Post Date May 30, 2013 – Although accidents can increase your auto insurance rates, ticket for DUI will have a lessor effect on the same rates.  In many cases, auto insurance rates can increase to around twenty percent or more, depending on the weight of your misconduct.  Even though traffic violations can increase one’s auto insurance,   let it be clear that these increases are observed differently from policy to policy.

Where a  ticket for DUI can increase rates to around 19 percent, being ticketed for reckless driving can have a 22% to 25% of increase.  Other traffic violation which will raise your car insurance rate driving without a license and careless driving.  These rates can drive up your rates to around 18 to 20 percent.  A ticket for failure to stop can give you 15 percent increase. This is also the same with driving more than 30 mph over the speed limit. A ticket for improper turn or improper passing can cost you only  a 14 % increase.  Being cited for following another car or truck too closely, you can

expect around 13 percent increase in your auto insurance rates. When you are caught not using seat-belts, you can expect a very small violation amounting to only 3% of your total annual rate.  Getting caught driving without insurance can give you an increase of 6 percent to 8 percent.

Ticket for DUI cost you less on your auto insurance than an accident.

Those percentages are just average in each violation as available  from the different insurance companies. These increases are levied by your insurer.  They feel when you start accumulating more and more of these violations – you will eventually have an accident which will cost the auto insurance money. Traffic violations and having a ticket can mark your driving record and increase your rate. However, there are also ways you can lessen the impact of tickets on your insurance. The most common of which is by petitioning the court to lessen your offenses or to dismiss your violation entirely. But still, the most effective ways of preventing such increases is to drive safely and always in accordance with traffic laws.

Post Date May 25, 2013 –  Oklahoma Homeowners Insurance will pay more than two billion dollars in damages after a  tornado batters an Oklahoma suburb, killing more than 20 people.  The Oklahoma Department of Insurance stated the official preliminary estimated claims were based on assessments in the areas damaged by the tornado which touched down in Moore, OK  on Monday, May 20.  The disaster zone cut out a strip of land about a mile wide and more than 17 miles long.  The Tornado leveled a thousand homes, many of which were destroyed completely.  According to official estimates, around 13,000 homes have been affected resulting in Oklahoma Homeowners Insurance Claims.

Oklahoma homeowners insurance rates on the rise

The two billion dollars in Oklahoma Homeowners Insurance Claims has been limited to homes and other infrastructures. These figures do not include other insurance related damage to other property such as cars, trucks and other types of vehicles. The National Weather Service  classified  the tornado as an EF5 with wind speeds of more than 200 mph.  News footage from the disaster show debris from structures and cars that were pulverized.  This is not the first time residents in OK were forced to use their Oklahoma Homeowners Insurance.  In 1999, Moore residents had experienced same fate when a tornado also battered their community that brought about $1.4 billion in insured losses. But insured losses on the recent tornado incident in Moore might exceed that of the damages sustained by Joplin in 2011. Homeowners Insurance  losses from tornado incidents in the United States last year registered a $14.9 billion in insured losses. With the amount of damage incurred in Oklahoma recently, residents may experience a spike on their Oklahoma Homeowners Insurance payments this next few years.

-Mike 

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date May 17, 2013 –  The changes to the North Carolina auto insurance  system were turned down last week  at the NC House of Representative committee level.  The proposal was recommended to allow North Carolina auto insurance companies to individually control their premiums.  This will give them the ability to raise or lower them by 7% annually.  The  proposal will bypass the current NC Auto Insurance System which the North Carolina State’s Rate Bureau wherein insurers are represented and collectively files for premium changes to the North Carolina Insurance Department. The  North Carolina insurance commissioner will review the rate filings and decide whether to approve the rates or not.

North Carolina Auto Insurance Laws Could Change

After the NC Insurance chief Wayne Goodwin argued the proposal will just raise North Carolina auto insurance premiums, the House insurance committee voted 18 to 11 to bury the bill. Even the insurers were divided on the proposed overhaul. Goodwin admitted that although the current North Carolina auto insurance system is not perfect, the proposed measures would hurt the current system that is working well for both NC auto insurance companies and North Carolina Auto Insurance Customers. Though the proposal may present itself to be advantageous to insurers, it could have bring good to drivers as it could have put a stop on the extra charges that North Carolina Drivers are paying to make up for the states high risk drivers.

