Smart Auto Insurance Blog

It’s not always the best idea to automatically decline the auto rental insurance that rental companies offer their customers according to the article “Don’t Automatically Refuse Extra Rental Car Insurance Coverage” by Michelle Crouch on creditcards.com.  It’s important to do your homework and ensure that you are covered when you rent an auto.

In recent years auto rental companies have started adding extra fees for damages to the rental.  These are often not covered by the auto insurance companies or credit cards.  This is where research is important.  How much are the fees and are you covered.  Most major credit cards offer some form of auto rental insurance, but it doesn’t always cover the extra fees charged by the rental companies.  It’s important to look into.

Most auto insurance companies also offer some form of coverage for renting a car.  But again, it’s hard to tell if it will fully cover all costs associated with the damages.  If you rent an auto often it will be worth your time to shop around and compare auto insurance benefits.  They can vary greatly from company to company.  Bottom line, educate yourself.  Always read the fine print and be sure you are not paying twice for the same coverage.  But at the same time, ensure you have enough coverage.  It’s a fine line, but as a responsible consumer it’s in our hands to protect ourselves.

Mercedes newest protocol, The Experimental Safety Vehicle, offers some impressive features that may drastically reduce injuries and deaths in the case of an accident.  This is according to the article “Mercedes May Help Owners Get Inexpensive Auto Insurance with Safer Car” by Shannon Brown on Cheaper Car Insurance’s website.

If this new safety car is brought to the market and proven effective it will affect the auto insurance quotes for Mercedes drivers.  This unique design basically turns the car into a giant airbag before impact which protects the driver and the passengers.

Mercedes continues to be on the forefront of vehicle safety.  There are even more special safety features in the models coming out soon.  Mercedes make safe driving a priority and it shows in their efforts towards making safer models.  Unfortunately, prices for these types of cars are on the rise, but at least it’s good to know that many auto insurance companies give discounts for cars that are proven extremely safe.

According to the article “State Insurance Official Says 15 Percent of Montana Drivers are Uninsured” by Charles S. Johnson on www.missoulian.com, Montana’s uninsured rate is slightly higher than the national average.

The national average for uninsured drivers is 13.8% while Montana is coming it at 15%.  Even neighboring states are much lower.  Mari Kindberg, the property and casualty actuary in the state Auditor’s Office says North Dakota comes in at 5%, South Dakota is at 7% and Wyoming is at 9%.  What is different about Montana that’s making Montana auto insurance quotes unattainable?

Kindberg states that Montana already has laws requiring drivers to have auto insurance and there are stiff penalties for those who choose not to and get caught.  The Revenue and Transportation Interim Committee is studying the problem of uninsured and underinsured drivers.  The Auditor’s Office recommended changing the state credit act to assist consumers keep their current auto insurance policies and make rates affordable during tough times.  This may help Montana’s high uninsured rate.

According to the article “Texting While Driving Ban: Texting While Driving Laws Do Not Reduce Accidents” found on khabrein.info/news, a recent study shows that the recent bans on texting has not effectively brought accidents down in California.

The research was conducted by Highway Loss Data Institute, which is a non-profit organization supported by the auto insurance industry.  The research shows that the rate of accidents before and after laws were enacted in California have not significantly changed.  The study also pointed out that accidents in CA haven’t shown any significant changed in comparison to Arizona and Nevada where there are no bans on texting while driving.

The Automobile Club of Southern California finds the research interesting but they do not plan on accepting the study, citing that the samples were not large enough and the study is inconclusive.  It’s still known that any distraction while driving will put you at a higher risk of being in an accident, whether it’s texting, changing the radio, or programming a GPS.

Toyota has recalled 2.3 million vehicles due to a certain accelerator pedal which may mechanically stick when in a partially depressed position.  It’s a very rare possibility, but serious enough to spur the huge recall.

Toyota has started production on the redesigned accelerator pedals which will fix the problem that led to the major recall of 8 vehicle models according to the article “Toyota Says New Design for Faulty Gas Pedals Ready” found on Businessweek.com.  Toyota worked on the design along with CTS Corp which supplied the pedals in the recalled cars.  Toyota is also working with the supplier to test modifications to the pedals already in the cars and plan to get those out at soon as possible.

This recall has stirred a lot of concern among Toyota owners.  Toyota has an outstanding reputation which makes it a great value in terms of car price, auto insurance quotes, as well as cost over time.  It will be interesting to see how Toyota will bounce back from this mistake.

