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Posts Tagged ‘auto insurance news’

Michigan Tops Most Expensive Auto Insurance List — Again

Maine comes in as least expensive for coverage.

by on Aug.01, 2017

Michigan residents pay more for auto insurance than drivers in any other state, according to a new study.

For the fourth consecutive year, Michigan residents are the kings of paying more than anyone for auto insurance, according to Insure.com, putting out an average of $2,395 year for coverage: 82% higher than the national average.

The national average for car insurance is $1,076 per year.

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Conversely, drivers in Maine enjoy the lowest premiums in the country. Their rates are 34% lower than average coming in at $864 each year. This is the third year in a row, and sixth time in the last eight years Maine has been the cheapest state. (more…)

Wells Fargo Paying $80M to Customers Over Insurance Snafu

Customers charged for auto insurance without being informed.

by on Jul.28, 2017

Wells Fargo will pay $80 million to resolve problems associated with its auto loan programs.

Wells Fargo is ponying up $80 million in refunds and account adjustments to auto loan customers because the bank charged them for auto insurance without telling them. In most cases, the loan customers already had insurance.

Of the 570,000 customers who were charged, 490,000 had auto insurance from some other provider. The loans had a provision that allowed the bank to charge for insurance coverage if there was no evidence the loan customer had it.

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The actions included loans from 2012 through this year. In some instances, customers had their vehicles repossessed because of problems with the additional payments. The bank will pay $64 million in cash and make $16 million in account adjustments as part of the program. (more…)

Urban Drivers Pay More for Auto Insurance Than Suburban Counterparts: Discrimination?

Insurance industry group says report on rates is flawed.

by on Apr.05, 2017

If you live in an urban area, you likely pay more for your car insurance than your suburban friends.

Drivers living in urban areas pay as much as 30% more for auto insurance than comparable drivers living in the suburbs, according to a new study. However, the results are being disputed by an insurance industry group.

According to ProPublica, an investigative news organization, and Consumer Reports, claim that drivers living in urban zip codes where the population consisted primarily of minorities in California, Illinois, Missouri and Texas paid anywhere from 10% to 30% more for insurance.

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However, the Insurance Information Institute, an insurance industry trade group, says the findings are wrong because the two organizations, essentially, didn’t do the math right. (more…)

Make Less? Pay More for Auto Insurance

New study shows insurers charge higher rates on lower income drivers.

by on Jun.27, 2016

The difference among the top five auto insurers in 15 cities based on what a driver makes can be substantial.

Auto insurers use a variety of factors to determine what they should charge consumers, and not all are fair; however, one seems to punish those who can – so it seems – least afford it: lower wage earners.

A new study by the Consumer Federation of America shows that drivers with a lower socio-economic status were charged an average of 59% more, equating to $681, annually than drivers with identical driving histories, but with better salaries.

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“Insurance companies should judge you on how you drive, not who you are,” said J. Robert Hunter, CFA’s Director of Insurance and former Texas Insurance Commissioner. (more…)

Small Traffic Tickets Often Lead to Big Insurance Tabs

Minor violations can lead to sizable premium hikes, study shows.

by on Apr.13, 2016

Laura Adams, insuranceQuotes.com senior analyst, recommends taking driver safety courses to offset rate hikes from moving violations.

Everyone who owns a car, truck or minivan believes their insurance premiums are too high, but add some sort of moving violation to the mix and those costs can skyrocket … and not just for serious infractions.

New data from insuranceQuotes.com reveals DUI and reckless driving tickets will raise your annual premiums an average of 94% and 85%, respectively. Both are increases over 2015.

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Those type of jumps are stark, but not unexpected; however, a speeding violation of 15 mph or less will actually get your rate hiked by 21% on average, the site noted. (more…)

Michigan Most Expensive State for Car Insurance

Maine tips the other end of the scale.

by on Mar.07, 2016

Insurance coverage in Michigan is more than twice as expensive as the national average.

Not only is Michigan home to the Detroit Three automakers, it’s also state that sees drivers charged more for auto insurance than any other in the United States, according to a new study.

The average cost of car insurance in Michigan is $2,738 a year: more than double the national average of $1,325. It marked the third year in a row that the Wolverine state took top “honors,” and according Insure.com, which put together this year’s survey, it’s unlikely to change anytime soon.

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“The factors that cause Michigan to be the most expensive aren’t likely to change any time soon,” said Penny Gusner, insurance analyst for Insure.com. Michigan has been in the top five for the last six years. (more…)

Auto Insurers Tag Renters with Higher Rates

Consumer group accuses companies of discrimination.

by on Feb.08, 2016

The last time you got one of these may not be the biggest factor in what you pay for auto insurance.

If you think your last speeding ticket is the reason your car insurance is so high, you may want to think again: it may be your home.

More precisely, your auto insurance rate may be directly tied to whether you own your home or if you rent, according to a recent report from the Consumer Federation of America.

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If all things are equal, insurance companies charge as much as 47% more for basic liability auto insurance if a driver doesn’t own a home, according to a new analysis of premiums. (more…)

Insurance Cos Unfairly Using Marital Status to Penalize Motorists, CFA Claims

“Inhumane” penalty for newly widowed women.

by on Jul.27, 2015

Some auto insurance companies rates on widow as much as 226%, according to a new study.

(This story has been updated with comments from an insurance industry trade group.)

Losing a spouse is never easy, either emotionally or financially, and a new study finds that many major auto insurance companies are adding to the grief by raising rates for new widows by as much as 226%.

In general, auto insurers levy penalties, in the form of higher premiums, on those who aren’t married, according to new research by the Consumer Federation of America. The higher rates are not backed up by data showing increased risk, the consumer group claimed.

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“It seems inhumane for insurers to raise rates on women who have become widows,” declared CFA Executive Director Stephen Brobeck. (more…)

Americans Could Save Money by Shopping for Auto Insurance

Study shows average U.S. driver stays with insurer for 12 years.

by on Jul.20, 2015

While Flo encourages comparison shopping for auto insurance, a new survey reveals most American's fail to follow her advice.

Flo from Progressive Insurance appears to be on to something in all of those commercials: shopping around ensures you get the best deal, but a new survey shows that while American’s may like Flo, they don’t heed her advice.

According to insuranceQuotes.com, the average American hasn’t changed auto insurance companies in 12 years and more than a third of U.S. drivers never shop for new insurance.

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“Americans may think loyalty pays off, but when it comes to insurance, that’s not always the case,” says Laura Adams, insuranceQuotes.com’s senior analyst. “If you haven’t shopped for auto insurance since the ’90s, it’s probably safe to say that you’re not getting the best deal.” (more…)

Getting a Ticket Doesn’t Mean Higher Insurance Rates

Just 19 percent of violators saw premiums rise.

by on Apr.16, 2015

Depending upon the infraction, your auto insurance premiums may not rise.

Conventional wisdom is taking another beating as a new study indicates that getting a ticket actually doesn’t boost a driver’s insurance rates.

Only 19% of Americans who received a traffic ticket in the past five years are paying more for car insurance as a result, according to a report from insuranceQuotes.com released today. This is a decrease from 2013 when 31% of Americans who received a recent traffic ticket saw an increase in their car insurance premium.

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While fewer folks are seeing insurance rates rise, there are some violations that will cause a significant leap in what you pay. The website found that offenses such as driving under the influence of drugs or alcohol, reckless driving and leaving the scene of an accident almost always result in higher premiums – as much as 92% higher. (more…)