Premiums rise for drivers after not-at-fault wrecks, group finds

By Jennifer C. Kerr ASSOCIATED PRESS

The Consumer Federation of America found that people with moderate incomes often saw bigger premium increases than upper-income drivers.

WASHINGTON — Most drivers don’t expect to be hit with a rate increase on their auto insurance after a car accident that wasn’t their fault. But a consumer group says it happens, and it’s a problem.

The Washington-based Consumer Federation of America says it found rate hikes on annual premiums as high as $400 in some cases.

In the report released Monday, the group analyzed premium quotes in 10 cities, including New York and Chicago but not none in Texas, from five of the nation’s largest auto insurers. The researchers found that Progressive aggressively used a not-at-fault penalty, surcharging drivers in eight of the 10 selected cities. Rates in Oklahoma City and Los Angeles did not change. Oklahoma and California prohibit not-at-fault penalties.

The group said Geico and Farmers raised rates in some states by 10 percent or more. Allstate had occasional penalties. State Farm was the exception, with no increases for not-at-fault accidents.

“Most people know that if they cause an accident or get a ticket, they could face a premium increase, but they don’t expect to be punished if a reckless driver careens into them,” said Bob Hunter, CFA’s director of insurance and the former insurance commissioner of Texas.

The industry countered that setting auto insurance rates is complicated and insurers look at many factors, such as a person’s driving record, where the driver lives, the kind of car insured and the number of miles on it. Some insurers may consider not-at-fault accidents, according industry officials, but not all do.

The National Association of Mutual Insurance Companies says there could be other reasons for the rising premiums found by the CFA. But “the report itself only underscores the fact that insurance rates can vary widely from company to company, based on how different companies may weigh the many different factors that are considered in determining rates,” said Neil Alldredge, the association’s senior vice president for state and policy affairs.

Among the cities tested, drivers in New York City and Baltimore paid the most for doing nothing wrong, the consumer group said. In Baltimore, premiums increased more than $250, and in New York City, the rise was about $400. In Chicago and Kansas City, the average increase was about $100.

The federation’s report found that people with moderate incomes often saw bigger premium increases than upper-income drivers. That seemed to mirror average premiums in the report even for people with clean driving records and no accidents, with middle-income people generally seeing higher premium rates than those people with bigger incomes.

The consumer group called the five biggest auto insurers and asked for quotes for two 30-year-old female drivers, living at the same address in the different cities, licensed for 14 years and driving a 2006 Toyota Camry with 10,000 miles. One woman had a master’s degree and was a homeowner. The other woman had a high school diploma and rented her home.

The report found drivers with higher incomes, on average, paid $78 more after a no-fault accident. Moderate-incomes drivers paid $208 more after an accident in which they were not to blame.

from Ed Cuellar Insurance Agency http://edcuellar.com/2017/02/16/premiums-rise-for-drivers-after-not-at-fault-wrecks-group-finds/
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This Article is publish in the Mutual Benefit Group :
http://www.mutualbenefitgroup.com/insurance-101/personal-insurance-101/7-reasons-to-choose-an-independent-agent/
We found it very interesting and wanted you to have a look at it:

7 Reasons to Choose an Independent Agent

HOME \ INSURANCE 101 \ PERSONAL INSURANCE 101 \ 7 REASONS TO CHOOSE AN INDEPENDENT AGENT
Insurance can be a complicated purchase. You’re not buying bread or milk. You’re buying a promise of protection that could potentially make or break your financial well-being. How do you know that you’re making the right choices about coverage? Are you sure you’re getting the best possible value for your dollar? The options can seem bewildering.

Mutual Benefit has sold its coverage exclusively through independent agents for over 100 years. We’ve seen first-hand how the advice and advocacy of agents benefit our policyholders. Here are seven reasons why we believe the independent agency experience benefits you:

