Here's the Main Reason People Switch their Car Insurance

Poor service -- more than pricey premiums -- is the main reason people dump one car insurance company for another, according to a new analysis by J.D. Power.

To keep customers, the research firm says insurers must improve in the key areas of claims and billing resolution and overall interactions with policyholders. A big step toward satisfying new clients is to have advertised savings better reflect the real cost of coverage, according to the '2014 U.S. Insurance Shopping Study' report.

The study found that almost a third (30%) of people shopped for new auto insurance in 2013, with 36% deciding to change companies. About 13% of consumers said they were motivated to browse the aisle after reeling from a rate increase. But many more (28%) began shopping after encountering what they believe was lousy service, the report notes.

Picking a new insurer may pay off -- J.D. Power says those who switched saved, on average, about $300 during the past year, just one good reason among many to compare insurance companies and shop your policy.

But Jeremy Bowler, senior director of the insurance practice at J.D. Power, points out that many of those surveyed were disappointed because they expected even bigger price breaks ballyhooed in ad campaigns.

'The insurance industry spends billions of dollars each year on advertising, and over the last seven years many of those ads have tried to entice customers with big savings,' he says.'While switching to a new insurer usually results in savings, the ads make promises of savings that a growing number of new customers don't believe they've received.'

Here are some of the report's other central findings:

Erie Insurance, MetLife, State Farm and USAA were rated the best for customer satisfaction among the 23 companies evaluated by J.D. Power. Farmers, Progressive, Safeco, 21^st Century, Travelers and Mercury received the lowest marks. Customers are willing to stomach some rate increases. But premium jumps of more than $200 can triple the rate of those who change insurers. The longer customers had been with their previous insurer, the greater the savings when they switched carriers. The study says this is likely because they'd been experiencing rate increases over the years. Customers who were with their prior insurer for 11 years or longer before switching saved an average of $426 per year on premiums, compared with $291 among those who had been with their previous insurer less than two years before switching. Also, satisfaction for customers who had been with an insurer for at least 11 years before changing is higher than among those who were with their insurer less than two years. Among customers who are 'highly satisfied' in their first year with their insurer, 81% remain with that insurer and only 41% shop around. Among customers with lower satisfaction in the first year, only 61% remain with that insurer and 61% look elsewhere. When you compare insurance companies, use these tips to find those with excellent customer service

If, like those surveyed by J.D. Power, stellar customer service is a priority for you, here are four tips to keep in mind when you compare insurance companies:

1. What does your state's department of insurance say? Every state has a department that regulates insurers and is designed to protect consumers. Most of these departments publish 'consumer complaint ratios' on their websites, which usually show how many complaints a company receives per 1,000 coverage claims. By comparing the ratios of companies, you can develop a useful profile before buying a policy. If your state department doesn't have 'consumer complaint ratios,' then check other states that do to get a clearer picture.

2. Who do body shops recommend? Edmunds.com suggests doing some leg-work to learn which insurers bring smiles instead of frowns from body shops that will be fixing your car after an accident. Body shop managers may alert you to potential hassles you could face with certain insurers.

3. Is the insurer financially stable? You can check out the financial strength ratings of companies through Standard & Poor's and A.M. Best. Both grade an insurer's ability to pay out claims, which is clearly something to know. For A.M. Best, only consider companies with at least a B+ rating. For Standard & Poor's, don't go below a BBB. This information may be at the insurer's website. If not, do a search at the sites of Standard & Poor's and A.M. Best.

4. Look for insurers with good satisfaction ratings. Besides J.D. Power's rankings, consider the companies that get good reviews from Consumer Reports. Also, Insure.com put USAA, State Farm and Farmers at the top of its 2014 customer satisfaction rankings. You might also turn to family and friends for their thoughts, suggests Penny Gusner, consumer analyst for Insure.com.

'Don't be afraid to ask friends and family if they are satisfied,' she says. 'First-hand knowledge from a trusted source can help you determine which insurer is best for your needs.'

