Auto Insurance Coverage at a Low Cost

Auto Insurance Coverage at a Low Cost

South Asian News Agency (SANA) ⋅ October 15, 2011 ⋅

Auto insurance may be costly for people who don’t shop around before buying a policy, but so can being involved in an accident. The majority of states in the US require residents to be adequately insured before driving, but by making an effort to explore a number of options and take advantage of discounts, a vehicle owner may be able to find an affordable policy. The premiums that one person receives may be entirely different from another individual because rates are often based on a wide variety of information, and people generally have unique personal details and coverage needs. Exploring a wealth of options can usually allow drivers to choose a plan with a reasonable price from among many others.

Comparing a variety of quotes can be an essential process for people in need of low income car insurance that meets certain coverage requirements. Drivers can often take advantage of the premium differences that typically exist between insurers by exploring multiple estimates before making a purchase. To see a wide range of prices in a matter of minutes, motorists are urged to complete this research online. Resources available over the World Wide Web can help individuals find affordable rates, and can also serve as an excellent starting point for further research. Because the amount of coverage that a person buys can have a big impact on premiums, adjusting the desired amount of protection and then making a comparison can lead to substantial savings.
Additional Ways to Get Lower Cost Auto Insurance

Typically drivers can find low cost coverage by adjusting potential policies before making a purchase. By removing unnecessary covers, drivers could dramatically cut their costs. For example, if an individual belongs to an auto club that provides roadside assistance, there is little need to include these services on a policy. Furthermore, people with adequate health insurance may also be able to omit MedPay coverage from a plan to help make a premium more affordable. One of the more common ways to decrease prices, however, involves removing comprehensive and collision coverage from policies covering older or lower valued vehicles. If an older car is damaged, there is a chance that the amount paid by the insurer may not be enough to justify paying for this additional protection.

Many states that require motorists to purchase vehicle coverage before driving often provide options for individuals on a budget. For example, some motorists on the East Coast may want to Get Legal with New Jersey’s Basic Auto Insurance Policy to greatly reduce their policy price. Although these plans typically offer minimum protection and are not suitable for every vehicle owner, sometimes these options can be helpful. Another useful way to reduce prices is to utilize the many different discounts that insurers usually offer. It is not uncommon for policy providers to decrease premiums for drivers who maintain a clean driving record for over three years or have multiple vehicles on the same plan. Many companies provide unique special offers, and often contacting several insurers before buying a policy to investigate these savings can have a big impact on prices.

Restrictive Car Insurance Rules Now Imposed

Home | News | Restrictive Car Insurance Rules Now Imposed

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Published 10/15/2011 15:09:00 by Abigail Damoah Views: 177

In the government’s attempt to stamp out uninsured drivers, rules for car insurance have now become a lot stricter.

In the government’s attempt to stamp out uninsured drivers, rules for car insurance have now become a lot stricter.

Drivers will now have to declare that their car is off road if they do not want to pay car insurance.

Prior to this drivers had to be caught on the road driving with no insurance before prosecution was initiated.

All registered car drivers will now get a reminder letter in the post and then a £100 fine.

Leaving the car uninsured can lead to a fine as high as £1000 as well as seizure or clamping of the vehicle.

In the U.K there are approximately 1.4 million uninsured drivers in comparison to the 34 million insured drivers.

According to The Department of Transportation there every year 160 people are killed on the road by drivers that are uninsured and 23,000 are injured.

Malcolm Tarling of the Association of British Insurers claims that “there is a serious problem with uninsured drivers in the U.K” stating that “approximately 4 percent of drivers have no insurance.”

He told our correspondents that “uninsured drivers are a higher risk in terms of causing accidents and they also drive up insurance costs for honest motorists who are covered.”

The warning is that those who are apprehended will get a criminal record, as well as having to pay all future insurance at a higher rate.

The Motor Insurers Bureau and the Driver and Vehicle Licensing agency (DVLA) will liaise together and alert authorities of drivers with no insurance.

There has been an advert launched recently by the two organisations in order to get make drivers aware of the clamp down.

A database used to identify uninsured drivers is accessible online, and any driver that is unsure of the status of their insurance can check for further information.

Missouri Auto Insurance Claims On The Rise Due To The Storms

Home | News | Missouri Auto Insurance Claims On The Rise Due To The Storms

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Published 10/15/2011 17:34:00 by Abigail Damoah Views: 490

In 2011 there has been a total of $9.9 million in recoveries by Missouri regulators for consumers. This is inclusive of $2.3 million for damage claims caused by the recent tornados. All recoveries have come from the resolution of disputes between policyholders and companies.

