The good news, your auto insurance premiums will decrease in 2007. The bad news, they’re only dropping an estimated .05 percent. That extra four bucks a year may not even buy one value meal, but it’s a positive trend in an industry known for steady price increases. Nationwide, this measly four dollars translates into hundreds of millions in total consumer savings.

The Insurance Information Institute (III) attributes the rate reduction to several factors—a more competitive marketplace, safer cars and drivers, some inventive fraud-fighting tactics and more accurate underwriting.

To those of you who have bemoaned credit-based insurance scoring, it is one of the reasons we’re seeing the price of auto insurance drop. Using credit to determine the price an individual will pay for insurance has its pitfalls, but overall has given insurers a more precise way to determine premiums.

So keep a clean credit history. Pay credit card balances completely, pay bills on time and don’t open too many cards or accounts at once. Credit-based scoring is here to stay, so work within the system to raise your score.

Although it’s only .05 percent, some tweaks to your coverage could reduce the cost further. III recommends raising your deductibles and reducing your coverage. It sounds a bit counterintuitive coming from an insurance resource. However, if you can cover your losses in the event of an accident without sacrificing your financial well-being, raising deductibles and reducing coverage can shrink your premium price between 15 and 20 percent.

For more information about ways to save on auto insurance, check out our resource center or III.

Posted by maribeth neelis at 02:19 PM | Permalink
 

The kind of car you drive affects your insurance premium. If you drive a muscle car, the chances are good your insurance costs will be higher than if you drove a station wagon.

In general, a safer car means a lower premium. (Unless you drive a really safe Bentley or Rolls, in which case the value of your car might offset any safety savings. Luxury cars are more expensive to insure.)

On Tuesday, the Insurance Institute for Highway Safety recognized 13 cars for their safety features. Four cars, seven sport utility vehicles, and two minivans earned “Top Safety Pick” distinction.

The institute says this year’s crop of cars underwent an even more rigorous evaluation process. The ratings were based on performance in high-speed front-, side- and rear-impact crash tests.

In addition to giving a performance grade for the three crash tests, the institute required that winners have ESC, or electronic stability control. (Read Insurance Blog posts on ESC here and here.) It is the first year the institute has imposed the restriction. The result is that no American cars made this year’s list. Two made it last year.

Showing the import of making the institute’s list, at least one U.S. car manufacturer is scrambling to modify one of its cars to be eligible for next test. Ford says it will add ESC to its 2008 Freestyle in hopes of getting the safety nod.

The German carmaker Audi, whose A6 was snubbed last year because of poor whiplash protection, changed its headrests in order to make the list this year. Their A4 and A6 models earned Top Safety Pick awards.

CNN Money has pics of all 13 award-winning cars. (Incidentally, they have a gallery of the most reliable cars, too. The only car that makes lists for safety and reliability: the Honda CR-V, which is pictured above.)

The best images, though, are the nine renderings of futuristic green (as in environmentally friendly) cars. The most unlikely appearance on this list comes from Hummer. Strange as it sounds, their 02 may be the most fascinating concept on the list—that and the VW Nanospyder.

Posted by Jeb Foster at 09:40 AM | Permalink
 

According to today’s Times, car manufacturers, highway safety officials and the group Mothers Against Drunk Driving (MADD) want to require first-time drunk driving offenders to install a device known as an "ignition interlock" in their cars. It’s a gizmo that detects alcohol and, if necessary, immobilizes a wannabe drunk driver’s car.

New Mexico and Maryland already mandate interlocks for first time offenders, and the results have been immediate and impressive. After a year those states saw an 11.3 and 17.8 percent drop in alcohol-related driving deaths.

Those are remarkable stats because the annual drunk-driving fatality rate had been almost immovable for the past ten years, despite ever harsher punishments for driving under the influence.

According to Mark Rosenker, chair of the National Transportation Safety Board, “Punishment doesn’t always do it.” The most common punishment is a license suspension. But the fact is, license revocation isn't an effective deterent. For example, California has nearly 1 million unlicensed drivers on the roads.

Advocates are even pushing for alcohol sensors to become a standard car feature, whether the car belongs to a person with a DUI or not.

