Wisconsin drivers could be paying more money for car insurance. On November 1st, all policies will have uninsured motorist coverage. The plan is designed to protect those who get involved in an accident with a driver who does not have enough insurance to cover the damages.
Minimum coverage will jump from $50,000 to $100,000 per driver and $100,000 to $300,000 of coverage per accident. Insurance Agent John Allen says driver rates will go up. "That will affect everybody differently, depending on how much coverage each person has."
If someone has extra coverage now, it could mean about twenty bucks a year per car, but if you have less coverage "It could be 100-200 a vehicle a year, and you have multiple vehicles, it could make a big difference in their insurance costs." Allen says.
Drivers like Cameron Zasda say this increase couldn't have come at a worse time. Money is tight, and this would take a big bite out of their budget. "I'm 21 years old, and I can't get liability for less than 300 a month. I can't afford that so it's pretty messed up."
On June 1st 2010, rates for medical coverage will also go up and everyone in the state will be required to have car insurance. Allen says the requirement might not be effective. "Will these laws force people who aren't buying insurance today into buying insurance? That's yet to be seen."
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
No one taking blame for higher car insurance
As insurance companies begin mailing notices to Wisconsin customers telling them that their auto premiums are likely to increase soon, state politicians are scrambling to avoid the blame.
The first changes expected to affect premiums start Nov. 1 with more coming next year when all motorists must carry liability insurance. The minimum levels of coverage are also increasing.
Terry Scheller, 47, of Nichols recently received notice that coverage for his three vehicles was increasing $231.
"I think it's awful," Scheller said. "How much more can people afford? Times are tough. Guess who's paying for it? People like me with clean driving records."
The new insurance requirements were approved by the Democratic-controlled Legislature earlier this year.
But Democrats aren't willing to accept blame for any higher premiums.
Assembly Majority Leader Tom Nelson, D-Kaukauna, said in an Oct. 7 letter to a constituent who inquired about higher premiums that "any premium increases are due to the business decisions of insurance providers rather than any action taken by the Legislature."
That's the same thing he told Scheller when he called to complain.
"I'm not buying it from Mr. Nelson," Scheller said. "I believe it's the state law. That's what I'm hearing from two different agents."
Nelson said in an interview that insurance companies were "simply using the Legislature as an excuse to raise premiums and generate more profit."
Nelson's assertion is "flat out wrong," said Andy J. Franken, president of the Wisconsin Insurance Alliance. The alliance represents insurance companies and spent more than $500,000 lobbying against the changes passed by the Legislature.
Franken said at its most basic level, the Legislature increased the amount of coverage people will have to carry and it's "simple economics" to see that will result in higher premiums.
"Everyone understands if you buy more of something, it costs more money," Franken said.
Both the insurance industry and state regulators agree that premiums will go up because of the changes. But they may not go up for all policy holders and how much they increase depends on several factors.
The state Office of the Commissioner of Insurance did not prepare, and does not intend to prepare, an analysis of what impact the changes approved by the Legislature will have on premiums.
However, premiums in general are expected to go up for consumers who purchased only the minimum limits because of the changes, said OCI spokesman Jim Guidry.
Determining how much, or what the impact would be on an individual policy holder, is difficult because some consumers purchased more than the minimum limits, Guidry said. Also, there are more than 200 insurance companies competing with one another and a variety of other factors, including driving record and past claims experience, affect premiums, he said.
"People who have higher limits that are at or higher than the new mandated amounts, will not be impacted," said Ken Muth, a spokesman for American Family Insurance, which is based in Madison. "It's going to depend on what the coverages are now and the additional coverages you'll have to take on. ... It may go up significantly for some."
American Family is sending out letters to policy holders warning them about increases.
"Every insurance company in the state will be forced to charge more as a result of this legislation," one letter sent by American Family said. American Family is the largest auto insurer in Wisconsin.
Nelson called American Family's letter blaming the Legislature for higher premiums "disingenuous and shameful."
Republicans see an opportunity to attack Democrats as policy holders getting notices of increases are looking for someone to blame.
"Obviously this is no mystery. We knew when this policy was put in it was going to raise insurance rates," said Assembly Minority Leader Rep. Jeff Fitzgerald, R-Horicon. "I think everybody's bill will increase, it's just a matter of how much."
Insurance companies, including American Family, fought against the changes but were unable to overcome support from Democratic lawmakers and Gov. Jim Doyle, a Democrat, who signed them into law.
Supporters, included trial attorneys, argued that because the current minimum coverage levels haven't increased in 29 years they don't take into account current costs.
Source
The first changes expected to affect premiums start Nov. 1 with more coming next year when all motorists must carry liability insurance. The minimum levels of coverage are also increasing.
Terry Scheller, 47, of Nichols recently received notice that coverage for his three vehicles was increasing $231.
"I think it's awful," Scheller said. "How much more can people afford? Times are tough. Guess who's paying for it? People like me with clean driving records."
The new insurance requirements were approved by the Democratic-controlled Legislature earlier this year.
But Democrats aren't willing to accept blame for any higher premiums.
Assembly Majority Leader Tom Nelson, D-Kaukauna, said in an Oct. 7 letter to a constituent who inquired about higher premiums that "any premium increases are due to the business decisions of insurance providers rather than any action taken by the Legislature."
That's the same thing he told Scheller when he called to complain.
"I'm not buying it from Mr. Nelson," Scheller said. "I believe it's the state law. That's what I'm hearing from two different agents."
Nelson said in an interview that insurance companies were "simply using the Legislature as an excuse to raise premiums and generate more profit."
Nelson's assertion is "flat out wrong," said Andy J. Franken, president of the Wisconsin Insurance Alliance. The alliance represents insurance companies and spent more than $500,000 lobbying against the changes passed by the Legislature.
Franken said at its most basic level, the Legislature increased the amount of coverage people will have to carry and it's "simple economics" to see that will result in higher premiums.
"Everyone understands if you buy more of something, it costs more money," Franken said.
Both the insurance industry and state regulators agree that premiums will go up because of the changes. But they may not go up for all policy holders and how much they increase depends on several factors.
