June 17th, 2010
A recent ranking of states in order of car insurance affordability puts Massachusetts at the top of the list, according to press release “InsWeb Releases 2010 Car Insurance Affordability Index.” They compare car insurance rates in each state with the median household income in the state to get their affordability factor. The lower the affordability factor, the less households pay for car insurance based on their budget. Massachusetts’ affordability factor was the lowest at 1.84%, making them the most affordable state. The rest of the top ten in order are New Hampshire, Vermont, Minnesota, Utah, Nebraska, Hawaii, Indiana, North Carolina and Virginia.
With an affordability factor of 6.93%, a full two percentage points higher than any other state, Louisiana is the least affordable state in which to insure a car. Companies like Infinity auto insurance have to charge more based on the risk factors in that state, but residents’ median income does not balance with the insurance costs. The other nine least affordable states are Oklahoma, Missouri, Washington D.C., New York, West Virginia, New Mexico, Kentucky, Arizona and Florida. Many surveys rank where Americans pay the most and least for car insurance, but they don’t take into account how affordable the insurance is relative to median income. By determining what percentage of a family’s income goes towards car insurance, we get a better overall picture.
Tags: compare car insurance, Infinity auto insurance
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June 10th, 2010
The National Insurance Crime Bureau (NICB) put together a list of the 20 cities and metro areas where you are most likely to get your car stolen, according to Insure.com’s Joe Taylor. In “The best places to get your car stolen,” California cities show up 11 times in the top 20 list. For Mercury Insurance and other California insurers, this is unfortunate news since more stolen cars mean more money being paid to consumers who have car insurance. With the exceptions of Detroit, Michigan and Yakima and Spokane, Washington all of the cities are located in the south. Most are actually in western states. Laredo, Texas came in first place. Living in one of these zip codes can significantly increase the amount that you pay for car insurance.
Unitrin Auto Insurance and other car insurance companies have tips to help consumers avoid getting their cars stolen. Have a visible or audible alarm system arming your car. Whether they hear the sound or see a tracking code on your windows, an alarm system might be enough to deter a thief. There are electronic devices like “smart keys” available for purchase that will immobilize your car if someone breaks in and tries to hot-wire it. Through satellite systems and cell tower technology, police can track and relocate stolen cars so having one of those systems can be beneficial. Basic common sense is also very important in keeping car thieves away. Park where it is well-lit, don’t leave your keys in the car, and always lock your car and put all windows up. Keep those thieves away.
Tags: Mercury Insurance, unitrin auto insurance
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June 4th, 2010
On June 8 California voters will cast their ballot for or against Proposition 17, the Continuous Coverage Auto Insurance Discount Act. In The Daily Californian article “Prop.17 Would Cut Auto Insurance Rates,” Mike D’Arelli says that passing Prop.17 would help increase competition and help California consumers get better rates from car insurance companies like Nationwide Insurance. Consumers could save hundreds of dollars each year if the auto insurance discount gets extended through Prop.17. The current driving law in California offers a discount to consumers who maintain car insurance through the same company, called the continuous coverage discount. But you lose that discount if you switch car insurance companies. So even though your coverage has been continuous, since it wasn’t with the same company the law says you lose the discount.
Prop.17’s change to the insurance law would modify it so that consumers still receive the continuous coverage discount even if they switch car insurance companies. As most Americans are trying to reduce expenses and save money wherever they can, the ability to shop around for cheap car insurance is really important. More competition in the car insurance market leads to lower rates for consumers. Prop.17 also includes a grace period of 90-days for consumers who stop coverage for a short time because they are unable to drive. Individual insurers can extend that grace period longer than that to maintain a consumer’s continuous coverage discount. There is also a military provision to ensure that men and women serving our country overseas will be able to maintain their discount. California voters will make a decision next week on Prop.17.
