Auto Insurance

Electronic Car Insurance Proof Bill Advances in California

Unanimous approval last week from lawmakers in a California committee advanced a bill to allow electronic copies of insurance cards displayed on smartphones to be accepted as proof of coverage, as the Golden State gears up to be the next in a long line of states allowing electronic means of proving financial responsibility.

The proposal from Assemblyman Mike Gatto (D-Los Angeles), titled AB 1708, was sent by a 13-0 vote in the Assembly Insurance Committee to the Assembly Appropriations Committee.

With most insurers now providing proof of coverage through mobile-phone-compatible and commonly used formats like PDF when consumers buy cheap insurance in California, legislators said they want all drivers to have a way to show authorities evidence of a policy.

“[T]his measure would provide greater convenience to motorists by adapting the law to the increasingly common use of cell phones in business transactions and everyday life,” legislators stated in the bill’s legislative summary, highlighting the “developing trend” in other states.

In late March, Idaho became the first state to enact a law allowing mobile phones to be used as way to prove coverage after Gov. C.L. “Butch” Otter approved a bill that moved easily through the state Legislature. That same day, Arizona Gov. Jan Brewer put her signature on a similar bill there.

Other pieces of legislation enabling electronic means of proof are already on the books in other states while others are considering bills that would do so:

– Alabama: Starting January 2013, motorists will be able to display electronic proof during both traffic stops and the vehicle registration process.

– Colorado: Motorists can already show electronic proof of a policy during the vehicle registration process.

– Louisiana: Representatives in the state House are scheduled to consider HB 1130 this week.

The bill would also establish legitimacy for electronic registration documents, which would cut state administrative costs, according to Gatto.

“[A]nybody under the age of 60 would probably opt into this—and that could save the DMV a significant amount of money when it comes to both printing and mailing registration forms,” Gatto said last week in an interview with Capital Public Radio.

Auto Insurance with Cheaper Rates

Auto insurance is a necessary expense for most vehicle owners, and people usually want to find the cheapest coverage available. Finding a low-priced policy, however, requires a fair amount of research. Often motorists have many options when choosing an insurer and a wealth of choices when selecting the amount of protection they want to purchase. It’s important for policyholders to know, however, that almost every decision they make when choosing a plan can impact their premium.

Coverage costs are largely based on the possibility that the driver will file a claim and the amount of protection he or she wants to purchase. Accident risk is determined by examining a wide range of information that typically includes a vehicle owner’s age, marital status, location, driving record, and credit history. However, almost every company interprets risk differently, resulting in potentially large differences between policy prices.

People who have been in multiple accidents or received several moving violations are commonly placed in the nonstandard market and charged more for vehicle coverage. Individuals with good records, however, generally encounter lower premiums. Despite a motorist’s level of risk, most people still have multiple companies to choose from that offer unique rates. To take advantage of these differences, drivers should shop for cheap auto insurance by comparing quotes online from as many insurers as possible.

Qualities for Cheap Car Insurance

While shopping can be helpful, where motorists live and the amount of coverage they want to purchase have a noticeable impact on policy prices. In almost every state, vehicle owners have specific insurance requirements that must be met to legally drive. This is part of the reason why average premiums will fluctuate between states. For example, the National Association of Insurance Commissioners found that in 2008 the average expenditure in Louisiana was over $1,000, while the average in North Dakota was only $500. Read more…

Benefits from Auto Insurance Comparison Shopping

Vehicle coverage can be costly, but most people are still required to buy a policy before legally driving. One advantage that motorists have is their ability to shop around for the cheapest rates they can find. People have many different insurance companies to choose from, and often each one will offer a unique rate. Motorists may be able to significantly reduce their coverage costs by taking the time to make comparisons before making a purchase.

Policy prices are typically unique because they are largely based on a driver’s accident risk, and a person’s level of risk is determined by carefully interpreting an extensive amount of information. Insurance companies will look at a potential policyholder’s age, gender, marital status, desired coverage limits, driving record, location, vehicle information, annual mileage, and many other details. Each of these points is closely linked to statistical information that helps insurers determine how likely a motorist is to file a claim.

The reason why people are encouraged to make a car insurance rates comparison before buying auto protection is that prices can sometimes vary by 200 percent between companies for policies that include the same levels of protection. One of the more efficient ways to amass estimates involves using online resources to view dozens of quotes at once.

Helpful Ways to Compare Car Insurance Policies

While making comparisons, motorists should consider more than just the price of a policy. Not every company can offer the same quality of service, and after an accident it’s important to have an insurer that can adequately handle any claims. Vehicle owners should get multiple quotes, and when several affordable options have been identified, they should look at how well each insurer interacts with customers.

