Mandatory Auto Insurance

Wisconsin has recently become one of the last states to make auto insurance mandatory. According to the article "Mandatory Auto Insurance Hits Wisconsin" by Hilary Dickinson found on beloitdailynews.com, Wisconsin drivers now face a $500 fine if they are caught driving without the proper auto insurance coverage. They are the 49th state to implement this type of law.

Not only does the law state you must have auto insurance, but you must also carry proof of such auto insurance coverage. Drivers will need to carry their policy card with them, either in the car or in their wallet. If a driver happens to be pulled over and cannot show proof of insurance then they may face a ticket and a fine.

Experts are debating if the fines are going to be enough incentive to get more people to carry auto insurance. Car insurance rates are currently high and even by shopping around and seeking to compare car insurance, some people simply cannot afford the extra cost during these tough times. Since the law went into effect there has not been a significant increase in Wisconsin drivers purchasing car insurance. Experts state that the type of person who would abide this type of law already carry auto insurance because it's the financially responsible thing to do.

Auto Insurance and Clunkers for Cash

Many individuals are thinking about trading in their older cars for new, more fuel efficient cars to earn some extra money through the government’s tax benefit called CARS (Car Allowance Rebate System). Unfortunately, higher auto insurance rates may minimize the benefits of trading in an older car according to an article on insurance.com.

Buying a fuel efficient car is of course beneficial for our environment, but new cars often have higher auto insurance costs because they are pricier to fix and replace. You could end up offsetting the tax savings from the CARS program. One good thing is that fuel efficient cars do cut gas costs weekly right away so there are savings there, but auto insurance rates can cost you more money over time so shopping around is crucial. According to a study from women-drivers.com, only about 22% of drivers shopped for auto insurance before making a purchase of a policy. Auto insurance rates are currently relatively low, so shopping around is a good idea.

The CARS program is still a great initiative towards cleaning up our environment, but it may not benefit everyone. It's always important to do your homework when trading in or buying a new auto.

Massachusetts Auto Insurance Rates Are Down

According to the article “Car insurance rates fall 8%, state says” by Todd Wallack in the Boston Globe, Massachusetts auto insurance rates are down since Massachusetts stopped setting their own rates in 2008. This information is from a study completed by the Division of Insurance.

The state study shows that auto insurance rates are down 8.2% from April 2008 to April 2009. The rates fell 5.2% from 2006 to 2007. In April of 2008 Massachusetts began allowing auto insurers to set their own rates which was to create controlled competition. Before this change, rates in Massachusetts were highly regulated.

Jason Lefferts is a spokesperson for the insurance division, and he said the study also found that during the last year the number of uninsured cars in Massachusetts dropped and that less people were considered high-risk drivers. Since the change in regulation, nine companies have become part of the Massachusetts auto insurance market.

Auto Insurance and Cell Phones

Studies have shown that driving while texting can be as dangerous as driving under the influence. Because of this many states have passed legislation to make certain types of cell phone usage against the law. In some cases, using a cell while driving can cause you to obtain a "careless driving" violation which may impact your auto insurance rates.

In the past decade six states have passed a ban on cell phone use while driving. These states include Connecticut, California, New York, New Jersey, Washington and Utah. The District of Columbia has also passed this. There are six states who have authorized cities to ban cell phone use including Pennsylvania, Ohio, New Mexico, Michigan, Massachusetts and Illinois.

To learn more on this topic you can read the full article http://www.iihs.org/laws/cellphonelaws.aspx.

Auto Insurance Prices Drop in May

More and more Americans are trying to save money so it comes as good news that auto insurance rates dropped in May according to an article on IFAWebnews. The average rate was as low as $1871 in May, 2009. It got as high as $1950 in Sept, 2008.

It's a good time for lower auto insurance rates because industry experts say new auto sales will be increasing, potentially by 9%, in June over May. Dealers are trying to get 2009 cars off the lots to make room for the 2010 cars coming in. As buyers purchase new cars they will need to update their auto insurance policies and many will shop around. Because of the economy slump new car sales have been down. A pick up in car sales will have an impact on auto insurance. Having a new car may change your insurance rate so it's important to get a quote from numerous auto insurance companies to ensure you are getting the best deal.

