Travelers Gives New Discount for New Cars

Posted February 28th, 2011 & filed under Car Insurance, economy.

Noted property and casualty insurance company Travelers has announced a new discount available to their customers. This discount is tied to new cars.

The New Car Discount gives customers a savings of up to 10% on their collision coverage for new vehicles, and can be applied to vehicles that are three or fewer years old. The actual amount of the discount is based on the age of the car.

In a press release, William Pearse, vice president of Product Strategy and Design for Travelers, spoke about the new discount, saying, “The New Car Discount is one more way that Travelers is helping customers save money while delivering peace of mind that they have the right auto insurance coverage. It can be easy to get caught up in the features and looks of a new car, but it’s important to make sure your new investment is properly protected.”

Arkansas Bans Talking/Texting in School Zones

Posted February 25th, 2011 & filed under Arkansas Car Insurance, distracted driving.

In another attempt to curtail distracted driving, the state legislature in Arkansas has given it’s approval for a ban on drivers using cell phones in school or work zones. The vote was approved in the state House of Representatives in a 52-41 vote.

Under the terms of the bill hands-free phones and GPS devices would not be subject to the ban. As well, these violations would be considered secondary offenses, meaning that motorists must be pulled over for a primary offense like speeding before law enforcement officers could cite them for cell phone use. The ban would be in force in school zones during school hours, and in highway work zones whenever workers were present.

The bill is now being advanced to the desk of Governor Mike Beebe. A spokesperson for the government says he plans to sign it into law.

The ban would go into effect on October 1.

Uninsured in OK? You Can’t Sue

Posted February 24th, 2011 & filed under Oklahoma Car Insurance, Uninsured Motorists.

The state of Oklahoma is trying to improve the number of drivers in the state who carry mandatory liability insurance. Since a state law requiring such coverage is apparently not enough, a committee of the state’s House of Representatives has voted to prohibit uninsured drivers from being allowed to sue for vague “pain and suffering” damages after they’re in an accident.

Speaking about this issue, state Representative George Faught (R – Muskogee) said, “There have to be greater consequences for uninsured drivers. If you or I are hit by an uninsured driver, there’s no insurance company to pay our actual losses, let alone ‘pain and suffering’ claims. Why should those same uninsured drivers be treated better than law-abiding citizens in a court of law?”

Under Faught’s new bill, House Bill 1045, the “maximum amount” an uninsured driver would be allowed to receive in a post-accident lawsuit would be limited to the “…amount of medical costs, property damage, and lost income.”

The bill would prevent uninsured motorists from suing for non-specific “pain and suffering” awards that so often result in huge settlements, though there are exemptions for uninsured drivers being hit by drunk drivers, or for when they’re passengers in someone else’s car during a wreck. It is felt that this prohibition could reduce the cost of auto insurance in Oklahoma.

Several official estimates over recent years have pointed to Oklahoma as having one of the highest rates of uninsured motorists in the United States.

Faught addressed this, saying, “We currently require drivers to carry liability insurance so they can pay for any damages they cause in an accident, but the law has no teeth. As a result, uninsured drivers get to bypass premiums, avoid liability, and still collect large awards if they are in an accident.” He added, “It’s time we made the system favor law-abiding citizens more than people who break the law.”

House Bill 1045 now moves to the floor of the Oklahoma House of Representatives for debate, amendments and a vote.

Ratewatch: Median Rates Go DOWN in California

Posted February 23rd, 2011 & filed under California Car Insurance, Rate Watch.

The Sacramento Bee is reporting today that California’s median six-month auto insurance rate has decreased by roughly 3 percent over the last year, to reach $809. Over the same period, the national median has also declined. The national median is now $675, or about 5.5% lower.

Quoting InsWeb, the Bee said that California men pay higher premiums than women with six-month medians of $836 and $772, respectively.

As well, the story says, drivers aged nineteen and under pay a median of $2,141 for a six month car insurance policy, while those just a bit older, in the 20-24 segment pay about a thousand dollars less, with their median cost being $1,154.

The lowest median rate in California goes to the 50-59-year-old drivers, who pay $654.

A three percent shift in the cost of auto insurance is considered relatively minor. The Bee also notes that California hasn’t had any major auto-insurance-related legislation that affected rates in the past year. Instead, rates are affected most by the average value of vehicles and the annual new-car sales in the Golden state. In the last year, the latter number decreased from roughly 1.6 million sales to about a million. The current trend among drivers is to retain older cars, or buy used vehicles, both of which generally come with cheaper insurance.

YouTube Tuesday

Posted February 22nd, 2011 & filed under DUI, YouTube Tuesday.

Many states are now requiring Ignition Interlock devices for people with repeat DUI convictions. Some states are even requiring them for first-time DUIs. But how do they really function? Here’s a video from a person who actually has to use one.