The original article can be found at CarInsurance.com:Poor service brings season of the switch for car insurance

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Drivers wasting £1.9bn a year by auto

Remaining loyal to the same car insurer year after year is costing UK motorists dear, new research has found.

According to MoneySuperMarket.com, UK drivers are wasting £1.9 billion annually by remaining with their existing car insurer and failing to shop around for a better deal. The comparison site found that 8.6 million drivers across the country automatically renew their car insurance policy with the same provider every year.

It is not just individual motorists who can learn a lesson from this research - motor traders could also benefit from shopping around for an online motor trade insurance quote. However, ensuring you have the correct cover in place far outweighs making a small initial saving, as skimping on a comprehensive deal could prove extremely costly in the long run. Speaking to experts such as Choice Quote can help you to tailor a policy to your specifications, with a price and cover to suit.

Thirteen per cent of the private motorists surveyed attributed the automatic renewal to a belief that they would not save money by shopping around for a better deal, while a further 7 per cent said that they could not be bothered to change policies or insurers.

Personal car insurance expert at MoneySuperMarket, Kevin Pratt, commented: 'It's a shame to see so many drivers blindly accept their insurance provider's renewal quote instead of taking action to save cash on their cover. Motorists don't even need to 'drive' a hard bargain.

'Average premium quotations are up to £220 less for those who shop around. It really pays to not just accept the renewal price quoted by your existing car insurer.'

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Millions risk invalidating their car insurance by 'fronting'

The practice, known as 'fronting', usually happens when parents take out a policy in their own name in a bid to save their child money on their premium, but it is actually their child who is the main driver.

Research from Privilege car insurance found that more than two million drivers risk having their policy cancelled with no premiums refunded, claims being refused and difficulty obtaining insurance in the future.

A further one million 'phantom' drivers have been named on policies for a vehicle they have never even driven, the data revealed.

There is also an alarming level of confusion around what level of cover a driver has when they are behind the wheel of someone else's car but are not named on the policy.

One in five car owners who drive regularly believe that they would be covered for damage to that car, perhaps unaware that the Driving Other Cars (DOC) extension cover does not pay for damage to the vehicle they are driving. This means they are unprepared for the costs of their repairs in the event of an accident.

Meanwhile, a worrying three per cent of drivers who do not own a car admitted they have driven other cars belonging to family and friends without being named on their policy, effectively meaning that they are driving completely uninsured.

Charlotte Fielding, head of car insurance at Privilege said: 'It is vital that drivers ensure that they know under what circumstances they can drive cars that they are not named on the policy for and understand the liability they are accepting by doing this.'

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Auto Insurance Purchases Face Decline: Study

The percentage of consumers who shop for auto insurance is on the decline, according to the TransUnion Auto Insurance Shopping Index. Survey results reveal a downward trend that began in 2012.

Shopping rates for auto insurance dropped by 3% from February 2013 through February 2014. Just 15% of the credit-active population shopped for new policies in the past year compared with 15.4% in the preceding year. From February 2011 through February 2012, 15.7% of that population shopped for auto insurance.

[ Large Insurance Companies Make Customers Wait: Study. ]

'We are finding that despite billions of dollars being spent on advertising each year, the percentage of consumers shopping for auto insurance has been dropping for approximately the last two years,' says Mark McElroy, EVP of TransUnion's insurance business unit, in a statement. 'This places additional pressure on insurance carriers as their pool of potential customers declines.'

Although overall shopping rates are on the decline, the study revealed two peak seasons in March and August. Experts hypothesize that the early spring increase is due to purchases made with work or tax return cash inflows received early in the year, and the late summer shopping a result of back-to-school auto purchases.

Kelly is an associate editor for Insurance & Technology. Prior to joining InformationWeek Financial Services, she was a staff writer for InformationWeek and InformationWeek Education. Kelly has also written for trade ...