One method for identifying a helpful and competent insurer is to use complaint information accumulated by the state. For example, the Illinois Department of Insurance annually publishes data ranking insurers on the number of complaints they received in a year in relation to the number of written premiums. From these reports, people may be able to identify which companies can provide the most satisfactory service. In addition to statistical information, motorists can also rely on the past experiences of trusted friends and relatives for helpful insight into how well certain insurers interact with their customers.

Vehicle owners should remember that the need to make auto insurance comparisons is not limited to people who are buying their first policy. Over time, policy prices and service quality can fluctuate. Luckily, drivers have a number of helpful online resources that are readily available.

Survey: Most Insurance Shoppers Depend on TV, Web for Info

A recent Erie Insurance survey quizzing shoppers and buyers on car insurance knowledge shows that the vast majority get their information from TV or the Web, but also that the focus on discounted auto insurance is so strong that consumers are confused about whether or not their coverage types fits their needs.

The survey was conducted in February and surveyed a relatively small nationwide sample of 360 adults aged 18-64.

For shoppers, just over two-thirds of those surveyed ranked coverage and price as the top criteria in shopping for car insurance, and the vast majority said TV and websites did the best job of informing them of both.

Respondents said TV commercials were best at informing them of savings, although they beat out websites by only two percentage points (34 percent to 32 percent). Websites, meanwhile, were best at informing them of coverage options. Thirty-nine percent said the Web was the best source of coverage info, while 28 percent said it was TV.

Television may be the main medium for information because “it’s impossible to watch TV nowadays without seeing a commercial for car insurance,” with 79 percent of respondents agreeing with the statement. However, the abundance of price-related advertisements comes at the cost of understanding options, according to 74 percent of respondents that agreed with the statement “with so many TV ads talking about saving money … it’s easy to forget about important coverage choices that affect how you are protected.”

The survey showed that responders believed they had an unsure sense of whether or not their policy was adequate. Eighty-six percent of responders said they had adequate or more than adequate coverage to protect their families, assets and themselves, yet they were less certain when it came to others; 40 percent of those surveyed agreed with the statement “most people have less coverage than they should have.”

Just under half agreed that “different coverage options on policies can be confusing,” and 41 percent agreed that they’re “never quite certain if they’ve made the right decisions about their … policy options.”

Forty-seven percent of those surveyed agreed with the statement that “it’s easy to get so caught up in getting a low rate that you can forget other things like coverage options, customer service and getting claims paid quickly.”

Almost half, 48 percent, of respondents said the emphasis on deals makes differentiating insurers difficult, agreeing with the statement that “there’s so much attention on discounts nowadays that it’s hard to believe there’s really much different among car insurance providers.”

​Coverage Quiz

Those surveyed were also posed specific questions about insurance terms and types. Of those asked “which of the following do you believe pays for the damage caused to your vehicle if it hits another object?” 53 correctly answered “collision,” but 31 percent incorrectly answered “comprehensive.”

Most answered the question “which of the following do you believe pays for the damage caused from things like fire, theft or a deer colliding with your bumper?” correctly, with 67 percent saying “comprehensive.”

Most also correctly answered the question “which of the following do you believe you pay when you buy or renew an insurance policy?” with 79 percent answering “premium.”

The majority answered the question “which of the following do you believe is the term for a temporary insurance contract that provides proof of coverage until a permanent policy is issued?” correctly with “binder.”

Most respondents correctly defined the term “for changes and additions to your policy” as “endorsement,” but almost the same percentage incorrectly answered “affirmation.”

Most respondents incorrectly answered “which of the following do you believe is the maximum amount payable on coverage under the terms of your insurance contract?” with 61 percent saying “cap” instead of the correct term, “limit.”

Readers can see the full survey results through Erie’s website.

Save with Affordable Car Insurance

The price of an auto insurance policy fluctuates significantly between insurers, which mean that motorists can shop around and make comparisons to find the cheapest rates. Vehicle owners have their own interpretations of affordability, so it is essential that individuals complete their own research. But apart from running simple comparisons, there are several other ways for drivers to impact how much they pay for vehicle coverage.

Shopping around and making quote comparisons before buying a plan can help drivers get affordable car insurance by provide pricing options. While evaluating estimates online, it may also be advantageous to take into account the different discounts that are frequently available. In the competitive market, insurers strive to create ways to attract new customers. One of the more popular techniques is offering special savings. Good-driver, good-student, and mature-motorist discounts are common among insurers, but it may also be possible to get reduced rates for insuring multiple vehicles or for driving a car with advanced safety features. To gather more information, vehicle owners are encouraged to contact multiple companies to find out what savings are available.

