Car Insurance News

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.

CNinsure, an independent brokerage company and insurance agency located in China, will be establishing a joint venture with Shandong Xin Guang Yuan Automobile Club Co, Ltd. setting up Fanhua-Xin GuangYuan Insurance Agency Co., Ltd. in Shandong Province. The said project is expected to take effect by the second quarter of 2008 after finalizing all the transactions conditions needed. The joint venture will focus on auto insurance distribution. 51% of the new insurance company will be owned by CNinsure and the remaining 49% will be owned by Shangdong Xin Guang Yuan. The combination of both companies which were both leaders in their industries is sure to be a hit.

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Defaqto is a research company and is launching a car insurance comparison tool online. The tool is called Defaqto Compare and their study shows that it will help to prevent the common commercial prejudice and it will definitely provide customers the overview of the different levels of coverage being offered. The website is ‘find.co.uk’ and you can avail of the services for free. Many car insurance sites are said to being biased. Allegedly they sell customers to the highest bidder or those insurance companies they have a tie-up even if those insurance companies do not actually offer the cheapest coverage.

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About two-thirds of car insurers are being tough to drivers who are only seventeen years old as they refuse to take them. Because of this, the Government will be pressured to implement the legal driving age to eighteen years old. Actually, even those who are under 21 will find it difficult to get coverage because still half of the insurers do not want to issue them insurance policies. Another issue that is being supported by major insurance companies are those being raised by safety groups that include night time curfews and a total alcohol ban for those who just qualified to drive.

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Another Question is Why premiums are high for these vehicles?
A continuation of the news about The Most Expensive Autos to Insure in 2008 among Top Sellers

Your own premiums are calculated using sophisticated tables combining your personal factors plus the “loss experience” of the vehicles. That means that you could be the best driver in the world, but if other drivers of your car model are regularly crashing their cars, that car is going to be more expensive to insure.

Insurance loss histories compiled by industry groups and insurers are used to judge the level of claims a vehicle will incur for collision damage, medical bills, theft and other factors.

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The Question now is Why Premiums are Lower for these Vehicles?
Continued from the Previous News about The 10 least Expensive Autos to Insure in 2008 Among Top Sellers
Your own premiums are calculated using sophisticated tables combining your personal factors plus the “loss experience” of the vehicles. That means that the owners of some vehicles end up with far fewer or far less expensive insurance claims than others. This “loss history” is used to price other policies and helps keep your premium in check.

For example, if your car model isn’t stolen much, your comprehensive premiums may be comparatively lower. If repair costs are low for your vehicle, collision coverage may be lower.