But there are some bugs that need to be fixed before ignition interlocks become standard. For one, it’s possible to beat some alcohol sensors: You can have a sober person perform the alcohol test. (Which begs the question: If you can convince a person to take a breath test for you, why not ask that same person to drive you home? Sheesh.)

Secondly, “We don’t want the soccer mom dropping kids off, going to the grocery store and the preschool, and having to blow into something every time,” says Susan Ferguson, a researcher for the Insurance Institute for Highway Safety. Any future alcohol test designed for non-offenders will have to be unobtrusive. Saab, a GM-owned company, is developing an unobtrusive alcohol sensor that will attach to a key chain.

What do you think? Good idea?

Posted by Jeb Foster at 12:59 PM | Permalink | Comments (1)
 

Do you drive one of these cars?

1. 1991 Honda Accord
2. 1995 Honda Civic
3. 1989 Toyota Camry
4. 1994 Dodge Caravan
5. 1994 Nissan Sentra
6. 1997 Ford F150 Series
7. 1990 Acura Integra
8. 1986 Toyota Pickup
9. 1993 Saturn SL
10. 2004 Dodge Ram Pickup

If so, you drive one of the top ten most stolen vehicles in the U.S, according to the National Insurance Crime Bureau (NICB). The NICB estimates that a car is stolen every 25.5 seconds.

People can do more to prevent theft, according to a recent release from the Insurance Information Institute. “All too often, consumer attitudes about preventing vehicle thefts are based on misconceptions, which can lead to expensive consequences for the unprepared victim,” says Institute vice president Carolyn Gorman.

Here are a few of those misconceptions:

• Myth: Most Thefts Occur in Unprotected Areas
• Myth: Stolen Vehicles Are Usually Found
• Myth: Insurance Always Provides a Rental Car
• Myth: Thieves Are Not Interested in Older Vehicles

A former neighbor of mine experienced that last one first hand when his beater truck was stolen. He eventually found it parked a few blocks down the street but it was missing the steering column. “Older vehicles are most often taken for their parts which are no longer manufactured and are too difficult or expensive to obtain,” says NICB president Robert M. Bryant.

What’s worse than getting your car stolen? Realizing you’re underinsured after your car has been stolen. Many owners of clunker cars drop their comprehensive coverage because they think it’s not worth the money. Problem is, comprehensive covers for theft and, in many cases, rental car coverage.

But it doesn’t always. The III advises people to check with their insurer about their rental car policy before they need one.

Read the entire release here.

Posted by Jeb Foster at 02:19 PM | Permalink
 

Shopping for a new car brings many considerations. Aside from a car's fun features, you're probably evaluating things like size, gas mileage and horsepower. What many people forget to check on, however, is how a new car will affect insurance rates.

Yes, in addition to your own personal stats (including things like your driving record, age, sex, credit history and geographic location), your car can play a big role in how much you pay for auto insurance.

What gives?

Comprehensive and collisions costs are mostly to blame, according to this article, featured by MSN Money. Because, unfortunately, when repairs need to be made, insurance rates increase. This is especially true for higher-end cars. Generally speaking, the more your car is worth, the more it's going to cost to repair. Insurers realize this and will take it into account when determining your premium.

In addition to repair costs, insurers look at a variety of other factors when it comes to putting a premium price tag on your vehicle.

Here are a few other rules of thumb:

Continue reading "Buying A New Car? Don't Forget The Insurance" »

Posted by Megan Mahan at 04:04 PM | Permalink | Comments (2)
 

There’s a reason you don’t spend the afternoon gabbing on your cell phone. It’ll cost you—that and you probably have a job. But to free up air waves during peak hours, companies offer incentives to consumers who opt to use their phones during “off peak” times, such as evenings and weekends. Following suit, some London insurance companies have begun offering similar perks to drivers to stay off the roads when they are congested and driving is more dangerous.

Basically, “pay as you go” auto insurance allows drivers to pay for insurance the way they already pay for cell phone usage and utility bills—pay for what you use (sort of.)

The cost is based on how much you use your car, but also where you use it and at what time. It accounts for accidents and traffic violations too. The idea is to give customers more control and flexibility. After all, if you only drive on the weekends, why should you pay as much as those driving everyday during rush hour? The London based Norwich Union says you shouldn’t.

