In the year 2008, there was a 25 percent increase in suspected vehicle arson fraud in California, according to the state commissioner.
Department of Insurance Commissioner Steve Poizner said that recently compiled statistics show that scam artists may be committing more automobile insurance fraud to cash in on insurance money.
"Many families are facing financial challenges in today's economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix," said Commissioner Poizner, in a statement. The department's "investigators are seeing an increase in suspected automobile arson and theft fraud cases recently, and our enforcement experts are cracking down on anyone attempting to cheat the law for personal gain."
The Department of Insurance receives referrals of suspected fraud cases from insurance companies, local law enforcement agencies and directly from consumers. The enforcement officers carefully examine every case that is brought to the Department's attention.
The department saw an alarming 25 percent increase in suspected vehicle arson fraud cases in 2008 as compared with referred cases in 2007. In 2007, the department received 344 referrals for suspected automobile arson; in 2008, the department received 451 referrals for suspected automobile arson.
Overall, the Department received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007. The department received approximately 200 more suspected vehicle theft fraud case referrals in 2008 than in 2007.
While the total number of suspected fraud case referrals received by the department for all automobile fraud categories (including inflated damages, vandalism and hit and run,) has remained relatively constant since 2007, suspected vehicle arson and theft referrals have noticeably increased.
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
Three Ways to Reduce Car Insurance Costs
What is one thing most of us will have to pay for every year, excluding our cars and homes? It is our insurance bills. Car insurance can get expensive, especially when you consider how long you will ultimately be paying for it. It is very likely you may be paying for insurance your entire life and just think how even the smallest of savings can add up over time.
This is why it is imperative to save all the money you can on your car insurance. You can really save a lot of money over time on your car insurance. Listed below are three of the most popular ways to reduce car insurance costs:
Know what your deductible is and make it as high as you can afford to.
It is surprising how many people do even know what the amount of their car insurance deductible is until they file a claim. One of the best ways to reduce the amount of your car insurance is to raise your deductible as high as you afford to.
Learn what the discounts are for your car insurance to decrease. There are many small things you can do to decrease the amount you pay for your car insurance and it is very likely that your agent will be the best way for you to learn what these are. Insurance agents are extremely educated when it comes to insurance and their assistance can drastically reduce insurance costs.
Maintain an excellent driving record. This means accident free and ticket free. The better your driving record is the less you will have to pay for your car insurance. This is of extreme importance to anyone that pays for car insurance. By just having one accident, it can drive your insurance cost way up quickly.
Do your research on how to additionally reduce insurance costs and you may be amazed at how much money you can save.
Source
This is why it is imperative to save all the money you can on your car insurance. You can really save a lot of money over time on your car insurance. Listed below are three of the most popular ways to reduce car insurance costs:
Know what your deductible is and make it as high as you can afford to.
It is surprising how many people do even know what the amount of their car insurance deductible is until they file a claim. One of the best ways to reduce the amount of your car insurance is to raise your deductible as high as you afford to.
Learn what the discounts are for your car insurance to decrease. There are many small things you can do to decrease the amount you pay for your car insurance and it is very likely that your agent will be the best way for you to learn what these are. Insurance agents are extremely educated when it comes to insurance and their assistance can drastically reduce insurance costs.
Maintain an excellent driving record. This means accident free and ticket free. The better your driving record is the less you will have to pay for your car insurance. This is of extreme importance to anyone that pays for car insurance. By just having one accident, it can drive your insurance cost way up quickly.
Do your research on how to additionally reduce insurance costs and you may be amazed at how much money you can save.
Source
Saturday, November 28, 2009
Saving money with gap insurance
Imagine that you took a car loan and bought a shiny brand new vehicle. What happens if it gets into an accident? Even though the car is insured, the amount of payout may not be enough to cover your debt.
There is nothing worse than having to make loan payments on a vehicle that you can’t drive! That's where Gap insurance comes in. It is designed to cover the difference between what you owe to your bank or leasing company and how much the car is worth. Learn more about Gap insurance – how it works, who needs it, and where to buy it.
Gap insurance
A regular auto insurance policy provides enough protection to cover the cost of repairs or replacement if your car is damaged or stolen. However, if the vehicle's actual cash value is lower than the amount you owe the bank or leasing company, that difference, or "gap," is not covered by insurance.