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How Tickets Boost Car Insurance Premiums

It depends on the type of ticket. A DUI boosts premiums by 93%, on average, and reckless driving hikes rates by an average of 82%, according to a study by InsuranceQuotes.com, which found average national premium increases after various types of moving violations.

Even a citation for a less serious moving violation can cause a big increase. For example, premium hikes average 18% for driving in a carpool lane and 19% for failure to yield to pedestrians. The impact of a speeding ticket depends on the speed. On average, rates increase 21% for driving 1 to 15 miles per hour over the limit, 28% for 16 to 30 mph over the limit, and 30% for more than 30 mph over the limit. (In some states, excessive speed is considered reckless driving.)

The specifics can vary a lot by insurer and state. For example, the average increase after a DUI was 183% in California but just 55% in Florida, says Laura Adams, senior insurance analyst for InsuranceQuotes.com. Some state laws limit how much insurers can raise rates for different types of violations, she says. InsuranceQuotes.com has a calculator that estimates how much different types of tickets may affect your rates, based on your state, current premium and the type of violation.

Also, some insurers assess bigger rate increases than others for certain types of tickets, based on their own experience with how often people cited for those types of moving violations have claims. And some offer forgiveness programs that let your first moving violation slide, depending on the type of ticket.

You may not see a ticket's impact on your rates for a while. An insurer can't raise your rates until your policy is up for renewal (most policies renew every six months). And your insurer might not check your motor vehicle record every time it renews your policy -- although the department of motor vehicles may notify your insurer right away for some major violations, such as DUI or reckless driving.

No matter when your rate goes up, it could affect your premiums for several years. 'In some states, a violation may be on your motor vehicle record for up to five years, but the majority of states keep it on your record for three years,' says Adams. A DUI could stay on your record for longer than ten years, she says.



If you do get a ticket and you think you have a good excuse or were wrongly cited, it can be worthwhile to go to traffic court. The potential impact on your insurance rates can be far more costly than the fine. 'Anytime you have a major violation, you definitely want to consider hiring a traffic attorney, even if it's just to find out if you have a case,' says Adams. Some judges will forgive the violation or reduce the charge if you have had a clean driving record for a year or more (though you may have to pay the full fine).

Some states will forgive tickets or erase points from your record if you complete a driving class. Contact your state's department of motor vehicles to see whether it offers such a program.

Also, some insurers raise premiums a lot more than others do after you get a ticket. Shop around after your insurer hikes your rate to see if another company is more forgiving.

Got a question? Ask Kim at askkim@kiplinger.com.

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Free breakdown service for new Sainsbury's car insurance customers

New Sainsbury's car insurance customers stand to benefit from free additional breakdown service cover.

As part of Sainsbury's Breakdown Service they will aim to fix cars at the roadside, pay customers £10 if help doesn't arrive in one hour, give a no call-out discount if you don't use the breakdown cover in the space of 12 months, and arrange transport for a caravan or trailer being towed during a breakdown so that it reaches your destination as well.

Those who buy Sainsbury's Premier Cover Car Insurance direct from Sainsbury's Bank (rather than obtaining quotes through price comparison websites) also get double Nectar points on shopping and fuel for up to 24 months. If cover is renewed at first renewal the double points continue.

Up to nine million drivers renew their premiums automatically with their existing provider and collectively miss out on £1.9 billion of savings a year, according to Moneysupermarket.com. Of these, 13 per cent believe they won't save money by looking elsewhere, and seven per cent stick with their existing cover, as it requires less effort.

Kevin Pratt, car insurance expert at Moneysupermarket.com said: 'Average premium quotations are up to £220 less for those who shop around. It really pays to not just accept the renewal price quoted by your existing car insurer.'

Drivers who take the time and effort to shop around can also benefit from free additional service add-ons like Sainsbury's Breakdown Service, which is available to new customers.

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Horwath blasts Liberals on Ontario auto insurance; wants cuts passed on ...