Financial experts aren’t as optimistic. Although the “pay as you go” plan could cost less than ordinary insurance, it’s difficult to predict when and where you’ll be driving. If drivers don’t plan properly, they could end up paying a lot more than they expected.

Read the entire article.

Posted by maribeth neelis at 11:12 AM | Permalink
 

Yesterday as I commuted during rush hour, I glanced to my left to see a couple motorcyclists careen between lanes at 30 plus mph. I noticed the reaction of the other drivers--eye-rolling, fist-shaking, inaudible ranting. Maybe we envied their mobility as the rest of us suckers inched along. But if you're like me, you have mixed feelings and have probably had both positive and negative experiences with motorcycle riders.

Negative: Those riders that pop wheelies and attempt various stunts, like foot sliding.

Positive: Jesse James.

Negative: Babies on bikes--more prevalent in third-world countries.

According to an article on the Insurance Journal Web site, motorcycles make up only two percent of the vehicles on the road, but are responsible for 9.4 percent of all highway deaths. Having ridden on a motorcycle, I get the appeal. However, with statistics like that, I also understand why some auto insurers don't even offer motorcycle insurance.

Recently, motorcycle manufactures have begun to install air-bags, in an effort to decrease motorcycle-related deaths and possibly reduce the cost of insurance.

Some companies are even coming up with accessories for safety-conscious riders. Worldwide Riders, headquartered in Cheyenne, Wyo., sells a vest with a bladder that inflates when a rider is thrown from his or her bike. And motorcycle-driving schools have popped up across the country.

But regardless of all the progress made in motorcycle safety, the U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) estimated there were 4,315 motorcycle-related fatalities in 2005.

I didn't write this with the (sole) intention of putting the fear of god into every car or motorcycle driver. But safe, conscientious driving doesn't have to take all the fun out of riding. And graduating from a class will only lower your motorcycle insurance premiums. In the meantime, don't give all "motorheads" a bad name by speeding down the highway shirt-and helmetless

The Insurance Information Institute offers some interesting statistics on motorcycle crashes as well as money-saving tips for buying adequate motorcycle insurance.

Posted by maribeth neelis at 04:55 PM | Permalink | Comments (3)
 

When our kids reach a certain point in their lives, we all know it's time for "the talk": that uncomfortable dialog in
which we explain the basics of life. And, though we don't exactly look forward to this discussion, we know it's for our children's best—and we'd much rather they heard it from us than the troublemaker down the street.

But do we take our own advice? No, I'm not talking about the birds and the bees. I'm actually talking about car insurance.

What? you're saying just about now. Let me explain.

We give our kids advice, teach them about life, groom them to be responsible adults and teach them to make wise decisions. But we often learn our own lessons the hard way—like discovering what a recent article on Bankrate.com calls "the auto insurance facts of life."

OK, so it's a cheesy analogy...but go with me on this one, would ya?

Continue reading ""Pearls of Motherly Wisdom": Tips for Getting the Most Out of Your Auto Insurance" »

Posted by Penny Hagerman at 01:57 PM | Permalink | Comments (1)
 

We're experiencing a bit of a slow insurance news day on this Tuesday afternoon, so I thought I'd take a peek into the InsureMe Insurance Resource Center and find a topic we haven't covered here at the Insurance Blog yet: gap insurance.

Quite simply, gap insurance can help you close the "gap" between what you owe on your car loan and how much the car is actually worth.

Think of it this way: your car suffers serious flood damage. You still owe $12,000 on our car, but your auto insurance will only cover the current value and cuts you a check for $5,000—leaving you with a $7,000 gap. Yikes. But, as the name suggests, gap insurance can help take care of that residual amount.

The good news is, more drivers are becoming wise to the gap insurance necessity and as a result, more lenders and car dealerships are making it easier to buy. I purchased a gap insurance policy through my lender last year for a few dollars per month.

But I'll stop yapping now and direct you to the gap insurance goods. :) Check out our article, Closing the Gap When You Owe More for Your Car Than It's Worth

Posted by Megan Mahan at 04:53 PM | Permalink
 

If you're one of those people who can't remember to pay your insurance premiums—or you'd like to know when your insurance company has received and posted your payment—one insurer is now taking steps to make things easier, according to an exciting update from the Insurance Business Review Online.

