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auto insurance

Pasco County woman sees 55% jump in car insurance rate: ‘I went into complete shock’

TAMPA, Fla. (WFLA) — From the grocery store to your rent or mortgage, it seems price increases are hitting everyone from every direction.

And now, here’s a new one that’s sucker-punching Florida drivers: Astronomical increases in car insurance rates.

8 On Your Side Investigator Mahsa Saeidi has been digging into what’s behind these increases.

We’ve seen such turmoil in the property insurance market. Of course, that has a direct impact on Tampa Bay homeowners. But car insurance has a direct impact on almost every single one of us.

Despite having no accidents, no tickets and no changes, one family in Pasco County saw their bill spike 55 percent.

“I went into complete shock,” said Pat Parlee. “I mean who can afford that type of increase.”

Starting next week, to insure two cars, Pat will be paying $115 more each month.

The cost of renewing her auto insurance went up 55%, going from over $1,200 to roughly $1,900—and that just covers half the year.

Pat’s been with her insurer, United Services Automobile Association or USAA for decades.

“After the shock wore off, I said what is going on that’s causing this,” said Pat, “I couldn’t get a straight answer on if there’s any types of caps on how much your auto insurance can increase.”

“So, that’s why I reached out to you because you’ve been so involved in everything with the insurance.”

8 On Your Side contacted the Florida Office of Insurance Regulation and found, for USAA, the state’s new insurance Commissioner Michael Yaworsky approved, on average, a 20% rate hike, statewide.

The rate hike impacts customers differently, according to insurance experts.

In a statement, USAA says “the price of goods and services has increased significantly” and “USAA has

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April 15, 2023 by INSURANCE

The Most Confusing Car Insurance Terms Every Driver Should Learn
Photo: Sawat Banyenngam (Shutterstock)

Photo: Sawat Banyenngam (Shutterstock)

When it comes to navigating new insurance policies, it’s easy to get lost in all the jargon that gets thrown your way. However, you should understand all the confusing terms in order to make the best decisions to protect your car and yourself. Whether you’re in the market for a new car or you need to navigate the insurance you already have, here are some of the top terms you need to know.

Top car insurance terms you should know

These are some of the most common car insurance terms to get a firmer grasp on, arranged in alphabetical order.

Read more

An additional coverage to your insurance policy where your rate won’t go up as a result of your first at-fault accident. You may qualify for this additional coverage if you have five years of accident-free driving.

The amount it costs to replace damaged or stolen property, minus depreciation. You might also see it defined technically as “replacement cost less depreciation.” ACV doesn’t replace your property, but reimburses you for the item’s value at the time of loss.

A change to the basic policy contract. An amendment alters the policy, not to be confused with an endorsement, which adds to it.

A device that deters auto theft. This is useful to know because these devices may entitle you to a discount on your insurance premiums.

If an insurer considers you too high-risk (aka, high-cost) to cover, you must get coverage through a state-assigned risk plan. Unfortunately, these plans cost more than regular car insurance.

Someone who has an insurance policy. Means the same as an insured or policyholder.

A temporary agreement that a policy is in effect; this is used to protect the policyholder when it is not possible to issue or endorse the policy

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April 2, 2023 by INSURANCE

Cost of car insurance, care for the catastrophically injured at stake as Supreme Court hears no-fault case

The Michigan Supreme Court heard oral arguments today in a case that will determine the kind of medical care received by nearly 15,000 people who were catastrophically injured before the state’s No Fault Insurance Act was amended in 2019.

It will also determine whether Michigan drivers will get the kind of savings on their auto insurance promised by the architects of those reforms.

The case, originally brought by two car crash victims against USAA Casualty Insurance and Citizens Insurance Co., hinges on whether newly imposed limits on payments for medical treatment apply to those whose injuries occurred before the new law was passed.