TORONTO - Insurance companies have cut payouts by billions of dollars over the past several years but motorists have seen little benefit by way of lower premiums, New Democrat Leader Andrea Horwath said Tuesday.

Election campaigning at a mall in east-end Toronto, Horwath accused the minority Liberal government of siding with the insurance companies.

'The Liberals are more interested in keeping the insurance companies happy than they are in bringing down rates for drivers,'' Horwath said.

'People are not seeing a significant reduction in their auto insurance rates. Some people are seeing their rates go up.''

Rate levels have been a perennial issue in Ontario for more than a decade, with successive governments promising to lower them. Few have managed to deliver as promised.

Horwath said the Liberals pledged in the 2013 budget to cut rates by 15 per cent but that hasn't happened because they didn't have the political will to follow through.

'This is one of the reasons why I was not able to in good conscience support that (2014) budget,'' she said.

An NDP government, if elected on June 12, would be serious about seeing rates come down by an ''achievable'' 15 per cent, she said.

However, she was less clear about how she might manage to do what others before her have failed to do.

'I won't do what the Liberals have done, which is change the rules around auto insurance to give the insurance companies a break so that their payouts are $2 billion less each and every year and then not force those savings to go back to the consumer,'' she said.

Horwath said she believes money is already owed to drivers for changes the Liberal government made in 2010.

An NDP government, she said, would force insurance companies to pass on any rate reductions to motorists immediately, adding the current delay of three to six months on rate changes should not occur.

'If the government makes a change to get the rates down, then that rate change should happen immediately.''

Rates have come down an average of close to six per cent since August 2013, according to Ministry of Finance figures.

Still, the Insurance Bureau of Canada says the current system is 'simply not working.''

'Too much of the money doesn't actually go to accident victims,'' the bureau says on its website.

'Instead, it pays for other costs like legal fees, fraud and assessments by for-profit medical facilities.''

In a statement, the Liberals pointed out that some voters have told Horwath their insurance rates have come down.

'Like a lot of things Andrea Horwath says, her auto insurance rhetoric sounds good, it just isn't true,'' the party said in a statement.

Horwath opted for mainstreeting rather than new policy announcements Tuesday.

She visited a mall food court, where she glad-handed and chatted with patrons, as well as an ethnic supermarket, before calling it a day.

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Could open prison be driving up car insurance?

MOTORISTS in Sudbury could be paying for living near an open prison.

People moving into the area have complained of rocketing car insurance rates, leading to suggestions the hikes are down to the fact they live in the shadow of the village's open prison, which has faced criticism over its record of absconders.

An investigation by the Mail revealed that some companies were charging hundreds of pounds extra for Sudbury residents compared to neighbouring Doveridge, and almost double that of drivers in Burton - despite there being considerably more vehicle crime in the town.

Younger drivers are particularly affected.

With vehicle crime an extremely rare occurrence in rural Sudbury, there are suspicions the fluctuations could be down to concerns inmates who are on the run could be roaming through the village.

Mark Woods, a director at insurance firm A Choice, admitted the anomaly was difficult to explain, but said although living near a prison should not have a direct impact on insurance prices, its presence in the area could be having some sort of influence.

He said: 'It's quite complex. Generally it comes down to the density of the area and the frequency of claims.

'An open prison would have no impact on the cost of insurance, but if you give the same postcode that is in the vicinity of a prison or Army base it could throw up a few anomalies.'

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How can car insurance quotes save you money?

Tagged with: car insurance, motorquotedirect

GETTING car insurance quotes from multiple insurance providers can make it easier for you to find the best deal around. However, it is not realistic to believe that one person can manually request quotes from all the different motor insurance providers that serve their area.

Instead, to shop around for different car insurance quotes, you can use a website that provides quotes from numerous insurance companies. An example of a website that offers this service is MotorQuoteDirect, which is a leading supplier of UK auto insurance quotes. What should you consider when reviewing car insurance quotes?

