Fast Online Auto Insurance Quote Comparisons

The purpose of quote comparisons is to ensure competitive rates for the coverage desired, since the exact same protection may be priced differently within each company. Among the most commonly provided pieces of advice offered by professionals for maintaining low premiums is obtaining a few different quotes to better increase the chances of finding suitable coverage with premiums that fall within a given budget.

A website operated by a licensed broker, http://www.onlineautoinsurance.com/ connects consumers with an array of carriers by hosting a single set of questions and electronically returning a fast premium quote from multiple companies. This is possible through time-reducing online technology which eliminates the need of repeatedly completing questionnaires or making several telephone calls to gather a variety of options.

Based on rating factors and state laws, visitors may have the option of purchasing their policy online by signing applications electronically, replacing the ink signature. This gives policyholders the ability to insure vehicles without the need of driving to a local office location. In 2008, the World Wide Web has become a large source of policy issuance and indicates growth with each subsequent year.

Scarlett Zavala, website conversion analyst states, "A factor deterring a significant percentage of US consumers from going online to satisfy their insuring needs is information security. As we tighten up security features, we are seeing an increase in consumer confidence resulting in higher Internet usage to fulfill such needs."

With the use of a secure form, site visitors can be more confident that their information is secure. Additionally, for the purpose of rate comparisons, driver's license or social security numbers are not required although such data may be optionally provided for increased accuracy in auto insurance quotations.

Auto Insurers Assessing Reduced Driving on Their Rate Requests

Higher gas prices lead to less driving, and as New Yorkers drive less, the number of accidents should go down.

That's the assertion of New York Insurance Superintendent Eric Dinallo, who issued a bulletin to auto insurers on Aug. 6 instructing companies with pending requests for rate increases to examine the impact reduced driving may be having on their rates.

Nearly 50 auto insurers that have filings for rate increases before the insurance department are now conducting the required analysis. Their requests will not be considered if the additional information isn't included.

On the same day the bulletin was issued, Washington, D.C.-based Government Employees Insurance Co. (GEICO) withdrew a rate-increase request previously filed for two of its companies, GEICO and GEICO General, says Michael Moriarty, deputy superintendent for property and capital markets.

The action followed a previous discussion with the insurance department on how higher gas prices are reducing the number of miles New Yorkers drive, says Moriarty.

GEICO had filed its rate increase request in the spring. During the review process, the insurance department mentioned the possible domino effect of fewer accidents and insurance claims if higher gas prices mean people aren't driving as much.

The insurance department cites information from the U.S. Department of Transportation indicating that in May, the number. of miles Americans drove declined for the seventh straight month. New Yorkers drove 500 million fewer vehicle-miles (a 4 percent reduction) in May 2008 than in May 2007.

Vehicle-miles are the standard measurement of traffic volume, with one vehicle-mile representing one vehicle driven one mile.

GEICO was asked if the company had taken the possibility into account in its rate filing.

"They came back with some analysis, and basically indicated that due to the fact that gas prices are impacting the driving habits of New Yorkers, and people in the United States in general, that they would withdraw the filing in kind of a wait and see for the impact on their book of business," says Moriarty.

A second rate increase request for GEICO Indemnity, a company that writes policies for higher risk drivers, has also been reduced, says Moriarty.

In an e-mail, Rachel Veness of GEICO corporate communications, said the state insurance department has accurately described what transpired, "but because of the highly competitive nature of our business and because our competitors watch our progress with great interest, it's our long standing policy not to release any information about GEICO operations."

As of Aug. 14, eight days after the bulletin was issued, GEICO is the only auto insurer to withdraw a rate request. The company writes approximately $2 billion worth of auto insurance annually in New York, making it the state's largest auto insurance underwriter, according to Moriarty.

Andrew Mais, spokesman for the insurance department, says the average rate increase request is 7 percent among the 48 insurers that have filed and are now assessing the impact of reduced driving on their rates.

In 2009, all insurers in New York will have the ability to raise or lower their rates by up to 5 percent without prior approval from the insurance department.

The provision, called a flex-rating program, is part of a new state law that takes effect in January, says Timothy Dodge, director of research and external communications at the DeWitt office of the Independent Insurance Agents & Brokers of New York, Inc.

"What's good about that is it gives the insurance companies some pricing flexibility so that they can react more quickly to changes in the market when they see them," says Dodge, noting that right or wrong, the insurance department has a reputation for acting slowly on rate requests.

The provision indicates companies can raise their rates just twice in a given 12-month period, and the rate increases combined can't exceed 5 percent, says Dodge.

He says the law is somewhat biased toward rate decreases, noting companies can reduce their rates as many times as they want, as long as the reductions combined in a given year don't exceed 5 percent.

"It's going to allow the market to respond more quickly to changing conditions and that can only benefit consumers," says Dodge.

Any proposed rate increase over 5 percent would still need approval from the insurance department.

When asked if he felt the new flex-rating provision played any role in GEICO withdrawing its rate increase request, Moriarty said he honestly didn't know.

Without the need for department approval on 5 percent fluctuations, the new state law could mean fewer rate-increase requests for the insurance department to consider in the future, says Moriarty, acknowledging that insurance companies operate in a competitive marketplace.