Tags: cheap car insurance, Nationwide Insurance
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May 25th, 2010
The top ten professions that crash their cars the most and get the most speeding tickets may surprise you, but they may not. According to “Who Crashes the Most? Car Accidents by Occupation,” Kat Zeman reports that doctors are the number one culprits. Insurance companies like Amica Car Insurance often take professions into account when quoting your rates. They are used in conjunction with many other factors like your driving record, past claims, credit history, age, gender, location, and the kind of car you drive though. Doctors might account for a large number of crashes and speeding tickets because they are tired after working long hours or are rushed to get to hospitals when they’re on call.
Lawyers account for the second largest amount of car accidents. Architects are in the third largest amount of accidents and have quite a high number of speeding tickets. Real estate brokers come in fourth place for accidents, possibly because they spend a lot of time on their cell phones. Enlisted military personnel are fifth and social workers are sixth. With the amount of time social workers spend on the road, they might already pay more for car insurance from companies like Donegal Insurance. Manual laborers and analysts come in seventh and eighth place in car crashes. Engineers and consultants round out the top ten spots. Even with the higher accident and speeding ticket rates of these ten professions, students are still by far the worst offenders.
Tags: Amica car insurance, Donegal Insurance
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May 18th, 2010
Senior citizens have the most fatal and incapacitating car accidents as well as the most crashes per mile they drive, according to MSN Money’s “For seniors, wrecks are more severe.” While older drivers are quick to point out that their competence behind the wheel should be the important factor in how long they should drive rather than their age, statistics show that older drivers are involved in the worst crashes. Researchers are hoping to find a way to keep older drivers safer on the road to reduce the number and severity of car accidents. Since they don’t drive nearly as much as younger drivers, they aren’t causing the most accidents. But when you look at the accidents per mile they drive, that is the shocking statistic.
Allied auto insurance and other car insurers are interested in this research about senior drivers because a higher and more severe accident rate means money to car insurance companies. Almost half of the seniors interviewed said that they drive almost every day. They are driving fewer miles overall and less than half of the seniors drive at night or on the highways. They reported having trouble judging the speed of oncoming traffic, which explains a high instance of left-turn crashes in senior drivers. Some recommended steps to help older drivers are to install more left-turn arrows at busy intersections, increase the size and font of road signs, and look into the driver’s license renewal process. It might benefit many drivers to include a mandatory education course every so often.
Tags: Allied auto insurance, car insurance companies
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May 11th, 2010
According to “The 5 biggest lies told to car insurance companies,” freelance writer Barbara Marquard says that your little white lies actually mean a lot more than you think. Many consumers lie to their car insurer to get cheap car insurance. What insurers call “premium leakage”, or lost revenue based on inaccurate information from consumers, adds up to nearly 10% of total premium dollars. The top misrepresentation to car insurance companies is under-estimating the amount of miles that you drive. While some people may just not know, many change jobs and increase commutes without telling their insurers. Not listing all of the drivers in the household is another common falsification. Whether it’s a newly licensed teenager or a high-risk adult driver, many drivers are left off of the insurance policies.
Lying about where your car is parked, whether in a garage or not, is the third largest misrepresentation. The fourth is claiming discounts that don’t apply to you or your family any longer. AAA Auto Insurance may offer discounts for members of their roadside assistance program or honor roll students, but if your situation changes, you have to let your insurer know. Distorting how the vehicle is used is the last common misrepresentation. Some consumers don’t let insurers know that they are using their vehicle for business purposes. Insurance companies can find out your missing information through accidents a family member is in, a quality control company they hire, and even your odometer reading at a testing center. With the risk of your policy being canceled, it is in your best interest to be truthful to your car insurance company.
Tags: AAA Auto Insurance, cheap car insurance
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May 6th, 2010
According to “Progressive Launches Industry’s First Android App for Car Insurance,” a Progressive car insurance press release, they have the first Android app relating to car insurance. It uses the Google Android operating system to allow smart phone users to access a number of Progressive services. ComScore, Inc., a digital measuring company, reports Android as the smart phone platform with the most rapid growth in the market currently. Since launching the app, Progressive has seen a large increase in Android customers visiting their mobile based web site. It’s really designed to help customers simplify each aspect of their car insurance.
