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Posts Tagged ‘Insurance costs’

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…)

Insurers Overcharging Low-Mileage Drivers, Consumer Group Claims

Link between mileage and claims largely ignored.

by on May.22, 2015

Despite being at a lower risk of crashing, study finds low-mileage drivers are over-charged.

Even though they tend to file significantly fewer claims, a new study says auto insurers typically fail to give discounts to motorists who clock low mileage.

Only State Farm, among all the major auto insurance companies, routinely provided a discount for those who put on about 5,000 miles a year – roughly a third of the national norm – according to the study by the Consumer Federation of America.

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“The failure of most large insurers to adequately reward low mileage especially harms lower income and older drivers because they drive the least,” said Stephen Brobeck, CFA’s executive director.


Single Claim Can Bump Up Yours Insurance Costs By 76%

Two claims, finds new study, could double annual insurance bill.

by on Jan.27, 2015

It may be cheaper to pay out of pocket than to file a claim, in some instances, warns a new study.

That fender-bender could be more costly than you expected, according to a new study. Putting in a claim with your insurance company could lead to as much as a 76% increase in your annual premium, depending upon where you live, with the average motorist’s insurance bill climbing by 41%.

How much you’re dunned will depend upon the type of claim, but a second collision could nearly double your bill, according to a new report by

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“Many consumers underestimate the consequences of making claims because they can affect your rate for years,” said Laura Adams, a senior analyst for the website.


Increasing Insurance Deductibles Nets Big Savings

Changing from $500 to $1,000 cuts rate by 9% on average.

by on Sep.24, 2014

Looking to save a few bucks on your new Mustang? Change your deductible.

Americans will drive a few miles out of their way to save a couple of cents per gallon on gas and fastidiously check the air pressure in their tires to improve mileage to save a buck or two, but many fail to take advantage of a simple way to save money: raise the deductible on their car insurance from $500 to $1,000.

Car owners save an average of 9% on their premiums with that change, according to The savings jump to 16% if they change it from $500 to $2,000. The changes do vary by state: Massachusetts gives the biggest break at 19% for making the $500 change while Michigan provides the smallest cut at just 4%.

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“It’s very interesting to see that in some states raising your deductible gives you a huge savings and in others it barely moves the needle,” said Laura Adams, senior analyst, (more…)

Filing a Couple Claims Can Double Your Auto Insurance Premiums

It may be cheaper to pay out of pocket, warns new study.

by on Dec.17, 2013

It may be cheaper to pay out of pocket in some instances, warns a new study.

Sure, you’ve had a perfect driving record until now, but a new study warns that putting in a claim on your car insurance can be unexpectedly costly – in fact, you might wind up spending more than what you get back.

A single “at-fault” claim will result in an average increase of 38% in your annual car insurance premium, according to a new study by, and a second claim could nearly double what you pay, the precise increases varying state-to-state.

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“The biggest lesson for consumers is not to file a claim unless absolutely necessary,” cautioned Laura Adams, a senior analyst at “Making a claim for a few hundred dollars doesn’t make sense if your premium is going to skyrocket as a result.”


Poor Credit Record Can Double Your Auto Insurance Costs

Even an “average” score can raise premiums.

by on Oct.31, 2013

Too many bills? Too much credit card debt? That can impact your insurance rate. Photo Courtesy:

Here’s another reason not to let those bills go unpaid: damaging your credit record can add significantly to the cost of operating your automobile.

A new study reveals that drivers with poor insurance scores pay nearly twice as much for auto insurance as those with excellent scores. Even those with average ratings can wind up paying a premium, according to the report prepared for

“Considering all of the factors that go into car insurance rates, credit is actually one of the easiest to control,” said Laura Adams, senior insurance analyst,

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Insurance scores are very similar to the credit scores that can influence whether you can get a car loan, for example, and what inter rate you’ll pay.  Both are calculated using such factors as credit card balances, late payments and credit inquiries, though insurance companies use a proprietary scoring strategy and are looking to predict the likelihood that you might file a claim in the future.


20 for 2013 – Cheapest, Most Expensive Vehicles to Insure

Ford Edge CUV is least expensive, Mercedes CL600 most costly to insure, reports new study.

by on Jan.28, 2013

A new study finds the Ford Edge has the lowest insurance costs of any 2013 model.

Sure, you just got a great deal on that new car, but it may not seem like nearly the bargain when you go to line up insurance.

The cost of insurance a 2013 model can vary widely, from as little as $1,128 to $3,357 a year, according to a new study – and that’s assuming you’ve got a good driving record and live in a place where insurance companies don’t sock you with added costs due to high local loss rates.

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It’s probably no surprise that you’re likely to pay the most to cover a sporty luxury car, but there have been some unexpected shifts uncovered by in its annual study of the least and most expensive vehicles to buy coverage for.


Car Insurance Costs Over a Lifetime Are Surprising

Insurance website study says insurance over an average person's lifetime will cost more than $84,000.

by on Feb.08, 2011

In your lifetime, you'll spend more than $84,000 paying for car insurance - enough money to buy a Porsche 911 with enough leftover for some pricey options.

A typical American will spend enough on car insurance to buy a Porsche 911 Carrera during their lifetime, according to a study released by

The website said the average U.S. driver will spend $84,388 insuring their car during their lifetime. That’s enough to buy a the $78,750 911, with enough left over to pick a few of  Porsche’s pricey options.

Your Automotive Source! based its analysis on quotes for drivers who first purchased insurance at age 21, married at 27, briefly insured two teens and stopped driving at age 75. The average premium includes drivers with all types of claims, accidents and other driving histories.