Enter Progressive Direct, one of the nation's largest auto insurance companies. As of this week, this forward-thinking insurer now communicates payment information directly with some of its customers through mobile alerts. When bills are due or payments are received, customers who sign up receive a text message reminding them it's time to pay up—or letting them know their most recent payment arrived safely.

This new service, available to customers who have their car insurance payments automatically deducted from a bank account or through a credit card charge, gives consumers advance notice when their account is about to be hit or the charge is about to go through. If a cancellation is imminent due to non-payment or insufficient funds, customers are now notified of this before it happens, too.

The mobile alerts work on all major wireless carriers in the U.S., the company says.

"A mobile alert sent directly to a cell phone makes it easy to know when a payment is due and when it has been made," said Toby Alfred, Progressive Direct customer experience general manager. "The beauty of it is the customer gets the information instantly—without having to be connected to email."

What a great idea! I hope other insurers will run with this idea, too. What do you think?

If I weren't so happy with my new auto insurance company, I might just switch to Progressive and sign up for mobile alerts myself....

Posted by Penny Hagerman at 05:23 PM | Permalink | Comments (2)
 

The Western Insurance Agents Association offered the latest volley in what it calls a "war" over ZIP code-based underwriting, accusing California Insurance Commissioner John Garamendi of using his office to "pander" to voters.

Earlier this month, Garamendi, who is running for Lt. Governor, led a successful campaign to force auto insurers to drop ZIP codes from their rate setting formulas, saying location-based premiums put an unfair burden on minority and urban drivers. The new rule, which will go into effect in two years, requires insurers to use driving record as the primary factor in determining insurance rates. The rule is an outgrowth of a 1988 ballot measure mandating fair auto premiums for all Californians. Last week, industry representatives were denied in their request for a preliminary injuction to stop the change.

In a statement published in the Insurance Journal, the agents association savagely attacked Garamendi's motives: "Americans would be hard pressed to find anyone across the United States that has exploited his public position as an elected regulator for personal political gain more than California Insurance Commissioner John Garamendi," the release reads.

Continue reading "The California Auto Insurance "War" Continues" »

Posted by Jeb Foster at 03:40 PM | Permalink | Comments (2)
 

If you're shopping for a new car, you're most likely thinking about comfort, size, function or gas mileage—especially as the price of fuel seems to continually climb day after day.

But if you haven't talked to your insurance agent about the price of insuring that sportscar, hybrid or SUV you're considering, you might want to do so ahead of time. Why? Because if the vehicle you're considering is expensive, particularly powerful or costs megabucks to repair, your insurance costs could greatly offset that all-important cool factor (and that would NOT be cool!).

Indeed, your choice of make and model can have a big effect on your auto insurance premium, confirms Russ Rader, spokesman for the Insurance Institute for Highway Safety. Cars that are decked out with all the options, have lots of horsepower under the hood or set you back more dinero are more likely to be stolen, stripped for parts or driven recklessly—and crashed.

That means increased risk for your insurer and higher auto insurance bills for you.

So which vehicles are cheaper to insure—and which set you back the furthest?

According to a recent article in MSN Money, some of the cheapest cars to insure include the Volvo XC90, the Chevrolet Malibu Maxx, the GMC Safari, the Buick LeSabre and the Nissan Pathfinder Armada, to name just a few. And why do these cars cost so much less to insure? Because they tend to be safer, well-built, sedan-type family cars driven by more middle-aged, safer drivers.

Coming in as the most expensive insurance-wise are the Mitsubishi Lancer Evolution (duh!), Mercedes CL-class vehicles, the Dodge SRT-4, the Subaru Impreza WRX and the Jaguar XK convertible. Why? Mostly because they are either sportscars—which inherently carry more risk—or considered highly-prized loot for thieves. [For a more comprehensive list, see the article here.]

So before you buy that new car, stop and think about these factors—and consider their long-term effect on your insurance rates. They could make quite a difference over the long-haul.

Posted by Penny Hagerman at 03:21 PM | Permalink | Comments (2)
 

Youth has its perks; but cheap auto insurance isn't one of them. Generally, older, married individuals of the female persuasion snag the best rates. Factors like age, gender and marital status are widely known to affect insurance premiums. But if you're like most drivers, you're probably not aware that applying for several credit cards or financing an appliance or jewelry purchase could affect your insurance as well.

