Car Insurance Roundup, April 7, 2016

Bob Dyer: Car insurance horror stories abound – Local – Ohio

Ever get the feeling an insurance company is thumbing its nose at you? Just keeps stalling, trying to wear you down?

Refuses to pay what it owes you because it knows you’d have to spend more money on a lawyer than what it would cost to simply take the financial hit and walk away?

Well, you’re certainly not alone. My inbox and voicemail almost crashed after Sunday’s column about a motorist who by all rational accounts is getting screwed over by Progressive Insurance. 

Higher rent and car insurance push consumer prices up – CSO –

New figures from the Central Statistics Office show most prices fell in March, but there continues to be huge hikes in the cost of insuring car and renting a home.

Overall consumer prices were down marginally, by 0.3pc, in the year to March, the CSO said.

But the cost of insuring a car has jumped by 32.6pc.

This means that a policy that cost €500 last year now costs €663.

Motor insurance costs have been rising because of under-pricing by insurers, new rules requiring more reserves to be put aside by firms, elevated personal injuries awards and lower investment returns.

These costs are being passed on to motorists, with some drivers being asked to pay 50pc more for cover. 

CTP reforms drive down car insurance

Chief Minister, Andrew Barr said that in recent years, the reforms had encouraged new market entrants.

He said in July 2013, three new CTP insurers — GIO, AAMI and APIA — had entered the CTP Scheme alongside the NRMA.

“The review of the Road Transport (Third-Party Insurance) Act 2008 shows this had an immediate impact on premiums, which were introduced at a competitive price and have been lowered over time,” Mr Barr said.

“Further premium reductions occurred on 1 April.” 

[7702] Car insurance accelerates with over-50s worst hit | Insurance

Car insurance price rises are taking off with average costs up 13 per cent in the past year to around £683, new analysis from insurance market research experts Consumer Intelligence shows.

The price rise is being partly driven by the increase in Insurance Premium Tax in November last year but average best buy prices have accelerated over the past six months with premiums rising around 7 per cent.

However Consumer Intelligence’s analysis – which is used by the Government’s Office of National Statistics to calculate official inflation statistics – shows its older drivers who are paying the price. Average premiums for over-50s are up by 15.3 per cent in the year to February compared to 9.3 per cent for the under-25s.

Older drivers still pay considerably less than younger drivers – the average premium for over-50s is £298 compared to £1,600 for the under-25s.

But there is some comfort for younger drivers as average motor premiums for them are still around 15 per cent lower than they were in October 2013 while over-50s have seen average price rises of 22 per cent over the same period. 

Cheap Car Finance 123 Launch New Affordable Car Insurance Search Tool for US – Press Release – Digital Journal

Cheap Car Finance 123 is an online platform that has been designed to facilitate car owners in finding the best and cheap car insurance in the US, according to different locations. The auto insurance experts at Cheap Car Insurance want to educate car owners about the different ways they can find affordable auto insurance to match their specific needs.

Experts have explained that the selection of a car insurance policy depends on many elements which include information about the financial situation of the owner of the vehicle, including their credit score, the car itself and the minimum coverage requirements for cars set in state law. Their new website has been created to provide a lot of the vital pieces information auto owners would require to make an informed decision. 

Prepare Your Car for Spring Weather By Purchasing Auto Insurance! | Virtual-Strategy Magazine

Seasons will force drivers to adjust their vehicles to new weather conditions. The newly released blog post explains how to transition from winter to spring by properly preparing the vehicle. Some updated will be necessary like changing the tires and generally revising the car’s technical condition.

Drivers should start the new season by taking their vehicles to a mechanic for a revision. A mechanic will be able to check the car’s transmission, brakes, tires and engine. It will offer recommendations about what needs to be improved and drivers will be able to improve their cars.

Checking for auto insurance quotes is also important. Spring can be a great season for purchasing or renewing a policy. Having proper financial coverage is always important. MAybe some drivers will want to update their plans to fit their new situation. A technical revision and an auto insurance policy update can go very well together. 

AAA: Costs of Car Ownership at 6-Year Low – Yahoo Finance

The cost to own a car is down to a six-year low, thanks to cheaper gas prices.