In this case you can take advantage of Gap insurance. It covers what standard auto insurance doesn't: the gap between what your insurance company pays if your car is stolen or totaled for any reason - accident, theft, vandalism, fire, flood, tornado, or hurricane and what you owe on your loan balance or lease.
For example, imagine that you take a car loan (5 years, 6% APR, insurance deductible is $500) and buy a new car for $25,000. You make car loan payments and after one year you owe your bank $20,580. Then you get into an accident and your car is totaled.
Your insurance company will pay you the amount the car is worth (before the accident), not the amount needed to pay off your debt in full. Do you know that a new vehicle may be worth up to 40% less in two years than the day it was purchased? So the adjustor looks into his papers and decides that your car’s actual retail value is only $17,500. Then he subtracts your insurance deductible and – voila! – you get just $17,000.
Unfortunately, your bank still wants you to cover your debt in full - $20,580. There's a gap of $3,580 between your loan balance and the amount of payout you will get. That’s where Gap insurance becomes your helping hand. It covers that difference - up to $50,000-$100,000 per incident. Plus, it can also pay your standard auto insurance deductible.
Source
There is nothing worse than having to make loan payments on a vehicle that you can’t drive! That's where Gap insurance comes in. It is designed to cover the difference between what you owe to your bank or leasing company and how much the car is worth. Learn more about Gap insurance – how it works, who needs it, and where to buy it.
Gap insurance
A regular auto insurance policy provides enough protection to cover the cost of repairs or replacement if your car is damaged or stolen. However, if the vehicle's actual cash value is lower than the amount you owe the bank or leasing company, that difference, or "gap," is not covered by insurance.
In this case you can take advantage of Gap insurance. It covers what standard auto insurance doesn't: the gap between what your insurance company pays if your car is stolen or totaled for any reason - accident, theft, vandalism, fire, flood, tornado, or hurricane and what you owe on your loan balance or lease.
For example, imagine that you take a car loan (5 years, 6% APR, insurance deductible is $500) and buy a new car for $25,000. You make car loan payments and after one year you owe your bank $20,580. Then you get into an accident and your car is totaled.
Your insurance company will pay you the amount the car is worth (before the accident), not the amount needed to pay off your debt in full. Do you know that a new vehicle may be worth up to 40% less in two years than the day it was purchased? So the adjustor looks into his papers and decides that your car’s actual retail value is only $17,500. Then he subtracts your insurance deductible and – voila! – you get just $17,000.
Unfortunately, your bank still wants you to cover your debt in full - $20,580. There's a gap of $3,580 between your loan balance and the amount of payout you will get. That’s where Gap insurance becomes your helping hand. It covers that difference - up to $50,000-$100,000 per incident. Plus, it can also pay your standard auto insurance deductible.
Source
Sunday, November 15, 2009
Don’t let insurance companies win
wonder how many Americans stop to consider how much they pay for and are controlled by insurance companies.
We have life insurance, auto insurance, homeowner insurance, renters insurance, title insurance, appliance insurance, travel insurance, health insurance, nursing home insurance, drug insurance and investment annuities.
I have probably forgotten some.
It has been our experience over the past 40 years that when we have made claims, our auto insurance was raised, our homeowners [insurance] refused to reinsure us, and I could not change health insurance due to a preexisting condition.
Insurance companies have the largest buildings, unlimited dollars spent on TV, radio and magazine advertising, pay great stock dividends and have the most lobbyists. So, naturally, they have a vested interest in defeating health-care reform.
I suspect that most of our congressmen and media who are opposing health reform are in their pocket.
It is time for Americans to wake up and look out for your own best interests, and that is a public option. It will ensure competition and give us real reform.
It is not socialism. That is repeated to scare you. It will not put the government between you and your doctor.
Today, the insurance company is between you and your doctor.
It took two years, five Hoag Memorial Hospital Presbyterian emergency visits, a hospital stay of seven days, a hospital stay of four days and many doctor visits before my husband’s HMO insurance plan approved his needed surgery.
On the other hand, my government Medicare plan has never questioned any procedure recommended by my doctor.
Again, the insurance industry is trying to scare you. And the Republican Party is falling in line.
Its motive is only to regain political power and defeat everything President Obama stands for.
I thought Republicans were for competition and democracy.