Although insurers have been using credit reports to determine insurance rates for over a decade, many consumers--approximately two-thirds of 1,578 people surveyed, according to a 2005 report by the Government Accountability Office--are still unaware of the effect their credit histories could have on their premiums.

Continue reading "Paying With Plastic Could Mean Higher Car Insurance Rates" »

Posted by maribeth neelis at 04:23 PM | Permalink | Comments (2)
 

A new report from the Insurance Institute of Highway Safety credits safer cars, not safer drivers, for the decrease in highway deaths over that past decade.

In fact, the report says that in the absence of improved safety features, crash fatalities would have increased over the past 12 years.

In other words, "an increasingly dangerous traffic environment has been offset since 1994 only because people are driving vehicles that are more protective," says IIHS president Adrian Lund.

According to the report, speed limit libertarians now have to eat their words. Proponents of higher speed limits have long gloated because rising speed limits have paralleled declining highway fatalities. According to the institute, however, they may now have to switch gears and find a new rationale for higher limits, because the numbers show that car safety improvements obscured the true cost of speeding.

Continue reading "Safe Cars, Reckless Drivers" »

Posted by Jeb Foster at 02:01 PM | Permalink | Comments (2)
 

The saga continues.

This story begins in 1988, when California voters approved Proposition 103, a ballot measure mandating that driving record, not the zip code in which you park your car, be the biggest factor in determining your auto insurance rate.

Despite this straightforward exercise in participatory democracy, Californians today are still paying zip code-based premiums.

So what happened?

According to a recent editorial in the San Francisco Chronicle, Prop. 103's driving record mandate was shelved because of the appointment, in 1996, of state Insurance Commissioner Chuck Quackenbush. The Chronicle says Quackenbush "was the industry's water boy until he was chased out of office in a corruption scandal."

Continue reading "California Car Insurers Sue Over Rule Change" »

Posted by Jeb Foster at 01:09 PM | Permalink
 

California just took another step toward eliminating zip code-based auto insurance premiums.

Barring legal challenge from insurance companies, the rate-setting change will take effect in 30 days.

According to the LA Times, the state Office of Administrative Law gave the green light to a nearly 20-year push to cut zip codes from insurers' rate setting formulas. State insurance commissioner John Garamendi has led the effort to implement the change.

Advocates of eliminating zip codes have long maintained that location-based insurance rates are discriminatory toward minority and low-income Americans. Further, supporters say, zip codes have little to do with claims risk.

"This is very good news for good drivers wherever they may be in California, rural, suburban or urban," Garamendi told the Times.

Auto insurers aren't so sure, saying the regulation will likely cost consumers in the end, particularly those who live in rural areas and spend more time on the road.

The change is an outgrowth of Proposition 103, which calls for driving record and number of miles driven to be the most important criteria in setting insurance rates.

It will be interesting to see what happens to auto insurance premiums in California if the rule takes effect. The state's fourth largest insurer, the Automobile Club of Southern California, has already voluntarily implemented the change, and they say eliminating zip codes from the mix will trim $133 million from the bills of the club's 1 million policy holders.

Insurers, however, often say that freedom in calculating claims risk is integral to keeping premiums low. Mandates that curtail that freedom, while often lucrative for politicians, often just result in higher rates for consumers, they say.

On the other hand, if the Automobile Club of Southern California is able to stay in the black and provide reasonable rates for consumers, the heal-dragging of the other carriers in the state will start to look disingenuous.

Posted by Jeb Foster at 10:16 AM | Permalink
 

If you find yourself wanting to beat someone up every time you pull into a gas station and see that gas prices have risen yet again, you're not alone. Even some of our nation's safest drivers are going ballistic at the pumps, according to one report late last week by the Insurance Journal.

It's no secret that safe driving leads to less risk for insurers—and lower auto insurance prices for consumers. So, in an effort to reward Milwaukee motorists for being ranked the safest mid-sized city behind the wheel, Allstate decided to give away a tanker truckload of gasoline late last week for such display of character.

The madness that ensued painted a perfect picture of driver frustrations being played out at gas pumps nationwide.

