TEXAS INSURANCE COMPANIES GIVEN WARNING OVER DUBIOUS PRACTICES
TEXAS INSURANCE COMPANIES GIVEN WARNING OVER DUBIOUS PRACTICES
Texas insurance companies are under the spotlight with the state’s insurance commissioner, Mike Geeslin, unhappy over the propensity of certain companies to limit their policyholder’s choice of repair shop.
The state’s insurance code doesn’t allow insurance companies to dictate terms such as type and condition of auto parts used as well as the policyholder’s choice of repair company.
Giving extra notice regarding vehicle repairs to consumers is strictly forbidden by state statutes yet some companies are doing precisely that.
According to the Texas Insurance Code (TIC), no insurance company has the power to suggest or demand a consumer to choose a particular repair shop. Any company that does this is in breach of Chapter 1952, subchapter G of the TIC.
The Texas Administrative Code (TAC) states that an insurance company must specify
to their clients that they are allowed choose whichever repair shop they like so long as they are not forced to pay unreasonable amounts.
Interestingly, Geeslin believes that this gives some insurance companies the impression that they can charge the policyholder more if they don’t have the repairs carried out by a company on the insurer’s approved list. This could be against the rules of the TIC and TAC because it violates the consumer’s right to choose their own repair company.
Also, certain companies only pay out extremely low reimbursement rates which means that policyholders are forced to have low quality repairs done which renders their vehicle unfit for the road.
Generally, personal auto insurance policies should force the insurer to pay an amount that equates to high quality repairs or a replacement vehicle of a similar standard. The current practice of insurers paying less than what they should has been blasted by the state Insurance Department as it can lead to substandard repairs which are dangerous. The Department has been put on record as stating that it will pursue any insurance companies that don’t pay out the requisite amount.
CONSUMER ADVOCATES BELIEVE THAT THE NEW EXTENSION LEGISLATION PROPOSAL FOR LOWER COST AUTO INSURANCE SHOULD BE SIGNED BY GOVERNOR SCHWARZENEGGER
Those in favor of protecting consumer’s rights are putting pressure on Governor Schwarzenegger to sign the AB 1597 bill which will allow low income drivers to benefit from cheaper automobile insurance. This Low Cost Auto Insurance program, which will not increase taxpayer’s bills, was already approved in California in August 2010 yet it needs the Governor’s signature to give it longevity.
Several prominent members of non-profit organizations such as Consumer Watchdog have spoken out in favor the bill. Their Executive Director, Douglas Heller, said that it should be an easy choice for the governor because of the assistance it will give to low income motorists. He was also adamant that the fact that it wouldn’t prove to be an extra financial burden on taxpayers and the likelihood that it would keep the roads safe should influence the Governor’s decision.
If signed, the AB 1597 bill will add a minimum of five years to the program. The Low Cost Auto Insurance Program only set back motorists around $400 a year and offers basic coverage but only to drivers with near spotless records. The reason why taxpayers don’t have to shell out extra for the program is because any claims that will be paid come from the premiums paid by the lower income motorists. The Consumer Watchdog group paid for a low cost insurance program in 1999 but it didn’t last the distance. This bill is overseen and funded by the Department of Insurance with an Assemblyman by the name of Dave Jones accredited with the bill on this occasion.
Voters said no to Proposition 17 in June as it was the polar opposite to AB 1597
Mercury Insurance funded Proposition 17 which was designed to seriously punish Californian motorists who had a coverage lapse in the previous five years. These people would have been forced to pay a large sum in order to be allowed to purchase insurance again. This is the antithesis of the Low Cost Auto Insurance program which was designed with the motorist’s finances in mind.
Douglas Heller explained the rejection of Proposition 17 by noting that voters were not interested in halting their fellow motorists in terms of getting new insurance. He also feels that the low cost program is so popular because it lowers the number of uninsured motorists on Californian highways and only drivers with good records can
benefit.
A quick review of the Low Cost Auto Insurance program
If you hope to be eligible for the program, here are some of the principle criteria. Your driver’s license needs to be almost spotless with no more than one point on it. You have to be over 19 years old and your income needs to be below the $27,000 barrier annual. If you are in a family of four, then this income should be less than $55,000. Drivers will be covered for $20,000 maximum in the event of an accident, $3,000 for property damage and $10,000 if you sustain physical injury. A vehicle with a value of more than $20,000 also excludes you from the program.
Over 50,000 people can thank this program for helping them get back on the road with 12,000 of these driving today. The program has also lowered the rate of accidents involving uninsured drivers and has paid over $8 million in the last three years. This has been as a result of approximately 3,000 accidents involving at least one member of the program.
