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Posts Tagged ‘auto insurance’

Newly Licensed Drivers Cause 77 Percent Family Insurance Hike

First-time driver pays 18 percent more going it alone.

by on Aug.10, 2015

As if buying the car isn't pricey enough, adding a 16-year-old driver to a family policy makes it jump an average 77%.

For 16-year-olds few things are as exciting as getting their first car – and few things are as expensive as insuring that first ride either.

As if buying the car isn’t costly enough, parents of a new driver can expect to see a huge increase in their insurance premium if that newly minted product of driving school is simply added to the family policy: 77% on average.

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If that teenaged driver decides to go it alone, it’s 18% higher than just being added to the family’s plan, according to insuranceQuotes.com. (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…)

Maine is Cheapest State for Auto Insurance, Michigan the Most Expensive

Laws often matter more than fraud and insurance claims.

by on Apr.14, 2015

Your record matters, but where you live may have an even bigger impact on what you pay for insurance.

While it might not get you to pick up and move, a new study reveals a big gap in what you’ll pay for auto insurance depending upon what state you live in. Maine is, by far, the cheapest place to get coverage, while you’ll pay nearly twice the national average if your car is registered in Michigan.

A number of factors influence the insurance rates a motorist will pay, even for two motorists driving the same vehicle, noted website Insure.com, which averaged rates for the 20 best-selling vehicles across the country, comparing rates from six major insurance carriers.

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“The car you drive matters, of course,” said Insure.com consumer analyst Penny Gusner. “But where you live usually matters more.”

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The Least and Most Expensive Metro Areas for Car Insurance

Motorists get slammed in the Motor City.

by on Sep.15, 2014

Densely populated regions often have the highest insurance rates due to more frequent crashes.

It may be the Motor City, but driving there comes at a steep cost – motorists in the Metropolitan Detroit area paying the highest premium for insurance in the country, according to a new study.

On average, a motorist in the Detroit area will pay 165% of the national average for auto insuance, according to research by Quadrant Information Services. Those in the sprawling New York metroplex come in just behind, but they pay a mere 36% more than the average for motorists across the country.

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On the flip side, drivers in the region around Charlotte, North Carolina are paying an average 43% less than the national average for car insurance, noted InsuranceQuotes.com, the website that commissioned the study.

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Survey Shows Insurance Rates Not Related to Car Price

Variation widens as vehicle cost increases.

by on May.23, 2014

Want a Ferrari California? Make sure you shop for insurance as the prices could vary by as much as 26%, according to a recent study.

Let the buyer beware… or least be careful is the warning insurance buyers should heed based on a new study of car insurance rates by Wallet Hub.com.

“It is wrong to assume a perfect correlation between the price of a car and the insurance cost. Insurance premiums for cars in the same price range can differ by as much as 26%,” according to the study.

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The variation in insurance premiums actually increases on more expensive vehicles. Wallet Hub analysts estimated that based on its analysis, only about 25% of the variation in insurance premiums across car types can be attributed to differences in car price. (more…)

Big Flo is Watching: Americans OK with Insurers Monitoring Driving Behavior

But many are concerned about hackers, loss of privacy.

by on Apr.25, 2014

Big Sister is watching. Flo and the Snapshot data tracker, Progressive' user-based insurance device.

It’s not quite “Big Brother,” but many American motorists are now letting their insurance companies keep a close eye on what they do while behind the wheel. And millions more could soon follow.

More than half of all American drivers are willing to give insurance companies the authorization to review their driving habits in return for lower insurance rates, according to a new survey.

The research, conducted by the Deliotte Center for Financial Service,s noted that auto insurers are increasingly interested in telematics, or mobile technology used to gather individual drivers’ data, to help better determine what to charge motorists for their insurance.

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More than a million drivers across the country are already taking part in pay-as-you-drive or usage-based insurance coverage from large providers, such as Allstate, Progressive and State Farm, according to the most recent estimates.

In its survey, Deloitte found that consumer sentiment is changing when it comes to possible insurance savings based on their data.  The new study found 53% of the respondents said they would allow their driving to be tracked via a mobile device in exchange for premium discounts based on their performance.

Younger drivers in the “Millennial” generation were the most open to data tracking, nearly two-thirds of those between 21 and 29 willing to give telematics a go, compared to only 44% for those 60 or older.

The survey found about half of the respondents expected discounts of between 11% and 20% percent discount to have insurance companies monitor their behavior. About on in four anticipated savings of between 11% and 15%, while the rest of those surveyed  thought they’d be entitled to discounts of over 20 percent.

Furthermore, interest among drivers could also spur insurers to “gamify” driving by leveraging data to encourage or reward good behavior, thus making the driving process more interactive, according to Deloitte’s analysts.

(That simple ticket can double your insurance premiums. Click Here for more.)

Allstate, one of the nation’s largest insurance companies, now allow drivers in 30 different states to prove they are safe drivers and save money  through usage-based monitoring.  Allstate’s “Drivewise” policy tracks mileage, hard braking, speed, and time of day when a vehicle is in use. Using telematics technology to gather the data, Allstate rewards drivers for being safe on the road, the insurer claims.

After enrolling in the program, Drivewise customers must connect a monitoring device and take their first trip before getting an enrollment reward check of 10 percent. Customers can keep earning reward checks every six months based on their actual driving behavior. Customers can track their recorded driving behavior online or through a Drivewise tool within the Allstate Mobile app.

