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Louisiana, Maine Offer the Highs and Lows of Car Insurance

March 21, 2013 by admin Leave a Comment

If you are looking for cheap car insurance, that quest will be easier to accomplish in some states than in others. Indeed, drivers in Louisiana can expect to pay the highest auto insurance rates in the nation while those in Maine pay the lowest on average. That is among the findings of the latest Insure.com survey of major car insurance carriers that pegged the national average for auto insurance at $1,510.

Annual Survey

smile face This is the fourth year for the Insure.com survey, one that examines six large carriers: Allstate, Farmers, Geico, Nationwide, Progressive and State Farm. Information was pulled from 10 zip codes per state and is based on a single, 40-year-old male who commutes 12 miles to work each day. This hypothetical driver has good credit, a clean driving record and policy limits of 100/300/50 for injury liability, all injuries and property damage in an accident respectively. A $500 deductible on collision and comprehensive car insurance applies.

Of course, other factors do apply including the type of vehicle driven, but the Insure.com survey reveals stark contrasts in car insurance costs across the nation. For the Louisiana driver, an average annual premium of $2,699 can be expected. For the Maine driver, that cost is just $934. Thus, a Bayou State driver might pay about three times as much for similar car insurance than a Pine Tree State driver would.

Rate Factors

Insure.com explains that there are a number of factors that impact auto insurance costs including the way a state sets up its car insurance system, the percentage of drivers that are uninsured, road conditions and the number of drivers competing for business. Louisiana’s rates are high because it has a high rate of comprehensive claims as the insured recover losses following natural disasters. The state also leads in the number bodily injury claims.

Maine’s low rates can be attributed in part to its rural landscape. Cities are small, overall traffic is light and drivers are used to taking to the road in all kinds of weather. The state also has a graduated licensing program in place, one that places restrictions on young drivers. Its a three-step licensing program that gradually provides greater responsibility as the driver matures. By age 18, young drivers are able to enjoy full driving privileges.

Michigan also has very high auto insurance rates with that average coming in at $2,520. Much of its elevated cost can be attributed to guaranteeing unlimited, lifetime personal injury protection, a benefit for the treatment of injuries sustained from a car accident. This generous provision also means that PIP claims have surged, rising from an average of $13,617 in 2000 to $44,138 in 2012. That increase is borne by consumers, but it also means that some people have been priced out of the system.

Car Insurance Reform

flood damage State reform is possible and can result in lower rates across the board for drivers. New Jersey had long been the most expensive place for car insurance, but reforms that began in the 1980s and picked up steam in the 1990s soon began to bear fruit.

Under former governor Jim McGreevey auto insurance rates began to fall for Garden State drivers as the state adopted a special car insurance policy to help reduce the number of uninsured drivers. New companies began to enter the market and existing companies quit canceling policies with some seeking out new business. Ongoing state oversight has managed to keep car insurance costs contained.

Vehicle Choice

Your choice in vehicle bought will have a large bearing on your cost of auto insurance. Amy Danise, editorial director of Insure.com, noted that “Louisiana can’t catch a break” and that drivers can save money by choosing the cheapest car in the state to insure, the Jeep Patriot Sport, while avoiding the Mercedes-Benz S65 AMG Sedan, the most expensive vehicle. Similar differences in vehicle costs across the nation can yield stark differences in car insurance rates.

“Even if you live in a state with high average rates you can probably reduce your bill,” said Danise. “Shopping around is the best way to save the biggest amount. But, even if you don’t want to switch insurers, you can ask your company if you’re getting all possible discounts and check insurance rates before you buy your next car – similar vehicles can have large insurance differences.”

money funnel Drivers can also assume greater risk by raising their deductibles. The example given featured deductibles of $500 each for comprehensive and collision. Raising that amount to at least $1,000 can drive down rates considerably.

Consumer Advocacy

Auto insurance reform usually begins with consumers who voice their frustration with the current system to their legislators. It took New Jersey decades to achieve real car insurance reform and although the state is currently ranked 12th and paying above the national average, its $1,697 average is well below Louisiana and just $187 above the current national average. Contact your state legislators to insist on changes including perhaps adopting or strengthening a graduated licensing program for young drivers.

See Also — About Car Insurance Classifications

Hurricane Sandy Toll: 250,000 Damaged Vehicles

March 1, 2013 by admin 2 Comments

Hurricane Sandy will go down as one of the costliest storms to ever hit the United States mainland, a primarily northeastern tempest that raked New Jersey and New York in October 2012, with damage felt from North Carolina to Maine. Thousands of homes were damaged or destroyed, while more than one-quarter of a million vehicles were also damaged, many beyond redemption.