Their actions prove otherwise. It is all about power, and they will do whatever it takes. As Rush [Limbaugh] says, “even if it means bringing down the USA”
As a former Republican of 40 years, I am ashamed. We are Americans first and party members second. Let us not let the insurance companies win.
We have life insurance, auto insurance, homeowner insurance, renters insurance, title insurance, appliance insurance, travel insurance, health insurance, nursing home insurance, drug insurance and investment annuities.
I have probably forgotten some.
It has been our experience over the past 40 years that when we have made claims, our auto insurance was raised, our homeowners [insurance] refused to reinsure us, and I could not change health insurance due to a preexisting condition.
Insurance companies have the largest buildings, unlimited dollars spent on TV, radio and magazine advertising, pay great stock dividends and have the most lobbyists. So, naturally, they have a vested interest in defeating health-care reform.
I suspect that most of our congressmen and media who are opposing health reform are in their pocket.
It is time for Americans to wake up and look out for your own best interests, and that is a public option. It will ensure competition and give us real reform.
It is not socialism. That is repeated to scare you. It will not put the government between you and your doctor.
Today, the insurance company is between you and your doctor.
It took two years, five Hoag Memorial Hospital Presbyterian emergency visits, a hospital stay of seven days, a hospital stay of four days and many doctor visits before my husband’s HMO insurance plan approved his needed surgery.
On the other hand, my government Medicare plan has never questioned any procedure recommended by my doctor.
Again, the insurance industry is trying to scare you. And the Republican Party is falling in line.
Its motive is only to regain political power and defeat everything President Obama stands for.
I thought Republicans were for competition and democracy.
Their actions prove otherwise. It is all about power, and they will do whatever it takes. As Rush [Limbaugh] says, “even if it means bringing down the USA”
As a former Republican of 40 years, I am ashamed. We are Americans first and party members second. Let us not let the insurance companies win.
Wednesday, October 28, 2009
How to get cut-rate car insurance rates
Even better news is that many motorists can cut their premiums further by picking the right vehicle, shopping around for the best rates and taking advantage of every possible discount program the industry has to offer.
For starters, it pays to choose a make and model that costs inherently less to insure in the first place. The quickest and costliest sports cars generally command the highest premiums, with minivans, SUVs and passenger sedans generally being the cheapest to insure. Still, there can be significant differences within given classes of cars, depending on their claims histories and other factors.
Usually, the biggest differences in insurance costs between models will come with collision and comprehensive coverage (for physical damage to the vehicle and theft) and medical payments premiums (for injuries to the driver and passengers). Typically, liability coverage isn’t affected by a policyholder’s car choice, although owners of high-performance sports cars could be charged higher rates in this regard on the assumption that they intend to drive them in the aggressive manner for which they were designed. What’s more, drivers of the largest SUVs, like the massive Hummer H2, might pay somewhat higher liability rates because their vehicles inflict more damage to others in collisions.
Insurance giant State Farm provides ratings for damage and theft indexes, vehicle safety discounts and liability rating indexes on its Web site (Statefarm.com), which can be used to help pick a car that costs less to cover.
Besides identifying a lower overall rate, many motorists can reduce their insurance premiums even further by tweaking a policy’s coverage and/or deductibles. The larger a deductible is, the smaller the premium for specific coverage will be. Most drivers can afford to have a $200 deductible on comprehensive and collision damage, but taking a $500 deductible could save from 15% to 30% on this coverage. Those driving an older model that would cost more to repair than replace could extend their savings by as much as 40% by canceling their comprehensive and collision coverage altogether.
Dropping medical payments coverage (it’s redundant for families with conventional health insurance) rental reimbursement (especially for those owning multiple cars that can be called into service if one gets into an accident) and towing coverage (unnecessary for those having a new-car roadside assistance plan or who belong to an auto club) can likewise save money.
Also, insure more than one vehicle on the same policy. This is the insurance industry’s version of a “volume” discount. Rate reductions among most companies range from 10% to 25%. Likewise, consolidate insurance policies – larger companies will cut auto premiums by around 15% if they also carry a family’s homeowner’s policy.
Savvy insurance shoppers can qualify for additional rate reductions by driving fewer miles per year, keeping a vehicle in a garage, car-pooling, attending driver training school, installing aftermarket anti-theft devices and so on. Senior citizens usually get a break on policy costs, as do students who boast a “B” average or better.