“We are committed to helping create a safer, more self-aware driver and, in doing so, we are able to pass along significant savings for safer driving,” says Allstate’s Drivewise Program Director Sarah Inciong. “Having more customers participate offers us even more insight into the impact of various driving behaviors, which can help improve the product and our customer’s driving habits.”

Allstate claims the average client receives rewards equal to 13% of their normal insurance bill. Progressive says its Snapshot data tracker has yielded motorists and average $150-a-year discount.

(Breakthrough technologies allow motorists to “see” in new ways. Click Here to find out more.)

Not everyone is comfortable with having an insurance company come along for the ride.

A majority of Americans, Australians and Britons believe that so-called “connected-vehicle” technology will make driving safer, but most are also concerned about security and privacy, according to a recent survey by researchers from the University of Michigan.

More than three-fourths believe that Internet connectivity in connected vehicles is important and approximately 86% are interested in having connected-vehicle technology.

(Feds want vehicles to “talk to one another” to improve highway safety. Click Here for more on planned new V2V rules.)

However, 30% of the online respondents in the U.S., Australia and the U.K. also said they are “very concerned” about the potential for breaches in vehicle security by hackers and they also worry about data privacy in tracking speed and location. Another 37% of the respondents are “moderately concerned” about the same issues and nearly a quarter are “slightly concerned,” according to the survey results.

Despite concerns about security and privacy, the majority believe connected vehicle technologies will reduce the number and severity of crashes, improve emergency response times and result in better fuel economy. In addition, more than 60% expect less traffic congestion, shorter travel times and lower vehicle emissions.

Simple Ticket Can Double Insurance Rates

Even minor infractions can result in major hikes.

by on Mar.27, 2014

A simple speeding ticket can raise insurance rates as much as 30% annually.

If you think that speeding ticket you got for going “just five over” isn’t going to have an impact on your insurance premiums, think again. Drivers ticketed for a “minor” speeding violation, such as 1 to 15 mph over, pay an average of 21% more for car insurance.

A report from InsuranceQuotes.com shows that drivers who commit major infractions, such as driving under the influence (DUI), see a major hike in their premiums, minor transgressions can raise rates for as long as three years.

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According to Mike Barry, spokesman for the nonprofit Insurance Information Institute, the study shows how insurers use various driving infractions to assess different levels of risk for individual drivers. (more…)

Insurance Rates Change More Wildly than Gas Prices

December is often cheapest month for insurance, study claims.

by on Jan.30, 2014

Laura Adams, analyst for InsuranceQuote.com, said the key to offsetting month-to-month rate changes is getting multiple quotes.

While most vehicle owners are used to seeing fluctuating gas prices – and trying to find ways to offset them – what they may need to pay more attention to is ever-changing insurance prices, according to a recent study.

Depending upon the month and the state, insurance rates can vary by nearly 50%. Hawaii saw a 47.9% difference between its cheapest month, December, and its most expensive month, March, last year.

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Wyoming (39.7%), Washington, D.C. (35.3%) and Maryland (34.8%) were next in line with the largest variance in rates. Conversely, South Dakota had the smallest difference at 3.7% followed by Arkansas, Utah, Iowa and Kansas, which were all below 6%. (more…)

The 10 Least, Most Expensive States for Auto Insurance

Louisiana worst place for motorists, Maine the best.

by on Mar.18, 2013

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Maine drivers pay the lowest for insurance of any state in the country, Louisiana the highest.

The price two different motorists will pay for auto insurance is likely to vary, sometimes wildly, and factors such as the vehicle you drive, as well as your driving record can have a big influence on what you’ll shell out for coverage.

But another critical factor is where you live.  Insurance coverage in Louisiana, for example, averages nearly three times as much for the average motorist, $2,699 a year in the Bayou States compared to just $934 for those living “down East.”

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“Louisiana can’t catch a break,” said Amy Danise, editorial director of Insure.com, which just completed its annual survey of national insurance costs.

Louisiana, she says, “is consistently at the top of our rankings. One way to mitigate the rate pain is to buy the cheapest car to insure in the state, which is the Jeep Patriot Sport in Louisiana. The worst choice would be a Mercedes-Benz S65 AMG sedan, which carries the highest rates in Louisiana.”

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Barely One in Three Pass Auto Insurance 101

As little as 2% could answer some basic questions about insurance coverage.

by on Mar.11, 2013

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Do you know which part of your insurance coverage would kick in if one these were your car?

Do you know the difference between comprehensive and collision coverage? What’s gap insurance for? And do you know who will pay if a friend borrows your car and then crashes it?

If you’re like most American motorists, the odds are that you can’t answer those or other relatively basic questions about your coverage, what might be called Auto Insurance 101. A multiple-choice survey of 500 drivers conducted by Insurance.com found that the average score was a miserable 32%, and even when accounting for gender, age and region, no group scored higher than 39%.

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“Drivers may see their policies as gobbledygook,” said Insurance.com Editor Michelle Megna. “Their eyes are moving over the words but there’s no understanding.”

Ironically, those who admitted having a “terrible” level of knowledge about auto insurance scored higher than those who rated themselves “excellent,” 28% to 26%. Those self-ranked as “good,” generally scored best, at 34%.

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