Methods for Getting Affordable Auto Insurance

Making adjustments to an existing policy can significantly alter someone’s premium. For example, vehicle owners who are required to buy comprehensive and collision coverage are generally given the option of setting their own deductible. Choosing a higher deductible means that the policyholder will have to contribute more to cover the cost of repairing physical damages to the insured automobile, but their premium will be lower as a result.

Apart from making policy adjustments, one of the best ways to get cheaper coverage is to keep a clean driving record. Accidents and moving violations can quickly lead to higher insurance prices. In some situations, becoming a high risk driver can make it difficult to find an insurer willing to provide adequate coverage at all. Luckily there are numerous ways for motorists to improve their driving skills that frequently result in lower rates.

Residents can use state resources to get access to driver training programs. The Georgia Department of Driver Services offers driver training information to residents, for example. Typically these programs are designed for teenagers and vehicle owners over the age of 55, but additional courses may be available. Completing one of these programs can also result in special discounts from participating car insurance companies.

Source: http://www.onlineautoinsurance.com/affordable/

Teenager Auto Insurance Rates

Before becoming officially licensed motorists, most teenagers are already considered high risk drivers. Policy prices are largely based on the possibility that someone will be involved in an accident or file a claim, and younger drivers continue to demonstrate riskier behavior while behind the wheel. For example, the North Dakota Department of Transportation found that between 2001 and 2007, adolescents represented only 11 percent of driving residents, but were involved in 25.9 percent of all crashes statewide.

These negative statistics are one of the reasons why insurance rates for teenagers are usually higher than for the average driver. But despite these steeper prices, many motorists are still required to maintain adequate coverage to legally drive. Finding affordable auto protection as a newly licensed youth usually involves a fair amount of research. While most insurers generally target people in the preferred and standard market, some companies specialize in insuring high-risk individuals in the non-standard market as well.

Making multiple quote comparisons can usually help people of any age find lower-priced auto protection. But instead of contacting several companies directly for a sample rate, vehicle owners can use the Internet to amass dozens of estimates at once. On the World Wide Web, teens can explore their pricing options and seek out alternatives to buying their own plan. To cut costs, younger motorists can choose to join the policy of a parent or guardian, and take advantage of multiple discounts. Read more…

Michigan Policyholders to See $30 Increase in Mandatory MCCA Fee

Michigan drivers will have to pay a little extra next year to help fund the association that allows them to enjoy lifetime medical coverage through their auto insurance policies.

The fee is actually charged to insurance companies for every vehicle they have on the books, but the cost ultimately gets passed on to consumers.

Currently, the fee is set at $145 per vehicle, but that will go up to $175 starting July 1, amounting to an increase of about 21 percent. That’s according to an announcement on Friday from the Michigan Catastrophic Claims Association (MCCA), the entity that runs the fund.

The MCCA is necessary in Michigan because insurance policies issued to drivers in the state are unlimited in the amount of coverage they provide.

No other state in the nation employs such a system, and members of the industry say that it has resulted in huge costs to insurers and has made low cost car insurance in the state virtually impossible to find.

The only way that insurers in the state have been able to shoulder the burden as well as they have is the fact that the MCCA exists.

The MCCA reimburses Michigan auto insurance companies for claims that exceed the $500,000 threshold, so insurers themselves in the end do not actually have to pay lifetime medical benefits to their policyholders. Read more…

Michigan Supreme Court to Weigh Merits of ‘Joyriding’ Exception

The Michigan Supreme Court is looking on Tuesday at whether courts in the state should consider valid a “family joyriding” doctrine that makes it so that insurers have to pay for damages in crashes where “a family member borrows a car without permission but without meaning to steal it.”

The exception was used in two recent Michigan court cases that the state Supreme Court will be taking into consideration. In both cases, the insurers argued that they were free from liability because the family members who took the vehicles did so “unlawfully.”

This distinction is important because both Michigan car insurance policies included exclusions saying that drivers of vehicles covered under the policies will not receive personal injury protection (PIP) benefits after a crash if they had taken the car unlawfully.

Progressive Marathon Insurance v. DeYoung

In the case of Progressive Marathon Insurance v. DeYoung, Ryan DeYoung took his wife’s car, which had been insured by Progressive Marathon, without consent even though he had not been licensed since he was 17 years old, has four drunk driving convictions, was listed as an excluded driver on the policy and had been forbidden from driving the automobile.

DeYoung ended up crashing the car while driving drunk and was taken to the hospital for serious injuries, according to court documents.

After filing for PIP benefits, Progressive denied the claim on the grounds that he had taken the car unlawfully.