Source
For starters, it pays to choose a make and model that costs inherently less to insure in the first place. The quickest and costliest sports cars generally command the highest premiums, with minivans, SUVs and passenger sedans generally being the cheapest to insure. Still, there can be significant differences within given classes of cars, depending on their claims histories and other factors.
Usually, the biggest differences in insurance costs between models will come with collision and comprehensive coverage (for physical damage to the vehicle and theft) and medical payments premiums (for injuries to the driver and passengers). Typically, liability coverage isn’t affected by a policyholder’s car choice, although owners of high-performance sports cars could be charged higher rates in this regard on the assumption that they intend to drive them in the aggressive manner for which they were designed. What’s more, drivers of the largest SUVs, like the massive Hummer H2, might pay somewhat higher liability rates because their vehicles inflict more damage to others in collisions.
Insurance giant State Farm provides ratings for damage and theft indexes, vehicle safety discounts and liability rating indexes on its Web site (Statefarm.com), which can be used to help pick a car that costs less to cover.
Besides identifying a lower overall rate, many motorists can reduce their insurance premiums even further by tweaking a policy’s coverage and/or deductibles. The larger a deductible is, the smaller the premium for specific coverage will be. Most drivers can afford to have a $200 deductible on comprehensive and collision damage, but taking a $500 deductible could save from 15% to 30% on this coverage. Those driving an older model that would cost more to repair than replace could extend their savings by as much as 40% by canceling their comprehensive and collision coverage altogether.
Dropping medical payments coverage (it’s redundant for families with conventional health insurance) rental reimbursement (especially for those owning multiple cars that can be called into service if one gets into an accident) and towing coverage (unnecessary for those having a new-car roadside assistance plan or who belong to an auto club) can likewise save money.
Also, insure more than one vehicle on the same policy. This is the insurance industry’s version of a “volume” discount. Rate reductions among most companies range from 10% to 25%. Likewise, consolidate insurance policies – larger companies will cut auto premiums by around 15% if they also carry a family’s homeowner’s policy.
Savvy insurance shoppers can qualify for additional rate reductions by driving fewer miles per year, keeping a vehicle in a garage, car-pooling, attending driver training school, installing aftermarket anti-theft devices and so on. Senior citizens usually get a break on policy costs, as do students who boast a “B” average or better.
Source
Thursday, October 15, 2009
Leading Mexican Auto Insurance Quote Provider Adds Two New Carriers
a leading provider of quotes for Mexican auto insurance, announces the addition of two new carriers. The addition of Genworth Seguros and ACE Seguros will allow BestMex to provide more complete coverage options to individuals interested in purchasing auto insurance for Mexico.
The addition of ACE Seguros to the list of available carriers allows motorcycle drivers traveling to Mexico the option to obtain physical damage coverage. The Mexican insurance package offered by ACE Seguros will cover both collision damage as well as total theft for motorcycle drivers crossing the border into Mexico.
We can give families peace of mind by offering assistance packages, and now we can even give individual motorcycle drivers confidence that their vehicle is completely protected both from damage and theft as they travel south of the border. Genworth Seguros brings unrivaled assistance coverage to Mexican auto insurance policies. Genworth's insurance offerings include options to receive air emergency transportation, medical assistance, trip interruption coverage, roadside assistance, 24/7 assistance hotline and case monitoring, as well as legal assistance and bail bonds.
Both Genworth Seguros and ACE Seguros offer an adjuster on the U.S. side of the border to help wrap up your claim, in case the original claim is not fully resolved in Mexico. BestMex is always looking to provide the most complete coverage to individuals traveling both northbound and southbound between the U.S. and Mexico. By adding new carriers with unique coverage options, vacation travelers and long term visitors alike can receive the coverage they need at a price they can afford.
"We are excited about the addition of our new carriers," stated J D Dawson of BestMex. "The new carriers offer BestMex a unique opportunity to provide specialized insurance packages for those traveling to Mexico, no matter what their needs are." "We can give families peace of mind by offering assistance packages, and now we can even give individual motorcycle drivers confidence that their vehicle is completely protected both from damage and theft as they travel south of the border."