Throughout the month of September there have been 9,500 complaints and inquiries in regards to coverage providers filed by residents. Out of this number 988 of them are connected to the horrendous tornado that destroyed the city of Joplin in May.

Officials claim that the amount logged has almost doubled in comparison to this time in 2010, which were 5,800.

The Director of the department John Huff stated in a news release that “the amount of their recoveries has increased more than $3.4 million since the same time last year.” He went on to state that this increase is a result of the numerous storms that have taken place in 2011. There have been almost $10 million in claimed funds by their organisation” He urges consumers to contact them if they are having a hard time getting a payout from their insurance company.

Auto insurance policies accounted for the largest number of complaints, with home owner and health coverage following in succession.

The tornados in St. Louis, Sedalia and Joplin caused a substantial amount of damage, and residents are still making every effort to return to normality as well as having to deal with losses from homeowner and car insurance companies in Missouri.

There were approximately 140 deaths, with thousands of vehicles and buildings destroyed. The Insurance Information Institute has described the damage as the worst seen in over 60 years.

The Joplin tornado has led to more than $1 billion in claims, according to State regulators.

Progressive Car Insurance to Hire 150 People In Cleveland By End of Year

By SPECIAL CORRESPONDENT

Published: October 16, 2011

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Mayfield Village, Ohio – October 13, 2011 — Flexible work arrangements, including working from home and compressed work weeks; performance bonuses; a casual dress code; on-site medical facilities for employees and their families; and fitness centers are just some of the amenities that make Progressive car insurance a popular employer in Northeast Ohio.

Now, Progressive, one of Northeast Ohio’sbest places to workaccording to thePlain Dealer, plans to fill 150 positions in sales, service, and claims at its Cleveland area locations by the end of December 2011.

“People stay at Progressive because they are happy,” said Katie Koch, recruiting director at Progressive. “We provide employees with opportunities that make it easy to grow and succeed, and our culture offers them the flexibility to balance the demands of home and work. For example, more than 7,100 people took advantage of our health clinics in 2010 and nearly 20 percent of our employees have memberships to our on-site fitness centers.”

Phone representatives will sell policies, answer customer questions, or help customers file claims after car accidents. The jobs require work experience in a customer service environment and a stable work history.

All positions offer paid training. In addition, employees also receive medical, dental, vision and life insurance benefits.

Progressive employees also enjoy:

To find out more about other available jobs at Progressive in Cleveland or to apply, visithttp://www.progressive.com/jobs.

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About Progressive
The Progressive Group of Insurance Companies makes it easy to understand, buy and useauto insurance. Progressive offerschoicesso consumers can reach us whenever, wherever, and however it’s most convenient for them—online at progressive.com, by phone at 1-800-PROGRESSIVE, or in-person with a local agent.

Progressive offers insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles and homes. It’s the fourth largest auto insurer in the country, the largest seller ofmotorcycle insuranceand a leader incommercial auto insurance. Progressive also offerscar insuranceonline in Australia at http://www.progressiveonline.com.au.

Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price^® , the Snapshot Discount^® , and a concierge level of claims service.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR.

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News Source : Progressive car insurance to hire 150 people in Cleveland by end of year

Article source: http://pressreleasepoint.com/progressive-car-insurance-hire-150-people-cleveland-end-year

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Fronting: car insurance costs drive parents to break the law

By SPECIAL CORRESPONDENT

Published: October 16, 2011

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The rocketing cost of car insurance has resulted in a growing number of parents breaking the law by falsely declaring to insurance companies that they drive their car more than their son or daughter.

The practice, called “fronting”, happens where a lower-risk, usually older, driver insures a vehicle in their name, although the main driver is higher risk. It is often used by well-meaning parents trying to save student offspring (or themselves) money.

The Financial Ombudsman Service (FOS), which deals with consumer complaints about financial services companies, says the number of cases has doubled to around 50 a month.

Many, it believes, are being triggered by the continuing rise in insurance premiums. The average cost for comprehensive cover rose by 40% in the 12 months to March, according to the AA.

Younger drivers have been hit particularly hard, with those aged 17-22 typically paying £2,431, up 64% in a year. Many pay a lot more. We searched on a price comparison website for a 40-year-old and her 17-year-old son driving a VW Golf. Regardless of who was the main driver, the cheapest premium was over £7,000 in both cases.

The escalating cost is of such concern that the Office of Fair Trading (OFT) announced last month that it will investigate to see whether drivers are being overcharged.

