InsureDirect.com

Mississippi Passes Laws To Track Those Without Car Insurance

Mike Dortch — Wed, 22 Feb 2012 05:01:20 +0000

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

State Audit Benefits Payout Practices By Insurance Carriers

Mike Dortch — Mon, 20 Feb 2012 05:01:43 +0000

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

Car Insurance with Speeding Tickets

Mike Dortch — Sun, 19 Feb 2012 19:26:23 +0000

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.

New Jersey Auto Insurance Industry Calls For Fair Pricing Among Body Shops

Mike Dortch — Fri, 17 Feb 2012 05:01:28 +0000

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

Ballot Initiative On California Auto Insurance Rates Set For November 2012

Mike Dortch — Wed, 15 Feb 2012 05:01:31 +0000

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

New California Cheap Auto Insurance Rate Discount Sought

Mike Dortch — Mon, 13 Feb 2012 05:01:59 +0000

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 loyality 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

Progressive Insurance Records Auto Insurance Losses in 2011

Mike Dortch — Sun, 12 Feb 2012 05:00:34 +0000

Post Date February 12, 2012 - Progressive Insurance became 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.

Mike

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

Auto Insurance Industry Face Challenges 2012

Mike Dortch — Fri, 10 Feb 2012 05:01:11 +0000

Post Date February 10, 2012 - An auto insurance industry think tank has published a study highlighting the prime concerns among insurance companies in 2012. According to The Geneva Association, global financial instability is the #1 source of distress in the auto insurance industry today. Lack of government preparedness and efforts in dealing with natural disasters come second, while our aging U.S. population comes last.

A good example of how these issues might pan out entails financial regulations. Regulatory mechanisms have a direct effect on the operation of capital markets. This includes the rate of growth and scope of the auto insurance market. Sound technical knowledge of prevailing issues is necessary to effect changes and reforms in these choppy financial markets, which include banking and car insurance. The car insurance industry is particularly unique, although it shares some traits with other players in the financial sector. Insurance industry regulation will for the first time feature at the G-20 talks. Accordingly, crucial policy decisions are likely to emerge from this meeting of global financial icons. It is imperative that such decisions adhere strictly to the principles of sustainable risk management relevant to modern insurance practice.

This is especially true in light of the tragedies that seem to wreak havoc continually in the 21^st century. In 2011, natural calamities alone accounted for close to $380 billion in claims from affected insured persons, which led to car insurance companies suffering major losses. In their report, the Geneva Association recommended that governments initiate climactic studies and long-term sustainable policies to deal with natural catastrophes. Such measures would compliment the risk management aspect of the car insurance industry. The think tank also expressed concern over the ability of insurers to sustain social security for the rapidly aging demographics in many developed countries. They noted the wavering confidence in some of the investment products currently mushrooming in the market. The report urged financial authorities to tighten controls over social security and retirement benefits to offset crises in the future.

-Mike

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

New Jersey Auto Insurance Rate PIP Laws Need Review

Mike Dortch — Wed, 08 Feb 2012 05:00:08 +0000

February 8, 2012 – New Jersey Lawmakers will release the latest auto insurance Personal Injury Protection (PIP) proposals this month. Since late last year, the New Jersey Department of Banking and Insurance has worked out details of the new rules of the states proposed auto insurance personal insurance protection law. The changes should be quite comprehensive after policyholders, medical professionals, members of the public and auto insurance industry insiders all feel changes need to be made.

In 2011, the New Jersey insurance department found that the high cost of PIP, directly led to an increase in auto insurance rates. New proposals include the creation of a new hospital outpatient surgical facility fee schedule, reforming the insurance arbitration system and stricter monitoring of agencies that administer benefits for insurers, among many others. The changes in PIP regulations would only affect only 25 % of the auto insurance buyers. Members of the public and insurance company stakeholders will only have a right to comment on selective portions of the proposals, by the Administrative Procedure Act, enacted by the New Jersey Governor in March last year. According to a report by the National Association of Insurance Commissioners, the average combined personal auto insurance rates including liability, collision and comprehensive policies in New Jersey rose from $1,197.91 in 2008 to $1,217.96 in 2009.

-Mike

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

Cheap Auto Insurance Advocates Refute Findings

Mike Dortch — Mon, 06 Feb 2012 05:01:38 +0000

Monday’s Post 2.6.12 - The Consumer Federation of America released a report saying auto insurance rates have become to expensive for low-income drivers. Auto insurance carriers rejected their report’s findings which states further regulation of the auto insurance industry would do little good to help policyholders. The president of the Insurance Information Institute (III) said that more regulations would reduce competition among car insurance, leading to spiking car insurance rates for policyholders. According to him, the best way to deal with skyrocketing car insurance rates is by controlling primary factors such as healthcare services and reducing loopholes in the auto insurance claims system. An overall shift in car insurance rate regulation would destabilize the current system that enables insurers’ to project future risks more accurately.

The Property and Casualty Insurers Association of America (PCI) also added its objections to the calls for more car insurance rate regulation. Such regulations would only hinder consumers from enjoying more innovative insurance products and limiting their choices and the pricing their offered. However, PCI does feel cutting car insurance rate state liability minimums might actually benefit some buyers. They argue that lowering a states minimum required car insurance rate liability limits will obviously attract those uninsured drivers to buy automobile insurance coverage leading to overall rate reductions across the board. The problem is with state minimum automobile insurance coverage is insufficient in case of serious accidents, which might force drivers to use personal savings leading to debt.

The CFA report credited insurance companies for disregarding a persons income when setting automobile insurance coverage rates. However, the reports also say a drivers occupation, street address, credit history, education and driving history cause income to be irrelevant. Insurance pundits were quick to point out that this information was necessary to accurately establish risk and did not relate to income earned.

-Mike

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