The state Office of the Commissioner of Insurance did not prepare, and does not intend to prepare, an analysis of what impact the changes approved by the Legislature will have on premiums.
However, premiums in general are expected to go up for consumers who purchased only the minimum limits because of the changes, said OCI spokesman Jim Guidry.
Determining how much, or what the impact would be on an individual policy holder, is difficult because some consumers purchased more than the minimum limits, Guidry said. Also, there are more than 200 insurance companies competing with one another and a variety of other factors, including driving record and past claims experience, affect premiums, he said.
"People who have higher limits that are at or higher than the new mandated amounts, will not be impacted," said Ken Muth, a spokesman for American Family Insurance, which is based in Madison. "It's going to depend on what the coverages are now and the additional coverages you'll have to take on. ... It may go up significantly for some."
American Family is sending out letters to policy holders warning them about increases.
"Every insurance company in the state will be forced to charge more as a result of this legislation," one letter sent by American Family said. American Family is the largest auto insurer in Wisconsin.
Nelson called American Family's letter blaming the Legislature for higher premiums "disingenuous and shameful."
Republicans see an opportunity to attack Democrats as policy holders getting notices of increases are looking for someone to blame.
"Obviously this is no mystery. We knew when this policy was put in it was going to raise insurance rates," said Assembly Minority Leader Rep. Jeff Fitzgerald, R-Horicon. "I think everybody's bill will increase, it's just a matter of how much."
Insurance companies, including American Family, fought against the changes but were unable to overcome support from Democratic lawmakers and Gov. Jim Doyle, a Democrat, who signed them into law.
Supporters, included trial attorneys, argued that because the current minimum coverage levels haven't increased in 29 years they don't take into account current costs.
Source
Saturday, November 28, 2009
Is Your Car Insurance As Cheap As It Looks
Nobody looks forward to choosing their car insurance. Many people stay with the same company year on year to avoid endless phone calls or trawling quote comparison sites at renewal. Nowadays, however, many companies offer significant introductory and online discounts which only apply for the first year. What this means for the consumer is that shopping around makes good financial sense. But while it can be extremely tempting to go for a cheap policy, it's wise to know exactly what you're buying into.
What's Missing?
Sometimes one company will offer Fully Comprehensive coverage for the same rates as another's Third Party insurance. This should ring alarm bells, it's possible it's cheaper for a reason.
A car insurance policy booklet is divided into sections. The level of cover you have purchased will include some or all of these. Third Party Only is the legal minimum and included in all policies. Mandatory since 1930, it covers you for damage to another's person or property. Then Fire and Theft is added to that, followed by damage to your own car - Fully Comprehensive includes all three.
There are things we automatically assume to be part of a Comprehensive policy - European coverage, windscreen coverage, a courtesy car, coverage for driving other cars - but not necessarily so. Policies may have been stripped to the bare bones in order to appear cheap. The missing features may then be offered as chargeable extras, so take care.
If you are considering driving abroad, check what level of coverage you will actually have while out of the country. It might be lower than your normal level of coverage and you may only be allowed a limited time abroad. To increase the time or level of coverage would then be chargeable.
Auto Insurance Excesses
So you have a cheap policy that seems to give all the coveage you need. The next thing to check are the excesses. These are what you pay in the event of a claim, such as deductibles. Sometimes they can be high in order to keep the premiums down and there are compulsory excesses on top for categories of driver who the insurer perceives to be a higher risk. This may include young drivers, foreign drivers or those with points on their license - check which apply to you.
Extra Charges
Whether we want to believe it or not, it does cost an insurer to set up or cancel a policy, and to process your claims. As businesses, they will attempt to recoup the costs from the customer, probably in the form of cancellation fees or charges for amending your policy. If the premium is very low these charges may be higher to compensate. Some cancellation fees are even levied within the mandatory 14 day cooling off period, so be aware of what you're letting yourself in for.
Sadly the process of renewing your insurance remains a long, drawn out process and even higher premiums may not include everything so it's worth devising a checklist to use when you shop. Go in armed with your own questions and reduce your chances of unpleasant surprises later in the year.
Source
What's Missing?
Sometimes one company will offer Fully Comprehensive coverage for the same rates as another's Third Party insurance. This should ring alarm bells, it's possible it's cheaper for a reason.
A car insurance policy booklet is divided into sections. The level of cover you have purchased will include some or all of these. Third Party Only is the legal minimum and included in all policies. Mandatory since 1930, it covers you for damage to another's person or property. Then Fire and Theft is added to that, followed by damage to your own car - Fully Comprehensive includes all three.
There are things we automatically assume to be part of a Comprehensive policy - European coverage, windscreen coverage, a courtesy car, coverage for driving other cars - but not necessarily so. Policies may have been stripped to the bare bones in order to appear cheap. The missing features may then be offered as chargeable extras, so take care.
If you are considering driving abroad, check what level of coverage you will actually have while out of the country. It might be lower than your normal level of coverage and you may only be allowed a limited time abroad. To increase the time or level of coverage would then be chargeable.
Auto Insurance Excesses
So you have a cheap policy that seems to give all the coveage you need. The next thing to check are the excesses. These are what you pay in the event of a claim, such as deductibles. Sometimes they can be high in order to keep the premiums down and there are compulsory excesses on top for categories of driver who the insurer perceives to be a higher risk. This may include young drivers, foreign drivers or those with points on their license - check which apply to you.
Extra Charges
Whether we want to believe it or not, it does cost an insurer to set up or cancel a policy, and to process your claims. As businesses, they will attempt to recoup the costs from the customer, probably in the form of cancellation fees or charges for amending your policy. If the premium is very low these charges may be higher to compensate. Some cancellation fees are even levied within the mandatory 14 day cooling off period, so be aware of what you're letting yourself in for.
Sadly the process of renewing your insurance remains a long, drawn out process and even higher premiums may not include everything so it's worth devising a checklist to use when you shop. Go in armed with your own questions and reduce your chances of unpleasant surprises later in the year.
