Smart Auto Insurance Blog

Louisiana once again is experiencing the highest median auto insurance costs throughout the entire nation.  Coming in at $1,111 on average according to the InsWeb survey, Louisiana feels the weight of these high rates especially when compared to other states which are significantly lower.

According to the article “Louisiana Auto, Property Insurance Rates Highest in US” by Christopher Tidmore on BayouBuzz, North Carolina’s average cost is $495 and Virgina comes in at $521.  Both of these rates are less than half the cost of Louisiana auto insurance.  Florida auto insurance quotes have jumped and are on the higher side as well, coming in at about $750, which is worse than last year.

InsWeb’s 2011 Car Insurance Rate Report comes in handy when people are shopping around to compare auto insurance.  It gives consumers an idea of what to expect and what might be considered “high” in their state.  The annual report ranks all 50 states and Washinging DC and bases their rankings on the median household car insurance rate for a 6 month policy.  InsWeb gets their rates from a system that tracks rates from the largest auto insurance companies in every state in addition to actual profiles of their customers.

Many companies that offer auto insurance have brokers such as Bristol West Insurance.  When trying to decide if you are going to go through an auto insurance agent or broker it’s important to understand the differences.  There are a few differences between the two and it can make a difference in your overall experience.

Bristol West takes pride that both their agents and brokers are quality and can be trusted.  This may be true but not all companies may have this benefit.  The differences between brokers and agents differs from state to state, but in general, an auto insurance agent will write a policy for a customer on behalf of a broker or company and the broker will simply write the policy on behalf of the customer.

A broker is allowed to have agents under them and often times they own their own auto insurance company.  Brokers tend to be more heavily regulated since they carry more responsibility to this can be to your advantage.  They typically have a strong history of experience and are very knowledgeable in the field.  This can help you make the best decision as you shop around for auto insurance, but be sure you are comparison shopping.  Rates can vary greatly from broker to broker and insurance company to insurance company.  Some brokers will shop around for you, but it doesn’t hurt to do some additional work to ensure you are getting the very best deal you can.

Auto insurance is getting more and more competitive and price is not the only place to compete.  Customer service, reputation, coverage options, SR22 insurance, and extra perks are all something to consider when shopping for auto insurance quotes.  One perk that has received a lot of attention in the past year is accident forgiveness.  This is a sought after benefit as consumers want flexibility in case they happen to have an accident.  The automatic rate increase that has been associated with accidents scares consumers and this makes accident forgiveness very desirable.

More and more auto insurers are making accident forgiveness part of their policy packages.  Nationwide and Allstate have been advertising this perk for awhile and have found great success with the program.  According to the article “Car Accident Forgiveness Policies” found on US Life Daily’s site says accident forgiveness is one of the more highly searched for benefits which indicates it’s a growing need.  The idea that auto insurance rates will not be automatically raised after the first accident appeals to all demographics and ages so it really is a unique benefit.

Accident forgiveness a relatively new concept, but it makes sense.  Auto insurance companies still want to reward good drivers with superior rates, but they recognize even the best drivers can have an accident and they know customers do not want to automatically be penalized if an accident occurs, especially if they have had a perfect driving record for years.  If this is a perk you think would bring you value, check with your insurer to see if that option is available.  If not, it may be time to start to compare auto insurance quotes online.

The Wisconsin auto insurance bill mentioned in the previous blog has been passed according to the article on BadgerHerald.com by Andrew Averill.  The bill will lower coverage limits for auto insurance which were originally raised in an attempt to save consumers money, but the Democrats have other suggestions to repair the budget.

Currently the law requires auto insurance companies to cover $50,000 for accidents causing bodily injury, $100,000 for two or more persons and $15,000 for property damage.  The limits will be changed to $25,000, $50,000 and $10,000 respectively with the passing on this new bill in Wisconsin.  Assembly Speaker, Jeff Fitzgerald, believes the previous law raised auto insurance rates for families and limited choices to the consumer shopping around to compare auto insurance.

Fitzgerald also goes on to say that the new bill will help consumers decide for themselves what level of coverage is best for their family, and it should make auto insurance more affordable for lower to middle class income families.  He believes it’s the perfect blend of consumer choice and consumer responsibility.  Others argue that the new bill will take away some consumer protections, but now that’s it is going to be signed into law people are focusing on the positives and hoping for the best.

In today’s economic environment people everywhere are trying to save money where they can.  Once it’s time for a new car, many consumer are turning towards used cars as their purchase of choice.  Not only is this because used cars are generally less expensive but auto insurance on used cars is often cheaper as well.  If you compare auto insurance on a used car verses a new car you will find the quotes to be cheaper on the used cars in most instances.  This is because the used cars are on average less expensive to repair and replace.

The government offers a convenient outlet for buyers to search for used cars through auto auctions.  The General Services Administration (GSA) is helping consumers better understand the benefits of using auctions and work hard to make the process smooth.  It can be easy to find a very good deal on a used car through an auction, but it’s important to go through a reputable service to ensure you are getting your money’s worth.

