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Summer Dangers for California Drivers

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California is home to many iconic beaches, miles of scenic highways, and nearly 24 million licensed drivers all eager for the upcoming summer months. Although the Golden State is a popular destination for many vacationers, there are several dangers that vehicle owners should be aware of that may increase their accident potential. If someone is involved in a collision or files a claim, there is a good chance that their insurance rates will go up. To avoid paying more for protection, it’s often best for motorists to take preventative measures. One of the biggest attractions in CA during the summer is the Pacific Ocean. As a result, beach towns and scenic highways can get clogged with people eager for some fun in the sun. But with greater traffic density and competitive parking comes a higher chance of being involved in an accident, which can make California auto insurance prices higher. These driving situations are only made worse by the increased density of younger motorists.

Why Young Drivers and CA Roads Don’t Mix

Already young and inexperienced motorists are statistically prone to filing car insurance claims. Mix in the joy of summer vacation and the occasional party and residents have a potentially dangerous driving situation. Unfortunately, for younger motorists, alcohol can also be a major problem. In 2010 drivers in the 21-24 age group experienced the highest percentage of fatal crashes with BAC levels of 0.08 or higher. Studies have also shown that the 100 days between Memorial Day and Labor Day are among the deadliest for CA teens.

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Big Changes Coming for Florida No-Fault Insurance Law

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Significant changes to Florida’s no-fault auto insurance laws that deal with coverage provisions and criminal activity will start taking place in July 2012, although residents will not experience the full effect until January 2013. Gov. Rick Scott said he officially approved these changes on May 4, 2012, to hopefully decrease the number of falsified claims being made in the Sunshine State and reduce coverage costs. The existing no-fault personal injury protection (PIP) setup in the state has been said to breed a high level of staged accidents, inaccurate claims, and other less-than-reputable activity.

​​Combatting Criminal Activity

Many of the upcoming changes to PIP insurance in Florida are being done in an effort to prevent unlawful activity and decrease coverage costs for vehicle owners. When insurers are forced to pay out dishonestly adjusted accident claims, motorists statewide end up suffering in the form of higher premiums. A resident making a Florida insurance quote comparison may notice that the Sunshine State is home to some of the highest average coverage costs in the U.S. These adjustments to the law, however, hope to make a significant impact. One major change taking place in July is that law enforcement officers will start being required to list all passengers on crash reports more frequently. This is intended to help prevent motorists from creating “phantom passengers” to recoup additional insurance benefits. To discourage dishonest activity, there will also be harsher punishments for clinics and doctors who unlawfully take advantage of Florida’s no-fault system.

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Uninsured Kentucky Drivers to Receive Notices

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For years, Kentucky motorists have been required to provide proof of insurance to register an automobile, but loopholes in state laws have allowed vehicle owners to immediately turn around and cancel their policy. Although insurers have been electronically submitting monthly coverage reports to the state since 2006, this information has not been used to actively pursue uninsured motorists, until now. Starting in June 2012, Kentucky law enforcement officers and state officials will have the tools necessary to ensure that all drivers in the state are maintaining continuous coverage. The Bluegrass State will be making changes to its Mandatory Insurance Reporting Program that will allow the State Transportation Cabinet to review policy records to determine which motorists have been continuously insured. Those who are found to be in violation of the law will be issued uninsured notices, and face the possibility of having their vehicle registration automatically canceled. After receiving a notice, residents will have 30 days to verify that continuous coverage has been maintained, or deal with the consequences. These changes were made in an effort to decrease the number of uninsured drivers in the Bluegrass State. In 2009, an estimated 18 percent of automobiles in KY had no coverage, but by actively pursuing residents who ignore state coverage requirements, local officials hope to significantly decrease this percentage.

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Telematics: Lower Rates at the Cost of Privacy?