Among the top North Carolina Auto Insurance carriers which support killing if the bill are State Farm, Geico and Progressive, and among others. One Insurance lobbyist  argued that the proposal will put balance on the true cost of covering the around 7 million insured  cars & trucks in North Carolina, and will lower the insurance cost of around 85 percent of the state drivers. Those who have shown strong opposition to the bill are insurers N.C. Farm Bureau, AAA North Carolina,  and the state’s current largest car insurance carrier, Nationwide. Insurance Company.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date May 10th, 2013 – New Jersey car insurance rates have already been considered the highest in the entire US. Although many people had seen their rates go down over the last 10 years,  some NJ residents are seeing an increase in their rates.  Sadly, others will see their New Jersey car insurance rates go up in the days and months to come. So why has this happened.  What has changed in the Garden State which has caused New Jersey Car Insurance Companies to suddenly raise their customers monthly payments?

New Jersey Car Insurance heading Up, Up, Up……………………

It has been recently learned  approximately 30 New Jersey car insurance carriers have been been given authorization by the New Jersey Department of Banking and Insurance to increase their rates.  Although many of these carriers saw a decrease in their profitablity last year, the government agency which regulates NJ Auto insurance would not approve the increases requested.  The top New Jersey car insurance providers in the state – Allstate, State Farm, and New Jersey Manufacturers Insurance Co. – have all been approved to increase your auto insurance bill.

Allstate, which is the#2  insurer has been approved for nearly a 5% increase. New Jersey Manufacturers will have a similar 5% increase. State Farm Guaranty Insurance Company that provides coverage for high risk drivers has been approved to hike their rates by an average of 7 percent.  In 2011 Allstate Insurance Company had nearly 1 billion dollars in written premiums within New Jersey, while New Jersey Manufacturers had a 100 million dollars less. Many believe that the reason for these increases are the losses incurred from Superstorm Sandy last year which saw a massive auto insurance claims.  Not true. These increases are due to the rising cost of reinsurance. The loss cost from tropical storm Irene  has caused a spike in medical costs.  With the increase, a New Jersey car insurance policy that usually cost around $1,300 may increase to around $1,364.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206

Post Date May 6, 2013 – A Chiropractor and an owner of  a  chiropractic clinic in Bryan, Texas admitted to conspiracy after defrauding several Texas Auto Insurance Companies for  nearly 4 million dollars.  The owner, Marion Young, 42 years old, of the now out of business “Private Chiropractic Care”. Young admitted that for two years, he conspired in defrauding Texas auto insurance companies through recruitment of people who claimed to be victims of car accidents.  Young allowed his clinic to be a front for fraudulent chiropractic therapy bills for treatments that were not actually performed.   The bills were used then as supporting documents for demand letters sent to Texas auto insurance companies soliciting legal settlements.

Texas auto insurance companies are hustled for nearly four million dollars.

Court documents show the fraudulent activity had cost Texas auto insurance companies between $3 million and 4 million dollars.  Out of this multi-million fraud,  the chiropractor’s share was only around $112,000.  Another person identified as Chase Lindsey has been accused along with the doctor. Lindsey and Young evaluate the people who have been recruited to participate in the fraud. Lindsey provides fake medical evaluations to the patients and recommend treatments. In exchange for his participation, Lindsey was receiving $2,000 in cash every month.  He allegedly earned around $58,000. Lindsey’s usually prescribed six treatments to be preformed  four times a week for a month sometimes a month and a half.   The patients would only receive two heat/ice packs, and electric stimulation and would only go to the clinic once a week for a 4-week period maximum.  Young admitted that he has knowledge most of the reported treatments were untrue and that the bills are being prepared from the conspiring law firm which appears received the majority of the money.  Young, Lindsey and their co-conspirators were able to profit from this scam when the Texas auto insurance companies issued settlement checks for the said patients. Sentencing for the chiropractor has been scheduled for later this year.

-Mike

Michael E. Dortch
President &  Senior Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 206