The GSA offers a comprehensive website to prospective buyers that is very user-friendly.  GSA holds public auctions throughout the US at registered auction sites.  By registering at their website you can receive more information on auctions in your area and be well on your way to a quality used car at a competitive price.

Surprisingly, over half of respondents to a recent survey from LexisNexis Risk Solutions, believe that auto insurance rates should be driven by actual driving data obtained through ob-board devices monitoring how someone drives.  According to the article “Survey Shows Mixed Views of Data-Driven Auto Insurance Rates” by Ben Zitney on onlineautoinsurance.com, privacy concerns are holding back consumers from accepting auto insurance companies’ desire to collect information directly from the vehicle to set rates.

The monitoring device placed in the car can detect a variety of information such as speed, mileage, and braking data.  Most auto insurance companies already use personal information like ticket history and credit history when determining rates, but this might take the privacy issue over the edge.  The use of these devices is getting more and more common and could eventually be the norm.

GMAC has been collecting data from OnStar devices for some time now and having great success with their information gathered.  Since 2008 Progressive has been offering discounts to policyholders who agree to have the devices placed in their car for monitoring.  They measure information such as speed, braking, times of day driven, and distance traveled.  Allstate announced that they have launched a similar program called Drive Wise to use data when calculating auto insurance policies.  Compare auto insurance options to see if this might be something that could save you money in the long run.  If you’re a good driver but haven’t proven through your driving record, this could be a plan for you.

A new survey shows a concerning trend.  Of the 1000 Americans with auto insurance surveyed, many have confusion over what to do in the case of an auto accident according to the press release “New Survey Reveals Uncertainty on How to Respond When Auto Accidents Happen” from State Farm found on PR News Wire’s site.

About half of respondents feel it’s against the law to refuse to report an accident to an insurance company while 41% think it’s ok to not go through insurance.  74% say they are a witness to an accident if they are within 100 ft and 66% say being a witness means not getting involved.

One third of respondents believe that saying “I’m sorry” is more than just an apology and doesn’t admit fault.  83% of Americans stated they are likely to pull over if they witnessed an accident which did not involve them.  These questions don’t necessarily have clear cut answers and need evaluations for each unique situation.  Auto insurance is crucial, but if you don’t know the ins and outs of your policy you can be left confused and misinformed.  Each policy is different as well, so you need to compare auto insurance companies to fully understand what type of coverage you have.

According to the article “Saving Money On Auto Insurance as a Senior” found on favstocks.com, there are special steps senior citizens should be taking to ensure they are getting the best auto insurance rate.

First and foremost, seniors should be shopping around to see what type of rates are out there. It doesn’t have to be hard to compare auto insurance quotes. Getting numerous quotes from various companies can ensure they are getting the best deal.  Another key is to get educated on driver discounts for seniors.  There is a 10% discount for drivers over the age of 55 who have taken a safe driving course in 35 states, including some of the top retirement states.

Seniors will also want to consider what address they are using for the auto insurance quote.  Many seniors own two homes and spend somewhat equal time in each so it can be beneficial to get quotes at both addresses and see what state has the best deal.  You will have to consider where you are registered to drive though and you must be upfront about how much time you spend in each location to ensure the auto insurance company has the most accurate information.

Progressive Auto Insurance has been named by CIO Magazine to its 2010 CIO 100 this week according to the article on Powernewsnetwork.com by Magan Salano.  This is the second year in a row that Progressive has received this award.  The CIO Awards give this honor to 100 companies that use innovative technology to enhance their business.

Progressive currently uses Microsoft NET with their company’s systems.  This type of technology is used by Progressive to provide an infrastructure that enables easy expansion for their products and services.  Ray Voelker, Progressive’s Chief Information Officer says their goal is to provide their customers with access to a large range of products, including the ones developed by other services.

This type of recognition lends to the success of Progressive.  They were one of the first auto insurers that offered to compare auto insurance quotes for the customer, and they continue to be very successful.  They are one of the nation’s largest auto insurance groups, and they are the largest seller of motorcycle policies and are a leader in commercial auto insurance based on their policies written.

According to the press release “Expect to See Increase in Auto Insurance Rates” found on emailwire.com, Texas auto insurance quotes will be seeing an increase in the near future.  States such as Texas and Maryland are raising minimum coverage requirements and there are more states expected to follow.

This increase in minimum coverage requirements increases the chance of higher premiums.  This is in addition to the increasing costs of health care coverage for those injured in car accidents, and higher premiums.  The cost of health care increasing is likely to affect drivers’ auto insurance policies over time, and consumers should be prepared.

Because of the potential for increased costs, it’s a good time to compare auto insurance.  It’s a good idea to get multiple quotes from numerous companies to ensure you receive a competitive price.  Another way to counteract the potential increases is to adjust deductibles and policy offerings.  In general, the higher the deductible, the lower the cost of a policy.  If you take the highest deductible you can afford you may see a dramatic change in your auto insurance rates.