Source
The addition of ACE Seguros to the list of available carriers allows motorcycle drivers traveling to Mexico the option to obtain physical damage coverage. The Mexican insurance package offered by ACE Seguros will cover both collision damage as well as total theft for motorcycle drivers crossing the border into Mexico.
We can give families peace of mind by offering assistance packages, and now we can even give individual motorcycle drivers confidence that their vehicle is completely protected both from damage and theft as they travel south of the border. Genworth Seguros brings unrivaled assistance coverage to Mexican auto insurance policies. Genworth's insurance offerings include options to receive air emergency transportation, medical assistance, trip interruption coverage, roadside assistance, 24/7 assistance hotline and case monitoring, as well as legal assistance and bail bonds.
Both Genworth Seguros and ACE Seguros offer an adjuster on the U.S. side of the border to help wrap up your claim, in case the original claim is not fully resolved in Mexico. BestMex is always looking to provide the most complete coverage to individuals traveling both northbound and southbound between the U.S. and Mexico. By adding new carriers with unique coverage options, vacation travelers and long term visitors alike can receive the coverage they need at a price they can afford.
"We are excited about the addition of our new carriers," stated J D Dawson of BestMex. "The new carriers offer BestMex a unique opportunity to provide specialized insurance packages for those traveling to Mexico, no matter what their needs are." "We can give families peace of mind by offering assistance packages, and now we can even give individual motorcycle drivers confidence that their vehicle is completely protected both from damage and theft as they travel south of the border."
Source
Monday, September 28, 2009
SGI auto insurance rates stand to increase on 55 per cent of Saskatchewan vehicles
REGINA — Auto insurance rates are poised to increase on 55 per cent of Saskatchewan vehicles, as the provincial rate review panel on Tuesday gave the green light to SGI's request for an average 4.2-per-cent hike.
The rate re-balancing still needs the seal of approval from the Saskatchewan Party government before it could take effect Nov. 1.
"This information will go to cabinet at the earliest possible time and then cabinet will review (the panel's) decision and we will come forth with an opinion and make it public," said June Draude, minister responsible for SGI.
Decisions about increases "aren't taken lightly," Draude said, although cabinet typically approves the findings of the rate review panel.
Not everyone would see a rate hike under the proposed change. For about 55 per cent — or 553,000 vehicles — the average rate increase will be $55. About another 13 per cent, or 126,000 Saskatchewan vehicles, will see an average reduction of $21. A further 32 per cent, representing 321,000 vehicles, won't see a rate change.
SGI made the request to the rate review panel in the spring, citing rising claim costs and reduced investment income. The Crown insurer noted with the release of its latest annual report in April that the Saskatchewan Auto Fund lost $42.7 million in 2008 and had to draw down its rate stabilization reserve to $102.5 million.
In its report published online, the rate review panel emphasized that the Auto Fund "operates on a self-sustaining basis over time, and neither receives money from, nor pays dividends to, the Government of Saskatchewan. There is no profit component factored into the premiums that Saskatchewan Auto Fund customers pay for basic insurance coverage in Saskatchewan."
The panel also calls on SGI to submit a rate application on an annual basis, to guard against the possibility of having to make big adjustments. The last rate increase was in 2000.
But news of the pending rate increase almost didn't make it to the local media on Tuesday due to a recent byelection call.
A press release alerting the Leader-Post to the panel's recommendation for an average 4.2 per cent increase was issued Tuesday morning, but was quickly recalled due to a law that severely curtails any public comment from government officials during a byelection period. The restrictions also apply to bodies such as the rate review panel, but not to government ministers.
Byelections are being held Sept. 21 to fill vacancies in Regina Douglas Park and Saskatoon Riversdale.
The law means media outlets based in Saskatoon or Regina won't receive faxed or e-mailed news releases from the government ministries or associated bodies until after the vote. However, ministry releases will still be accessible on the government's website. The government also won't make any announcements in either city for the next four weeks.
Justice Minister Don Morgan said it may be time for an overhaul of that election legislation. While intended to ensure a candidate running for the governing party doesn't have an advantage, he noted the law was drafted prior to the widespread usage of the Internet.
Source
The rate re-balancing still needs the seal of approval from the Saskatchewan Party government before it could take effect Nov. 1.
"This information will go to cabinet at the earliest possible time and then cabinet will review (the panel's) decision and we will come forth with an opinion and make it public," said June Draude, minister responsible for SGI.