Although many motorists waited patiently in line for hours to get their share of what is quickly becoming liquid gold, others weren't so patient. Fights broke out over who was first, cars crashed into one another as friends let friends cut in line, and four people actually ended up in jail for their misdeeds.

The excitement lasted only a couple of hours, but local police weren't surprised at the results.

"Any time you offer free gas when it is $3 a gallon, it is not surprising people would get excited," said spokewoman Anne E. Schwartz.

In the end, the insurer gave more than 700 motorists free tanks of gas—quite the reward for those who behaved themselves.

Although I don't agree with some of this extreme behavior, I certainly understand the angst behind some drivers' actions. And I expect we'll be seeing more and more public displays of anger as gas prices continue to climb, causing further strain on drivers' already empty wallets.

All that said, the irony behind this story just can't escape the eye. :)

[Read it in its entirety here.]

Posted by Penny Hagerman at 09:45 AM | Permalink
 

Earlier this week, lawmakers in North Carolina concluded that all passengers need to buckle up—even in the back seat.

According to an AP story, supporters of the bill have cited "immeasurable cost" to society when unbuckled back seat riders are seriously injured. Unbuckled passengers, they said, could fly forward and injure front seat occupants during an accident, thus increasing medical costs and auto insurance premiums.

Opponents of the bill said that choice was becoming a "dwindled asset" for North Carolina adults.

"We are faced with a bill that says government can make the decisions for you," said Senate Minority Leader, Phil Berger. "We continue to see an erosion of our personal freedoms."

The bill, which will be sent to the governor for his signature, makes being unbuckled in the back seat a secondary violation, which means that law enforcement can't stop a vehicle solely for a seat belt violation. If the driver is pulled over for another reason, back seat passengers could face a $10 fine.

While I don't exactly know the extent to which North Carolina residents are experiencing a loss of choice, I do advocate the back seat buckle. Increased car insurance rates aside, for the sake of safety, it seems like a no-brainer if you do in fact like your brain.

Check out the AP story courtesy of the Insurance Journal and let me know what you think.

Posted by Megan Mahan at 10:55 AM | Permalink | Comments (2)
 

Zip codes are a large (huge, actually) element in an insurance company's underwriting scheme. If you've ever filled out an online quote form, it's often the first thing you enter. For whatever reason, insurers have decided that knowing where you live is a crucial factor in determining your claims risk--more crucial, perhaps, than your driving record and driving frequency.

But if California Insurance Commissioner John Garamendi has his way, auto insurers will no longer be able to add this ingredient to their rate-setting formulas.

Garamendi has fought the practice on the basis of discrimination, saying zip code-based rate setting has little to do with insurance risk and more to do with insurers' preferences of whom they wish to cover.

"How safely you drive is far more important than the ZIP code in which you live," Garamendi told the Associated Press Monday.

Not surprisingly, the major auto insurers are furious over the imminent rule change, which they spent $2 million trying to defeat. (They've threatened to spend more in the courtroom if the rule takes effect.)

If the rule passes the review process--we should now in a week or so if it does--insurers will be forced to comply within two years.

According to the AP, one insurer opted to take a less combative position, cutting their zip code rating system before the rule does or does not take effect. Perhaps seeing the writing on the wall and trying to carve out a competitive advantage by changing early, the Automobile Club of Southern California, the fourth largest carrier in the state, announced that its million or so customers will save about $133 million annually with new, safety-based rates.

I'll be interesting to see if the auto club's "good guy' approach will pay off. They're certainly getting some good publicity for their obliging position and doubtless generating some good consumer karma.

[Source]: San Jose Mercury News

Posted by Jeb Foster at 04:32 PM | Permalink
 

Well done, West Virginia.

The Register-Herald out of Buckley, W.Va.is reporting the partnership of State Farm and WVU Extension to help education women on insurance issues.

WVU Extension is a state organization aimed at educating and empowering the community about social, economic, environmental and technical issues. Terrill Smith, a WVU Extension agent, highlights the importance of insurance education for women:

Every woman who has to make insurance decisions for themselves and their families has wondered if the coverage she has on her car or home was enough. They wonder if they have enough life insurance coverage or if they need to invest in disability insurance. Many women have asked me questions about retirement coverage, homeowners' insurance and a variety of insurance issues.

