Car Insurance News

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A recent survey reveals that in general, people are driving less which normally means fewer car accidents and injuries. With skyrocketing prices of gasoline, people are continually finding ways to save on gas like the invention of hybrid cars. People are now using public transportation systems or combining trips and car pooling instead of driving. All of these mean lesser cars, lesser mileage, lesser accidents and lesser insurance premiums. When people drive less, they will be in a lesser number of accidents which means lesser injuries and lesser injury payments. This is one of the reasons why more insurance providers give lower premiums for less mileage. So drive less, for more insurance premium discounts!

There is a heated debate in Georgia today, as Georgia Insurance Commissioner John Oxendine said he is considering the addition of fees on car and other forms of insurance to support trauma care services for car accident victims and others. According to an article in ajc.com, this is because the state is desperately in need of more funding for trauma care services. And Oxendine says it makes sense since most trauma cases are a result of car crashes and work accidents.

Moreover, this fee would not be specific to car insurance, but may also apply to health insurance and worker’s compensation. There is opposition, of course, since insurance industry advocates argue that this would raise the costs and premiums of their products, as well as add new and unfair taxes to the industry. Since such fees are normally passed on to the consumers, it would be a double whammy for responsible citizens who religiously pay their taxes and buy insurance.

It is a fact that sports car insurance is more expensive than other auto insurances. Sports car insurance is determined by your car’s speed and resultant mobility on the road. Owning a sports car goes beyond customizing it and prepping it up to race. You have to be ready to actually pay for an insurance made for your kind of car.

How to reduce car premium
As insurance companies tend to charge higher premiums for sports car insurance, there are ways to lower it:
- Low mileages reduce significantly your premium. Thus, it is recommended to use your sports car only for short drives.
- Pay your insurance premiums in one installment as insurance companies charge more for monthly premiums.
- Don’t apply too much customization on your sports car because tweaking the stock features increases the premium.
- Don’t go beyond the speed limit. Speeding fines increase premium as insurance companies keep a record of this violation.

(To be continued)

Being a teenager increases your risk on the road. According to studies conducted by insurance companies and government agencies, teen drivers are prone to crash because of their rebellious and thrill-seeking nature: 34% of deaths from car crashes come from speeding, 33% comes for failure to use seatbelts, and 12% from drugs and alcohol. Nationwide, boys are twice as likely as girls to be the driver in a car that would crash and in metropolitan areas, car crashes are twice more likely than in rural areas. To address this, there are training programs to educate teenagers on driving safety and usually these are extended to ensure maximum learning.

Good news for motorists in Philadelphia: Government Employees Insurance Company, or GEICO, has introduced its Auto Repair Xpress program to address the needs of car owners. The ARX program aims to assist in the repair of vehicles which has been damaged because of collisions. This program allows the clients to drop their cars at an ARX shop, meet a GEICO auto damage adjuster who will evaluate the damage and the needed repairs and drive a rental car as long as the clients have adequate auto insurance. After that, the clients can return their rented cars and drive home in their repaired vehicle.

It is illegal to drive an uninsured car but studies from Sainsbury’s car insurance show that 1.15 million people drove a car during the past year even though their cars were not insured. 40% of these people where between 17 to 24 years old and 22% were between 25 to 34 years old. In London, 6% of people drove without car insurance and this is the highest number for Britain. 19% of the uninsured said they did not purchase car insurance because they couldn’t afford and didn’t think it was important. 13% of the uninsured said they didn’t have time to purchase one and another 13% said that they forgot to buy.

Two men from San Fernando Valley were arrested because of faking 2,600 car accidents in the span of 2 years. These two are Alexander Igor Gutman of Sherman Oaks and Lazlo Aldar Bango of Van Nuys. Gutman faces 29 felony charges while Bango faces 13. Also, they are accused of making terrorist threats and theft. They have gained the assistance of attorneys, doctors, chiropractors and bodyshop employees to make many millions of fraudulent claims. Los Angeles County Deputy District Attorney Gregory Alker said that they have hosted ‘paper accidents’ with no real collissions and which accounted for most claims to insurance companies.

News fro MoneyExpert.com: As a response to the increasing cost of car insurance premiums, above 6 million people switched their car insurance providers within the past six months. 14% of people switched when they are about to renew their policy and 17% are middle aged drivers aged around 35-44 years old. Men also switched more than women, with 15% of men and 13% women who switched since October last year. This only shows that loyalty is not expected from the motorists if the insurance premiums are more than they can afford. The car insurance must offer discounts if they want to retain their clients in the future.

According to Diamond Management & Technology Consultants, Inc., technology-enabled programs would save 17% of auto insurance losses each year or $20 billion in annual claims payouts. This will also make driving safer. These programs will be well-received because research reveals that almost 8 out of 10 households in the US are open to risk monitoring/reduction devices that collect information about their driving habits. Devices used are called vehicle telematics which use sensing, processing and wireless technology that would hopefully reduce accidents, lower legal costs, improve claims processing and decrease theft and fraud. These devices are preventive measures that would bring huge benefits to motorists and the insurance industry.

Motorcycle riders can protect their bikes for a more affordable price. They can get a $50 rebate from LoJack on the purchase of their LoJack for Motorcycles Stolen Vehicle Recovery System. This system includes a silent radio transceiver. If a theft is reported to police, LoJack is activated. It sends a signal that police can follow.

They can visit www.motorcycle.progressive.com to download the online rebate form. Progressive customers who have LoJack installed on their bikes will receive a 20 percent discount on their Comprehensive Coverage. The LoJack product and the rebate is available in all 26 states and district of Columbia.

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