minimum liability coverage requirement increase according to the article found on Digital Journal detailing the new regulation.

The Texas Department of Insurance states that liability coverage was much too low and an increase was necessary.  The coverages were barely covering the cost of accidents and this was hurting other drivers involved.  Department of Insurance spokesperson, Jerry Hagins, believes Texas drivers can expect to see an approximate increase of 2%-3% in their current rate.  Charles Law, a local auto insurance agent, estimates this to be around $40 per year on average across the board.  This is a small increase for most people, but it gives us some foreshadowing of where the rates are headed.

Apparently, this minimum liability coverage increase was long overdue.  There hadn’t been an adjustment since 1983 which is simply shocking since medical costs and auto repair costs have skyrocketed since then.  The new rate increase was called for in 2007 law, but it did not take effect until January 2011 and by now consumers are seeing the difference on their statements.  As much as no one wants to pay more for their auto insurance this is a necessary evil to ensure our coverage actually protects us in case we hurt someone or something out on the road.  If it’s too small of an amount we could end up paying out of pocket and no one wants that.

According to the Baltimore Sun’s Liz Kay, 67 Maryland auto insurance companies have been fined by the state’s Insurance Administration. The insurers were found to have under compensated drivers whose cars have been deemed a total loss, by failing to take into account increases in state sales tax and Motor Vehicle Administration fees when calculating a car’s value.

Liz reports that the over 4,000 drivers affected have already received refunds, averaging about $100 each (total restitution being $442,000). The companies (listed here) were also charged a $235,000 fine. Always make sure to make sure exactly what level of auto insurance claim your policy covers, so you aren’t greeted with an unpleasant surprise.

A recent editorial in the Baltimore Sun has expressed support for a proposal in the state legislature regarding Maryland auto insurance. State Senator Catherine E. Pugh’s legislation would allow the Maryland Automobile Insurance Fund, the auto insurer of last resort, to let policyholders pay their premiums in installments (i.e. monthly).

Currently, unlike private insurance companies, a state law only allows drivers with MAIF policies to pay for a full year in advance; many then turn to private financing companies that charge high interest rates, effectively adding $200 to $400 to the cost of yearly premiums. MAIF auto insurance rates are, on average, $3,219 per year.