Source
Sunday, November 15, 2009
Claudia Buck: Shop, but don't drop, car insurance policies
The recession has run a few drivers off the road, at least when it comes to keeping their auto insurance coverage.
Pinched by pay cuts, job losses and other financial hardships, consumers are downshifting: cutting back on coverage, shopping for more competitive rates or, in some cases, letting their insurance lapse to save money.
Nationally, the number of motorists without auto insurance is expected to increase from 13.8 percent in 2007 to 16.1 percent in 2010, largely due to the sputtering economy, according to a study earlier this year by the Pennsylvania-based Insurance Research Council.
California and Arizona – each with an estimated 18 percent of uninsured motorists – tied for seventh place among all states, according to the IRC's January study. And that was as of 2007, before the recession caused widespread unemployment and upheaval.
The trend has naturally troubled the insurance industry. Earlier this year, state Insurance Commissioner Steve Poizner traveled the state, urging Californians to stay insured and seek out low-cost insurance.
"In today's tough economy, many drivers are looking for ways to cut their expenses and some are undoubtedly considering eliminating auto insurance," Poizner said this week in an e-mail, "but driving without insurance is illegal and puts all travelers at risk."
There are money-saving routes on car insurance that stop far short of dropping coverage altogether. Here's a look at where you can start.
Source
Pinched by pay cuts, job losses and other financial hardships, consumers are downshifting: cutting back on coverage, shopping for more competitive rates or, in some cases, letting their insurance lapse to save money.
Nationally, the number of motorists without auto insurance is expected to increase from 13.8 percent in 2007 to 16.1 percent in 2010, largely due to the sputtering economy, according to a study earlier this year by the Pennsylvania-based Insurance Research Council.
California and Arizona – each with an estimated 18 percent of uninsured motorists – tied for seventh place among all states, according to the IRC's January study. And that was as of 2007, before the recession caused widespread unemployment and upheaval.
The trend has naturally troubled the insurance industry. Earlier this year, state Insurance Commissioner Steve Poizner traveled the state, urging Californians to stay insured and seek out low-cost insurance.
"In today's tough economy, many drivers are looking for ways to cut their expenses and some are undoubtedly considering eliminating auto insurance," Poizner said this week in an e-mail, "but driving without insurance is illegal and puts all travelers at risk."
There are money-saving routes on car insurance that stop far short of dropping coverage altogether. Here's a look at where you can start.
Source
Wednesday, October 28, 2009
Simple Steps to Cheap Automobile Insurance in a Bad Economy
As more people drop their automobile insurance coverage due to the lagging economy, insurance companies increase their rates to increase their profit margins. This means higher rates for those who continue to pay their vehicle insurance rates and greater risk of being in an accident with an uninsured driver. However, there are ways drivers can find cheap automobile insurance and reduce their risk. CarWizard.com offers way on how families can find cheap automobile insurance in a tough economy.
As rates increase, drivers are often left with three options; renew their existing automobile insurance at a higher rate, cut down on the amount of coverage on the policy to keep the rate lower, or shop around for cheap automobile insurance.
Not only is it dangerous to drive without vehicle insurance, but it is also against the law in many states. With it getting harder for families to make ends meet, paying a higher rate is not always feasible. However, dropping coverage in certain areas can mean a bigger hit in the long run. If a person is involved in an accident and their insurance does not cover all that is necessary in damages, the driver can be sued and lose personal assets.
The best option is to shop around for cheap automobile insurance rates. It is the quickest and easiest way to save money on car insurance. By simply going online to a free insurance quote site, drivers can enter basic information to request free automobile insurance quotes. Typically, up to five local insurance agents will contact the insurance shopper with free quotes. The agents will know they are competing with other local insurance agents, so they will offer the most complete coverage at the absolute lowest possible rate in order to win the new client.
All the insurance shopper needs to do is compare the plans and prices that are offered and choose the one with the best coverage at the lowest rate. Policies should be examined closely as the lowest price doesn’t always mean the best deal. If a driver does not have adequate coverage and is involved in an accident, they could pay out of pocket for damages.
Shopping around to get the lowest rate and the most complete coverage is the quickest and easiest way to save on automobile insurance. There are other ways drivers can continue to cut costs once they’ve chosen a plan. First, ask the agent about what discounts they could qualify for. These could include good-driver discounts, good-students discounts, discounts for certain professions, and more.
Drivers can cut the amount of time spent behind the wheel to save on their policy. By car pooling, walking and taking public transportation more often, drivers can save by reducing the amount of miles they are driving. In addition to the amount of driving, the type of car being driven is also important. Smaller, cheaper and safer cars cost less to insure, and cost less to fill up the gas tank.
With so many drivers dropping their car insurance coverage, a great way for insured drivers to protect themselves is to include uninsured motorist coverage to their policy. This is typically very inexpensive but can save a lot of time and money in the long run if an accident with an uninsured motorist occurs.
Source
As rates increase, drivers are often left with three options; renew their existing automobile insurance at a higher rate, cut down on the amount of coverage on the policy to keep the rate lower, or shop around for cheap automobile insurance.
Not only is it dangerous to drive without vehicle insurance, but it is also against the law in many states. With it getting harder for families to make ends meet, paying a higher rate is not always feasible. However, dropping coverage in certain areas can mean a bigger hit in the long run. If a person is involved in an accident and their insurance does not cover all that is necessary in damages, the driver can be sued and lose personal assets.
The best option is to shop around for cheap automobile insurance rates. It is the quickest and easiest way to save money on car insurance. By simply going online to a free insurance quote site, drivers can enter basic information to request free automobile insurance quotes. Typically, up to five local insurance agents will contact the insurance shopper with free quotes. The agents will know they are competing with other local insurance agents, so they will offer the most complete coverage at the absolute lowest possible rate in order to win the new client.
All the insurance shopper needs to do is compare the plans and prices that are offered and choose the one with the best coverage at the lowest rate. Policies should be examined closely as the lowest price doesn’t always mean the best deal. If a driver does not have adequate coverage and is involved in an accident, they could pay out of pocket for damages.
