Insurance News - Saturday, March 23, 2013:

Here are the leading auto insurance headlines from ONTARIO AUTO INSURANCE TOPICS ON TWITTER for Saturday, March 23, 2013:

• Insurance Research Council online study finds that 24% of Americans think its alright to pad insurance claims a significant decline from past studies.
• Stolen car rate plummets in Massachusetts through the use of anti-theft devices.  It seems transponder keys, immobilizing devices and vehicle tracking systems things actually work.
• Florida files to block injunction of PIP reforms. It appears that Florida auto insurance reforms may be off the rails as opponents win a key victory in court.
• Alaska Bill on proof of insurance via cell phone advances past House Transportation Committee. This innovation appears to be catching on.
• Montana lawmakers vote to allow salvage of roadkill.  This doesn't sound like such a good idea to me.

Car Insurance : Cheap to insure several vehicles

The times, in which almost all households had only one car, long thing of the past. A personal and flexible mobility is self-evident for decades. When their children are of legal age, the number of household own vehicles is increasing rapidly. But also couples without children increasingly use one of two cars - for the work, the other about shopping and other errands. That wants to be optimally hedged - learn getting two or more vehicles optimal under a hat.

Second car

Old proven and with the car control is best known: two vehicles are available with the same provider in a joint police - with the car in its initial classification can be given mostly a better damage freedom class and thus a larger no-claims bonus. In addition, some insurers provide additional discounts on the second car.

This benefits many parents to cheaper to classify the car of her child. If the son or daughter would like to accept the insurance at some point, the damage category can be transmitted most easily. However, are here to note two stumbling blocks: guardian and child a relationship must be between first-degree - beyond the discount only at the height can be taken, "can learn how the child would have him since the receipt of the own driving itself". The driving licence is only a year old, a classification SF class 1 is possible so maximum even if about the father would have reached already SF class 10 with the second car.

Individual insurance

But not always drive with the second car control more affordable. Depending on the type of vehicle and insurance one comes away also times better circumstances when each vehicle with another provider is housed. Ultimately, it is always on the individual case. Therefore: Zweitwagen-or individual insurance - leads on the right track only a comprehensive comparison as many vendors and offerings.

Fleet insurance

There were until recently only for companies and self-employed persons who have a certain minimum amount of vehicles fleet or fleet insurance. Since October 2010 offer the ADAC and the Zurich insurance but a model to that of fleet insurance is very similar to: the family insurance. All vehicles of a household can be combined with an insurer - everyone gets his own police with "their own" damage freedom class here, everyone pays his own contribution and all have same contact person. The decisive advantage: More and more vehicles are insured, the lower is the classification, allowing savings of up to 12 percent per vehicle.

Change indicator

A "slimmed-down" version of the second car scheme is the introduction of the change indicators planned for 2011: up to three vehicles can be reduced almost in the guise of an insurer on a flag. Only for the each most expensive vehicle, insurance premiums and taxes will be charged. The idea in the Switzerland and Austria several years ago for the first time introduced originally stood the environment at the forefront, because only the vehicle with the "insured" indicator must be - moved thus one reason why this model rather represents an option for individuals who are in possession of several vehicles. In return rather an obstructive model, when the cars of kids cheap insurance should be. In addition less organic but rather economic interests in the foreground stood in Germany, as the change indicator for 2011 has been scheduled: after the decline of the automotive industry by eliminating the cash for clunkers, consumers should now be motivated to purchase a second.

Car Insurance : It depends on the image

It is not new that cars are an image carrier – a recent study shows that Germans place but also value the appearance of their car insurance.

The VHV interviewed 1033 insurance drivers to the image of car insurance with the IMWF (Institute of management and research). It came out that it certainly plays a role for car owners, whether is good or bad in public insurance. Just older people - 80 percent of the over 60 years - women, but also new and this year car buyers prefer insurance companies with unbescholtenem reputation.

Usually, the questioning brought special features with good standing on a car insurance company in connection. The quick claims processing in the foreground stands for 90 percent. Cheap prices, good customer service and advice make a good image of insurance for clients.

States With the Highest Auto Insurance Rates

According to a new analysis from Insure.com, an insurance rate comparison site, the highest average annual auto insurance premiums are in Louisiana ($2,699), then Michigan is next ($2,520), followed by Georgia ($2,155). Below is the top ten ranked states.

Rank	State	Avg. annual premium
1	Louisiana	$  2,699
2	Michigan	$  2,520
3	Georgia	$  2,155
4	Oklahoma	$  2,074
5	Washington, D.C.	$  2,006
6	Montana	$  1,914
7	California	$  1,819
8	West Virginia	$  1,816
9	Rhode Island	$  1,735
10	Kentucky	$  1,725

No-fault has often been the blamed for high premiums.  Between 1971 and 1976, two dozen states adopted no-fault auto insurance.  Many states did grapple with rising rates under no-fault as well as strong opposition from stakeholders.  Only a dozen no-fault states remain -- Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.  Interestingly, only Michigan and Kentucky are in the top 10 and it is commonly accepted that Michigan's unlimited medical coverage is the real culprit there.

