Smart Auto Insurance Blog

Eastwood Insurance has come along way since it started back in 1989.  Over the years it has become an industry leader in offering quality service of auto insurance coverage.  They have developed a reputation of integrity and expertise.  They believe insurance should be affordable for all and they truly want to save their customers money.

Eastwood Insurance individually chooses their partners.  Instead of offering every single insurance product on the market, they look for partners who can represent what Eastwood believes in.  Information is being delivered faster than ever and they ensure their technology is up to date.  Their website provides easy access to the company’s information, employment opportunities and changing trends in the insurance industry. 

Community service is also an important part of Eastwood’s philosophy.  They contribute regulary to Children’s Hospital in Los Angeles, and Oakland.  They also contribute to Goodwill Industries.  Their employees are always encouraged to take an active role in the community in any way they can.  This shows what kind of company you will be doing business with if you become their customer.

The state of California has seen suspected California auto insurance theft and arson fraud increase over the past year according to The California Department of Auto Insurance which released information on Friday.  This was found in the article “State Sees Rise In Suspicious Auto Insurance Claims” on Sacramento Biz Journal by Kelly Johnson.

The agency recently gathered data that showed criminals may be committing more auto insurance fraud to obtain insurance cash during these tough times.  Insurance Commissioner Steve Poizner stated in a news release that fraud is on the rise.  In 2008, the California Department of Insurance found a 25% increase in suspected car arson fraud cases from the year before.  They also received about 200 more suspected car theft fraud cases in 2008 compared to 2007. 

The department receives regular referrals of suspected fraud from auto insurance companies, law enforcement agencies as well as consumers and each case is researched to determine if it is actually a fraud situation.  Other kinds of auto fraud such as inflated damages, vandalism, and hit and run accidents have remained somewhat constant since 2007 according to the Department. 

This increase in suspected fraud may continue as the recession remains.  Consumers are feeling strapped for cash and desperate and this seems like the only road for many.  Of course, any type of fraud will end up costing you much more in the end, including possible jail time.

According to the article “Pay-as-you-drive auto insurance gets green light” by Kelly Johnson from msn.com, California Insurance Commissioner Steve Poizner announced Friday that the state Office of Administration Law has passed regulations which allow auto insurance companies to base rates on how much drivers drive and they are now in effect.

Poizner opposed the pay-as-you-drive regulation a year ago, but now he believes it’s an innovative way to give California drivers rewards for driving less.  This will ultimately lead to lower auto insurance, less air pollution and eventually less dependence on foreign oil. 

The Association of California Insurance Companies supports the new regulation calling it “pro-consumer”.  The new regulation will give auto insurance companies and drivers an additional tool to assure that auto insurance rates reflect the driver’s actual risk of getting into an accident and filing a claim.  Insurers will have the option to offer estimated mileage, but they will now also have the option to offer verified mileage plans.

California has a low-cost auto insurance program which offers lower auto insurance rates, according to the article “Requiring Auto Insurance Requires That It’s Also Affordable” by Peter Luke on mlive.com.  The program covers basic auto insurance for less than $400 a year.  Drivers must be 19 and have a relatively clean driving record.  There is also an income requirement of less than $27,000 for a single person or $55,000 for a family of 4. 

The article points out that one of the main arguments over the health care debate is that if there is going to be a mandate on health insurance then premiums must be made affordable.  The same concept should be applied to auto insurance since it is required in most states.  The policies need to be readily available for everyone, fairly administered and with reasonable auto insurance rates. 

There is also much debate over how auto insurance companies determine their rates, especially in Michigan where previous posts discuss how they are debating the use of the credit score.  Many believe not only should credit score be excluded from auto insurance companies’ formulas, but also income, gender, zip code, marital status, and bankruptcy.  Some states are considering excluding employment status, which is important for today’s high unemployment rate.

Here’s an update on what to expect from California auto insurance quotes due to the proposed pay-as-you-drive program.  According to the article “Poizner issues final pay-as-you-go auto insurance regulations” there has been some headway on the proposal. 

California Insurance Commissioner originally proposed the pay-as-you-drive regulation back in September of 2008 and just this past Thursday issued the final regulations which will allow insurance companies to offer rates based on the actual miles driven. 