Shopping around to get the lowest rate and the most complete coverage is the quickest and easiest way to save on automobile insurance. There are other ways drivers can continue to cut costs once they’ve chosen a plan. First, ask the agent about what discounts they could qualify for. These could include good-driver discounts, good-students discounts, discounts for certain professions, and more.
Drivers can cut the amount of time spent behind the wheel to save on their policy. By car pooling, walking and taking public transportation more often, drivers can save by reducing the amount of miles they are driving. In addition to the amount of driving, the type of car being driven is also important. Smaller, cheaper and safer cars cost less to insure, and cost less to fill up the gas tank.
With so many drivers dropping their car insurance coverage, a great way for insured drivers to protect themselves is to include uninsured motorist coverage to their policy. This is typically very inexpensive but can save a lot of time and money in the long run if an accident with an uninsured motorist occurs.
Source
Thursday, October 15, 2009
Auto Insurance: Additional Auto Insurance Coverage
When shopping for auto insurance rates you should also consider additional auto insurance coverage beyond the minimums set by the state you live in. Most states require you to have bodily liability and property liability coverage.
The minimum bodily coverage will probably be around $15,000 for death or injury of any one person, any one accident and $30,000 for all persons in any one accident. The minimum amount of property liability coverage will probably be around $5,000.
Looking for Auto Insurance Rates?
MonitorBankRates.com has a comparison tool you can use to start your search for the best auto insurance rates from insurance companies in your zip code. Compare auto insurance Rates Here
Auto Insurance
Getting the bare minimum amount of coverage isn’t recommended. You will be liable for any property damage and medical expenses beyond the auto insurance coverage you have if the accident is your fault. You can and probably will be sued if you don’t have enough insurance coverage.
That being said, we definitely recommend getting the most coverage you can afford. Yes, your auto insurance premiums will be higher but at least you will be able to sleep at night knowing you are adequately insured.
You should also consider additional auto insurance coverage. Insurance companies must also offer the following types of coverage with your automobile insurance policy.
Uninsured and Underinsured Coverage
Uninsured and Underinsured motorist coverage is a must. This type of car insurance provides liability insurance when the other driver does not have the required minimum liability coverage. This will also cover you if the other driver’s auto insurance coverage is insufficient to cover the injuries you sustained in an accident and if the other driver doesn’t have insurance.
Some auto insurance companies will also offer the following optional coverages. Payments for Medical, provides for the payment of medical and similar expenses without regard for liability.
Collision Insurance and Comprehensive Insurance
Physical Damage, collision and comprehensive. Collision covers damage to your auto caused by collision with another vehicle or with any other object, regardless of fault.
Collision car insurance also covers you when a vehicle overturns, but does not cover bodily injury or property damage liability. Comprehensive coverage covers damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, vandalism, etc.
Auto Insurance Riders
Auto insurance riders for after-market additions on your car like special tires, rims and sound systems. Coverage for towing and rental reimbursement especially if you only have one vehicle.
Source
The minimum bodily coverage will probably be around $15,000 for death or injury of any one person, any one accident and $30,000 for all persons in any one accident. The minimum amount of property liability coverage will probably be around $5,000.
Looking for Auto Insurance Rates?
MonitorBankRates.com has a comparison tool you can use to start your search for the best auto insurance rates from insurance companies in your zip code. Compare auto insurance Rates Here
Auto Insurance
Getting the bare minimum amount of coverage isn’t recommended. You will be liable for any property damage and medical expenses beyond the auto insurance coverage you have if the accident is your fault. You can and probably will be sued if you don’t have enough insurance coverage.
That being said, we definitely recommend getting the most coverage you can afford. Yes, your auto insurance premiums will be higher but at least you will be able to sleep at night knowing you are adequately insured.
You should also consider additional auto insurance coverage. Insurance companies must also offer the following types of coverage with your automobile insurance policy.
Uninsured and Underinsured Coverage
Uninsured and Underinsured motorist coverage is a must. This type of car insurance provides liability insurance when the other driver does not have the required minimum liability coverage. This will also cover you if the other driver’s auto insurance coverage is insufficient to cover the injuries you sustained in an accident and if the other driver doesn’t have insurance.
Some auto insurance companies will also offer the following optional coverages. Payments for Medical, provides for the payment of medical and similar expenses without regard for liability.
Collision Insurance and Comprehensive Insurance
Physical Damage, collision and comprehensive. Collision covers damage to your auto caused by collision with another vehicle or with any other object, regardless of fault.
Collision car insurance also covers you when a vehicle overturns, but does not cover bodily injury or property damage liability. Comprehensive coverage covers damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, vandalism, etc.
Auto Insurance Riders
Auto insurance riders for after-market additions on your car like special tires, rims and sound systems. Coverage for towing and rental reimbursement especially if you only have one vehicle.
Source
Monday, September 28, 2009
Save on your car insurance by reducing legal fees
After recent news that car insurance premiums are rising at the fastest rate for a decade, it’s unsurprising that motorists are shopping around to save themselves some cash. There is some good news on the horizon though, as it’s been revealed that insurance providers could reduce the cost of said premiums by eliminating unnecessary legal fees for personal injury claims - one of the key factors behind this year’s car insurance increase.
The Association of British Insurers has indicated that insurance providers are finding ways to cut costs and, therefore, provide cheaper premiums for their customers.
One of the key ways that this could be achieved is to ditch the disproportionate legal costs on personal injury claims which have become a real issue for many insurance companies. For every £1 that insurance providers hand over when a motorist is injured in a crash, another 40p is lost to legal fees.
Malcolm Tarling, spokesman for the ABI, believes that ‘the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved’. He emphasised that the planned cuts would not result in smaller payouts.
The Association of British Insurers has indicated that insurance providers are finding ways to cut costs and, therefore, provide cheaper premiums for their customers.
One of the key ways that this could be achieved is to ditch the disproportionate legal costs on personal injury claims which have become a real issue for many insurance companies. For every £1 that insurance providers hand over when a motorist is injured in a crash, another 40p is lost to legal fees.