“The biggest portion of the cases we are seeing concern people who have deliberately misled insurers, largely because premiums have gone up so much they thought they were being ‘savvy’ by setting the policy up in this way and saving money,” said an FOS spokesperson.

Fronting can have serious financial and legal implications as, if detected, insurers can refuse to pay out for any claims, or can settle a third-party claim and attempt to recover the cost from the parent as the policyholder.

If the insurer declines a claim, the young driver could be treated as uninsured and could be fined hundreds of pounds and receive six penalty points (an automatic ban for new drivers). They will also face higher insurance costs in the future.

A smaller proportion of cases were brought to the FOS by people who simply had no idea what fronting was. This is evident on community website The Student Room, where fronting is a hot topic among recent undergraduates.

“I’m 21 and male. Having insurance on my car as a sole driver would cost a lot, so, basically, I put my dad as first main driver and myself as the second named driver,” wrote one.

“I’m sure this is not fronting, as nowhere on the insurance form have I put who’s main and who’s named driver … so this isn’t fronting, is it?”

Despite fronting being fraudulent, not all cases bought before the ombudsman are upheld in the insurer’s favour. “There are cases where we simply don’t feel that the consequences have been made clear,” said the FOS spokesperson.

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“For example, sometimes people may flag things up at the application stage, such as mentioning that the policy is to include their son, and the insurer does not look into that in more detail.”

The insurance industry denies that there is an issue with transparency about fronting. “I think it already looks to make it abundantly clear in plain English what the issues are,” said a spokesman for the Association of British Insurers.

However, a recent report from market analysts Defaqto also suggested that insurers could do more to make drivers aware of the risks.

“As soon as it is clear that there is a potential for fronting, a simple message could appear on the customer’s quotation screen, or be flagged to sales advisers in a call centre,” said Mike Powell, a general insurance analyst at Defaqto. “This would then highlight the main issues about the fraudulent aspects of fronting and the possible implications at claim stage.”

Meanwhile, a number of insurers have been taking steps to tackle the issue of unaffordable insurance for younger drivers, most notably by offering “black box” policies.

These rely on the installation of a black box in the driver’s car which uses satellite technology to monitor behaviour such as braking and acceleration, speed, and at what time of day the car is driven.

The data is used to calculate premiums – the better the car is driven, the lower the premium and vice versa.

The Co-op reckons that the average premium paid by its customers with Young Driver insurance is £1,727 before discounts are applied, compared to the current UK average premium of £2,294 for drivers aged 17-22.

A number of insurers offer black box insurance, including the Co-op, Young Marmalade and insurethebox. In August, the Co-op said that nearly 90% of drivers with its Young Driver insurance received £100 cashback after proving themselves as safe drivers.

There is an obvious plus for parents with cover that rewards sensible driving with money back in the bank, as more often than not they will be the ones forking out for the insurance.

Ombudsman backs the insurers

A recent case bought before the Financial Ombudsman Service is a typical example of “fronting”. Mrs Graham (not her real name) rang her insurer to make a claim after her car had been involved in a minor accident. Her son had been driving, and had hit a stationary vehicle while he was trying to park outside his university hall of residence. She had added that her son had “been parking in the same spot every day for months” and it was “particularly annoying it had happened on the last day of term”. In the light of her comments, her insurer rejected her claim. Mrs Graham thought it was unfair. She admitted “lending” the car to her son so that he could use it while at university. However, she said she had never heard of “fronting”.

The ombudsman asked the insurer for a copy of the recording it made of Mrs Graham’s phone call when she applied for the policy. During that call the insurer had asked her a series of clearly-worded questions, establishing that she was the main driver and that her son would only be using it “very occasionally”. The insurer had explained: ‘We have to ask these things. People sometimes don’t realise that they can’t just insure a vehicle in their own name and then let a son or daughter drive it all the time’.

The ombudsman concluded that Mrs Graham had misrepresented the situation and it considered this to be a clear example of “fronting”. It ruled in the insurer’s favour.

