Leap Year Post Date 2.29.2012 – A recently Consumer Federation of America (CFA) report accuses property and casualty insurance carriers of taking advantage of those consumers needing coverage.  Some say some Property and Casualty Auto Insurance Companiesare overcapitalized, they are not interested in taking on more risk by writing more Cheap Auto Insurance Policies. As a result auto insurance regulators will block attempts by some insurance carriers to raise rates in an attempt to increase profit.

The same car insurance company disagree with the claim and  state they did take on significant risk from both existing and new clients and will continue to do so.  The Property and Casualty Insurers Association of America say 2011 was a challenging year for its members due to a confluence of natural disasters that hit the US. Private Car insurance carriers suffered net underwriting losses of $35 billion last year.

The Insurance Information Institute also took major issue with this report saying that it creates the wrong picture of what is really true.  Both Car Insurance and Homeowners in over ten states are facing increases on their property insurance rates.  Property and Casualty insurance carriers are seeking to increase rates by 20% or more in order to offset losses felt in 2011.  State regulators whom oppose the increases feel it will place further burden on homeowners coping gradually with the after-effects of the economic downturn. At the same time, regulators are putting pressure on congress to reform the National Flood Insurance Program.  They feel they need to protect consumers and boost private sector investment in this insurance sector.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date 2.27.2013 – The number of  Grand Theft Auto cases in Michigan has dropped in recent months.  According to the Michigan Auto Theft Prevention Authority, auto theft has dropped by an amazing 10%.  The  number of stolen cars dropped from 29K to 26K.  These improvements are credited by efforts of state agencies whom have worked hand in hand with law enforcement and auto insurance companies.  Auto Insurance Companies noted that Dodge Ram pickups built between 1997 and 2003 were the most stolen car in 2010. They account for 6 out of 10 cars stolen, while Ford and Chevrolet pickups were also in the top car stolen. Detroit City had the highest auto theft cases in Michigan with 47 % of cars reported stolen in the state. Oddly, the city is also the largest producer of automobiles in the US.   Law enforcement, county prosecutors and auto-safety device makers work  together to deter auto theft across the state of Michigan. These organizations are mostly funded by auto insurance companies, which are the most financially affected by auto theft.  About $6 million was distributed to various agencies between October 2010 and September 2011. This  has been responsible for the recovery of over $27.5 million worth of automobiles and auto parts.  This has also been accredited with more than two thousand people being arrested for auto theft.

Michigan residents are encouraged with the progress being made, especially in light of cheaper auto insurance rates in the state. The auto insurance rates for comprehensive coverage in Michigan are at an all time high. The reduction of stolen cars in Michigan should have an impact on auto insurance rates. This is because car insurance companies mostly consider the local area and the exact car model, before adjusting their overall auto insurance rates.

Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date February 24, 2012 – Mississippi is seeking to improve the current car insurance system with a less complex low-cost auto insurance protection policy.  According to those opposed to the bill feel changes will definitely change the current auto insurance system.  Mississippi has a tort based auto insurance system with a liability policy for accidental damage to third-party vehicles or property.  The system stipulates that drivers responsible for at fault accidents can only compensate accidental damages up to the limit of their car insurance liability policies.  Such factors include the amount of liability insurance carried by the other driver,  and their financial resources and the car insurance carrier.  Two victims of similar car accidents can receive different compensation depending on the prevailing circumstances of the case. The states mandated liability car insurance does not cater for single vehicles car crashes.

The proposed legislation seeks to dispose of current system and replace it with PIP insurance coverage.  The PIP policy system will provide close to $15,000 that will cater for:

• Medical treatment compensation for hospital bills not exceeding the policyholders PIP limits.
• Compensation for loss of income during the period of incapacitation.
• Reimbursement for spare parts and similar parts replacement services.
• Benefits to the next of kin in case of death.

PIP coverage will also require drivers to fork out about $10,000 for property damage coverage. Motorists will have a chance to adjust their coverage limits depending on preference and type of vehicle owned.  In many states, PIP and liability insurance go hand in hand for all motorists.  Drivers in the Mississippi will have a joint system, whereby PIP and tort liability operate together. In a situation where car accidents where one driver may not have PIP, his/her liability insurance policy will settle for damages incurred. Failure to settle claims due to insufficient PIP limits makes at fault drivers culpable for law suits from the aggrieved driver.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date February 22, 2012  –  The State of Mississippi is establishing a Car Insurance database.  This resource will assist the Mississippi government track down those drivers whom refuse to maintain Car Insurance.   According to the  Auto Insurance Research Council, Mississippi drivers are known for driving in the state without car insurance coverage. In 2009, a study showed that nearly 30% of drivers in the state had no auto insurance coverage. This is twice the national average.