Malcolm Tarling, spokesman for the ABI, believes that ‘the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved’. He emphasised that the planned cuts would not result in smaller payouts.
Tuesday, September 15, 2009
As Car Sales Skyrocket, Agents Gear Up for Expected Increases in People Looking for the Cheapest Car Insurance Quotes
As fears about the uncertainty of the “Cash for Clunkers” program increases, so have US auto sales. In fact, they rose to their highest pace in 11 months in July. Used car sales also enjoyed a boost in sales. As more vehicles are hitting the roads, agents are preparing for an increased amount of people looking for car insurance premiums.
The popularity of the trade-in program has lead to the funding for the plan to be expected to run out several months before scheduled. Since it may offer the biggest return on the investment of all of the stimulus efforts, in terms of jump starting the economy, the House approved a $2 billion funding extension. On Monday, the campaign to persuade senators to approve $2 billion more in funding stepped up in hopes it would be passed before Congress goes on vacation at the end of this week.
As consumers continue to flock to showrooms, agents have been gearing up to take on the expected increase in people looking for car insurance premiums. Some have been stepping up marketing efforts to become more appealing to people shopping for a low priced auto insurance quote while others are refining their discounts for people who drive hybrids.
The “Cash for Clunkers” program has been designed to stimulate the economy as well as remove high polluting vehicles from the roads to be replaced with more fuel efficient models. Consumers can trade in their older vehicles that rate at 18 miles or less per gallon of gas for a $3,500 government voucher toward the purchase of new car that is at least 4 mpg more efficient. For a 10 mpg improvement, the consumer will receive a voucher for $4,500.
When formulating an auto insurance quote for a hybrid driver, many agents will offer up to a 10% discount. This reduction in their car insurance premiums is due to the way insurance companies view hybrid drivers. Insurance companies base their premiums on risk. Hybrid owners fall into the “preferred insured category,” which means they will more likely enjoy the cheapest car insurance quotes.
Statistically, hybrid owners are in the preferred insured category because they represent the least amount of risk for insurance companies. They are typically more mature drivers who are not as likely to be in an accident. Generally, they are married men and women falling between the ages of 41 and 60 who are responsible citizens and financially stable. As such, they will more likely receive an auto insurance quote that is cheaper than another car insurance quote.
Source
The popularity of the trade-in program has lead to the funding for the plan to be expected to run out several months before scheduled. Since it may offer the biggest return on the investment of all of the stimulus efforts, in terms of jump starting the economy, the House approved a $2 billion funding extension. On Monday, the campaign to persuade senators to approve $2 billion more in funding stepped up in hopes it would be passed before Congress goes on vacation at the end of this week.
As consumers continue to flock to showrooms, agents have been gearing up to take on the expected increase in people looking for car insurance premiums. Some have been stepping up marketing efforts to become more appealing to people shopping for a low priced auto insurance quote while others are refining their discounts for people who drive hybrids.
The “Cash for Clunkers” program has been designed to stimulate the economy as well as remove high polluting vehicles from the roads to be replaced with more fuel efficient models. Consumers can trade in their older vehicles that rate at 18 miles or less per gallon of gas for a $3,500 government voucher toward the purchase of new car that is at least 4 mpg more efficient. For a 10 mpg improvement, the consumer will receive a voucher for $4,500.
When formulating an auto insurance quote for a hybrid driver, many agents will offer up to a 10% discount. This reduction in their car insurance premiums is due to the way insurance companies view hybrid drivers. Insurance companies base their premiums on risk. Hybrid owners fall into the “preferred insured category,” which means they will more likely enjoy the cheapest car insurance quotes.
Statistically, hybrid owners are in the preferred insured category because they represent the least amount of risk for insurance companies. They are typically more mature drivers who are not as likely to be in an accident. Generally, they are married men and women falling between the ages of 41 and 60 who are responsible citizens and financially stable. As such, they will more likely receive an auto insurance quote that is cheaper than another car insurance quote.
Source
Monday, August 24, 2009
Auto insurance rates rose in '08 after '07 drop
Arizona auto insurers have raised rates overall since the start of 2008 after cutting overall rates in 2007, data from the state Department of Insurance show.
In 2008, insurers raised rates a market-weighted 3.72 percent, the agency reported. So far this year, insurers have filed rate changes averaging an increase of 3.8 percent, on an unweighted basis, according to a Star analysis of state data.
Reasons for rate increases vary by company but are mainly a reflection of each company's loss experience and rising costs, said Ron Williams, executive director of the Arizona Insurance Council, a nonprofit industry group.
He noted that in 2006, the state's 20 largest auto insurers cut rates by about 5 percent.
The biggest insurers cut rates by a similar amount in 2007. Overall in 2007, insurers cut overall auto insurance rates by about a third of one percent on a market-weighted basis, says the state Insurance Department.
One factor in recent increases may be losses insurers are taking on investments they make to help meet their reserve requirements, In Arizona, insurers can change rates without prior approval, but regulators can challenge rates they believe are "inadequate or unfairly discriminatory."
Monday, August 10, 2009
Insurance Companies Tend to Recommend One — New State Law Would Change That
BROOKLYN — Bang! Your car suffered a collision. You file a claim with your insurance company. And when you want to rent a car in the meantime, the company refers you to one and only one car rental firm, which you must use for a successful claim. Then you discover that the car rental firm has higher prices than others do. You’re stuck.
State lawmakers here call this an unfair practice and offer new legislation to provide more choices after getting several constituent complaints about the problem.
State Senator John Sampson (19th Senate District), representing Brownsville, Canarsie, New Lots and Starrett City, is introducing a companion bill to one introduced by Queens Assembly Member Audrey Pheffer (23rd Assembly Senate District). She represents Howard Beach, Ozone Park and Rockaway Beach, bordering Sampson’s district, and is the chair of the Assembly Consumer Affairs and Protection Committee.
“Insurance companies steer all customers to one car rental company depriving them of choice,” said Gil Cygler, vice president and general manager of All Car Rent A Car based in Brooklyn. “This issue affects consumers throughout the NYC market area as well as other car rental companies. That’s all of us.”
