Detroit Bureau on Twitter

Posts Tagged ‘insurance news’

Autonomous Vehicles May Upend Insurance Companies

Changes in how cars are bought, used may cause problems.

by on Jul.29, 2015

Google and its self-driving car could turn the insurance industry upside down.

It is something of a cliche nowadays to talk about technology as a disruptive force. But as automakers wrestle with the prospect of driverless cars and motorists who don’t own their vehicles, insurance companies could be facing something akin to a catastrophe, according to a new study by Driverless Transportation.

Autonomous vehicles are bound to disrupt the insurance industry, according to the latest warnings from consultants who have studied the insurance business recently.

Driving News!

Several of the consultants released reports recently suggesting auto insurers face will face daunting challenges in the future. (more…)

Insurance Cos Likely to Be Caught Unprepared by Autonomous Vehicles

Study shows companies believe technology coming after 2025.

by on Jun.18, 2015

Drivers aren't the only ones who may be unprepared for the expected influx of autonomous vehicles in the coming years: insurance companies aren't either.

If you think you’re not quite ready for the coming age of autonomous vehicles, you’re not alone. And a new study says the insurance industry is particularly unprepared for what could be a game-changing shift for an industry providing almost $100 billion in coverage to U.S. motorists.

Even though automakers are promising to start rolling out semi-autonomous technology in the next few years – with the first, fully-autonomous cars due on the road by as early as 2020, a new survey by KPMG finds that 84% of insurance companies don’t expect the new technology to have a significant impact on their business for at least another decade.

Tech Savvy!

That could be a serious mistake, cautioned Jerry Albright, a leader of KPMG’s actuarial and insurance risk practice. “The disruption of autonomous vehicles to the automotive ecosystem will be profound, and the change will happen faster than most in the insurance industry think,” he warned, adding that, “To remain relevant in the future, insurers must evaluate their exposure and make necessary adjustments to their business models, corporate strategy and operations.” (more…)

Detroit Tops List for Expensive Car Insurance

Rural Ohio town is least pricey for auto coverage.

by on Jan.27, 2015

The City of Detroit is home to the highest auto insurance rates in the country.

While Detroit’s recent emergence from bankruptcy may mean good news for its residents, some Detroiters are still facing a difficulty others do not: the most expensive car insurance in the nation.

In the city’s 48227 zip code, which is on the west side, the residents pay an average of $5,109 annually, a 130% increase over state average of $2,226, according to

A Global News Platform!

The result isn’t necessarily a surprise as this area is well-known for being terribly pricey for auto insurance. (more…)

Low- and Moderate-Income Drivers Penalized by Unfairly High Insurance Rates

New study claims most insurers discriminate based on income, education levels.

by on Jan.26, 2015

The Honda Civic may cost more, unfairly so, to insure if you live in the inner city, according to the CFA.

This story has been updated to include a response to the CFA study by an insurance industry trade group.

Millions of low- and moderate-income American motorists, especially those with lower education levels and living in inner cities, are being unfairly penalized with high insurance rates, even if they have steady jobs and clean driving records, contends the Consumer Federation of America.

In a survey of 15 cities and surrounding suburbs, these motorists routinely were required to pay at least $900 for collision and comprehensive coverage, with 50% being hit with bills of more $1,500, according to a new CFA study that checked rates for a 30-year-old female bank teller with 10 years driving experience and no collisions or tickets on her record, owning a 2004 Honda Civic.

Stay on Top of the News!

“The price can easily double or triple” for a person of moderate means and lower education, said J. Robert Hunter, the consumer group’s Director of Insurance and a former Texas Insurance Commissioner. (more…)

Top Five Most Expensive Moves for Insurance Rates

Two of the moves involve Detroit.

by on Oct.14, 2014

A move, especially from a small city to a large one, can have a significant impact on your insurance rates.

Location, location, location. It’s not only the mantra to follow when buying real estate, but also when trying to insure your car, truck or minivan. For those contemplating a big move from one city to another, it might play a role in the decision to move or not.

While most folks know they are going to pay more if they live near a large city, some moves will cause a significant spike in rates that may exceed 500%.

A Real Performer!

Of the top five increases for what vehicle owners will pay for insurance when they move, not surprisingly, two of the new destinations are in or near Detroit. The top five most expensive moves include: (more…)

Subaru WRX Drivers Get the Most Speeding Tickets

One in three get nabbed for lead-footed ways.

by on Sep.30, 2014

The Subaru WRX driver is more likely than any other to get a speeding ticket.

Want to avoid speeding tickets? Don’t make the Subaru WRX your daily driver and you should cut the odds of being radar trap fodder significantly.

The Japanese-made pocket rocket is the most ticketed car in the U.S. with 33.6% of owners getting a traffic ticket recently, according to a survey by The Pontiac GTO, which ceased production six years ago, finished second with 32.7% of owners receiving tickets.

Your Auto News Source!

It seems that Japanese models have been topping many recently lists about vehicles lately, and this one is no exception. The rest of the top five include the Scion FR-S (32.6%), Toyota Supra (30.8%) and the Subaru Tribeca (29.7%). (more…)

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%.

Muscling Up the News!

“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…)

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, 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.

Get a Free Subscription!

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…)