Decisions about increases "aren't taken lightly," Draude said, although cabinet typically approves the findings of the rate review panel.
Not everyone would see a rate hike under the proposed change. For about 55 per cent — or 553,000 vehicles — the average rate increase will be $55. About another 13 per cent, or 126,000 Saskatchewan vehicles, will see an average reduction of $21. A further 32 per cent, representing 321,000 vehicles, won't see a rate change.
SGI made the request to the rate review panel in the spring, citing rising claim costs and reduced investment income. The Crown insurer noted with the release of its latest annual report in April that the Saskatchewan Auto Fund lost $42.7 million in 2008 and had to draw down its rate stabilization reserve to $102.5 million.
In its report published online, the rate review panel emphasized that the Auto Fund "operates on a self-sustaining basis over time, and neither receives money from, nor pays dividends to, the Government of Saskatchewan. There is no profit component factored into the premiums that Saskatchewan Auto Fund customers pay for basic insurance coverage in Saskatchewan."
The panel also calls on SGI to submit a rate application on an annual basis, to guard against the possibility of having to make big adjustments. The last rate increase was in 2000.
But news of the pending rate increase almost didn't make it to the local media on Tuesday due to a recent byelection call.
A press release alerting the Leader-Post to the panel's recommendation for an average 4.2 per cent increase was issued Tuesday morning, but was quickly recalled due to a law that severely curtails any public comment from government officials during a byelection period. The restrictions also apply to bodies such as the rate review panel, but not to government ministers.
Byelections are being held Sept. 21 to fill vacancies in Regina Douglas Park and Saskatoon Riversdale.
The law means media outlets based in Saskatoon or Regina won't receive faxed or e-mailed news releases from the government ministries or associated bodies until after the vote. However, ministry releases will still be accessible on the government's website. The government also won't make any announcements in either city for the next four weeks.
Justice Minister Don Morgan said it may be time for an overhaul of that election legislation. While intended to ensure a candidate running for the governing party doesn't have an advantage, he noted the law was drafted prior to the widespread usage of the Internet.
Source
Tuesday, September 15, 2009
Buyers of Home, Auto Insurance Say They're Happy with Insurers
Most consumers of auto and homeowners insurance seem to be happy with their insurers, says a new indsutry study.
A new public opinion study by the Insurance Research Council (IRC) reported that 91 percent of respondents with auto insurance said that they were either very satisfied (61 percent) or fairly satisfied (30 percent) with their current auto insurer. Eighty-nine percent of homeowners said that they were either very satisfied (56 percent) or fairly satisfied (33 percent) with their homeowners insurance company.
The study also found that most consumers are satisfied with the experience of shopping for auto insurance. Among respondents who had shopped for auto insurance in the previous 12 months, three out of four respondents said they were very satisfied (24 percent) or fairly satisfied (51 percent) with the overall experience. Sixty-nine percent of respondents were very or fairly satisfied with the range of product and price options they found.
The study also looked at satisfaction among respondents in two groups of states with different levels of government involvement in the insurance market. The study found that respondents in states with government-based regulation of the insurance market were no more likely than those in states in which insurance is primarily regulated by market forces to say they were satisfied with their auto or homeowners insurer.
"The healthy level of consumer satisfaction with auto and homeowners insurance is good news for the industry," said Elizabeth Sprinkel, senior vice president of the IRC. Sprinkle says the study indicates that consumers do not benefit in terms of satisfaction from heavy government involvement in the insurance market.
The report, Public Attitude Monitor 2009, Issue 2: Consumer Satisfaction, is based on a survey of 1,002 respondents in an online poll conducted in December 2008 by Harris Interactive on behalf of the IRC. The survey also asked respondents about recent non-claim contact with their auto insurers, about their reading of mandated brochures or pamphlets inserted with policy renewals, and their opinions on recent cost increases in various lines of insurance.
Source
A new public opinion study by the Insurance Research Council (IRC) reported that 91 percent of respondents with auto insurance said that they were either very satisfied (61 percent) or fairly satisfied (30 percent) with their current auto insurer. Eighty-nine percent of homeowners said that they were either very satisfied (56 percent) or fairly satisfied (33 percent) with their homeowners insurance company.