The Michigan Court of Appeals ruled in August that they did not, saying nothing in the law signaled the legislature’s clear intent that it applied retroactively and that, even if that had been what lawmakers wanted, such an action would violate the Contracts Clause of the Michigan Constitution.

That decision allowed those who had suffered catastrophic injuries to resume receiving the sort of care they’d gotten prior to the new fee schedules going into effect in July of 2021, particularly care from specialized rehabilitation centers, which had seen reimbursement rates slashed by 45 percent .

It is also derived in the Michigan Catastrophic Claims Association Increasing its annual assessment on all Michigan drivers by $48, saying the additional money was needed to cover an estimated $3.7 billion deficit the decision created.

Lori McAllister, the attorney representing the insurance companies, opened her argument by pointing to the costs.

“We all know auto insurance in Michigan is anything but affordable,” she said. “We get the highest rates in the country. People in urban areas struggle to buy insurance at all at affordable rates.”

The unlimited medical care that was part of the state’s previous law was a significant

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March 4, 2023 by INSURANCE

Here’s where you can get the cheapest car insurance in Utah

Sponsored: Which companies offer the cheapest car insurance?

(Adobe Stock) Which Companies Offer the Cheapest Car Insurance?

| Feb. 16, 2023, 9:37 pm

| Updated: Feb. 20, 2023, 8:18 pm

No matter where you are in life, it’s never a bad idea to cut expenses where you can, and that includes auto insurance. If you’re looking to cut your Utah car insurance premiums a little — or if you’ve just moved there and plan to change your policy — there are some key things to look for when it comes to finding the best cheap car insurance in Utah.

Which Companies Offer the Cheapest Car Insurance?

If you’re shopping around for a better car insurance premium in Utah, there’s some good news right out of the gate — the average motorist pays $1,386 per year for their car insurance — which is 9% less than the national averageas calculated by Ross Martin at The Zebra.

There’s even better news: depending on the company and coverage you decide to go with, your rates could be much cheaper than that. The Zebra has data on this as well: the cheapest company to buy car insurance from in Utah is Nationwide, at an average of $90 a month (or $1080 a year). GEICO came in second at $94 a month, and Progressive third at $104 a month.

Of course, which insurance company you choose isn’t the only factor that determines your premiums. Some companies rate better than others when it comes to having full coverage (liability and collision). While the three companies listed above still rank as the cheapest for ful coverage in Utah, other companies have low rates, too — State Farm comes in at $115 a month, while USAA clocks in at $112.

The not-so-good news is that these rates

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February 21, 2023 by INSURANCE

Florida sees the biggest jump in car insurance rates

MIAMI – After two straight months of decline, consumer prices rose more than expected in January.

Inflation jumped .05 percent last month to an annual rate of 6.4 percent. One of the key reasons why inflation remains stubbornly high are items like auto insurance, up nearly 15 percent over the last year.

Juan Maroso said the cost of insuring his Tesla in Miami gave him a whole new kind of sticker shock.

“My regular insurance was $2,400 for six months, and it went up to $4,000,” he said.

That’s nearly a 70 percent jump.

“It’s one more thing to add to the list, honestly, but it hurts. It definitely hurts,” said Maroso.

A new report by Bankrate.com found nationwide premiums have risen more than $240 dollars on average, topping $2,000 a year ($2,014).

Florida drivers saw the biggest jump, up nearly twice that amount $421 to almost $3,200 a year. In 2022, the average was $2,762, add $421 to that for 2023 and drivers are paying $3,183. As a percentage of average household income, drivers living in Miami now pay the most – 5.51%, or $3,447.

Hal and Simone krantz of Coral Springs each had a car and said their auto insurance bill went from $1100 to $1700 for 6 months

“Assuming a 50 percent increase is ridiculous and everyone just accepts it and I don’t think we have to,” says Hal Krantz

They drive a little and have no accidents or tickets.

Krantz called other insurance companies looking for a better rate and didn’t find anything different. He says he is looking at raising his deductible.