To deal with this issue, a bill in 2011 to establish a database which would track a registered vehicles with auto insurance policy information. Once the law is passed by legislators, the governor will ratify it accordingly. The legislation will have the following ramifications on Magnolia state motorists:

• Before registering their cars, drivers will have to verify their auto insurance policy status through the database.
• Law enforcement agencies will have ongoing access to the database. Thus, they can confirm drivers’ insurance status instantly, when someone is pulled over for traffic offenses.
• The database will be updated daily to ensure the information is accurate and law enforcement does not need to rely on insurance ID Cards.
• Drivers whom operate an automobile without insurance will be required to pay a fine. Failure to respond to a ticket will result in suspension of you driving privileges.
• Fines for driving without auto insurance coverage will result in a fine of $300 to $500.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602 

Post Date February 20, 2012 – Twenty U.S. States have come to an agreement with Prudential Insurance Company in a case which challenges the way the insurance carrier handles unclaimed funds for life insurance and other policies excluding car insurance.  Prudential insurance is one of the leading providers for life insurance coverage in the United States.  In a statement issued by a Massachusetts Department of Insurance, the settlement over the case will compel the insurance company to verify its policy holdings against public records databases such as the Social Security Administration and others, in an effort to guarantee payment of death benefits to eligible recipients in a more controlled and efficient manner.  While the settlement does not have a penalty or any settlement amount due, the courts have compelled the carrier to increase its transparency and best practices in every state across the nation.  Prudential is not the first insurance company to come under scrutiny for unpaid coverage practices. After an audit of John Hancock insurance company, they relinquished over twenty million dollars in profit from policies. This number is expected to rise as audit proceedings continue.  The state will then distribute the funds to those legally entitled to a death benefit.  The audits are being conducted to ensure compliance with state laws concerning abandoned property. Every year, money is abandoned in Bank accounts, Safety Deposit Boxes and Insurance Policies.  Under normal circumstances banks and insurance companies should turn over these assets to the state of the owners residence.

The problem of failure to pay insurance policy benefits to beneficiaries is apparently widespread. As opposed to the approved practice of paying out death benefits to the proper estate or individual, the company would sap the remaining cash reserves to continue collection of coverage costs and fees after the covered individual had passed. At the end of the draw-down of funds or cash value, the policy would be closed. This occurred even in cases where the insurer had actual notice of the passing of an insured party. States will work with companies to decide the rightful place for funds depleted in this manner. In most cases Car insurance Polices would not pose this problem.

A similar situation happened to both me personally and our company.  A number of years ago we were approached by a representative of Citizens Bank to open a business line of credit.  The representative stated we would need to open a few bank accounts with Citizens if we were to receive the credit line requested. We complied and opened a number of business accounts and a personal account for my wife and myself.  We deposited $100.00 in each account.  Shortly after we opened the accounts, our line of credit was not approved.  Although we felt the bank wasted our time, we did not close the accounts immediately.  Month after month went by and the accounts remained open. Finally at one point we decided it was time to close the accounts.  When I contacted the bank on the procedure of closing the accounts a retrieving our funds, I was told the business accounts had already been closed and our funds had been depleted.  I was told a minimum amount had not been maintained and monthly charges depleted our funds and the accounts were closed . I explained the accounts opened did not have a monthly minimum nor a monthly charge.  They agreed.  I was then advised there was a change in their account policy after our accounts were opened and there was nothing they could do for me. The money was gone. In my opinion Citizens Bank took advantage of us and grabbed hundreds of dollars which didn’t belong to them.

-Mike 

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Getting car insurance when you have speeding tickets or other blemishes on your driving record doesn’t need to be a difficult experience.

Our licensed agents can help you get the best rate possible based on your driving history. So give us a call or fill out our online form and start saving today.