Hurricane Sandy Flood Vehicles

Unfortunately, salvaged vehicles are sometimes reconditioned and sold to unknowing car shoppers across the country. Sandy-damaged cars have been reported from North Carolina to Maine, and include light-duty vehicles from Washington, DC, Pennsylvania, West Virginia and Ohio. To date, some 250,500 vehicles sustained Sandy damage according to the National Insurance Crime Bureau. Of those, New York and New Jersey have accounted for 210,000 claims.

The figures offered are both an indicator of the gravity of the damage sustained and the long time it has taken to record these losses. Indeed, the NICB expects that the numbers will continue to rise as additional claims are received and processed by insurers.

Consumer Disclosure

flood damage Sandy The NICB data is for insured losses and includes claims for minor damage to body surfaces, as well as to cars that were submerged and deemed total losses. Many flood-damaged vehicles are repaired and resold, including some that have been written off by insurers.

Flood vehicles can be bought and sold, provided that both buyer and seller are aware of the vehicle’s status. However, the NICB asserts that full disclosure is not always the case, with some buyers certain to be defrauded.

Telltale Signs

Last November, Auto Trends warned consumers about flood-damaged cars, noting several steps that car shoppers should take to avoid getting ripped off. Begin by researching the vehicle’s history and then examine its interior for signs of water damage, pulling up the carpeting and turning on the heater. Other clues can be found by checking the ignition and lights, keeping an eye out for residue and rust. You may also want to take the car to a mechanic for a thorough inspection.

As always, any consumer that believes that he has been defrauded should file a complaint with the police, the state office of the attorney general and the Better Business Bureau.

Raising Awareness

The NICB’s tally at publishing includes 15 states and the District of Columbia. Sales of flood-damaged cars, however, can take place across the country, as unscrupulous individuals seek to traffic damaged vehicles where the awareness of the problem is low.

See Also — Should I Repair or Replace My Car?

5 Ways to Celebrate the 4th With Your Car

July 4, 2012 by admin Leave a Comment

Friends, family, food and fireworks. There is something special about the 4th of July, a date marking America’s independence from Britain.

I have fond memories of the holiday dating back to the 1960s as a boy growing up in New Jersey. Our town kicked off the celebration with a parade and followed up in the evening with band shell music and fireworks.

fireworks and classic cars that were part of the parade, beautiful American-made works of art from the Model T to fin-tailed Cadillacs.

The day has certainly changed for our family. We now reside in North Carolina and live in a community where a parade is not held. That makes sense, though, as the hot temperatures make standing streetside with limited shade an undesirable prospect. But, that means there won’t be a series of cars to take in for my viewing pleasure.

Instead of a parade, I think I’ll get with some neighbors and have some fun with our own cars. That will happen BEFORE the festivities begin and the heat sets in.

1. Wash and wax — Yes, my car is due for its semi-annual wax. This time, I’m going to follow a suggestion made by Popular Mechanics and will work on taking the haze out of the plastic headlights. My neighbor owns a Mothers Powerball and I’m going to borrow it.

2. Clean and replace Inside, my car has some gum that someone dropped on the floor in the back. That gum is now part of the carpet and I plan to remove it. I have no idea if this ice cube method really works, but I think it is worth a try. I’ll reward my hard work by installing new rubber mats front and back.

3. Tidy the trunk I’m certainly not a person that throws stuff in the trunk and forgets it. Indeed, besides the spare and the lift, there is little else left in it. Still, I have a small emergency kit I’ll be placing in it and I’ll recheck the spare to make sure it is ready for duty when I need it.

4. Rubber or not Speaking of tires, I have it on my calendar to rotate same, but I’ll let my tire retailer do it as part of its lifelong Michelin warranty. The wheels, however, continue to accumulate brake dust and need special attention. I have a wheel cleaner that does the trick and will use a soft brush to get into those areas I might miss with my cloth.

5. Take it for a ride Following a morning work out with my car, I think I’ll convince my neighbors to go for a ride. It may not be in parade condition, but it will most certainly look much better than it did the day before. I’ll also ask my buddy, Tim, to bring out his 67 Skylark GS and see if we can head out to the local fishing hole before our wives and kids beg us to come back home.

Happy 4th to you and yours!