Arbella Decreases Auto Insurance Rates

The Arbella Insurance Group announced that they will decrease auto insurance rates effective July 1. New private passenger auto insurance rates will result in an overall average annual rate decrease of 8.7% from last year. Arbella estimates that this will add another $4.5 million to the discounts it has already provided to its customers, saving its customers a total of over $30 million.

Arbella is the third largest auto insurance company in Massachusetts. Earlier this year they lowered rates by an average 7.7 % following the state's adoption of "managed competition."

Among the conditions that allow Arbella to trim auto insurance rates further is the decision to no longer use the driving experience of "deferred drivers" to determine the rates of the main policyholder. (A deferred driver is a household member listed as a potential driver on a customer's policy)

Arbella will continue to offer an industry-leading 20% discount for those customers who have both auto and homeowner's policies with Arbella. They will receive a 20 percent discount off of homeowners and 5 percent off auto policies.

5 Ways To Cut Car Insurance Costs

You can't fill your tank these days without feeling as if you've been kicked, simultaneously, in the gut and the bank account.

There's not much you can do about gas prices, but there is one thing you can do to cancel out rising car costs: Get a better deal on your auto insurance.

Competition has kept premiums low; and if you haven't revisited your policy in a while, you may have missed some money savers.

Try one (or more) of these methods to put your auto expenses in neutral.
Prune coverage on old cars

Once your vehicle is worth less than 10 times what you pay each year to insure it, get rid of comprehensive and collision. Find your car's estimated value at kbb.com.


Raise your deductible
The point of car insurance is to protect you from catastrophic costs (your emergency fund should cover stuff like dents and broken windows).

Raise your deductible from $200 to $1,000 and you could save more than 40% on premiums, says the Insurance Information Institute.


Nab discounts
Most insurers offer price cuts for such things as having anti-lock brakes; having been accident-free; having taken a defensive-driving course; and even for using the same insurer for your home policy. For more, see the auto insurance checklist at iii.org/individuals/auto.

These can take up to 25% off your premium. But your insurer won't come to you with them; call the company and ask what discounts it offers.


Dig up competing quotes
This is the most work but could have the greatest payoff. Go to naic.org to find your state insurance commission Web site, where you can download a car insurance buying guide.

This often lists scenarios (Mary is a 34-year-old married woman who drives a Chevy Tahoe) with sample rates from the biggest insurers in the state.

Pick the example closest to you and the five insurers with the lowest rates. Call them for quotes.
If the state guide doesn't list insurers, get the five best quotes at insweb.com, but note that the site doesn't include State Farm.

Next, check with an independent agent (get a name at iiaba.net) to see if any insurers you haven't checked can beat your top five.


Sidestep hassle
Make sure any insurer with a better quote is legit. Vet it via your state's insurance commission site; look especially for the ratio of complaints to number of policies written.


By Joe Light, Money Magazine

State Farm Lowers Auto Insurance Rates

State Farm insurance says it's lowering auto insurance rates in Louisiana by an average of 2.5% at the end of June.

State Farm says the rate rolll-back represents an annual savings of $22.4 million to its Louisiana customers. State Farm insures about one in every three cars in Louisiana.

Company vice president Rob Stewart says the reduction is due to a better claims experience in the state.

Premiums for collision and comprehensive coverages are decreasing the most. The cost of the liability and medical payments coverages will go up for some and down for others.

The new rates are effective June 30.

Auto Insurance Rates

The state of California has saved its residents $62 billion over the past 20 years or so do to theitr unique auto insurance rules.

New Jersey, Hawaii, New Hampshire and Pennsylvania also have served their drivers well by keeping auto insurance rates relatively low, but drivers in other states have watched their costs skyrocket.

California ramped up its automobile insurance regulatory system in the late 1980s, making it tougher for companies to raise their insurance rates.

Nationwide, the average cost of auto insurance jumped by 50% between 1989 and 2005. Other states where price hikes were held down, relatively speaking, included New Jersey with a 20% increase in that time period; Hawaii, 25%; New Hampshire, 30%; and Pennsylvania, 31%.