Low income drivers need to become more aware of this plan because there are still far too many uninsured drivers on Californian roads. Visit Insurewish.com for tips on car insurance as well as a comparison of insurance company’s quotations.
NEW GRADUATES AND INSURANCE ADVICE
Once the millions of graduates come out of colleges in the United States, they have to leave behind the protection of the school walls and take on the big, bad world. While you may have majored in psychology, did you also learn how to pay off those ever-growing student loans or figure out where and how to get adequate insurance cover?
* There is a danger that being a graduate has removed you from your family’s health insurance cover. Find out from your family insurance provider if that’s the case and if it is, then you must immediately find coverage that suits you.
* Although many students don’t have a huge amount of material goods with them after college, getting renter’s insurance if you move into a new apartment is a prudent move. Regardless of how many possessions you have, the premiums will be so low as to make financial sense.
* Eventually, you will be employed in your first major job after college. This is when you must find out all you can about your employer’s insurance coverage. The problem with this is that a renowned insurer will have hundreds of clients on a waiting list which means you could be unprotected for a time which will mean a nervous wait.
* Whether you are moving back to your old neighborhood of trying out a new city, your car insurance coverage is likely to change in price so be sure to take another look at it before moving on.
* With thousands of people looking for insurance and seemingly hundreds of companies willing to oblige, competition is fierce. Therefore, it is wise to research several different companies as prices are likely to be very different from company to company.
To Find more information and compare auto insurance quotes read reviews and helpful tips use our free quote comparision tool.
THE 10 QUICKEST WAYS TO DRIVE DOWN THE COST OF YOUR CAR INSURANCE – WHAT YOUR CAR INSURANCE COMPANY DOESN’T WANT YOU TO FIND OUT
Owning a car doesn’t come cheap, what with the cost of gas, maintenance and insurance. Yet it is easier than you think to find ways to decrease the cost of your car insurance. Simple things like doing research on various quotes, reviewing your existing policy and increasing your deductible are just a small portion of what you can do to save money on your car insurance. Here are ten of the best ways to tighten your belt whilst retaining quality coverage:
1: Do some research and review rates twice a year
You should always check your current insurance rate at the start of the year but don’t wait until next year to do so again. An independent study has shown that those who review their policy every 6 months and switch companies save an average of just over $300 on a 6 month policy. Remember, you’re a different driver than you were a few months ago so be sure to consistently check quotes in order to save.
2: Higher Deductibles equal a lower premium
The more you spend on deductibles, the less you pay in premiums. While the cost of a major accident may be expensive, minor accidents actually cost you the same in terms of what you pay out of pocket.
3: Don’t pay insurance in monthly installments
Usually when you make a payment there will be administration fees added on. So by paying monthly, all you are doing is paying extra unnecessarily. For example, a $5 administration fee paid monthly for a year is $60 you don’t need to spend.
4: Check for Multi-Line Insurance Discounts
Multi-line policies are criminally underused. What this entails is purchasing your auto and home insurance from the same company. The Insurance Information Institute states that up to 15% can be saved in this manner.
5: Benefit from Good Driving Discounts
Generally speaking, good driving equals lower premiums. Some states ensure that it is illegal not to have good driving discounts. Take a look at Insurewish.com if you have been accident-free for the last three to five years and see if you are eligible for a discount of this nature.
6: Never overpay when it comes to paying tickets in your Car Insurance
Moving violations represent a risk for insurance companies which means that your insurance rates will go sky high. If you feel that your insurance company is being unreasonable in this regard, look around to find many other companies who will be glad to have your business.
7: Keep an eye out for Safe Vehicle Auto Insurance Discount
If you vehicle is loaded with safety features such as alarms, airbags and anti-lock brakes, your company is likely to give you a good deal. Always include these features when negotiating a new insurance policy.
8: Avoid Unnecessary Coverage
There is always the chance that you are paying for insurance cover that you don’t strictly need. Perhaps your auto club provides free towing yet your insurance policy charges you for towing as well. Get out the scissors and snip away these arbitrary costs.
9: Search for good senior and student discounts
College and even high school students can benefit from companies rewarding them with a lower priced policy for receiving good grades in school because they believe that studious people equal careful drivers. Also, those over 50 may be looked upon favorably because of their experience.
10: Pay less when you drive infrequently
Having low mileage per year often can lead to a lower premium with certain companies having established criteria. If you feel that your commute to work or general usage of your vehicle has waned, be sure to see if you’re able to save some cash by browsing all your nearest car insurance companies.
You can compare your Car insurance quotes and reviews and other useful money saving tips Insurewish.com.
