Friday Matinee: Crash Avoidance

Posted on March 9, 2012 by Michiko

It’s no secret that the best way to keep your auto insurance premiums low is to avoid filing claims, which, in turn, means that you should do everything possible to avoid accidents. This month’s video is all about the crash avoidance technology that is built into today’s cars. Enjoy.

Posted in Car Insurance help, Wednesday Matinee | Tagged , | Comments Off

Goverment Considering Limiting OnBoard Auto Electronics

Posted on February 24, 2012 by Michiko

According to the latest available numbers, there were 3,092 deaths due to distracted driving in 2012. Because of numbers like that, as well as accident claims that don’t cause death, but still cost money, many states have instituted laws banning texting while driving, mandating hands-free apparatus for drivers with cell phones, and imposing severe penalties for motorists who use any kind of electronic, hand-held communications devices behind the wheel.

But the U.S. government believes more should be done. In order to reduce the number of distracted driving fatalities, the Obama administration would like automakers to impost limitations on the types of vehicle technologies that allow texting and/or cell phone calling while a car is moving.

To this end, U.S. Transportation Secretary Ray LaHood has proposed a collection of voluntary measures that would create new safety guidelines for the hands-free entertainment, navigation, and phone calling systems that are nearly ubiquitous in modern vehicles.

Mainly targeted toward younger drivers, the safety measures in question include disabling any on-board electronic devices that a driver could use while a vehicle is in motion. This includes internet browsing, texting, and access to social media. It also represents a compromise: originally LaHood wanted GM, Ford, Chrysler and other automakers to restrict all hands-free communication devices as well as other dashboard electronics that have become popular options and key selling points.

The proposed guidelines are subject to a 60-day public comment period. Hearings, which will be held by the National Highway Traffic Safety Administration, will begin in Chicago, Los Angeles, and Washington, D.C. next month.

Posted in CheapestAutoInsurance, Technology at Work | Tagged , , | Comments Off

The Auto Club Group: Affirmed A Rating But Outlook Negative?

Posted on February 17, 2012 by Michiko

Despite the fact that the A rating of Dearborn, MI-based The Auto Club Group has been affirmed by A.M. Best, and by the upgrade from A- to A of the rating for Fremont Insurance Co., also of Michigan, A.M. Best says that the outlook for these ratings is actually negative.

Why?

Well, Fremont’s rating was largely because it recently became part of The Auto Club Group’s existing agreement to pool reinsurance, as part of the former company’s acquisition by the latter last August.

But then, there’s the off-set: The Auto Club Group’s earnings have been gradually deteriorating over the last several years, partly because of poor underwriting decisions, and partly because of the inflated cost of medical treatment having a significant effect on the size of personal injury auto claims.

The ratings for the larger company reflect a combination of factors: its established position as an insurance leader in the state of Michigan, its modest five-year performance, its strong risk-adjustment capitalization, and the benefits it has gleaned from selling its products to AAA members.

Nevertheless, A.M. Best looks at The Auto Club Group and sees a company that has most of its business in a single state, which means any change in local insurance law could directly impact business. It sees that there’s a lot of competitive pricing among other companies in the Michigan insurance market, and the waning operating results don’t help.

For this reason, analysts say, even with an A rating, the overall outlook is negative.

Partially offsetting these strengths is The Auto Club Group’s deterioration in operating results in recent years and its concentration of business in one state, which exposes it to regulatory and legal changes, as well as significant price competition in its core markets. The deterioration in operating results in recent years was driven by increased underwriting losses and lower investment income, as well as the group’s exposure to regulatory and legal changes in Michigan.

Posted in CheapestAutoInsurance | Tagged , , | Comments Off

Colorado Considers Spaceflight Insurance

Posted on February 9, 2012 by Michiko

February is traditionally a slow month when it comes to changes in car insurance laws, which means we get to take a moment to look at other kinds of vehicle coverage.

In Colorado, for example, members of the legislature are working out the limitations of liability for companies carrying passengers into space.

Okay, we swear we didn’t make that up.

Apparently Senator Mary Hodge (D – Brighton) is concerned about the potential risks of spaceflight, but she’s also trying to promote a potential spaceflight hub planned for an airport east of Denver.

According to the Denver Post, the airport wants to launch rocket-propelled jets that would give passengers a suborbital adventure (the rockets would fire at an altitude of 50,000 feet) and under the bill being proposed the companies doing the launching could only be sued for the death or injury of passengers if gross negligence is proven.

We’re not sure how things will settle, but a similar bill has been grounded in New Mexico.

Posted in CheapestAutoInsurance, Speciality Insurance, State-Specific Laws | Tagged , , | Comments Off

Thursday Matinee: Volkswagen’s Superbowl Commercial

Posted on February 2, 2012 by Michiko

There are no auto insurance ads scheduled for this year’s Superbowl, which (for the three people who are completely unaware of it) takes place this Sunday, but there are a great number of car ads. One of our favorites is the newest ad from Volkswagen, so in honor of this uniquely American sports event, we had to share it.

Consider it our reminder that many of the best car insurance policies also cover your pets.

Posted in CheapestAutoInsurance, Pet Insurance, Wednesday Matinee | Tagged , , , | Comments Off

Nebraska Bill would Increase Liability Requirements

Posted on January 25, 2012 by Michiko

State Senator Paul Schumacher of Columbus, Nebraska is supporting a bill that would result in a higher liability insurance requirement for motorists in his state. He says this change in the financial responsibility requirements is necessary because the dollar isn’t worth what it once was.

Specifically, Schumacher wants to raise the benefit for un/underinsured motorist policies from the existing $25,000 for individuals and $50,000 for when more than one person is injured to $50,000 and $100,000 respectively.

According to the senator, the existing benefit levels were determined many years ago, when the cost of medical care was much lower. Doubling the required coverage amount, he says, will only result in a relatively small increase in auto insurance premiums.

Posted in CheapestAutoInsurance, Insurance 101, State-Specific Laws | Tagged , , | Comments Off

Oklahoma Implements Medical Certification for Commercial Truckers

Posted on January 18, 2012 by Michiko

The federal government is concerned about the health and safety of commercial truck drivers, and Oklahoma is the most recent state to work toward federal compliance by adding medical certification status and information to the records in the commercial driver’s license system (CDLIS).

The Oklahoma Department of Public Safety (DPS) will begin implementing this change on January 30th, but is also offering assurances that the physical qualification requirements for commercial drivers are not changing.

Instead, beginning January 30th of this year, and no later than the 30th of January in 2014, all holders of Oklahoma commercial drivers licenses must supply the DPS with information about the type of vehicle they drive (or expect to drive), and those involved in some kinds of commerce will be required to provide a current medical examiner’s certificate to their SDLA in order to receive a medical status of “certified” as part of their driving record.

Once certified, drivers must maintain their medical certificates or lose their status, and possibly their commercial license.

Posted in CheapestAutoInsurance, State-Specific Laws | Tagged , , | Comments Off