With the exception of New Hampshire, those states have systems in which insurers cannot put auto insurance rate changes into effect without state approval.

States with the steepest rate changes were Nebraska, where average per-car costs surged 118% and South Dakota, where costs jumped 107%.

Other high-increase states include: Montana, 104%; Wyoming, 101%; and Kentucky, 100%.

Compare auto insurance rates in all 50 states and save money with insurance.com

Top 10 states for Auto Theft

For 2007, the ten MSAs with the highest vehicle theft rates are:

                                             2006 Ranking
 1.   Modesto, CA                                5
 2.   Las Vegas/Paradise, NV                     1
 3.   San Diego/Carlsbad/San Marcos, CA         11
 4.   Stockton, CA                               2
 5.   San Francisco/Oakland/Fremont, CA         12
 6.   Laredo, TX                                22
 7.   Albuquerque, NM                           13
 8.   Phoenix/Mesa/Scottsdale, AZ                4
 9.   Yakima, WA                                 9
 10.  Tucson, AZ                                10

Many sites provide state specific auto insurance information
and auto insurance rates specific to you circumstances.  To
compare personalized auto insurance rates for your neck of
the woods visit smartautoinsurance.com, insurance.com, or
car-insurance-sort.com

Auto Insurance Rates Vary Greatly By State

According to Insurance.com's Mid-Year Auto Insurance Pricing Report, Louisiana is the most expensive state for auto insurance, with an average premium of $2,740 in the first half of 2007 (although down more than 3% from 2006).

New York continued to be the second highest-paying with an average of $2,601 for car insurance, ( a 4% decline from 2006).

Wisconsin had the most affordable auto insurance in the first half of 2007, with an average premium of $1,335, followed by Ohio at $1,342.

Allstate Raises Auto Insurance Rates in Illinois

While many auto insurance companies have been lowering their insurance rates recently, one major auto insurer just raised its premiums.

If you buy your car insurance through Allstate, you'll see a bigger bill soon.

Allstate raised its Illinois auto insurance rates an average of ~ 10%. Allstate saw collission claims rising and its business deteriorating so it had no choice but to pass along higher costs to its customers in Illinois

Allstate's higher prices comes at the same time that some of its competitors including State Farm, Progressive and GEICO all lowered auto rates in Illinois by ~ 6%.

Auto Insurance Rates - impacts of credit score

Using credit scores as a factor in determining auto insurance rates & eligibility is a standard practice. For years, auto insurance companies have maintained that a person's scores are a valuable predictor of whether someone will file an auto insurance claim sometime in the future.

Consumer advocates say using credit scores to set auto insurance rates unfairly hurts blacks and Hispanics because those groups tend to have lower credit scores and thus end up paying more for their auto insurance. They also complain that errors in credit files can result in lower scores and thus higher insurance premiums.

The Federal Trade Commission recently weighed in on the debate, releasing a study that largely sides with the auto insurance industry.

The Hidden Cost of Bad Credit

It's bad enough that a few credit missteps can force you into higher-interest credit cards and loans. But did you know those dings can raise your auto insurance rates too?

Your FICO score --can have an impact far beyond the account where the trouble started. Even if you don't have any dings, your score might be low enough to affect your auto insurance rates. If you don't use your credit cards, after all, the credit industry won't have a history of good credit to evaluate. You'll end up with a less-than-ideal rating. Insurance companies will see you as a less-than-ideal risk, and price your policies accordingly.

A report issued last week by the Federal Trade Commission describes insurance companies such as MetLife and Allstate looking into using credit history to assess risk as far back as the early 1980s.

The report notes that every single one of the top 15 auto insurance companies uses these scores. Case studies in the report note the particular success of Progressive in using these scores to improve its business.

Auto Insurance Rates

Auto insurance rates in Ohio aren't falling like North Carolina rates are, but Ohio auto insurance rates are still pretty darn affordable.

A pricing report from insurance.com shows annual auto insurance premiums nationwide have declined 1 percent on average since 2006. Rates decreased in 41 of the 48 surveyed states.

The average national premium in 2007 is $1,896, down from $1,916 in 2006.