Mark Friedlander with the insurance information institute which tracks trends blames the higher rates on more accidents, and increased costs for labor.

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February 19, 2023 by INSURANCE

Auto insurance is getting even more expensive for 1.2 million NJ drivers in the new year

As many as 1.2 million New Jersey drivers will begin paying more for their auto insurance in the new year under a bill Gov. Phil Murphy signed into law that increased the minimum amount of liability insurance drivers need to have in the state.

Drivers affected by the controversial law can expect to pay around $125 more a year per car for insurance, according to industry officials. It goes into effect on New Year’s Day.

The new law hiked the minimum amount of liability coverage previously allowed from $15,000 to $25,000. Baked into the legislation is another increase in minimum liability coverage to $35,000 in 2026, so drivers can expect to pay even more in three years.

Industry officials said at the time the bill was debated it would affect 1.1 million drivers. But the state’s Department of Banking and Insurance, which has oversight over insurers, said there’s an estimated 1.1 million to 1.2 million vehicles with the current minimum coverage.

Overall, there are 5,970,000 private passenger vehicles insured in New Jersey, according to DOBI.

Proponents of the law argued that victims of crashes haven’t always been able to have their medical bills covered in full because of the low coverage option.

Gary LaSpisa, the vice president of the Insurance Council of New Jersey, said at the time the average settlement for accidents with injuries was $18,000. The group supported the hike on the minimum coverage based on the gap in what’s allowed and the average settlement rate in the state, but it ultimately withdrew support for the bill because of the automatic increase in 2026.

The measure was highly controversial when it was debated in Trenton in June.

New Jersey’s most powerful state lawmaker, state Senate President Nicholas Scutariintroduced more than a half-dozen bills that opponents

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January 4, 2023 by INSURANCE

Mercury Auto Insurance Review | The Ascents

top perks

Affordable premiums

Mercury Auto Insurance is more affordable than many competitors. This is true both for motorists with a clean record and for those who have an accident history. On top of its low premiums, the company also offers additional opportunities to earn discounts. Price conscious consumers will appreciate the insurer’s affordability.

In-person support

More than 9,400 independent agents sell Mercury Auto Insurance policies. For those looking for in-person help in obtaining coverage, Mercury Auto Insurance makes it available — unlike some competitors who offer online or phone assistance only.

What could be improved

Better customer service

Mercury Auto Insurance’s customer service ratings are below average on JD Power studies. It is also not possible to file a claim online with Mercury Auto Insurance. Many competitors provide the option to file claims digitally. This adds more hassle to an already stressful situation after a crash.

Wider availability

Mercury Auto Insurance is available only in a limited number of states, including Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. Other insurers have far broader coverage across the US

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December 10, 2022 by INSURANCE

Auto, homeowner insurance shopping declines in Q3 because of hurricane activity: TransUnion

A return to the office and commuting could drive insurance shopping activity in 2023, TransUnion said. (iStock)

Hurricane Ian impacted auto and home insurance activity in the third quarter of 2022, a recent TransUnion report said. As a result of the storm, overall spending in these markets dipped 2% below the previous quarter.

However, insurance activity got a boost from more consumers buying new cars. There was an 11% uptick in automobile sales during the month of October, compared to the same time last year, TransUnion said, citing JD Power.

Inflation and higher premium prices also drove consumers to shop for insurance carriers at lower rates, the report said.

“The good news this quarter is that automobile inventories saw signs of relief to better meet pent up consumer demands,” Michelle Jackson, senior director of personal property and casualty insurance in TransUnion’s insurance business, said. “What’s more, the demand itself is likely to increase as more employees are commuting into the office – all of which should have knock-on effects for auto sales and insurance shopping.”

If you are looking for ways to save on your home or auto insurance, comparing multiple insurance companies can help you find the best rate. You can visit Credible to shop around and find the best options for you.