The no-fault states you most hear about with respect to fraud and abuse besides Michigan are New Jersey (ranked 12th), Minnesota (ranked 27th), New York (ranked 33rd) and Florida (ranked 34th).  In fact, 7 no-fault states have average premiums below the U.S. national average of $1,510.  So no-fault can contribute to high rates but it is not the most common factor.

So what is?  Well taking a look at #1 on the list Louisiana, compared to the rest of the country, Louisiana drivers who get in accidents file more bodily injury claims than drivers in other states.  In addition, a greater portion of people filing insurance claims hire attorneys and lawsuits involving claims under $50,000 go before judges instead of juries. Some observers say elected judges are more likely to side with local people than insurance companies.  Finally, there is a high proportion of uninsured drivers on the road.


Wild weather and uninsured drivers keep rates high in Oklahoma. Hailstorms routinely pummel thousands of cars in a few moments, and their owners face decisions over whether to wait for the next time or file a claim -- if they have coverage, that is. Nearly one in four Oklahoma drivers is uninsured, the second-highest rate in the country.

In each state, the conditions that lead to higher rates end up being quite different - it could  be high comprehensive claims, a large number of uninsured drivers, large number of fraud claims, high collision and claim rates or a generous compensation system.

MOT Test Changes!! March 2013

MOT Test Sign


This month (March 2013) see's some changes to the list of testable items on the MOT Test. In this article I will explain what the changes are and how you can you can check them your self, to enable you to take your car for it's MOT test well prepared.



The changes list here cover MOT Classes 4, 5 and 7. Yes that includes your car, minibus or van.



Please read the following

Car Insurance : Confusion in the periods of notice

The traditional date for the car insurance is the 30 November. Yet know just two-thirds of German motorists on this date, so the result of a study of the YouGovPsychonomics on behalf of DEVK insurance. What therefore still less customers know: car insurance not on the calendar year is completed, entirely different notice periods apply. No wonder, then, that the desire is getting louder for more transparent change dates.

YouGovPsychonomics surveyed more than 1,000 motorists who pull a change of their auto insurance into account. Most willing to change are already old hands: 75 percent of respondents have at least once their existing contract in the past five years terminated. About 40 percent have been even twice or more the change.

Cancel until 30 November - or maybe to another appointment?

In contrast to most other insurance companies, the notice of car insurance is only one month. Usually, the termination date on the 30 November thus falls to change without giving reasons on January 1 to a different provider. Until recently, it didn't matter, the police has been completed to date. But here is now careful: last year, individual providers like Allianz, Zurich, or insurance companies of the ERGO Group have introduced customer-specific maturities. In this case, the term not as usual ends on December 31 but corresponds to a duration of twelve months. Completed the contract, for example, on 18 June, he must be - announced no later than May 17 exactly eleven months after the beginning.

Car Insurance : Price war of motor vehicle insurers

Prices for car insurance are increased slightly compared to the previous year. The hard winter 2010 as well as the disproportionate number of accidents were the decisive factor. But by no means a general trend towards increases in the insurance industry on the records. On the contrary, high competition in the industry and the merciless struggle for market share, the price level keeps constant low.

Every year are competing insurers especially to the automotive Wechselsaison to win the favor of customers. With affordable premiums, they want to shine at the beginning to do well as much new business. With words such as "we are the Aldi of the insurance industry", HUK-Coburg offensive enters the race. The Group has recently replaced the Alliance in the retail business of the Automotive Division as a market leader. The premiums an average 11 per cent have fallen industry for six years. That has pulled the rug from under the feet away some providers such as, for example, the Ineas, which went bankrupt this summer.

However, if you think that so is the price dispersion, which is wrong: hardly are costing the companies to undercut. Business with the automotive policy is profitable only if the main unit - the combined ratio – remains of the insurer under the 100-percent mark. It exceeds this value, cost of damage and management no longer has the premiums may be covered. Be sold also as in the past year many policies with discount protection, means for the customer in an accident while not upgraded and therefore no rise in premiums - who has insurance but additional costs to carry, that have been provided the policyholder account were originally.

Some insurers accept the fight at the damage limit of cost but in the short term, to lure many new customers with extremely competitive premiums. Because especially in motor insurance, customer loyalty is very strong: who once opted for an insurance provider, it remains faithful to typically long.

The insurance agents around the corner gives a discount on request of the customer partially or tries to thrash away the competition from the Internet through discounts on product bundling, but that goes for customers mostly at the expense of transparency. The HUK-Coburg that is however not the case: "our prices are non-negotiable. All customers with similar characteristics get in the applicable fare the same price", said Board Member Klaus-Jürgen Heitmann.