They give you a choice – Independent agents represent many different insurance companies that offer a wide variety of coverage options and price points. Most on average sell for five to eight different insurance companies. There’s no need for you to accept one quote from one company, and there’s no need for you to spend time filling out many different online applications to get your own quote comparisons. With their connections and their knowledge of the market, agents can often find a better value for your insurance dollar than you might find searching on your own. Agents do the shopping. You do the saving. They find you the right blend of price, coverage, and service.
They are licensed experts – Independents can explain the complexities of insurance in simple terms, helping you make smart decisions. They make a career out of assessing their customers’ insurance needs and matching them with the insurance carrier best equipped to meet those needs at a price the customer can afford. Think about it. While you might research wording for wills on the Internet, you’ll likely go to an attorney to ensure that the document is drawn up correctly. Why wouldn’t you seek the advice of a licensed insurance professional to be certain that your home, your auto, or your business is properly protected?
They are personal advisers – Agents not only find you competitive pricing, they make sure you are adequately covered. Working with you face-to-face, your agent becomes your personal adviser, taking the time to listen to you and understand your individual needs. They know it’s not just about finding a price you can afford; it’s also about making certain you are appropriately covered so that you don’t end up insurance-poor if you do suffer a loss.
They are your advocate – If you have a billing or claim concern, or need to change your coverage, your agent can be your advocate, working with the insurance company on your behalf.
They are right around the corner – Independent agents are your neighbors…they share your interest in the community where you live, and understand the benefits and challenges of living in your locale. They are often highly involved in the community, sponsoring youth sports teams, buying from your local businesses, supporting school organizations, and voicing opinions at the monthly Chamber of Commerce meeting. They are right around the corner, ready to help.
They offer one-stop shopping – Independent agents can often meet all of your insurance needs with the companies they represent, providing auto, home, renter’s, and business coverage. Many offer life and health insurance as well.
They are consultants for a lifetime – Independent agents periodically review your coverage. They are there to help you through all the changes in your life, whether you’re going from renting an apartment to buying a home, starting a business, getting married, renovating your home, adding a teen driver to your auto policy, or looking to cover that retirement condo.

from Ed Cuellar Insurance Agency http://edcuellar.com/2017/01/24/350/
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Buying Home Insurance

What You Need To Know Before Buying Home Insurance

A home is a significant investment. Your hard earned cash pays for the property and all of the items inside. It can take years to make a house feel like a home finally, and the last thing that you want is to lose it all in a disaster and not have any coverage to help your pay for the costs.

It’s imperative that you have your home protected in case of fires, a natural disaster, theft and more. Although homeowners insurance isn’t something that you should pass up on, there are still a few points that you need to know and consider before you purchase.

Points You Need to Understand

When it comes to buying insurance, you should never jump into buying the first policy that you come across. Investing in insurance is a decision that you need to think about thoroughly.

Not every homeowner will want the same type of insurance; there are various factors you should take into consideration to help you find a policy that will suit your needs. Do your research so that when it comes to selecting your insurance, you know what you’re looking for and doing.

Home Insurance Is Necessary

As the property owner, you’re the only one who can choose to protect your property. Without coverage for all of your personal belongings and property, if anything were to happen in your house, you’d have to pay for the costs out of pocket.

Consider Your Deductible

Before an insurance provider pays for any costs that you’re claiming, you must first pay your deductible. The lower your deductible, the less you’ll pay in the event of something happening to your property, but the higher your premium becomes. You need to consider your deductible and choose a cost that suits you the best.

Discounts

When taking out your insurance policy, it is worth checking if you qualify for any discounts. For example, you may be entitled to a discount if your home has a secure alarm system, deadbolts and an upgraded plumbing and electrical system. Insurance agents will be more than happy to discuss your options with you, so take the time to find out which policy would best suit your needs regarding coverage and price.

How Much Coverage Do You Need?

The more coverage you have, the less money you will need to pay in the event of a disaster. However, you don’t want to be over-insured as this can cost you more money than it’s worth. Ideally, you need to find the perfect amount of coverage that suits your circumstances best. In some cases, an insurance provider will make the decision on how much coverage your property and belongings needs.

Carefully Read the Policy

Let’s stress how important it is that you thoroughly read over your policy. When you invest in home insurance, the policy becomes a legal contract. All of your rights and your insurance provider’s rights are written clearly, and if you don’t look at it carefully, there could be some important points that you miss. For example, you may find that some insurance won’t cover you for certain natural disasters, so depending on where you live, you may want to consider getting extra coverage.

from Ed Cuellar Insurance Agency http://edcuellar.com/2017/01/03/buying-home-insurance/
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Tip On How To Reduce Your Auto Insurance Costs

Auto insurance, utility bills, and home insurance are just a few of the many costs that homeowners have to pay. Trying to save money in any way possible is vital to many people, and when it comes to auto insurance, there are ways of reducing your annual coverage cost. Why would you pay more when there’s a chance of paying less? To contribute to reducing your car’s insurance premium, take heed of the tips below. If you can save money on your auto insurance, you’ll have some extra cash, which is always nice.

● Park your car inside your garage – If your home has a garage and is currently used for something other than storing your vehicle – clear it out! With many insurance companies, if you park your car inside of your garage, they will often lower your insurance premium. Cars parked in a garage are a lot safer than on the street or your driveway. They have a lower risk of being stolen, broken into, crashed into, or vandalized.

● Car security and safety equipment – When you buy a new car, it will most likely have safety features built into it. These added features can help to reduce your auto insurance cost as they are made to protect the driver and statistically, a car that benefits from these safety features is less likely to be stolen or involved in an accident. Built-in safety and security equipment include anti-lock brakes, airbags, cut-off engine systems, and anti-theft systems. Other safety features that can save you some money are daytime running lights and a traction control system – these are not features that are included in all cars.

