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Posts Tagged ‘insurance premiums’

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.


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 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…)

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.


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

“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…)

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 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…)

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.