Studies have also suggested that women seem to be falling through the cracks of America's healthcare system. According to a recent Kaiser Family Foundation study, over 17 million women over the age of 18 are without health insurance and one in ten working women are currently without health insurance. On average, men are 51 percent more likely to be covered under an employer's health plan, versus women at 38 percent.

At the risk of sounding preachy, this stuff is a big deal, which is why I commend State Farm and WVU, not only for recognizing the unique insurance needs of women, but for doing something about it. Tonight, the duo will offer a seminar regarding insurance issues. Those attending the seminar won't be pressured to purchase a policy of any kind, says Smith.

"People will not be asked to buy any insurance from State Farm or anyone else. This is just a wonderful opportunity for women to empower themselves by ask questions and getting information about insurance issues."

Sessions will be held from 1PM until 4PM and from 5PM until 8PM at the WVU Extension office and childcare will be provided.

Good stuff, West Virginia.

So...what's your community doing for you?

[Related article]:
Women and Health Insurance: Falling Through the Cracks? [InsureMe Insurance Resource Center]

Posted by Megan Mahan at 03:53 PM | Permalink
 

It appears consumers are now flocking to the Internet in droves—and abandoning their phones—when it comes time to buy auto insurance.

Close to three-quarters of online shoppers (72 percent) report they now use the Web to find auto insurance, a 5 percent increase over last year's findings; whereas those who pick up their phones to get insurance quotes decreased from 55 percent to 49 percent over the past year.

Why? According to an article in Insurance Networking News, a recent study by Keynote Systems Inc., an Internet business performance firm, largely attributes this shift in buying behavior to two things: price and Web site functionality.

Indeed, price seems to be the single most influential factor in the decision to purchase auto insurance, as we've seen here at InsureMe. After all, who wants to pay more than they have to for the coverage they need? This most recent study supports that premise, citing the fact that "...more than three-quarters (77 percent) of consumers [said] that price is 'extremely important' in their [purchasing] decision."

And with the popularity of the Web these days, the importance of the online experience is also "gaining in importance," with almost two-thirds of those surveyed saying that Web site features and ease of use are "extremely or very important" in their selection of an auto insurance policy.

Insurers seem to be listening and making necessary changes when it comes to these kinds of authoritative findings. In fact, Keynote reports that during the past year, more than 8 out of 10 insurers (81 percent) have made significant changes to improve their Web sites and overall functionality.

It appears that shopping for insurance online is "where it's at." Check out the article over at Insurance Networking News, and see if you don't agree.

Posted by Penny Hagerman at 03:30 PM | Permalink
 

Consumers Union, publisher of Consumer Reports, recently joined the debate over credit-based auto insurance pricing.

The non-profit organization says the use of credit scores in determining how much people pay for car insurance is both "unfair" and "unnecessary."

Their findings were published under a report (lengthily) titled "Score Wars: Consumers Caught in the Crossfire and The Case for Banning the Use of Credit Information in Insurance."

Although insurance carriers each have unique methods for setting premiums, many have recently added credit scores into the mix. The result is that drivers who have less than stellar credit can potentially pay hundreds more on car insurance--even if they have a spotless driving record.

Continue reading "Consumer Reports Blasts Insurers for Using Credit Scores" »

Posted by Jeb Foster at 03:11 PM | Permalink
 

Tell me if this has ever happened to you:

You're cruising down the highway, gabbing with your friend on your cell phone. After you hang up you realize you've driven a considerable distance since you've been on the phone. But you don't remember a single thing about the drive since you rang your friend. You can't recall a single feature of the landscape you have just traversed, yet somehow you've managed to stay on road and right of the yellow line. You don't remember turning left, and then right, but logic says that you did. You can't remember whether you had to wait at the light or if you sped through. Time and distance have been completely sucked into a black hole. You've been in a semi dream state while careening down the road in a huge hunk of metal at sixty miles an hour.

Cars and cell phones scare me. While I am not such a partisan (nor such a hypocrite) as to affix a "Hang up and drive" sticker to my bumper, I can see the logic in legislation that prohibits driving and chatting. And after reading about a recent study in Wired about the affects of the cell phone use on driving ability, I'm on my way to becoming an ardent supporter of such laws.