● Take a safe driving course – If you are a new driver or a senior driver, a safe driving course could help significantly to reduce your auto insurance cost. If you can successfully pass this driving course, many insurance companies will give you a discount on your car’s insurance premium. You don’t have to be a teen or senior; any driver can benefit from taking a safe driving course.

● Shop around and compare auto insurance quotes – Even when you already have insurance, getting quotes from different insurance companies can be helpful. You can compare the insurance quotes against your existing auto insurance cost – you may find that you are paying a lot more than quotes from other insurance companies. You don’t have to stick to the same insurance company for several years, keep comparing insurance companies to find the best deals.

● Higher deductibles – Deductibles typically range from around $0 – $1500. If you set a higher deductible, you’ll most likely get a lower premium.

● Switch your driver – If you have more than one car, which person drives which car can make quite a difference in the insurance premium cost.

● Education discounts – Statistically, if you have a graduate or 4-year degree, you are less likely to be involved in an accident. With some insurance companies, if you have a college degree, it may entitle you to some discount. Those under the age of 25 and still in education could also benefit from some auto insurance discount if they are getting high grades.

San Antonio

Texas

from Ed Cuellar Insurance Agency http://edcuellar.com/2016/10/27/tip-on-how-to-reduce-your-auto-insurance-costs/
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6 Types Of Auto Insurance

When a driver is involved in an accident, if the car needs any repairs or the driver has needed medical attention, insurance will seem like a godsend. There is a broad range of insurance options available to drivers, and some can find choosing between them quite difficult. When you are looking for auto insurance, you don’t want to go for the first option that you come across. Make sure to shop around and see what different insurance companies can offer you. You want to pick an auto insurance policy that best suits your needs.

If you aren’t sure about the different types of auto insurance that are available, below is a list of 6 different types and everything that you need to know about them.

1. Collision insurance

If you are involved in an accident and you have a collision insurance policy, your insurance company will pay for any repairs that your vehicle needs. If you are in an accident, and your car is totaled, this type of insurance policy will also pay you the value of your vehicle before it was involved in the crash.

Collision insurance is worth having if your car is a lot newer and is still great in value. If your vehicle is older and its value is low, that particular insurance probably isn’t worth paying for, since if you were to get into an accident and the car was totaled, you wouldn’t get much of a payout.

2. Protection against uninsured or underinsured motorists

Although auto insurance is mandatory, it still doesn’t mean that everyone has it. There are a lot more uninsured drivers out there than you will realize. There are also many drivers who, in the event of an accident, are underinsured and would not have enough money to cover the expenses. Without protection against underinsured or uninsured drivers, you run the risk of being left with hefty bills for an accident that wasn’t your fault.

3. Liability insurance

When a state requires that you have some form of auto insurance for your vehicle, liability insurance is often the one that drivers select. If you were involved in an accident and you are found to be the one at fault, liability insurance would cover any necessary costs of damage or medical bills.

One of the problems with having liability insurance only is that if you are involved in an accident, you may end up not having enough money to repair your vehicle as well. If any claims exceed the limit of your coverage, you must take personal responsibility to pay for them.

4. Comprehensive insurance

Comprehensive insurance covers more than just a car accident. Whether your vehicle is damaged due to weather, an animal collision or by theft, comprehensive insurance will cover you. Comprehensive insurance can be a bit costly, but if you can afford it, it’s worth getting – especially if your car is new and is not easily replaced.

5. Medical and personal injury insurance

When a driver is involved in a car accident, injuries are almost inevitable – they may suffer anything from whiplash to a life-threatening injury. Medical and personal injury insurance will cover any medical bills of the driver and also the passengers.

6. No fault insurance

No fault insurance is not available in all states – it doesn’t matter who is to blame, this auto insurance will cover medical bills and property damage. No-fault insurance can be a bit pricey, so you need to compare all of your other options before making a decision.

from Ed Cuellar Insurance Agency http://edcuellar.com/2016/10/04/6-types-of-auto-insurance/
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Young Driver Car Insurance

Saving Money On Young Driver Car Insurance

Statistically, young drivers are a lot more likely to be involved in car accidents – this can significantly increase the cost of auto insurance for teen drivers. When it comes to getting car insurance, new drivers don’t necessarily need their own insurance policy. It’s very common for the parents of these youngsters to add them to their insurance coverage as it works out a lot cheaper.

When parents add a young driver to their insurance policy, the premiums will increase, but not by a huge amount. The price that it increases by will still be a lot lower than a young driver getting an individual insurance policy. Here are some ways both the drivers, and their parents, can help reduce the cost of insurance.

How to reduce auto insurance

When it comes to insuring a young driver, many people automatically think of how costly it can be. There are many ways that young drivers and their parents can keep their insurance premiums down and affordable.