It’s important, he emphasized. “While this issue is not on everyone’s radar, it affects anyone needing to rent a car resulting from a collision claim. In Brooklyn alone several hundred rentals take place each week in such situations. It is interesting that all insurance companies refer only one car rental company.”
There are similar examples of companies in different consumer areas, such as big chain pharmacy stores, college student loan applicants and health care providers.
Although the companies have connections with several collision repair shops, they have a relationship with just one car rental company. While it may be easier for them to deal with one rental company, consumers suffer by paying higher prices due to lack of competition, said drivers in such situations.
Consumers’ Complaint: ‘Give Us A Choice!’
The problem is widespread in the metropolitan area. With a captive audience, the insurance company’s preferred car rental business can upgrade and sell added coverage to unsuspecting customers, according to drivers and body shop owners.
Donovan Maye, a Brooklyn collision shop owner on Atlantic Avenue, wrote about the problem and called for providing consumers with fair and affordable choices. While his customers are told to rent from a higher priced car rental business, they must pay more out of pocket expenses, making it hard to meet their deductible requirements.
Maye cited one incident as an example of a customer who had to purchase more insurance from a car rental business referred to him by his insurer. “The customer service agents never explained to him that additional insurance was optional since he had coverage in New York State,” he said.
“I cannot understand why my customers are not given a choice when renting a replacement vehicle,” Maye said in a letter to the Eagle. “Especially in these difficult economic times, I feel it is extremely unfair to the consumer.”
George Rivera, a driver involved in a recent collision, wrote the Eagle that his insurance company referred him to a high-priced rental business, but a Red Hook body shop suggested renting from a local company with lower rates.
Rivera chose the lower-rate company, saving him money, and his insurer billed it. “It is unfair that customers are frightened by their insurance companies,” said Rivera. “We should have a choice. After all we pay for the insurance companies.”
Several more complaints came into the offices of other Brooklyn elected officials, such as state Senator Marty Golden, and from outside Brooklyn to this newspaper.
“Insurance companies should permit open competition and create a level playing field,” said Cygler of All Car Rent A Car, a city business with offices in Bay Ridge, Gravesend, Carroll Gardens, Flatbush, Kensington, Queens and Staten Island.
Car rental experts advise drivers who have a collision to shop around for a rental company first because there are places that are less expensive than what insurance companies recommend. Then, they said, the driver could tell their insurer that they already have an affordable rental car company.
There may be no need to buy additional insurance coverage, Cygler said, who advises checking with the insurer or broker since a driver may already have adequate coverage. “That could be a big savings on a car rental,” he said.
Source
State lawmakers here call this an unfair practice and offer new legislation to provide more choices after getting several constituent complaints about the problem.
State Senator John Sampson (19th Senate District), representing Brownsville, Canarsie, New Lots and Starrett City, is introducing a companion bill to one introduced by Queens Assembly Member Audrey Pheffer (23rd Assembly Senate District). She represents Howard Beach, Ozone Park and Rockaway Beach, bordering Sampson’s district, and is the chair of the Assembly Consumer Affairs and Protection Committee.
“Insurance companies steer all customers to one car rental company depriving them of choice,” said Gil Cygler, vice president and general manager of All Car Rent A Car based in Brooklyn. “This issue affects consumers throughout the NYC market area as well as other car rental companies. That’s all of us.”
It’s important, he emphasized. “While this issue is not on everyone’s radar, it affects anyone needing to rent a car resulting from a collision claim. In Brooklyn alone several hundred rentals take place each week in such situations. It is interesting that all insurance companies refer only one car rental company.”
There are similar examples of companies in different consumer areas, such as big chain pharmacy stores, college student loan applicants and health care providers.
Although the companies have connections with several collision repair shops, they have a relationship with just one car rental company. While it may be easier for them to deal with one rental company, consumers suffer by paying higher prices due to lack of competition, said drivers in such situations.
Consumers’ Complaint: ‘Give Us A Choice!’
The problem is widespread in the metropolitan area. With a captive audience, the insurance company’s preferred car rental business can upgrade and sell added coverage to unsuspecting customers, according to drivers and body shop owners.
Donovan Maye, a Brooklyn collision shop owner on Atlantic Avenue, wrote about the problem and called for providing consumers with fair and affordable choices. While his customers are told to rent from a higher priced car rental business, they must pay more out of pocket expenses, making it hard to meet their deductible requirements.
Maye cited one incident as an example of a customer who had to purchase more insurance from a car rental business referred to him by his insurer. “The customer service agents never explained to him that additional insurance was optional since he had coverage in New York State,” he said.
“I cannot understand why my customers are not given a choice when renting a replacement vehicle,” Maye said in a letter to the Eagle. “Especially in these difficult economic times, I feel it is extremely unfair to the consumer.”
George Rivera, a driver involved in a recent collision, wrote the Eagle that his insurance company referred him to a high-priced rental business, but a Red Hook body shop suggested renting from a local company with lower rates.
Rivera chose the lower-rate company, saving him money, and his insurer billed it. “It is unfair that customers are frightened by their insurance companies,” said Rivera. “We should have a choice. After all we pay for the insurance companies.”
Several more complaints came into the offices of other Brooklyn elected officials, such as state Senator Marty Golden, and from outside Brooklyn to this newspaper.
“Insurance companies should permit open competition and create a level playing field,” said Cygler of All Car Rent A Car, a city business with offices in Bay Ridge, Gravesend, Carroll Gardens, Flatbush, Kensington, Queens and Staten Island.
Car rental experts advise drivers who have a collision to shop around for a rental company first because there are places that are less expensive than what insurance companies recommend. Then, they said, the driver could tell their insurer that they already have an affordable rental car company.
There may be no need to buy additional insurance coverage, Cygler said, who advises checking with the insurer or broker since a driver may already have adequate coverage. “That could be a big savings on a car rental,” he said.
Source
Monday, July 20, 2009
Your nature's 'CAR'icature?
