Auto Insurance Secrets

Archive for the ‘auto insurance claims’ Category

According to the article “Credit Scoring Is Hurting Customers” found on sacbee.com from The Dallas Morning News, even if you are a responsible driver you may end up paying higher car insurance rates if you have blemishes on your credit file.  Whether or not this is fair is currently a huge debate.

The Dallas Morning News analyzed the insurance industry and found that people with poor credit paid 35% more on home and car insurance.  In certain cases, the insurance rates were more than double people with good credit, even if they had similar claim history.  This just goes to show how crucial it is to stay on top of your credit score.

Auto insurance companies believe that using credit as a risk factor helps to identify higher risk customers.  They cite The University of Texas research that shows drivers with lower credit ratings file more claims with their insurers.  They say that if it weren’t for the credit rating factor everyone would pay higher rates.  Credit scoring is no where near an exact science and can often hurt good customers.

As you are shopping around for car insurance quotes try to identify if your credit may be affecting your premiums.

Allstate Auto Insurance recently gathered data that showed an increase in Texas auto insurance claims for hit pedestrians during the week of Halloween.  This is according to the article “Texas Pedestrian Accidents Jump 23% During Halloween” by Kristen Beaman for Allstate found on reuters.com.

Allstate looked at claims in Texas over the last 5 years and found a large jump in accidents around trick or treating.  Last year, Allstate claims more than doubled over the Halloween week compared with the rest of 2008.  Their data matches up with a report from the Insurance Institute for Highway Safety which showed that October 31 is the 2nd highest day of the year for pedestrian deaths.  The first is Fourth of July.  With Halloween falling on a weekend this year, there may be more people out than normal so it’s crucial that drivers are extra careful.

The article offers some important tips to follow while out on the road, especially at night when pedestrians are out.  Never drink and drive.  A designated driver should always be assigned before heading out for the evening.  Texting while driving can be very dangerous so keep your phone in your pocket until you can pull over to text or make a call.  As a pedestrian, it’s a good idea to avoid texting while walking.  Anything that takes your eyes off the road can be very dangerous.  Not only will following these steps make you a safer driver but it may eventually lower your car insurance quotes.

According to the article “Additional Auto Insurance May Not Be Needed For Rental Cars” by Lawrence Shipman on usinsuranceonline.com, rental cars have auto insurance through the state of Minnesota.

Auto insurance to cover a rental car can be up to $10-$15 per day.  This is a lot of money, especially if you are renting the car for an extended period of time.  That’s why it’s important to understand what type of coverage you have through the state of Minnesota and Minnesota auto insurance.  The minimum coverage for covering a rental car in the state is $35,000.  This is probably plenty to cover the car you are driving but the only thing to consider is that if you wreck multiple cars it could end up costing you more.

You will also want to check with your personal auto insurance policy to see if there is any additional coverage for rental cars.  When you are shopping around for Minnesota auto insurance quotes you can ask if there are any policies that offer such a benefit before making a purchase.  The Insurance Information Institute says consumers are usually covered when they rent a car.

Taxi auto insurance is extremely important for taxi drivers who want to financially protect themselves and their business.  According to the article “Taxi Drivers Can Protect Business With Taxi Insurance” from Insurance Agents Press Release on 1888pressrelease.com, taxi insurance is the only policy that’s designed to protect the taxi company.

The article points out that over 2 million passengers are injured in the taxi industry which is why it’s so crucial for these drivers to have coverage.  Taxi insurance provides options that are specifically designed for taxi cabs.  Liability coverage is available which protects the taxi company, the driver, as well as the taxi company’s assets.  Comprehensive coverage is also available which protects in case of vandalism, theft, fire or other damages that may be caused by an accident.

To qualify for a taxi insurance policy companies must have taxis that function as fare based and that keep up with maintenance.  Drivers must be between the ages of 25 and 65 and they need more than 2 years of driving experience in the US and have a current, valid driver license.  You can receive taxi auto insurance quotes online or contact an insurance agent.

The state of California has seen suspected California auto insurance theft and arson fraud increase over the past year according to The California Department of Auto Insurance which released information on Friday.  This was found in the article “State Sees Rise In Suspicious Auto Insurance Claims” on Sacramento Biz Journal by Kelly Johnson.

The agency recently gathered data that showed criminals may be committing more auto insurance fraud to obtain insurance cash during these tough times.  Insurance Commissioner Steve Poizner stated in a news release that fraud is on the rise.  In 2008, the California Department of Insurance found a 25% increase in suspected car arson fraud cases from the year before.  They also received about 200 more suspected car theft fraud cases in 2008 compared to 2007.

The department receives regular referrals of suspected fraud from auto insurance companies, law enforcement agencies as well as consumers and each case is researched to determine if it is actually a fraud situation.  Other kinds of auto fraud such as inflated damages, vandalism, and hit and run accidents have remained somewhat constant since 2007 according to the Department.

This increase in suspected fraud may continue as the recession remains.  Consumers are feeling strapped for cash and desperate and this seems like the only road for many.  Of course, any type of fraud will end up costing you much more in the end, including possible jail time.

According to the article “The Effects of a DUI on Car Insurance Quotes” by insuranceagents.com, auto insurance quotes can skyrocket after a Driving Under the Influence violation is on your record.

Not only will a DUI on your record cause your auto insurance quotes to increase, but your license may be suspended and your current auto insurance policy may be cancelled, leaving you in a tough spot to find new auto insurance fast. 

There is a zero tolerance for drinking and driving in the United States because of how terribly dangerous it is to the driver, passengers and other people driving on the road.  Not only are you putting lives at risk if you drink and drive, but you are setting yourself up for a potentially very expensive road as well as possible jail time.