The study also found that most consumers are satisfied with the experience of shopping for auto insurance. Among respondents who had shopped for auto insurance in the previous 12 months, three out of four respondents said they were very satisfied (24 percent) or fairly satisfied (51 percent) with the overall experience. Sixty-nine percent of respondents were very or fairly satisfied with the range of product and price options they found.
The study also looked at satisfaction among respondents in two groups of states with different levels of government involvement in the insurance market. The study found that respondents in states with government-based regulation of the insurance market were no more likely than those in states in which insurance is primarily regulated by market forces to say they were satisfied with their auto or homeowners insurer.
"The healthy level of consumer satisfaction with auto and homeowners insurance is good news for the industry," said Elizabeth Sprinkel, senior vice president of the IRC. Sprinkle says the study indicates that consumers do not benefit in terms of satisfaction from heavy government involvement in the insurance market.
The report, Public Attitude Monitor 2009, Issue 2: Consumer Satisfaction, is based on a survey of 1,002 respondents in an online poll conducted in December 2008 by Harris Interactive on behalf of the IRC. The survey also asked respondents about recent non-claim contact with their auto insurers, about their reading of mandated brochures or pamphlets inserted with policy renewals, and their opinions on recent cost increases in various lines of insurance.
Source
Monday, July 20, 2009
State Farm to raise auto rates
State Farm Insurance has filed for a statewide 3 percent increase in auto insurance rates, citing increased costs in paying claims. The insurer said the new rates will go into effect for new and renewal policies with State Farm Mutual - the company's primary auto insurance subsidiary - beginning on Aug. 3.
"Costs associated with providing auto insurance in Texas have trended upward recently," said Kevin Davis, a spokesman for the company. "This rate adjustment is necessary for State Farm to remain competitive while absorbing rising costs and maintaining its level of risk."
State Farm Mutual, which insures about 3 million vehicles in Texas, last raised rates in October by an average 2.4 percent. Average increases in Dallas County will range from 0.5 percent in the northwestern part of the county to 4 percent in south central areas. The average increase in Collin County will be 3.1 percent.
Source
"Costs associated with providing auto insurance in Texas have trended upward recently," said Kevin Davis, a spokesman for the company. "This rate adjustment is necessary for State Farm to remain competitive while absorbing rising costs and maintaining its level of risk."
State Farm Mutual, which insures about 3 million vehicles in Texas, last raised rates in October by an average 2.4 percent. Average increases in Dallas County will range from 0.5 percent in the northwestern part of the county to 4 percent in south central areas. The average increase in Collin County will be 3.1 percent.
Source
Monday, July 13, 2009
Auto insurance rates climbing in Arizona
Many insurance providers are revving up auto insurance rates across Arizona, continuing an upward trend that began last year.
According to the Arizona Department of Insurance, 77.46 percent of insurers that have reported auto insurance rate changes this year either have or are increasing their rates. The highest percentage increases are Colorado Casualty Insurance Co., a Liberty Mutual Group company, up 30.20 percent, and Garrison Property and Casualty Insurance Co., a USAA company, up 30.10 percent.
Insurers have all year to report any changes they make to their auto insurance rates, said Erin Klug, department spokeswoman.
"There's no requirement that they change their rates at any particular time," she said.
In 2008, an overall average increase of 3.72 percent was reported among insurers filing rate changes that year, according to the department. That's up from a .32 percent decrease in 2007.
"There is a small uptick ... in insurance rates that appears to be happening at this time," said Ron Williams, executive director of the Arizona Insurance Council. "It's balanced by the fact that in 2006, the 20 largest insurers in the state dropped their auto insurance rates by 5 percent.
"We have times when the competitive nature of the insurance business here in Arizona allows for rate decreases, and then we have these times where losses and costs that insurance companies incur result in higher rates."
Colorado Casualty has been paying out more in claims than it has been receiving in premiums, said spokesman Paul Hollie. Colorado Casualty insures commercial vehicles, he said.
"(Premiums in Arizona are) underpriced for the risk that the insurance company takes, so from time to time you have to make adjustments based on market," he said. "Additionally, Colorado Casualty is still very competitive in that marketplace. Some customers, depending on where they are in the spectrum, will actually see a rate decrease."
Clay Allen, USAA spokesman, said USAA companies, including Garrison Property and Casualty, had a combined auto insurance rate increase of 9.9 percent this year in Arizona. Garrison is a newer USAA company that began providing insurance in Arizona three years ago, he said.
