Monthly Archives October 2012

Insurance Giant Raises Rates in California Ahead of Vote

rates in california As Californians prepare to vote on a new law which will allow insurance companies to offer discounted rates for new clients who can prove that they had continuous coverage with any licensed insurer for a period of five years or more, Mercury General is raising its rates an average of 4% per policyholder.

Opponents of California’s Proposition 33, which is supported by Mercury chairman George Joseph and other insurance company heads, predict that the insurer’s new rates will raise costs to its policyholders by an estimated $63 million, thus contradicting the ballot’s measured promise that passage will lower costs for safe and insured drivers.

According to Mercury’s critics, which include Consumer Watchdog and the Consumer Federation of California, the insurer is seeking to make larger...

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Auto Insurance Companies Lower Florida No Fault Rates

auto insurance In an attempt to take advantage of a new Florida law, four of the five largest insurance companies are cutting no-fault insurance rates to lower their costs in the Sunshine State.

Following the passage of a law which targets fraud in Florida’s personal injury protection (PIP) system, Geico, Progressive and USAA have reduced their PIP rates by 10 percent. Allstate has decided to ask for different rate cuts for its three separate insurance divisions; no PIP rate change for Allstate Fire & Casualty, a 10 percent reduction for Allstate Insurance Co. and a 5.8 % cut for Allstate Property & Casualty.

State Farm, the largest auto insurer in Florida, was one of the few companies that decided against lowering its PIP rates...

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Loss of Use Insurance for Texas Drivers

insurance in texas When consumers think about insurance, they usually have in mind such things as how much coverage they are purchasing, what the policy will or will not cover, and how much their monthly premiums will be. The most pressing thoughts center on the amount of damage that an insurance policy covers in case of an accident or a natural disaster, but rarely do people remember that insurance policies have an optional benefit which covers loss of use.

Loss of use insurance benefits can cover almost anything that can be insured, including homes, cars and other property, such as equipment and farms. In addition, loss of use insurance coverage helps policy owners to deal with the long-term effects of instances such as a car accident, or a flash flood...

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New Jersey Fines Among Highest for Uninsured Drivers

uninsured driversAlthough all states mandate that drivers have at least liability coverage in order to drive legally on public roadways, not all states enforce the same rules and fees when a driver is found driving without insurance. A study has recently revealed that the state of New Jersey has some of the strictest consequences for uninsured drivers.

In most states, fines for driving uninsured typically run around $200 with a temporary driver’s license suspension of a few months or until the fines are paid. In New Jersey, however, along with a fine ranging anywhere from $300 to $1,000, drivers run the risk license suspension for up to a year as well as state-mandated community service. The consequences increase for habitual violators...

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Low Cost Program Offers Lower Insurance Rates in California

insurance rates With inflating prices of groceries, gas, and more, many California drivers have been running the risk of not obtaining insurance in order to pay other bills. This of course, is a serious risk, and if caught, an uninsured driver faces a multitude of consequences. Fortunately, the California Low Cost Insurance Program (CLC), which was set in place over a decade ago in order to help drivers obtain affordable California auto insurance, has helped decrease the amount of uninsured drivers on California roadways with it recent changes.

Per California Insurance Commissioner Dave Jones, financial problems have been the primary factor for the high amount of uninsured drivers in California. However, the CLC program has revised their program in order for it to be accessible to more drivers.

Accordin...

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New Yorkers Faced with Increasing Home Insurance Prices

Home Insurance Prices are Increasing in New York

home insuranceWith natural disasters, floods, and escalating prices on building materials, New York residents are faced with a problem that seems to be sweeping through the nation: rising New York home insurance costs.

According to recent information from a local New York insurance firm, winter storm losses have grown significantly over the past few decades, and thunderstorms have caused close to $25 million in damages to local New York homeowners. In addition, the cost of building supplies, such as paint, nails, insulation, wire, and shingles have increased. The aforementioned scenarios have had a major impact on New York home insurance prices.

Lisa Mahill, an engineer in New York, recently stated that her home insurance seems to consistently increase y...

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New York No Fault Car Insurance Laws

auto insuranceNine states nationwide, including New York, require no fault insurance to be purchased as part of an auto insurance policy before being able to legally operate a vehicle. No fault insurance, commonly known as only personal injury protection coverage (PIP), helps protect all individuals who were injured in a car accident.

In New York, the no fault insurance law requires that drivers carry at least $50,000 in personal injury protection (PIP), at least $10,000 in property damage liability (PDL), and at least $25,000 in uninsured motorist coverage. In New York, this plan is typically called the 50-10-25 plan.

In addition to the required coverage however, drivers in New York are urged to buy additional protection...

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Wildfire Threat Endangers California Homes

wildfire threat With drought conditions persisting amidst a wave of oppressive heat, California homeowners have to brace themselves for an increased threat of wildfires, a long-standing bane of residents of the Golden State.

According to a recent collaborative study carried out by the Insurance Information Network of California and Verisk Insurance Solutions, over two million homes – 15% of the statewide total – in various regions of the state face severe damage or even total destruction by wildfires...

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PIP Auto Insurance Law Reformed in Florida

Personal Injury Protection (PIP)

pip auto insuranceFlorida auto insurance has been fluctuating for several years now, and in an attempt to regulate the insurance and prevent fraud, major changes have been made to the personal injury protection (PIP) insurance laws in Florida. This in turn has not only reduced fraudulent activity in Florida, but has also reduced rates for both personal and commercial drivers.

The new Florida PIP coverage consists of drivers maintaining no less than $10,000 PIP coverage for injuries, with an optional $2,500 non-emergency treatment clause. The treatment cause became effective in order to reduce the abuse of the no-fault laws in Florida.

According to Florida insurance regulators, all auto insurance companies must already have plans in place to reduce their PIP rates...

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New Law Allows California Drivers to Keep Insurance Discounts

Insurance Discounts in California

insurance discountsIn 1988, California passed Proposition 103; a law stating that drivers who have no risks within five years of driving are allowed to receive additional discounts, but only if they stay with the same insurance company. However, a newly passed law has changed how California insurance companies provide discounts to safe drivers, allowing drivers to still get discounts after five years of safe driving, even if they switch to another company.

Proposition 33, a newly passed California motorist law, states that consumers who have California auto insurance and have been safe drivers, can either keep their current insurance or switch to another company without their discounts being affected...

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State Farm Florida Increases Rates on Home Insurance

seguro de vivienda Florida homeowners who hold insurance policies sold by State Farm’s subsidiary in the Sunshine state need to brace themselves for an increase which averages 6.9%. This is State Farm Florida’s fifth rate increase in as many years.

The State of Florida’s Office of Insurance Regulation approved State Farm Florida Insurance Company’s request for a rate increase, the fifth such uptick in five years. However, state regulators cut the insurer’s initial request to raise premiums by an average of nearly 15%, which State Farm justified by citing increased costs caused by hurricane and underwriting losses.

The insurer, which is based in Winter Haven, FL, complained at a public hearing that its surplus had slipped down from $877 million to $366 million in the four years between 2007 and 2...

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