Smart Auto Insurance Blog

There is a fairly unique system in place regarding auto insurance rates in North Carolina.  The Daily Reflector published an article by Gary D. Robertson of the Associated Press entitled, “NC lawmakers look at auto insurance risks, costs.”  This article explains the current debate in North Carolina over whether it is more important for overall auto insurance rates to be low or for individual drivers to pay more based on their risk.

About 20% of North Carolina’s 7 million insured car owners are in a high risk insurance pool.  Called the North Carolina Reinsurance Facility, the high risk pool is for drivers that cannot otherwise get insurance from companies because of their past history of riskier driving.  Rates are around 30% higher for those in the high risk pool, but 70% of those in the pool haven’t had any type of risky driving is over three years.  These drivers don’t pay the extra 30% premium, so their premiums fall flat of covering their expenses and losses.

There is a clear divide in the state as to whether this pool needs to be altered or dismantled.  Insurers like State Farm, Geico, and Progressive agree with trade associations that want the ability to better match rates with driver risk.  This would call for the elimination of the North Carolina Rate Pool, which sets the rates that North Carolina insurers are allowed to charge.  But Nationwide and other insurance companies think the system works well and point out that North Carolina has the 7th lowest insurance rates in the nation.  North Carolina’s insurance market is competitive, their insurers make profits, and their overall rates are low.  But many believe that their huge high risk pool needs some changes.

Written by Sara Smart

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State Farm auto insurance is a proud supporter of Mothers Against Drunk Driving (MADD), whose primary mission is to put an end to drunk driving and support victims of such crimes.  They also fight to put an end to underage drinking.  State Farm is a national sponsor and they share very similar values in educating youth about the dangers of drinking.

“Protecting You/Protecting Me” is a comprehensive program offered through MADD which uses an approach to stop underage drinking through effective, educational efforts to stop the access of alcohol to our youth.  This excellent program is a research-based plan which is nationally recognized nationally.  The Substance Abuse and Mental Health Services Administration, Center for Substance Abuse Prevention named it a “Model Program”.

State Farm and Meharry Medical College also came together to research why seat belt and child safety is lower among African Americans.  They plan on using the findings to influence legislation to further support cultural public awareness programs.

Driver safety continues to be a priority of State Farm.  If you choose to disregard any safety provisions put forth by the law, then not only are you putting yourself and other drivers lives at risk but you are increasing your chances of paying higher auto insurance rates or having to carry SR-22 insurance.  There are no benefits to breaking the law when it comes to driving.

Georgia auto insurance companies such as State Farm are charging lower auto insurance rates to drivers with better credit ratings, WALB News’ Jim Wallace reports. With these ratings, the higher the better. Insurers believe that lower credit ratings correlate with a higher likelihood of filing auto accident claims. A motorist’s credit rating plays a large part in calculating the insurance score that determines the premiums they charge. (Other factors include your driving record and demographic characteristics like age, location, and marital status.) Unfortunately, the perceived greater risk results in more expensive auto insurance for those with bad credit.

If your credit is good, Jim says that this is the perfect time to take advantage of the competition in the state’s car insurance market. Otherwise, try to improve your credit rating before shopping around for auto insurance quotes. You could save hundreds of dollars per year!

(Photo credit: History.com)

According to an editorial on Ocala.com, Governor Charlie Crist is considering a ban on State Farm selling Florida auto insurance. State Farm will lose almost 3 million auto insurance policyholders in Florida if that provision goes ahead.

Crist, along with state Senator Mike Fasano, is retaliating against the insurer’s announcement that it will phase out its homeowners’ property insurance in the state. State Farm is leaving the market because they were not allowed to increase rates by enough to make it profitable to insure the hurricane-prone region. They are probably hoping State Farm won’t go ahead with their market exit if it means forgoing the auto insurance profits in the state.

Get State Farm quotes here.

According to a press release, State Farm is lowering its Georgia auto insurance rates next month. As of March 9th, both comprehensive coverage and collision coverage premiums will decrease by an average of 1.5%. (However, medical and liability coverage rates will not change.) This is thanks to State Farm having to pay out fewer insurance claims than expected. This decision by the largest auto insurer in the state could save drivers over $16 million!

Get your own State Farm quote now and see if you will save money under the new rates.

This is pretty shocking, but it’s more proof that you need to read your auto insurance policy very carefully: Stephanie Day of InjuryBoard wrote that State Farm recently denied a claim to pay for the usage of the jaws of life in responding to an car accident. They refused to compensate the fire department because in their view, the jaws (which extricate an accident victim from a car crash) are not included in the medical payments coverage of the insured, since it is technically a non-medical expense.

I hope you never end up in such a situation, but be sure to do your research and make sure exactly what your particular policy does and does not cover, besides just looking at the premium and deductible costs. Your health insurance may cover this, or it may not.

Get State Farm quotes for auto insurance.

The two largest providers of Alabama auto insurance recently announced plans to lower their rates, according to Jeff Amy in the Press-Register. State Farm, which holds almost a quarter of the state’s auto insurance market, will lower its rates by about 1.8%, as of January 12. Second-place Alfa Insurance is going to decrease its rates by 1.7% to 1.9%, depending on the subsidiary which wrote the policy. Those rate changes will go into effect on January 26.

Progressive Insurance also intends to lower its insurance rates for one of its Alabama subsidiaries later this month, by 5% on average. They’re the fourth-largest insurer in Alabama.

While Jeff warns that these lower rates won’t necessarily apply to everybody, it’s still a good idea to check out State Farm quotes or Progressive Insurance quotes, as well as Alfa’s, in order to keep up with rate changes in Alabama.

(Photo credit: southernpixel under CC 2.0)