"After a few years of loss experience in claims, we determined that those original Garrison auto insurance rates were inadequate, and that's why we filed the rate increase," he said. "Overall, Garrison and our other companies, we're seeing our auto loss trends steadily increase, and those are being driven by a growing number of claims and higher repair and related medical expenses associated with those claims."
USAA provides coverage to military-related personnel, including active duty and reserve, retired or direct family of a military member.
None of the three largest auto insurers in Arizona - State Farm Mutual Auto Insurance Co., Farmers Insurance Co. of Arizona and American Family Mutual Insurance Co. - reported increases. In 2008, those companies had 30.3 percent of policyholders across Arizona.
State Farm hasn't filed any rate change, while Farmers reported a .4 percent decrease and American Family reported a 3.1 percent decrease.
State Farm's auto insurance products are appropriately priced to risk, said spokeswoman Cheryl Willis-Blakes.
Arizona's highly competitive insurance market means consumers have plenty of choices if they feel their rates are too high, Klug said. The department's Web site includes an auto insurance premium comparison guide, at www.id.state.az.us/autopremium.html.
Policyholders should examine their policies at least once a year to see if they could be paying less, Williams said.
"The insurance companies really do vie for our business, so consumers are encouraged to do some comparison shopping," he said.
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According to the Arizona Department of Insurance, 77.46 percent of insurers that have reported auto insurance rate changes this year either have or are increasing their rates. The highest percentage increases are Colorado Casualty Insurance Co., a Liberty Mutual Group company, up 30.20 percent, and Garrison Property and Casualty Insurance Co., a USAA company, up 30.10 percent.
Insurers have all year to report any changes they make to their auto insurance rates, said Erin Klug, department spokeswoman.
"There's no requirement that they change their rates at any particular time," she said.
In 2008, an overall average increase of 3.72 percent was reported among insurers filing rate changes that year, according to the department. That's up from a .32 percent decrease in 2007.
"There is a small uptick ... in insurance rates that appears to be happening at this time," said Ron Williams, executive director of the Arizona Insurance Council. "It's balanced by the fact that in 2006, the 20 largest insurers in the state dropped their auto insurance rates by 5 percent.
"We have times when the competitive nature of the insurance business here in Arizona allows for rate decreases, and then we have these times where losses and costs that insurance companies incur result in higher rates."
Colorado Casualty has been paying out more in claims than it has been receiving in premiums, said spokesman Paul Hollie. Colorado Casualty insures commercial vehicles, he said.
"(Premiums in Arizona are) underpriced for the risk that the insurance company takes, so from time to time you have to make adjustments based on market," he said. "Additionally, Colorado Casualty is still very competitive in that marketplace. Some customers, depending on where they are in the spectrum, will actually see a rate decrease."
Clay Allen, USAA spokesman, said USAA companies, including Garrison Property and Casualty, had a combined auto insurance rate increase of 9.9 percent this year in Arizona. Garrison is a newer USAA company that began providing insurance in Arizona three years ago, he said.
"After a few years of loss experience in claims, we determined that those original Garrison auto insurance rates were inadequate, and that's why we filed the rate increase," he said. "Overall, Garrison and our other companies, we're seeing our auto loss trends steadily increase, and those are being driven by a growing number of claims and higher repair and related medical expenses associated with those claims."
USAA provides coverage to military-related personnel, including active duty and reserve, retired or direct family of a military member.
None of the three largest auto insurers in Arizona - State Farm Mutual Auto Insurance Co., Farmers Insurance Co. of Arizona and American Family Mutual Insurance Co. - reported increases. In 2008, those companies had 30.3 percent of policyholders across Arizona.
State Farm hasn't filed any rate change, while Farmers reported a .4 percent decrease and American Family reported a 3.1 percent decrease.
State Farm's auto insurance products are appropriately priced to risk, said spokeswoman Cheryl Willis-Blakes.
Arizona's highly competitive insurance market means consumers have plenty of choices if they feel their rates are too high, Klug said. The department's Web site includes an auto insurance premium comparison guide, at www.id.state.az.us/autopremium.html.
Policyholders should examine their policies at least once a year to see if they could be paying less, Williams said.
"The insurance companies really do vie for our business, so consumers are encouraged to do some comparison shopping," he said.
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