Bollywood Bhai, Sanjay Dutt, loves black cars — his Mercedes, Lexus and even BMW are all black! The cool and composed Big B drives a white Range Rover while bahu Ash, a silver Mercedes. The suave and sexy Hrithik moves in a golden beige Merc. Besides being a style statement, cars today also reflect the personality of the owner.
Coloursurance for your car!
So, does the colour of the car define the personality of the person driving it? Red, for many, signals danger. People who drive a red car are considered to be hyperactive and fast in everything – be it driving, speaking or thinking. So, are they the ones who end up with the maximum speed tickets? Also, those roaming in black and dark blue cars are perceived as aggressive.
Businessman Navneesh Chopra says, “I wanted to buy a black car, but my father didn’t allow me to. He thinks I might have an accident. I feel he’s right. I’ve witnessed 10-12 road accidents in my vicinity involving black cars.” Another businessman, Vaibhav, thinks that driving a black car has made him a faster driver now.
Sumit Ahuja, who earlier owned a car accessories shop, agrees that car colour is often indicative of a person’s personality, “I know it happens. The younger lot mostly goes in for red cars.”
Colour-sured?
That’s not all. Also, insurance companies are said to ask for greater premium from car owners who own shocking red, shining black and dark blue cars as they believe that they are more prone to accidents during night and hence have a higher claim rate.
However, Sunil Gupta, COO of an automobile company, says, “As of now insurance companies are not changing any premium based on car colour.”
Confirming this, Puneet Khanna, owner of an automobile showroom, says, “A few days back we had got to hear of this, but we are yet to receive instructions from insurance companies. The proposal is said to be pending with IRDA. If it gets approved then it would be applicable by the end of this year.”
Naveen Kool, an insurance agent, says, “People invest a lot of money to install safety devices in their cars so asking for a higher premium would not be justified. However, some insurance companies have started charging more for metallic colours.”
Passion for Possession
So what is all this car-nama about? Jas Arora, who owns a black Optra, says, “I believe in driving safely. But, that doesn’t mean I don’t like speed, it’s just that I don’t like breaking rules.” Restaurateur Navneet Kalra, also a cricket enthusiast, adds, “Cricketer Yuvraj’s vibrant personality reflects in the colour of his car as well. He drives a blue BMW. Dhoni’s a cool guy, he owns a metallic grey Hummer.” Adman Suhel Seth has black cars. “I think black is the most understated, impressive and elegant colour,” he says. Will he change the colour if companies begin charging more premium for black cars, he replies, “If at all companies do that, I won’t choose that particular company. My colour will not change.”
Vintage car enthusiast Ammu says, “I am not sure whether it determines my personality, but I am a very peace loving person and all my three cars are white.” Reason enough for you to sit and ponder over your car colour?
Red Rash: Full of zest and energy. Drive, think and talk fast
Black Beast: Full of aggression and impulsive
Mean Green: Driver tend to get hysterical while driving and speaking
Blue: A calm and composed state of mind
Flashy Blue: A fearless state of mind
Stylish Silver: Symbolic of style and endurance
Warm White: Signals a peaceful state of mind
Golden: Reveals sophistication and confidence
Source
Coloursurance for your car!
So, does the colour of the car define the personality of the person driving it? Red, for many, signals danger. People who drive a red car are considered to be hyperactive and fast in everything – be it driving, speaking or thinking. So, are they the ones who end up with the maximum speed tickets? Also, those roaming in black and dark blue cars are perceived as aggressive.
Businessman Navneesh Chopra says, “I wanted to buy a black car, but my father didn’t allow me to. He thinks I might have an accident. I feel he’s right. I’ve witnessed 10-12 road accidents in my vicinity involving black cars.” Another businessman, Vaibhav, thinks that driving a black car has made him a faster driver now.
Sumit Ahuja, who earlier owned a car accessories shop, agrees that car colour is often indicative of a person’s personality, “I know it happens. The younger lot mostly goes in for red cars.”
Colour-sured?
That’s not all. Also, insurance companies are said to ask for greater premium from car owners who own shocking red, shining black and dark blue cars as they believe that they are more prone to accidents during night and hence have a higher claim rate.
However, Sunil Gupta, COO of an automobile company, says, “As of now insurance companies are not changing any premium based on car colour.”
Confirming this, Puneet Khanna, owner of an automobile showroom, says, “A few days back we had got to hear of this, but we are yet to receive instructions from insurance companies. The proposal is said to be pending with IRDA. If it gets approved then it would be applicable by the end of this year.”
Naveen Kool, an insurance agent, says, “People invest a lot of money to install safety devices in their cars so asking for a higher premium would not be justified. However, some insurance companies have started charging more for metallic colours.”
Passion for Possession
So what is all this car-nama about? Jas Arora, who owns a black Optra, says, “I believe in driving safely. But, that doesn’t mean I don’t like speed, it’s just that I don’t like breaking rules.” Restaurateur Navneet Kalra, also a cricket enthusiast, adds, “Cricketer Yuvraj’s vibrant personality reflects in the colour of his car as well. He drives a blue BMW. Dhoni’s a cool guy, he owns a metallic grey Hummer.” Adman Suhel Seth has black cars. “I think black is the most understated, impressive and elegant colour,” he says. Will he change the colour if companies begin charging more premium for black cars, he replies, “If at all companies do that, I won’t choose that particular company. My colour will not change.”
Vintage car enthusiast Ammu says, “I am not sure whether it determines my personality, but I am a very peace loving person and all my three cars are white.” Reason enough for you to sit and ponder over your car colour?
Red Rash: Full of zest and energy. Drive, think and talk fast
Black Beast: Full of aggression and impulsive
Mean Green: Driver tend to get hysterical while driving and speaking
Blue: A calm and composed state of mind
Flashy Blue: A fearless state of mind
Stylish Silver: Symbolic of style and endurance
Warm White: Signals a peaceful state of mind
Golden: Reveals sophistication and confidence
Source
Monday, July 13, 2009
If your car insurance is up for renewal soon, don't simply accept your insurer's quote - find out how much you could save with these ten easy tips!