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Technology is constantly changing the way we drive, and, more recently, it is beginning the change how we think about automobile insurance. To set rates, insurers usually examine an extensive amount of information about the driver and the vehicle he or she drives. But by examining data gathered from telematics programs, producers may be able to more accurately evaluate a person’s chances of filing a claim. Telematics refers to the use of technology to track driver data and transmit it remotely. Some of these systems are also designed to record a person’s driving habits for insurance purposes. Progressive has already paved the way for modern technology to be used for vehicle coverage pricing. By installing one of their Snapshot devices, motorists are charged based on a usage-based system that monitors braking tendencies and how far and when a car is driven. This program may be a recommended insurance coverage option for people who maintain low annual mileage and good driving habits. Aside from Progressive, a number of other large insurers are offering such programs. GMAC has been offering pay-as-you-drive discounts for OnStar customers for years. State Farm recently introduced its Drive Safe & Save program in 13 states. Allstate has launched a similar program, called DriveWise, in Illinois, Ohio, and Arizona. And the Hartford announced it would be rolling out a pilot program, called TrueLane, that would track driving data in exchange for possible discounts.

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Four Unexpected Reasons Why Your Premium Could Climb

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A motorist has shopped around, explored all options, and purchased the right auto insurance policy at a reasonable price. But over the years, premiums begin to climb for no apparent reason. Here are a few developments aside from getting tickets or accidents that might unexpectedly boost premiums: Your Kid Reaches Driving Age: Insurance companies are always on the lookout for potential reasons why policyholders would file a claim. And for a coverage provider, there’s no greater threat than a teenager learning to drive. Accident statistics for younger motorists are notoriously bad. Despite advancements in technology and safer vehicles, automobile accidents remain the leading cause of death for teens 19 and under. As a result, the moment an insured driver’s child hits legal driving age, their rates may go up. Your Credit Heads South: Credit score represents a person's ability to honor a debt, but to some insurers, it also represents accident potential. Some companies say claims data show there is a correlation between the number of insurance claims that drivers file and their financial background. This has lead to a process called credit scoring, which is considered controversial by many drivers. Although fairly common, states like Ohio have placed limitations on how financial information can be used when underwriting drivers.

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When CA Cell Phone Violations Can Impact Insurance Rates

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Driving and using a cell phone are two actions that don’t mix well. Research from Carnegie Mellon University suggests that using a cell phone while behind the wheel can reduce brain activity associated with operating a motor vehicle by as much as 37 percent. Nationwide, over 3,000 people were killed as a result of automobile accidents involving a distracted driver in 2010. With these statistics, it’s no wonder why it’s against the law to use a hand-held phone while operating a motor vehicle in California. In the Golden State, using a cellular device while driving can get you a ticket, but it is not considered a moving violation, so it shouldn't appear on a person’s record. Consequently, auto insurance companies won’t be notified of the offense, so policyholders shouldn’t suffer any surcharges as a direct result of the ticket. There is one scenario where such a ticket could affect premiums indirectly, though. After receiving a traffic ticket, California motorists are required to either pay their fine or appear in court. Failing to do either of these could cause the Department of Motor Vehicles to suspend the offending resident’s driver’s license. Although a cell phone violation will not impact a person’s driving record, a license suspension will. Coverage providers are likely to take notice of this offense and charge more for vehicle coverage. With a blemished record, making a car insurance comparison is likely to produce higher priced policies.

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Don’t Forget Fido: Auto Insurance for Your Pet

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For many motorists, pets are an essential part of the family, and they're also frequent passengers in the car. But, unfortunately, most cars are not designed with animal safety in mind. In an accident, dogs and cats can suffer injuries just like people, and veterinarian bills can be very expensive. When looking for an insurance policy, people with four-legged companions might want to consider choosing an insurer that can offer a little extra pet-friendly protection. Vehicle coverage that includes pet injuries has become a feature of policies offered by several insurers. Progressive, the insurer that's known for helping people get insurance online, has led the way in providing protection for cats and dogs that are injured in automobile accidents. When policyholders purchase collision coverage, it comes with up to $1,000 of protection that Progressive will pay toward vet bills in the event that an animal companion is injured in an accident, according to the company. This also includes injuries to a dog or cat that is owned by a relative who is living in the same household as the policyholder. The coverage is not yet available in North Carolina or New Hampshire, however. Farmers Insurance Group in 2008 began offering coverage for pets injured in auto accidents, but only in select states. The protection is limited to traditional family pets and does not include animals that are commonly kept for food or profit. Where available, it provides up to $600 worth of coverage and is included for no extra charge in policies that include both comprehensive and collision, according to a press release from the insurer.