The medical care providers who treated DeYoung and sought reimbursement for the care were the ones who first argued that the joyriding exception should apply.

The lower court ruled that it was not applicable in this case because the driver was specifically excluded in the policy, but an appeals court reversed and remanded the case.

Spectrum Health Hospitals v. Farm Bureau Mutual Insurance

The situation was slightly more complicated in the case of Specturm Health Hosptials v. Farm Bureau Mutual Insurance.

In this case, Craig Smith Jr. had not been given permission from his father to drive the father’s car. The father had entrusted the car to the younger Smith’s girlfriend and told her that she was not to allow Craig Jr. to drive it.

But she did end up giving Craig Jr. permission to take the car, despite his father’s wishes and the fact that he had no valid driver’s license, according to court documents.

He ultimately drove intoxicated and crashed into a tree, injuring himself in the process.

Like Progressive Marathon, Farm Bureau argued that he had taken the vehicle unlawfully and that the insurer should not have to pay for the damages.

But documents made available by the state Supreme Court show the trial court that first heard the case decided the girlfriend had been “empowered to grant others permission to operate the vehicle” and that the family joyriding exception applied.

Both Progressive Marathon and Farm Bureau have brought the cases to the Supreme Court for what could be a final ruling.

Unlicensed Teenagers with Auto Insurance

All motorists need to be licensed to legally drive, and in many states, drivers need to be adequately insured to get a license. Teenagers with hopes of becoming licensed drivers are often required to search for a company that is willing to provide vehicle coverage before they can become full-fledged motorists. However, finding affordable auto protection as an unlicensed teen may require some extra research. When insurers rate and underwrite motorists, they usually take accident risk into consideration. If a driver demonstrates an increased risk of filing a claim, they are likely to encounter higher premiums.

Being a young and inexperienced driver is often interpreted as also having a high accident risk. For this reason auto insurance for teenagers is usually more expensive than the average policy. Coverage providers determine risk by exploring an extensive amount of information, which includes accident statistics. Unfortunately, motorists under the age of 25 are involved in more accidents than any other age group, and have repeatedly demonstrated a tendency to take unnecessary risks while behind the wheel.

Fortunately, there are ways for younger drivers to decrease their level of risk, and online resources to help compare many quotes from multiple insurers. Unlicensed teens and other riskier drivers can utilize these resources to meet state coverage requirements and eventually obtain full driving privileges.

Alternative Auto Insurance Options for Unlicensed Teens

The World Wide Web can provide young, unlicensed motorists with the tools necessary to efficiently shop around. Insurers usually interpret risk differently, and some companies find it financially beneficial to insure nonstandard drivers. To find an affordable option, teens are encouraged to shop around online and amass estimates from as many sources as possible.

One popular option for younger drivers on the verge of becoming fully licensed motorists is to join the policy of a parent or guardian. Often choosing this option can provide youthful motorists with the vehicle coverage necessary to become licensed, and is usually one of the more affordable choices. Policyholder’s should keep in mind, however, that when a high-risk motorist is added to a policy, there is a good chance that the premiums of all motor vehicles on the same plan will likely increase as well. Luckily, there are ways for teens to help cut coverage costs.

To become better prepared for the open road, and to help reduce their accident risk, younger motorists are encouraged to enroll in a Teen Driver Education Program that has been approved by the state. These classes and tutorials are designed to help youthful motorists improve their driving skills, and often include special insurance discounts that can help cut coverage costs.

Insurance Commissioner Touts Drop in Motor Vehicle Thefts

FBI data show that the annual number of motor vehicle thefts in Louisiana fell by more than a third between 2006 and 2010, a trend the state commissioner of insurance says could result in dropping prices for comprehensive coverage in the state.

In 2006, there were more than 15,600 vehicles stolen statewide. By 2010, that number declined to about 9,890–a drop of about 37 percent.

The reductions reflected in the 2009 and 2010 numbers were the most prominent, with each of those years’ annual theft volumes posting double-digit drops from the previous year.

Between 2009 and 2010, the drop was 15.6 percent.

Louisiana ranks right around the middle when compared with theft rates from other states, and its rate is just slightly higher than the national average.

In 2009, there was on average 1 theft for every 167 cars registered in the state. The nationwide average was 1 theft for every 169 registered vehicles.

Possible Implications for Comprehensive Policy Prices

It’s not clear how many owners of the 9,890 vehicles stolen in 2010 were compensated for their losses.

The only type of Louisiana car insurance that protects car owners against vehicle theft is comprehensive coverage, and motorists in the state are not required to add that optional coverage type to a policy. Read more…