MAJORITY OF AMERICANS FEAR A RECESSION IS COMING, SURVEY SAYS

Bundling drives up home insurance shopping

Shopping for homeowners’ insurance dipped 1% below second-quarter activity and was down 7% from last year, TransUnion said.

Much of the activity was driven by homebuyers relocating to new states. Lower-cost states with strong economies, such as Texas, Florida and North Carolina, saw the most significant influx of homebuyers.

Consumers looking for lower auto insurance premiums also drove up shopping trends on the home insurance side, led by

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November 30, 2022 by INSURANCE

Illinois car insurance rates rising with inflation; how to find deals, discounts, and quotes for cheap insurance

CHICAGO (WLS) — Your car insurance bill may be significantly higher lately, with some consumers paying up to 30% more.

“Every additional expense especially while I’m not currently working is just really, really challenging,” said Chicagoan Christina Byrnes.

Drivers like her are trying to put the brakes on rising auto insurance rates.

“There’s still supply chain issues from the pandemic. So, like, the cost to repair vehicles is more expensive, which drives up the cost of car insurance,” said consumer advocate Ben Moore at Nerd Wallet.

They and the Illinois Public Interest Research Group have been monitoring the car insurance price hikes.

“It ranges from anywhere from eight to 10% on the lowest and to almost 30% on the highest,” said PIRG’s Abe Scarr.

There are some steps you can take to save. First, ask your insurer if you qualify for discounts.

“For example, maybe you’ve gone years without getting into a car accident or getting a traffic violation, you might qualify for a good driver discount that could be missing,” adds Moore.

You can also ask about programs that lower the cost for people who don’t drive as often, known as “pay per mile” insurance.

“You get either a plug in device that plugs into the diagnostic port of your car that tracks your car mileage, or you download an app to your smartphone that automatically tracks the mileage that you’re driving,” Moore said.

You can also try to save by bundling auto insurance with a home insurance policy, and considering increasing your deductible, meaning you’d pay more to repair your car after a wreck.

“I will say that only do it if you know that you have enough cash on hand to cover a deductible in case you do get into a car crash and need to

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August 31, 2022 by INSURANCE

Michigan drops to 4th most expensive state for auto insurance, new report finds

LANSING, Mich. — Michigan is no longer the most expensive state for auto insurance, according to a new report.

Insure.com released its annual report on car insurance rates by state, ranking Michigan fourth most expensive in the nation.

Michigan, which was ranked second most expensive in 2021, now follows Florida, Louisiana and Delaware.

Researchers attribute Michigan’s auto insurance cost decrease to the 2019 bipartisan no-fault auto reform, which took effect on July 2, 2021.

According to member company data from Insurance Alliance of Michigan (IAM), more than 200,000 Michigan drivers without prior coverage bought auto insurance since the reforms took place.

IAM says out of those drivers, more than 83,000 of them were without auto insurance for at least three years.

“Michigan once had a broken, outdated and expensive auto no-fault system. Bipartisan auto no-fault reforms have cracked down on fraud, reined in overcharging by medical providers and have provided consumers a choice – all while continuing medically necessary care and offering the highest personal injury protection coverage in the nation,” said Erin McDonough, executive director of the Insurance Alliance of Michigan.

However, the Michigan Public Health Institute conducted a report between September and October of 2021, commissioned by the Brain Injury Association of Michigan, which found that more than 1,500 crash survivors lost access to care since the no-fault reform went into effect.

READ MORE: 1 Year of Auto No Fault Reform: Crash survivors still struggling to get some care

That report also found that more than 3,000 medical-care employees lost their jobs and 96 care companies said they were no longer able to accept patients with auto no-fault insurance benefits.

Click here for FOX 17’s full coverage on Michigan’s Auto No-Fault Policies

Follow FOX 17: Facebook – Twitter – Instagram – YouTube

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August 28, 2022 by INSURANCE
December 2023
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