Article source: http://www.guardian.co.uk/money/2011/oct/14/fronting-car-insurance-costs-parents

Explore all options before buying car insurance

Explore all options before buying car insurance Dipta Joshi / Mumbai October 6, 2011, 0:55 IST Brokers with national presence offer the best rates, but do shop around, online and off. Those shopping for car insurance often face what's termed the paradox of too many choices leading to poorer decisions. As everyone from brokers and online channels to neighbourhood banks selling car insurance, customers are finding it difficult to pick the best offer in terms of service and costs. Price-conscious customers are likely to base their purchases on the annual premiums. While insurance companies want to highlight the differentiation in service instead of price, they do accept that, depending on the size of business, some channels have more leeway in handing out discounts. CAR INSURANCE: A LOWDOWN For those buying insurance the first time, a broker’s offer may give more options than a company agent Some buyers prefer to surf and compare insurance offers online Some aggregator websites may have complete policy fulfillment capabilities. However, in case of any claim issues, you need to approach the company and follow the required formalities. "Online channels could be cheaper, depending on the product construct. Also in the absence of distribution costs, companies may pass on higher discounts to customers," says Amitabh Jain, vice-president, customer service, motor, ICICI Lombard GIC. No doubt rates offered by ICICI Lombard’s online channel are cheaper than those offered by the dealer. For Hyundai Motors’ latest sedan, the Verna Fluidic (1.4 CRDI), costing over Rs 9 lakh, you would end up paying a premium of Rs 23,036 for a comprehensive package. The same from a dealer costs Rs 24,585. But as K N Murli, head, motor insurance, Bharti Axa, says: "One should prefer the dealer option to buy insurance for the convenience, rather than the price discounts he offers. When an accident takes place, dealers can offer services ranging from pick-up to repairs without any hassles." Though dealers offer discounts on insurance, these will be limited to the amount set aside by the company for promotional activities. Yet, depending on the customer's ability to negotiate with the dealer, he might be able to get a bigger share of that kitty. However, subject to special schemes, new car buyers might end up getting free insurance buying through a dealer. Car manufacturers regularly launch 'first year free insurance' schemes to boost sales during festivals or slack periods. For instance, Hyundai Motors is offering its i10 customers free insurance on the base model, costing Rs 4.61 lakh (on-road price). This will save about Rs 12,000 for the customer. Most first-time car buyers end up buying from their dealers because the focus is more on purchasing the car than buying insurance. Such customers could look at aggregator websites that offer comparative prices between insurance companies before finalising. Typically, these sites claim to offer special rates, based on their tie-ups with insurance companies. However, most of these offer rates close to what an online channel offers. A quote from policybazaar.com offers a premium of Rs 23,340 for the Verna Fluidic. This is Rs 304 more than ICICI Lombard's online rate. According to experts, only those sure of the policy's benefits or wanting to renew policies should opt for online purchases. "Insurance companies offer several add-ons which can be explained through a human interface. Besides, buying policies for used cars still requires physical inspection of the no-claim bonus. So, polices cannot be bought seamlessly, " says Susheel Tejuja, managing director, Landmark Insurance brokers. Some aggregator websites may have complete policy fulfillment capabilities. However, the website will have little to do with you once that's done. In case of any claim issues that arise, you need to approach the company and follow the required formalities. What will really help save money is approaching an insurance broker with national presence. "Brokers having higher business volumes and lower loss ratio (that is, less claims made by the particular broker's clients) are given preferential treatment by the company," says Murli. Such brokers are more likely to pass on discounts to clients. So, the premium for the same Verna is available at Rs 20,754, with depreciation benefits, from Landmark Brokers. This is a saving of Rs 2,282 over a direct purchase from the company’s website. For those buying insurance the first time, a broker's offer may give more options than a company agent, who deals in a single company's products. However, he may be of help if you are sure of the policy you wish to buy. Of course, the price and the benefits will be limited to what that company offers.

Counties get grants to fight, investigate auto insurance fraud

Date: Wednesday, October 5, 2011, 6:55am PDT - Last Modified: Wednesday, October 5, 2011, 7:53am PDT

Melissa Wiese

Web Editor - Sacramento Business Journal

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Counties are getting grants to fight automobile insurance fraud. California Insurance Commissioner Dave Jones said $23 million will be given to district attorney offices to investigate and prosecute insurance fraud.

Of that, $15.2 million goes to 35 counties for the regular insurance fraud program, and another $7.6 million in grants will go to 10 counties for the organized auto fraud program.

In the regular fraud program, El Dorado County will get $298,957. Sacramento will receive $532,567. Yolo County will get $152,423. In the organized auto fraud program, Sacramento County is in line for another $369,930.

Jones said that even as insurance fraud is rising in the state, district attorneys have fewer resources and funding to fight fraud.

“Automobile insurance fraud drives up premiums for California consumers, and every effort is being made to combat it,” Jones said in a statement.

Melissa Wiese oversees the Sacramento Business Journal's website.