Post Date 2.17.12 –  Although efforts to change the auto insurance repair laws in New Jersey have failed, there is legislation being reviewed by New Jersey lawmakers to review hourly rates both body and mechanic repair shops charge auto insurance carriers. The auto insurance repair labor fee bill will request the formation of a committee of 12 law makers, other legislators and reps from the state car insurance and auto body repair fields. This committee would be empowered to set rates of pay for those repairing automobiles and should raise their earnings.  This should bring car repair shops in line with rates the rest of the country charges car insurance companies. New Jersey State lawmakers have already agreed to the conditions set out in the bill. Workers in the auto repair and collision repair industries have seen a stall in their rates of pay over the last several years. This happens because car insurance carriers systematically choose low-rate auto-body shops to conduct repairs on vehicles.  New Jersey representatives for the car insurance bill contend that some body shops involved in this practice use sub-standard parts in repairing vehicles to keep their rates low enough to garner continued referrals. The car insurance industry contends that the repair marketplace, and not state legislators, should be responsible for setting rates and establishing guidelines for payment of workers. They believe the bill will inflate the cost of repairs.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date February 15, 2012 – A California insurance ballot initiative targeting auto insurance companies seeks approval from state insurance regulators before adjusting auto insurance rates. California Residents will also vote to allow auto insurance companies offer both discounts and surcharges to policyholders based on their life style history. This will require automobile insurance companies to seek prior approval from state regulators before adjusting their  automobile insurance rates.  The insurance industry backed a proposal ,Proposition 17, which California state residents rejected in 2010. Consumer protection advocates that seeks to strengthen the car insurance rules are concern car insurance carriers will raise their rates  or  just deny car insurance coverage to drivers due to their history. The outcome of the ballot will be pit consumer groups against  car insurance carriers in the golden state.

Proponents of the initiative to allow insurance companies greater latitude in adjusting premium rates have already stated their case. They claim more flexible pricing on insurance coverage will allow them to offer cheap auto insurance rates for California drivers whom have good driving records. Consumer protection agencies feel some drivers will benefit while many others face punitive penalties, simply because they held no jobs or where away for school or work in other areas; preventing them from driving regularly. According to some, the fundamentals of prop 13 are sufficient and reliable for California drivers. There are other states that insurance carriers cannot offer surcharges to prospective customers, only to current ones seeking insurance coverage renewal.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date February 13, 2012 – The American Agents Alliance, an organization of independent auto insurance agents and brokers, has collected over half a million signatures from  California car insurance buyers to sponsor an act that will allow consumers to shop for auto insurance coverage from other car insurance companies with their loyalty discounts in tact. The proposal is quite popular among  car insurance rate consumers. Nevertheless, the car insurance initiative faces stiff opposition from the Consumer Watchdog Groups based in Santa Monica, CA, which sees the move as a game by auto insurance companies to hike surcharges for drivers.

Today, the insurance quote law stipulates that insurers can only offer continuous coverage discounts to their current car insurance customers only. Those who opt to change car insurance coverage in California,  will not qualify for loyalty and continuous coverage discounts, despite of their driving experience and safety records. Even those  problem drivers whom have at  fault accidents, speeding tickets, even a DUI or DWI can still receive a loyalty discount.  California voters rejected a similar proposal in 2010 due to lack of solid information and clarity. According to the new rules sponsors, the amended version contains significant improvements for car owners. These include:

• Insurance Rate Discounts for military veterans.
• Vehicle Insurance Discounts for residents who might have lost their jobs for 18 months prior to the proposal.
• Discounts for car owners whose auto insurance policies are set to lapse in ninety days time.
• Discounts for kids/youthful operators who live with their parents, so long as the folks qualify for loyalty points.
• Annual auto insurance rate discounts for every year spent by drivers on the road.

Conversely, a California consumer watchdog group don’t like the proposal from AAA. According to their counter proposals, the new Act will clear the way for insurers to surcharge California drivers who previously did not have continuous insurance coverage. This is in contravention of the consumer protection act of 1988, which made it illegal to surcharge drivers based on their previous records.

-Mike  

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

Post Date February 12, 2012 –  Progressive Insurancebecame the latest auto insurance company in the US  market to report and annual loss. The company’s fourth quarter profits shrunk from near $300 Million in (2010), to near $260 million in 2011. This loss was attributed to lower profits in investments. Progressive auto insurance’s net annual earnings dropped from near $11o million 75 million in December 2011.  According to NASDAQ, the Ohio insurance company lost about 60% their revenue from securities in 2011 compared to 2010. The loss in profitability from both personal lines car insurance and commercial auto insurance grew slightly in 2011. The  car insurance companies net premiums for 2011 increased by about 5 %.  The Insurance Information Institute reported that the number of natural catastrophes last year caused nearly $40 billion in car insurance losses from Jan to Sept of 2011 alone.  This was more natural disasters recorded in a single year.  According to the Federal National Oceanic and Atmospheric Administration, twelve separate weather disasters were recorded in 2011.

Regardless of the losses car insurance carriers like, Allstate Vehicle Insurance, State Farm Vehicle Insurance, GEICO  Vehicle Insurance, Nationwide Vehicle Insurance and InsureDirect.com are upbeat about 2012. The majority of insurance carriers expect to see an increase in car insurance rates in 2012. This should make up for the short fall in profits expected in investments and securities held. Regardless, Progressive Insurance Auto Insurance Company has cheap auto insurance rates in New Jersey, Pennsylvania and Ohio

Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602