Ohio's average premium again ranked as the second-lowest in the nation at $1,342 a year, down 1 percent from $1,358. The only state with lower rates is Wisconsin, whose premiums dropped 1 percent to $1,335.

The states with the highest car insurance premiums are: Louisiana, $2,740; New York, $2,601; and New Jersey, $2,568.

While the decrease in average Ohio premiums is in line with the nationwide trend, North Carolina saw a 16 percent drop from 2006. Rates there are at $1,945, down from $2,261.

The Insurance.com report drew data from the lowest average car insurance rates in the first half of 2007 from about a dozen leading carriers. About 700,000 car insurance consumers participated in the survey.

Competitive auto insurance in MA

The last time Massachusetts tried to introduce competitive rating into personal auto insurance, a Democrat, Michael Dukakis, was governor. The experiment lasted about seven months before being abandoned due to political pressures when rates rose, particularly for urban and young drivers. The Bay State returned to being the sole state where the regulator sets rates for all auto insurers.

Now, 30 years later, Deval Patrick, is in the governor's chair, and it is this Democratic administration that is taking the political risk of changing the system.

Auto Insurers will be able to propose rates and rating criteria, subject to some parameters Burnes said she would unveil later. Insurers would be free to use the rates and criteria unless the department disapproves them.

Insurers will be allowed to file auto insurance rates based on what Burnes termed their "true" costs. In a letter accompanying her decision, she vowed that the department will retain a "strong yet supple regulatory oversight" to ensure that good drivers enjoy the benefits of managed competition, regardless of where they garage their cars.

But insurers will not be handed the keys to price completely on their own. She made it clear she will impose some limits on the rating factors insurers will be permitted to use in pricing.

The way Massachusetts law is written, the commissioner must move to competitive rating unless she finds that the marketplace could not support fair and competitive pricing or that it would impair insurers' financial condition. For the past 30 years, her predecessors as commissioner have all sided with those who cited legal or market obstacles they believed meant competition could not work.

One of the reasons the 1977 experiment failed was because consumers lacked useful information to shop for the best coverage and price, according to findings at the time. Burnes said the Internet should now make it easier for consumers to obtain the information they need.

insurance.com gets larger digs

The largest online auto insurance agency in the country (insurance.com), has signed a lease to occupy the former Nestle building in Solon.

Attractive incentives from both the City of Solon and the State of Ohio to remain and expand in the local area were influential in making the final decision.

Occupying the majority of the building, Insurance.com will use approximately 80,000 square feet of space. Moving into the building will allow the company, which currently occupies a building on Solon Road in Solon Ohio to expand its operations.

Currently, Insurance.com is seeking new insurance agents, along with a variety of other positions, including opportunities in IT.

The hiring drive, and the move to the larger location, is a reaction to increased demand for online comparative auto insurance rates, and a clear indication that consumers are more comfortable with shopping online for financial products such as insurance.

Michigan Auto Insurance Stats

In 2004, the average annual out of pocket premiums for auto insurance in Michigan was $980.32 per vehicle, making Michigan the 10th most expensive of all states for auto-insurance costs. (Iowa Auto Insurance was cheapest at $579.95.)

Nationwide, the average annual expenditure for auto insurance was $838 per vehicle in 2004. For 2007 it's expected to to an average of $847.

Of the 100 cities surveyed in 2006, Detroit was the most expensive for average annual auto premiums, at $5,894 per vehicle. (Roanoke, Va., was least expensive at $912.) Auto insurance tends to be more expensive in larger cities because of traffic density, likelihood of theft and vandalism, and fraud.

Michigan is one of only nine states that use no-fault insurance, meaning claimants need not prove that others were at fault before recovering damages for an accident.

• 77 percent of insured drivers were covered by both comprehensive coverage and liability coverage and 72 percent had collision coverage.

• $68 of every $100 in premiums for private-passenger-auto insurance was paid out for claims.

• In 2005, claims covered by collision insurance and involving passenger vehicles amounted to an average of $3,937 per claim.
  

• Between 1996 and 2005, claim frequency fell 17.8 percent for bodily-injury claims and 11.5 percent for property-damage claims. But claim severity rose 16.9 percent and 27.4 percent, respectively.