Insurance Companies More Willing to Take on Teenage Drivers

Sep. 29--Insurance companies used to avoid teenage drivers, fearing they would prove a costly headache with their accidents and immature driving.

But things are changing.

Insurance agents say they now are offering discounts to teenagers and other young drivers, hoping to attract their business. That's something unheard of a few years ago.

The move comes amid greater competition among insurance companies, and at a time that young drivers are not quite the risk they once were for a variety of reasons.

Many states, including Texas, have placed restrictions on teenage drivers. Some can't drive between midnight and 5 a.m., or they can't have a cell phone or other mechanical device in the car. Others can't pack their cars with other teenagers.

Some parents are getting involved. They're investing in the latest in monitoring systems to watch their youngsters drive.

Something called the DriveCam, for example, can record what's going on inside a car and the view outside through the windshield.

Ricky Palmer sells security and tracking systems at a Waco company called Shades Custom Tint. He offers a GPS-like vehicle tracking system called Street Eagle that monitors the location and speed of a vehicle. It even can be used to shut down a car.

These movements can be watched on the Internet by anyone with the correct log-in information, Palmer said.

"We sell these for a lot of different reasons," Palmer said. "Some parents are looking to track kids, but most of our business involves installing the systems in fleet cars." Palmer said the system costs $350 plus a monthly fee that varies with usage.

State Farm, the nation's largest automobile insurer, has been offering discounts up to 15 percent for drivers under age 25 in most states who take part in its "Steer Clear" safety program that involves keeping a log of driving habits.

"We try to make the program available to everybody we can get a hold of," said Blake Harrell, a local State Farm agent. Harrell said insurance companies indeed are stepping up efforts to get young customers.

"People want future clients," he said. "If Mom and Dad die and Junior is not already on the books, he will go somewhere else. We'll take losses with the idea of getting future clients." Harrell said the log that drivers keep poses questions they must answer after taking trips. They may have to comment on whether they were distracted at any time during the drive, how many passengers they were carrying or whether they used a cell phone.

State Farm also offers a driver's training discount of 10 percent and a good student discount of 15 percent.

Safeco has rolled out its "Teensurance" program for drivers typically up to age 25. It offers as much as a 15 percent discount for participants who pay $15 a month for a satellite- tracking service that traces young drivers. Safeco pays for the equipment.

"We think it's a great idea. It just hasn't taken off in Texas, possibly because they haven't pushed it very hard here," said Don McKinney at Brazos Valley Insurance Agency in Waco.

He offers Safeco products, including "Teensurance." A company called Fireman's Fund has a "Youthful Driver" program for young adult drivers, and it is available in Texas.

It allows young adults to qualify for their parents' discounts and credits until they reach their 27th birthday. By that time, if they have kept their record clean, their premiums should decline.

The Wall Street Journal reports that a changing market is behind the way young drivers are viewed today.

Auto insurance premiums have been flat or even down in much of the U.S. because of safer cars, reduced theft rates, better fraud prevention and greater competition. U.S. auto insurance premium rates rose just 0.4 percent in 2007, according to the U.S. Bureau of Labor Statistics.

Tech-savvy youngsters, meanwhile, are more likely to shop the Internet for the best deals on insurance, which is another reason insurance companies are courting them with discounts.

Still, young drivers remain riskier than other groups. Drivers under age 20 were only 6.4 percent of the nation's drivers in 2006, but they were involved in 13.2 percent of all fatal crashes.

Technology is allowing parents to keep a closer eye on teen drivers.

OBS Inc., a Colorado-based mobile surveillance company, has launched the HD1, a video-camera system for cars that is aimed at parents with teenagers. It starts at $965 and works like a digital-video recorder, filming everything that goes on in and around a car with as many as four cameras. Parents can remove the hard drive from the system using a key and connect it to their TV or personal computer to view the video.

Some programs aimed at keeping young people safe behind the wheel are more geared to personal responsibility.

John E. Fadal, who has a Farmers Insurance Group agency in Waco, said Farmers will give young drivers up to age 21 a 10 percent discount on their liability, personal injury and collision insurance if they maintain a B average in school, complete a driver's safety course and watch a safety video.

But Fadal said there is "no question" that insuring young drivers remains more risky.

"There are some we have insured for years, and we never hear anything from them. Some we can't run off," Fadal said. "I can remember a 16- year-old kid that we had insured only a few weeks when he was involved in a bodily injury accident in which a person was killed. We paid a $100,000 claim." Ramona Cunningham, an agent with Germania Insurance locally, said she offers a 10 percent discount on collision and liability insurance to young people who take a driver's education course.

She said it benefits youngsters to stay on their parents' policy for six months to a year so they can establish a good driving record.

That will help them when they pursue a policy on their own, she said.

Local Allstate agent David Wilson said that company offers a 15 percent discount on collision, comprehensive and liability coverage to young people who maintain a B or better average in school. They can pick up another 10 percent discount by attending driving school.

"That's a total of 25 percent," Wilson said.

Wilson said he insures a family with a 17-year-old son who drives a 2002 Ford F-150 pickup. The family pays $439.10 every six months to insure the pickup, but that represents a discount of $102 because the 17-year-old is a good student who has taken driver's training.

"If that teenager bought insurance on his own, he would be paying twice that rate, I guarantee you," said Wilson, adding that he and the family benefit from discounts on multivehicle coverage.