This is the gist of the study:

Talking on a cell phone impairs your driving ability as much as drinking. Even if you're using your brand new Blue Tooth hands-free device.

According to the study, carried out by researchers at the University of Utah, motorists with phones drive slower, are more erratic with the gas pedal, and are slower to hit the brakes.

"Driving while talking on a cell phone is as bad as or maybe worse than driving drunk," said Utah researcher Frank Drews.

Posted by Jeb Foster at 04:12 PM | Permalink | Comments (4)
 

Roadside assistance coverage is a commonly added supplement on many auto insurance policies. But did you know that, if you use this valuable resource too much, your premiums could actually go up?

Don't feel bad; this was news to me, too. A recent report from CNN Money revealed this relatively unknown fact, so I thought I'd research it further.

Buying roadside assistance through your insurer may seem like a wise (and innocent enough) thing to do. After all, the cost is minimal (as little as $3-$10 for a six-month period) and the added protection can be invaluable when you run out of gas, lock yourself out of your car, get a flat tire or just need a jumpstart on a cold winter day.

In contrast, those same services purchased through independent motor clubs such as AAA or Allstate Motor Club cost significantly more—between $45 and $100 per year or more.

But here's the real difference: using your insurer's towing package may cause your rates to rise.

Continue reading "Roadside Assistance: What You Don't Know Could Hurt (Cost?) You" »

Posted by Penny Hagerman at 02:11 PM | Permalink | Comments (1)
 

Will additional church insurance benefits increase congregations across the country?

That's my question, after reading the Insurance Journal's article about insurers like GuideOne, who provide parishioners in 19 states with added insurance benefits.

FaithGuard, the company's year-old home and auto insurance product, is gaining popularity, with new policies being purchased at a rate of more than 160 per day. So what kind of added benefits are policyholders earning with FaithGuard?

According to IJ, the insurance company, which insures over 43,000 churches nationwide, waives the deductible if your car is involved in an accident while driving to or from a scheduled worship or other religious activity. In addition, medical payments are doubled if you're involved in an accident while driving non-family members directly to or from a scheduled religious activity.

The benefits go on, including a five percent discount to non-smokers (which is pretty standard of most insurance companies) and mortgage payments are made up to $7,500 if you become disabled because of an accident in your home.

Perhaps it's the cynic in me for even asking this, but are there any provisions in place to keep people from taking advantage of these added church insurance benefits? With all the take, take, take going on anymore, I have to wonder if folks would return to church to see what they can get out of it—and not from a spiritual standpoint.

Despite my skepticism of others, however, I think products like FaithGuard can be a very viable insurance option for some Americans. Just make sure to compare the premium prices and benefits of products like FaithGuard to other policies in your area.

And, I'd be remiss if I didn't point out the handy quote box on the top right-hand side of the page. So, you know...if you feel like comparing some quotes, feel free to fill it out. If not, that's cool too. We're just happy you're visiting our blog. Really. :) [End unabashed InsureMe plug.]

[related post]: Will Life Insurers Give Discounts to Churchgoers?

Posted by Megan Mahan at 04:21 PM | Permalink | Comments (1)
 

If your son or daughter is off at college, you could be missing out on some serious savings—on car insurance.

According to this article by U.S. News and World Report, almost half of all parents of college students forget to call their agent and reduce their car insurance when a student goes off to college—and fork as much as $3,000 for no reason. In fact the VP of education and research at the Independent Insurance Agents and Brokers of America, says parents can save $100 to $200 a month just by scaling back their kid's coverage.

The article also provides some additional ways to maximize savings:

Continue reading "Surprise! Collegebound Kids Can $ave you Money on Car Insurance" »

Posted by Megan Mahan at 04:27 PM | Permalink
 

Insurance Journal's Andy Simpson reports that some gulf coast residents are being scammed into buying bogus auto and homeowner's insurance. Unsuspecting consumers are lured by low premiums and promises of comprehensive coverage.

The Journal passes on this bit of timeless insurance wisdom:

If a policy looks to good to be true, it probably is.

Check out the video broadcast for the details--it's informative (if a depressing commentary on human nature), and Simpson's wooden performance (Edward R. Murrow he isn't) is entertaining.

Posted by Jeb Foster at 09:33 AM | Permalink | Comments (2)