Smart Auto Insurance Blog

California auto insurance companies continue to debate Prop 17.  According to the article “Consumer Advocates, Insurers Battle Over Prop 17″ by Sue Kwon on cbs5.com The Yes on Prop 17 campaign is spending millions in ads to spread their message.

With Prop 17, the clean record discount would follow the driver if they chose to switch companies.  Insurance broker, John Morton, with the Alliance of Insurance Agents and Brokers wants the measure to pass.  He believes it’s a win-win for his clients.  He sees the good driver discount as something a driver should have ownership over regardless of what company they go with.  Morton also thinks Prop 17 will cause companies to compete and drive down California auto insurance quotes.

The Executive Director of the Consumer Federation of California, Richard Holober, believes the opposite will happen.  California auto insurance companies, such as Infinity Auto Insurance, may end up charging more to certain customers including students, military, unemployed, or low-income drivers because they break continuous coverage within 90 days.  This is detrimental to drivers in these groups who may have perfect driving records and otherwise would not get their rates raised on them.

As of October 1, there was a new Arizona auto insurance law implemented according to an article by Adam Rolnick found on usprwire.com about Oasis Insurance.  The bill was passed the previous legislative session and it’s known as HB2224. 

October 1 and going forward judges are required to assign penalties for Arizona drivers who don’t carry auto insurance coverage.  About 87% of tickets that were issued because drivers were not carrying insurance were dismissed or the fines were lowered.  The new law says there will be no dismissal of these charges. 

The first offense will carry an approximately $720 penalty which cannot be waived.  About $970 will be the fine for second time offenders.    If you are caught a third time driving without auto insurance the fine will be up to $1200 and your license will be suspended for a year.  Not only will your license be suspended but you will be required to carry SR22 insurance documentation once you get your license back. 

Before this law was passed, Arizona residents who were caught driving without insurance would often purchase the insurance before the court date and show their proof upon the judge’s request.  The new law says this will not be possible going forward and the fines still must be paid.

A new topic that will be covered here in the smart auto insurance blog is driving laws.  While not exactly an auto insurance topic, all moving violations do indeed have an impact on auto insurance rates at the end of the day and changes to such laws should be of interest to those who have an interest in what is going on in the world of auto insurance.

Effective July 1, 2009, Tennessee joins 11 other US states (Alaska, Arkansas, California, Connecticut, Louisiana, Maryland, Minnesota, New Jersey, Utah, Virginia, and Washington) in banning text messaging by all drivers.

More information on Tennessee Auto Insurance.