According to a new study from AAA, the average bill for U.S. drivers is $8,558 per year, or 57 cents for every mile. The final tally includes fixed and variable expenses, including gas, insurance, maintenance and depreciation.

“Thanks to lower gas prices, American drivers can expect to save hundreds of dollars in fuel costs in 2016,” said John Nielsen, AAA’s managing director of automotive engineering and repair. “Fortunately, this annual savings more than offsets the moderate increases in maintenance, insurance, finance charges and other costs associated with owning and operating a vehicle.”

Fuel costs of 8.45 cents per mile are down 24.6% versus last year’s study. AAA said the average price for a gallon of regular gas slipped to $2.139 in the fourth quarter. The current national average is $2.047, up 23 cents compared to a month ago. But gas prices are still down 34 cents versus the same day in 2015 because the seasonal hike in spring pump prices has been smaller than usual. 

Technology Transforms How Insurers Calculate Risk – The New York Times

The world is a dangerous, unpredictable place — not a bad thing, perhaps, if you’re in the business of selling insurance, making loans or figuring out ways to prevent mishaps.

But these days, technology is changing some of the calculations around risk, whether for car insurance, life insurance, flood insurance or even vacation-related accident insurance, and slowly but surely disrupting the financial core of the insurance business.

Take the old saw that younger drivers are always the riskiest to insure, for example. Is it always true?

“A 22-year-old driver who parties a lot and drives 10,000 miles a year, or a 40-year-old teetotaling mom who drives 40,000 miles? I might think the mom is riskier,” said Dan Preston, the chief executive of Metromile. “Speeding a lot or braking hard, unless you’re going 100 miles an hour, it doesn’t make much difference.” 

Dairyland Insurance: A Complete Guide

Dairyland Insurance specializes in auto and motorcycle insurance for drivers who typically can’t get coverage anywhere else, such as those with serious or repeated traffic-related offenses or DUI convictions. If you’ve been pegged as a high-risk driver, Dairyland might be right for you. 

Used cars cheaper to insure than new ones – Khaleej Times

Expats with a high disposable income in the UAE are used to splurging on swanky cars. But besides the bragging rights, have you ever thought of the recurring costs that come with buying with a luxury car? Insurance and maintenance are the biggest costs you need to keep in mind before committing your dirhams to the auto dealership.

Online home services marketplace and Qatar Insurance Company UAE (QIC) have come together to inform prospective car buyers the do’s and dont’s associated with insuring a luxury car.

For instance, did you know that it is generally cheaper to insure used cars than new ones? 

Auto insurance discounts for older drivers — Williston Observer

Most auto insurance companies offer policyholders a wide variety of discounts, many of which can benefit retirees. Auto insurers love older drivers because they’re experienced behind the wheel and they drive less than younger age groups, which makes them a lower risk for accidents and a safer bet for insurance companies.

While discounts will vary by insurer, many of these benefits can reduce your overall premium by 15 to 20 percent or more, and you are usually allowed to combine discounts to increase your savings. Note that combined total discounts are still often capped at around 25 percent. 

Co-op boss Richard Pennycook asks for major pay cut

The Co-operative Group’s chief executive, Richard Pennycook, has asked for a 60pc pay cut as the mutual emerges from its crisis-stricken past.

Mr Pennycook, who reluctantly took the reins in 2014, said the Co-op had “turned a corner” as it moved from the “rescue” to “rebuild” phase of its turnaround. As a result, he has asked the board to slash his basic pay from £1.25m to £750,000.

Depending on his performance, Mr Pennycook’s minimum pay will be £839,000 per year, down from £1.39m previously. His maximum potential pay is down from £3.9m under the previous scheme to £1.5m under the new arrangement. Last year he took home £3.6m, according to the mutual’s annual report. 

Company boss claimed her car had been stolen after drink-driving related hit-and-run (From Lancashire Telegraph)

A COMPANY boss who claimed her car had been stolen after a drink-driving related hit-and-run incident, which saw a man hurt, has been given a suspended prison sentence by magistrates.

Clothing firm owner Johar Amin Chowdhry, 25, was found to be nearly twice the drink-driving limit after Aseem Isqaq was knocked down in Slade Lane, Padiham, late last year, Pennine magistrates were told. 

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