July will be an expensive month in our house - both our home and car insurance policies will come up for renewal (plus it's my birthday, but that's not for me to worry about!).
Clearly forking out for insurance is going to be a make a large dent in the finances, so as usual we're determined to pay as little as possible. But of course, we still want the best cover we can have.
So here are my tried and tested tips to get the best cover for the least cash!
Plug your details into an online comparison tool and you can apply for quotes from twenty or thirty insurers at once - now that really does save time. And as the AA reckons shopping around can shave £225 off the average comprehensive policy, it could save you a fair bit of money, too.
If you can think of a few, alternative job titles that still describe what you do, give each one a try and see if they affect the price of your quote.
Additionally, make sure you mention whether you also drive another car, as this tends to make your premium cheaper.
Keeping it in a locked garage/on a driveway is obviously preferable to roadside parking, and having an alarm/immobiliser/tracking device will help too, so make sure you mention if you have them.
If you live in a particularly crime-ridden area it could even be cost-effective to rent a garage to reduce that premium.
This typically continues until you achieve the magical 5 years' no-claims discount - which equates to a whopping 65% off your premium.
But once you've reached that milestone consider protecting your no-claims discount. This will increase your premiums slightly but will mean that, should you need to claim, you'll be able to do so at least once before losing that hard-earned discount.
If you barely drive your car anymore, would you be better off selling it and joining a car club? Alternatively, drivers who do very few miles could save with a pay as you drive policy.
Read the small print carefully and you'll see that most charge for the privilege - and an APR of 30% is not uncommon. That's almost twice as much as it costs to borrow on a typical credit card! Ouch...
Check with your insurer about monthly payments and if he charges, pay upfront. If you don't have enough money in savings and are sensible, a 0% card for new purchases can help you spread the cost.
And forewarned is forearmed - open a dedicated savings account for next year's car insurance premium and start stashing £20 away a month - and this time next year you'll have £240+ to cover that bill.
The course does cost between £150 to £200, but the good news is that many local councils support the scheme and offer bursaries to individuals to cover up to 50% of the fees.
So there you have it, 10 ways to slash that car insurance premium. Give them a go and see how much you could save.
Good luck!
Source
Clearly forking out for insurance is going to be a make a large dent in the finances, so as usual we're determined to pay as little as possible. But of course, we still want the best cover we can have.
So here are my tried and tested tips to get the best cover for the least cash!
1. Shop, shop, shop around!
While this used to mean giving up half a day and arming myself with the Yellow Pages and a phone, life is so much easier with the internet.Plug your details into an online comparison tool and you can apply for quotes from twenty or thirty insurers at once - now that really does save time. And as the AA reckons shopping around can shave £225 off the average comprehensive policy, it could save you a fair bit of money, too.
2. So what do you do?
You may not realise this, but your specific job title can make all the difference to an insurance quote. For example, the job description "lawyer" can often attract a higher premium than "solicitor".If you can think of a few, alternative job titles that still describe what you do, give each one a try and see if they affect the price of your quote.
3. Add an additional driver
Another way to reduce premiums, particularly for younger drivers is to name a parent/older driver on the policy - this can shave 15% off the price. But try and avoid taking out an "any driver" policy - they can be shockingly expensive.Additionally, make sure you mention whether you also drive another car, as this tends to make your premium cheaper.
4. Keep your car safe
Insurers give lower quotes to lower risk drivers, so you need to reassure them that you look after your vehicle.Keeping it in a locked garage/on a driveway is obviously preferable to roadside parking, and having an alarm/immobiliser/tracking device will help too, so make sure you mention if you have them.
If you live in a particularly crime-ridden area it could even be cost-effective to rent a garage to reduce that premium.
5. Protect that no-claims discount/bonus
You earn one year's no-claims discount for every claim-free motoring year you build up. And the effect is impressive - just one year's no-claims discount can reduce your premium by 30%, and 2-year's worth can be worth a 40% saving.This typically continues until you achieve the magical 5 years' no-claims discount - which equates to a whopping 65% off your premium.
But once you've reached that milestone consider protecting your no-claims discount. This will increase your premiums slightly but will mean that, should you need to claim, you'll be able to do so at least once before losing that hard-earned discount.
6. Get the right cover for your needs
Don't apply for cover on auto-pilot - assess your current needs. You may have bought your car brand new, but if it's now getting on a bit is fully comprehensive cover still worth the extra, or would third party, fire and theft fit the bill?If you barely drive your car anymore, would you be better off selling it and joining a car club? Alternatively, drivers who do very few miles could save with a pay as you drive policy.
7. Pick your excess...
And another way to slash that premium is to voluntarily increase your excess (the amount you will pay, should you need to claim).8. A personal loan, Sir, at 30%APR?
If you fancy taking out a loan for a few hundred quid at a rip-off rate, you've come to the right place. While insurers offer us the chance to pay our premium in monthly instalments over a year, they don't do so for free.Read the small print carefully and you'll see that most charge for the privilege - and an APR of 30% is not uncommon. That's almost twice as much as it costs to borrow on a typical credit card! Ouch...
Check with your insurer about monthly payments and if he charges, pay upfront. If you don't have enough money in savings and are sensible, a 0% card for new purchases can help you spread the cost.
And forewarned is forearmed - open a dedicated savings account for next year's car insurance premium and start stashing £20 away a month - and this time next year you'll have £240+ to cover that bill.
9. Get qualified
Insurers love qualifications - take a Pass Plus advanced driving course and not only will you become a more proficient and confident driver, but you could find your insurer will shave 30% off your premium, which can be a great option to help younger drivers.The course does cost between £150 to £200, but the good news is that many local councils support the scheme and offer bursaries to individuals to cover up to 50% of the fees.
10. Haggle
And finally, once you've got your cheapest quote, call your existing insurer and see if he will beat it to keep your business. Or see what you can get thrown in for free (legal cover etc.). Go on; try your hand at haggling - it won't do any harm and could save you a few more quid - better in your pocket than theirs!So there you have it, 10 ways to slash that car insurance premium. Give them a go and see how much you could save.
Good luck!
Source
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