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More Incentive to Stay Out of Texas’s High-Risk Pool

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It has always been a good idea to drive safely and avoid accidents in Texas, but now vehicle owners have a little extra incentive. In April 2012, the state commissioner of insurance issued an order saying that rates for the state's high-risk insurance pool will rise by 24.1 percent overall. Effective on July 1, the price of bodily injury liability issued through the state-run pool will increase by 31.9 percent, and property damage liability will increase by 20 percent. Once these changes take place, the average base rate for a policy through the program that provides only bare-bones liability coverages will be $578 (but they can range from just under $300 to nearly $2,500). Strict financial responsibility requirements in the Lone Star State require motorists to carry auto insurance to legally operate a motor vehicle, but having a blemished driving record can make it difficult to find a willing insurer. If residents can’t buy protection from a company on the voluntary market, they may be forced to enroll in the Texas Automobile Insurance Plan Association (TAIPA) to avoid driving while uninsured. Unfortunately for many residents, TAIPA is about to get more expensive. To use TAIPA, residents must have been denied coverage by at least two companies on the voluntary market. Usually, people are only denied insurance because they are considered high-risk drivers, which is a title that usually comes from having a poor driving record. When someone files multiple claims or has a history of moving violations, insurers usually determine that the driver in question is at a greater risk of being involved in an accident or filing a claim in the future, and they will either charge more or deny coverage entirely.

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CA Coverage: Car Insurance in the Big City

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Moving from a small urban area to a large city in California can present a world of opportunities, but with those opportunities come the potential of higher auto insurance rates. In most heavily populated areas, the streets are congested with more motorists, automobile accidents are more common, and the level of car-related crime is considerably higher than in suburban locations. All of these details and statistics are used by insurers to rate vehicle owners, and the common characteristics of big cities frequently translate into higher coverage costs. In the Golden State, there are unique auto insurance nondiscrimination laws that prohibit insurers from raising rates in small geographic locations while setting more reasonable rates in the surrounding area. However, location can still have a considerable impact on how much a resident pays for vehicle coverage. Companies are permitted to consider past loss experience and expenses in their rating process, which includes geographic areas that are at least 20 square miles. In areas that see greater economic loss as a result of greater population density or accident frequency, providers are permitted to charge more for car insurance.

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Going Green for Cheaper Rates

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Driving a more fuel-efficient vehicle can have a number of important benefits. Hybrid and electric-cars help their owners save fossil fuel, reduce their carbon footprint, and commute with the knowledge that they’re helping to preserve the Earth for future generations. Plus, it doesn’t hurt that driving an environmentally friendly auto can lead to significantly lower driving costs, even though they may initially appear more expensive to insure. It’s no secret that gas prices have been steadily climbing since the invention of the automobile and show no signs of slowing down. Many of the people who purchase alternative-fuel-source vehicles do so to avoid watching their life savings disappear at the gas pump. But when they initially see insurance quotes for these vehicles, they may worry that an equal amount may be siphoned off by coverage costs. For example, a premium analysis of 20 quotes from 10 different California insurers shows that, when comparing the cost of insuring a gas-only Toyota Camry with a hybrid version of the same model, on average motorists who own hybrids pay just over 10 percent more for vehicle coverage. This price increase is generally accredited to higher repair costs, but before writing off fuel-efficient automobiles as a cost-effective means of transportation, drivers should take discounts into consideration. Coverage providers across the nation are beginning to offer special savings and rate reductions for insuring hybrids and other alternative-fuel vehicles. In California, for example, as of March 2012, there are at least three companies that offer insurance discounts as incentives for driving greener cars. These price reductions range from 5 to 10 percent, which could effectively nullify the increased coverage costs of having a hybrid or electric vehicle.

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