Auto Insurance Secrets

Archive for the ‘driver laws’ 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.

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.

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.

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.

California has a low-cost auto insurance program which offers lower auto insurance rates, according to the article “Requiring Auto Insurance Requires That It’s Also Affordable” by Peter Luke on mlive.com.  The program covers basic auto insurance for less than $400 a year.  Drivers must be 19 and have a relatively clean driving record.  There is also an income requirement of less than $27,000 for a single person or $55,000 for a family of 4. 

The article points out that one of the main arguments over the health care debate is that if there is going to be a mandate on health insurance then premiums must be made affordable.  The same concept should be applied to auto insurance since it is required in most states.  The policies need to be readily available for everyone, fairly administered and with reasonable auto insurance rates. 

There is also much debate over how auto insurance companies determine their rates, especially in Michigan where previous posts discuss how they are debating the use of the credit score.  Many believe not only should credit score be excluded from auto insurance companies’ formulas, but also income, gender, zip code, marital status, and bankruptcy.  Some states are considering excluding employment status, which is important for today’s high unemployment rate.

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.