Young Drivers and Car Insurance

● Safe driver training course – Taking a safe driver course and successfully passing it is an excellent way to reduce your auto insurance. By passing the course, you are seen as a more reliable driver and less of a liability.

● Good grades – There are many auto insurance companies now that have a perk called good student discounts. If you are getting good grades in your education (a B average or higher), depending on your insurance company, you could get some well-earned discount.

● Higher deductible – Paying a higher deductible will help to lower your auto insurance premium. If you are on your parent’s insurance, you will need to get them to agree to increase the deductible.

● Driver’s Ed – Some states require young drivers to have driver’s ed but if your state does not, it’s worth enrolling in. If you can complete the driver’s ed course, depending on the insurance company you are with; you may be able to get some discount on your auto insurance.

● Avoid fancy vehicles – It’s every young driver’s dream to be able to pick out a brand new fancy car. If you are lucky enough to be able to do this, don’t. As a young driver, you’re much better off going for an older model. New models can be extortionate for young drivers to insure, so until you have a few more years of experience on your license, resist temptation and go for a car that costs less to insure.

Parents:

● Increasing your deductible – By increasing your deductibles, your auto insurance rates will automatically lower.

● Multiple vehicle discounts – With most insurance companies, if you add another car to an insurance policy, you can receive some discount.

● Encourage a sensible vehicle – A luxury car will be expensive for your teen to insure. Encourage them to invest in a car that is an older model and one that also includes safety features, as this will cost a lot less to insure.

● Collision and comprehensive cover – If your teenager is driving a car that isn’t of much value, collision and comprehensive cover may be some insurance options that you don’t need. If your teen is driving a newer car that is not easily replaceable, then definitely consider having collision and comprehensive cover.

from Ed Cuellar Insurance Agency http://edcuellar.com/2016/09/18/young-driver-car-insurance/
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Buying Insurance For Your RV

A Guide To Buying Insurance For Your RV

The cost for insurance on a recreational vehicle (RV) will depend on what class your RV is. There are three different categories, class C, B and A. An RV can be anything from a motor home to a converted bus. Many different factors will be taken into account when insuring your RV, one of these being how often you use your RV – whether you use it for vacations only or if you live in it full time.

Recreational vehicle classes

● Class C – Vehicles that have the camper extending over the cab area and that also use the cargo van for the driving section are in class C. Fifth wheel vehicles are also included in class C.

● Class B – Recreational vehicles that are under class B are often camper vans and travel trailers. These RV’s don’t have the cab over.

● Class A – The types of RVs that are a class A are those that are up to 75 ft long. They are often classed as luxury vehicles, and they’re the most expensive and largest. These include motor coaches and converted buses.

Average costs of RV Insurance

● For class B vehicles such as camper vans, an average auto insurance policy can cover the vehicles. Depending on the location, the value of the camper, the type of coverage and also the insurance company, the rates can vary quite significantly.

● For RV’s that are under class A, the average annual cost for an RV that is gas powered and used 140 days a year is around $1000 to $1300. The cost is determined by how old the RV is, what it’s value is and also by the size of the vehicle.

● When it comes to insuring travel trailers and fifth wheel vehicles, the cost is quite low compared to the cost of insuring an RV that is motorized. Depending on the age, size, value, and frequency of use of the trailer, the premium charges can differ. For those that own a fifth wheel vehicle that is of an older age and valued at around $8000, for annual coverage, it will cost around $170. A fifth wheel vehicle that is considered luxury will cost around $1300 annually if used for around 140 days a year.

● For an average sized motorized RV, they would typically come under class C. The premium cost can vary quite widely as it depends on the age of the vehicle, its location, its value, and its size and how often you use it. For a motorhome valued at around $120,000, depending on the location, the cost could be anywhere from around $800 – $3000 annually.

What does RV insurance cover?

How much coverage you receive from your RV insurance depends on what type of insurance you go for and also on the company you choose. Insurance for your RV is very similar to auto insurance, but it can also include some additional coverage that is comparable to home insurance. Additional coverage could cover any accessories that are attached to your RV, or it could be used to cover your personal belongings. Below are some other additional protection options that you can receive:

● If you live in your RV full-time, full-timer coverage could be included.
● Coverage for if you’re on vacation or in a campsite.
● Replacement coverage if your RV suffers a break-in and items are stolen.
● Coverage for if you’re in an accident with an underinsured or uninsured driver.
● Coverage for if you break down and need roadside recovery or towing.
● Coverage for any emergency expenses.

If you have any question concerning Insurance of an RV, wether you already own one or are thinking about buying a new one. Call Ed Cuellar @ (210) 647-7112

from Ed Cuellar Insurance Agency http://edcuellar.com/2016/08/22/buying-insurance-for-your-rv/
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