Auto Insurance Secrets

Archive for the ‘auto insurance regulations’ Category

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 “Pay-as-you-drive auto insurance gets green light” by Kelly Johnson from msn.com, California Insurance Commissioner Steve Poizner announced Friday that the state Office of Administration Law has passed regulations which allow auto insurance companies to base rates on how much drivers drive and they are now in effect.

Poizner opposed the pay-as-you-drive regulation a year ago, but now he believes it’s an innovative way to give California drivers rewards for driving less.  This will ultimately lead to lower auto insurance, less air pollution and eventually less dependence on foreign oil.

The Association of California Insurance Companies supports the new regulation calling it “pro-consumer”.  The new regulation will give auto insurance companies and drivers an additional tool to assure that auto insurance rates reflect the driver’s actual risk of getting into an accident and filing a claim.  Insurers will have the option to offer estimated mileage, but they will now also have the option to offer verified mileage plans.

A Nationwide auto insurance survey discovered that 8 out of 10 Americans would support legislation restricting cell phone usage while driving according to the article “Nationwide Insurance, NASCAR Drivers, Encourage Students to Stop Driving Distracted” by Gayle Saunders found on reuters.com.

Nationwide Insurance has teamed up with Johnson C. Smith University, NASCAR’s Kyle Petty, NASCAR Nationwide Series driver Trevor Bayne and NASCAR’s Drive for Diversity Michael Cherry to support the rise of awareness for DWD (Driving While Distracted).  Not only does driving while you are distracted put lives at risk, but it can end up costing you a lot of money on your auto insurance quotes if you are in an accident or pulled over.

The survey that Nationwide auto insurance completed showed that 80% of Americans favor a ban on texting while driving and 2/3 of Americans support the ban of phone calls while over 50% say they support a ban of cell phone use altogether.  Nationwide and their partnerships are bringing together an educational campaign to spread the message about how dangerous it is to drive while distracted.  Nationwide is committed to helping their customers stay safe and protect what matters most to them.

As of October 1, there was a new Arizona auto insurance law implemented according to an article by Adam Rolnick found on usprwire.com about Oasis Insurance.  The bill was passed the previous legislative session and it’s known as HB2224. 

October 1 and going forward judges are required to assign penalties for Arizona drivers who don’t carry auto insurance coverage.  About 87% of tickets that were issued because drivers were not carrying insurance were dismissed or the fines were lowered.  The new law says there will be no dismissal of these charges. 

The first offense will carry an approximately $720 penalty which cannot be waived.  About $970 will be the fine for second time offenders.    If you are caught a third time driving without auto insurance the fine will be up to $1200 and your license will be suspended for a year.  Not only will your license be suspended but you will be required to carry SR22 insurance documentation once you get your license back. 

Before this law was passed, Arizona residents who were caught driving without insurance would often purchase the insurance before the court date and show their proof upon the judge’s request.  The new law says this will not be possible going forward and the fines still must be paid.

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.