Once the new regulations go into effect, insurers will be able to offer a mileage program instead of, or in addition to, current estimated mileage programs.  The hope is that the regulation will save California drivers money, and cause people to drive less which will in turn reduce emissions and reduce California’s dependency on foreign oil.

Residents may be in for a surprise when they obtain their California auto insurance quotes.  According to the article “State considers revised mileage-based auto insurance” on Central Valley Business Times’ website there is a new draft of pay as you drive regulations that has recently been released.  This revised plan may cause auto insurance quotes in California to consider how much a driver is in the car when determining the cost of a policy.  This has been in the works for months, and is backed by Insurance Commissioner, Steve Poizner. 

This article states that Poizner believes the pay as you drive concept is a cutting edge program which will create motivation for California drivers to drive less.  This will eventually lead to lower auto insurance costs, less pollution in the air, and less dependence on foreign oil. 

Some are concerned about the intrusion on privacy that the pay as you drive might create.  The Electronic Frontier Foundation says the original regulation would allow auto insurance companies to install electronic devices into their policy holders’ cars to track how much they drive.  It will also track a variety of other information such as location and seat belt wearing.  The revised plan will prohibit black boxes to track location.  Companies will use odometer readings and estimates from the policy holder as well.  It’s still to be determined how this new regulation will all pan out in the end.

Good news for California auto insurance policyholders with USAA.  USAA Auto Insurance announced that it is reducing their auto insurance rates by an average of 7% in California according to an article on insurancejournal.com. 

USAA auto insurance is the tenth largest auto insurer in California insuring about one million automobiles. According to the California Department of Insurance, this covers approximately 3.5% of the auto insurance market. 

USAA California customers will save on average of 7% or about $104 per policy each year.  This totals to $47.6 million under the newly approved rates.  These auto insurance rates will apply to policies that are renewed or written after August 5, 2009.

According to the article “Auto Insurance fraud cases surge, commissioner says” on myvalleynews.com, cases of suspected California auto insurance fraud has increased significantly over the past year.  State Insurance Commissioner Steve Poizner discussed the surge during an appearance in San Diego on Tuesday. 

It is suspected that the economic downturn is causing the increase in fraudulent behavior, but Poizner reminds Californians that breaking the law will only compound financial problems.  The state Department of Insurance estimates that fraud claims are up by 25% from 2007 to 2008.  The agency also received 200 more notices about possible auto theft fraud in 2008. 

Poizner advised that state insurance fraud investigators are hard at work to crack down on anyone attempting auto insurance fraud.  Not only does this behavior mean problems for the perpetrator but it also ultimately raises everyone’s auto insurance rates.

California auto insurance policy holders are in for some good news as California implements a $34 million statewide rate reduction announced by California Insurance Commissioner Steve Poizner on Wednesday.  This is according to the article “21st Century to cut premiums for California drivers an average of $50″ by Marc Lifsher on LATimes.com. 

21st Century Insurance, which was recently acquired by Farmers Insurance Group, insures over a million California cars.  This is about 5% of the private passenger car insurance market, so this is a big deal that they will be experiencing an average of $50 in cut costs on their auto insurance rates. 

A Farmers Insurance Group spokesperson stated that they were able to drop rates because of less accidents and less severe accidents being claimed over the past years.  Annual dollars saved will average $80 in Los Angeles county, $62 in Sacramento county and $58 in San Francisco.  This is great news as California residents are trying to save money in this challenging economy.

By the end of the year California auto insurance may have a new option for their drivers.  According to the article “Pay-as-you-drive auto policies could become an option by year’s end” in the LA Times by Marc Lifsher, paying by the mile may be a reality.

Much like cellphone users have started to purchase talk time per minute, drivers could start buying their auto insurance by the mile.  Regulations proposed Friday by state Insurance Commissioner Steve Poizner, auto insurance companies would be allowed to offer pay as you drive which would lower insurance bills by keeping drivers from behind the wheel. 

There are other possible benefits from such a pay structure.  Less cars would be on the road to potentially curb traffic jams and gloabal warming.  There would be less greenhouse gasses emitted into the atmosphere over time.  No one would be forced to take advantage of the pay as you drive option, so drivers with long commutes to work or drivers who travel a lot may find it cheaper to stick with the conventional auto insurance ploicy.