This free application is similar to Progressive’s iPhone app and is available in the Android marketplace. Car insurance companies work hard to compete for young business and staying on top of the latest technology is a great way to do that. With the Android app users can obtain quotes and a policy, make payments and changes to their account, and find directions to an agent or their nearest service center. They can also do research on recalls or crash tests, calculate car loan payments, compare insurance on different cars, make and track their claims, and watch Progressive’s television commercials. There isn’t much related to car insurance that can’t be done with Progressive’s mobile app.
Tags: car insurance companies, Progressive car insurance
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April 27th, 2010
J.D. Power & Associates’ 2009 National Auto Insurance Study rated numerous car insurance companies in terms of five categories. The accompanying press release, “Lower Premiums at the Onset of the Current Recession Drive Significant Increase in Overall Satisfaction With Auto Insurance Companies, But a Hardening Market Could Eradicate 10 Years of Progress,” explains the results in detail. Amica Mutual had the highest ratings for the tenth year in a row, with the highest marks in all five categories. The factors measured were overall satisfaction, contacting the insurer, policy offerings, billing and payment, and pricing. The overall rankings for the car insurance industry were at a five-year high in 2009, partly based on lower premiums because of the economic recession.
State Farm car insurance ranked “better than most” in overall satisfaction, “among the best” in contacting the insurer, and “better than most” in two of the remaining three categories. USAA and New Jersey Manufacturers Insurance Co. were the other two standouts ranking “among the best” in all categories, but they are both only offered to a limited group of people. Farmers auto insurance and most other insurers ranked “about average.” Over forty percent of customers said that their premiums decreased without having to shop around and switch to another insurer. Unfortunately, history shows that about a year after recessions, customer satisfaction declines as rates begin rising. If the car insurance companies talk with their customers before potential rate increases and try to work with them, it might work to dissuade negative opinions as prices inevitably rise again.
Tags: car insurance, Farmers auto insurance, state farm car insurance
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April 19th, 2010
In The New York Times article “Where Auto Insurance is Most Expensive,” Jennifer Saranow Schultz highlights the highs and lows of auto insurance. The most expensive premiums are in Louisiana, where the average person pays $2,510.87 per year. Compare car insurance in the rest of the top five states and some aren’t nearly as high as Louisiana. Michigan is the second highest at $2,098.29, followed by Oklahoma at $1,869.39, Montana at $1,857.96, and California at $1,774.41. One of the largest factors in determining these rates seems to be state laws. The state government is affecting how much you pay for your insurance, sometimes even more than your driving record does.
Cheap car insurance can be found in Maine, where the average premium studied was $902.85. Only two other states stayed under $1,000, with Vermont as the second lowest at $968.58 and Ohio as the third lowest with a premium average of $999.86. Rounding out the top five cheapest car insurance states were Wisconsin at $1,010.93 and New Hampshire at $1,011.23. The article also explained that population levels may have a large factor in what companies like Erie Insurance charge consumers for their car insurance. The more rural states may just have fewer crashes because the highways are not as crowded as the more urban states. You’ll have to see if your premium matches up with your state’s average according to this recent study.
Tags: cheap car insurance, compare car insurance, Erie Insurance
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April 12th, 2010
According to “Auto insurance going up for Michigan drivers,” ABC News affiliate WZZM reports that car insurance rates will be increasing in Michigan. The increase was initiated by the Michigan Catastrophic Claims Association and will take effect on July 1st. Each vehicle will be charged $18.20 more for auto insurance coverage. Insurance agents say that they get complaints about these increases and have to explain them in detail to many consumers.
The Michigan Catastrophic Claims Association has been around since 1978 and is the only one of its kind in the United States. They pay the medical bills above $480,000 after car accidents. Encompass Auto Insurance and other insurance companies wait to see what this Association will do about rate increases each year. Usually the fees do go up but there have been times that did not occur. With a $2 billion deficit and $800 million of payments to make, the M.C.C.A. says that after months of research they have no choice but to make this rate increase.
Tags: car insurance, Encompass auto insurance
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