It is becoming more widely known that many auto insurance companies use the credit score when calculating auto insurance quotes for those shopping around.  Whether you agree with it or not, insurers have found that credit history is a powerful predictor of what kind of driver you are.

According to the article “Does Getting An Auto Insurance Quote Hurt Your Credit Score” by DR on Doughroller.com, Progressive has data to show that consumers with the worst scores are often twice as likely to have an accident or file a claim compared to consumers with the best scores.  But a question that has been on the minds of many credit conscious consumers is how does it affect your credit score when you get auto insurance quotes from an insurer?

The answer is that it affects your score minimally.  Auto insurers are using what’s called “a soft pull” when they look at your file.  This is a way for people to look at your credit file without it affecting your score.  When you get pre-approved offers, are interviewing for jobs, or look at your own credit score these are all using “soft pulls”.  A “hard pull” is used when you are shopping for credit and it can negatively affect your score.  This is often known as a “voluntary pull” and it affects your score because seeking excessive credit is viewed as a risk factor.

According to the article “AG Finds Herself on 2 Sides of a Dispute” by Bruce Mohl on boston.com, the Massachusetts Attorney General Martha Coakley is defending something she criticized not too long ago.  She is the state’s top lawyer and is defending Governor Patrick’s Administration against a lawsuit that’s saying some of the state’s auto insurance rules unfairly favor national companies coming to the MA market, such as Progressive Auto Insurance. There has also been some criticism of the way Massachusetts auto insurance quotes are determined.

The interesting thing is that this same attorney general has been known to criticize the same regulations.  She has been a representative of consumers on auto insurance debates and released a report just before the holidays that stated her belief that the managed competition auto insurance system is not saving MA drivers money.  She also accused Governor Patrick of playing favorites when determining auto insurance rules.

She basically argued in court that state officials are acting reasonably in making the auto insurance rules, but just weeks ago accuses them of playing favorites. It will be interesting to see how this plays out and if her two-sided judgement affects her defense.

According to the article “Auto Insurance Customers Urged to get Breakdown Coverage” found on PrudentMinds.com, it’s extra important to have breakdown coverage through your auto insurance policy during the cold weather.

The article says that claim filings increase in the cold weather as road conditions are often hazardous.  In addition, cars are more likely to experience mechanical problems in the colder air.  The article also recommends making minor car checks before hitting the road such as oil level, anti freeze, hazard lights, tire tread and pressure, as well as ensuring you have a spare.  It’s also important to make sure your window wipers are working properly and you have sufficient wiper fluid.

In bad weather, there is a chance of being left in the cold for an extended period of time so it’s important to be protected.  It’s a good idea to keep safety items in your car such as a torch, warning sign, first aid kit, jumper cables, and a blanket.  Before you take a road trip in the wintry conditions, contact your auto insurance company to understand what type of breakdown coverage you have.

According to the article “AG Urges Changes In Auto Insurance” by Robert Weisman on boston.com, Massachusetts Attorney General’s office issued a report claiming that managing competition in the auto insurance system, started back in 2007, is not working.

The new system has attracted more auto insurance companies to the state, but Massachusetts auto insurance quotes are starting to factor in socioeconomic factors that aren’t related to driving record and this is concerning many.  The AG also faults the state Division of Insurance for not providing data to compare auto insurance quotes and make it easier for Massachusetts residents to shop around.

Attorney General Martha Coakley is afraid that consumers are not getting the best deal on their auto insurance rates.  She wants to initiate a few changes to better the system, such as requiring insurance companies to justify their discount rating system when determining their auto insurance quotes.  She would also like a Massachusetts website made readily available to residents to compare MA rates easily online.  The new system has showed mixed results, so it’s still to be determined how everything will pan out.

According to the article “Nationwide Debuts Second iPhone App” by Dianna Dilworth on DMNews.com, Nationwide has two applications that you can download onto your iPhone to make your life easier.

The first application, called Nationwide Mobile, launched back in April of 2009.  It lets Nationwide customers obtain information about their auto insurance policies and file claims by using the iPhone camera.  That application has been downloaded about 82,000 times and over 200 claims have been started through this process.

The second application just launched this week, called Cartopia.  This application has the purpose of helping consumers shop for new and used cars easily through their phone.  Both of these unique iPhone applications were created by the interactive agency Rosetta.

If these types of conveniences appeal to you, you can get Nationwide auto insurance quotes online.