When reviewing the quotes, whether through MotorQuoteDirect or any other auto quote generating website, don't just pick the cheapest policy. Sometimes the cover with lower insurance premiums is not the best deal. It is important to look into exactly what is offered for the particular insurance policies that are being quoted.

At the same time, you will need to have a good understanding of what specific coverage you need. At the very least, you must adhere to the United Kingdom's minimum vehicle insurance requirements. These requirements state that you will need at least third-party coverage. Ireland shares the same minimum vehicle insurance requirements. What are you required to have when insuring a financed vehicle?

An important question to ask yourself is whether there are any outside factors that may influence the need for a higher level of cover. For example, a brand new business car that's been purchased with a finance package will need better cover than an old winter beater. A comprehensive package is typical. What are you required to have when insuring a work vehicle?

This is where it can get tricky. A work vehicle will not fall under a typical auto insurance policy. The cover required for a work vehicle is different. It can also vary depending on the type of vehicle, what it's used for, who will be in it, and what contents it will hold.

An important factor when figuring out which type of insurance policy is appropriate is determining whether it's a business or commercial vehicle.





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NSW home to Australia's most expensive car insurance

Drivers in NSW pay more than any other state in car insurance premiums.

NSW has finished at the bottom of a survey into car insurance costs.

With Sydney already ranked as Australia's most expensive city in terms of living costs, NSW motorists pay an average of $419 more each year for car insurance, according to a car insurance ratings report released by consumer advisory group CANSTAR.

Male drivers aged under 25 were the hardest hit, paying an average of $1840 for comprehensive coverage, or around $550 per year more for insurance than other states.

Average premiums in NSW were around $1382 per year, ahead of $1188 in Victoria, $982 in South Australia, $953 in Western Australia, $864 in Queensland and $844 in Tasmania.

Data for the ACT and Northern Territory was not available.

CANSTAR analyst Adam Beu says the differences in costs between states "reflect the different level of risk to an insurer of a claim".

"That doesn't mean that drivers are less skilled in one state versus another, but it does reflect state populations and number of cars," he says.

"The important thing with car insurance is to find a policy that you can afford and that gives you a level of cover you're happy with. Not all policies are created equal."

The consumer comparison service examined almost 20,000 insurance quotes across a variety of demographics as part of research into its insurance star awards scheme, which awarded top honours to Budget Direct and AAMI.

Allianz and Ozicare also fared well, with plenty of five-star ratings for various insurance products, while ANZ, Westpac and Kmart Tyre and Auto Service were towards the bottom of the list for insurers.

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Check car insurance premium regularly

Related Stories

Durban - When last did you engage with your broker or directly with your insurer about the insurance premium on your car?

If your car is no longer new, and you haven't made that call for a few years, chances are the premium you're paying is far higher than it could be.

Take Cindy Porter's Mini Cooper. She insured it with First for Women Insurance, part of the Telesure group, in September 2007, with an initial premium of R338.

She never queried the premium over the years - until recently.

Her husband Brian, who pays the premium via debit order, said: "I noticed a deposit of R6900 on my bank statement. After making enquiries, I discovered it was a no-claim bonus from First for Women - we'd never claimed on the policy since inception."

He also learnt the policy's monthly premium had been R1004 before the company's decision to drop it to R990.

"This on a seven-year-old car with only 65 000km on the clock, with a book value of R85 000. It has been parked in a garage in our complex which has 24-hour security, electric fencing and a boom gate.

"I drive a Mercedes-Benz of the same age, with similar mileage, and my premium, with another insurer, is R380 a month.

"Trying to get a reasonable answer from First for Women was impossible. So I cancelled the policy and took out a policy for the Mini with my insurer, with a new premium of R310 a month, on an insured value of R100 000."

The profile of the driver is a very important component of a car's insurance premium.

Single men under the age of 25 being statistically the highest risk, and mature married women such as Cindy Porter being among the lowest.

In light of that, I asked Telesure's Robyn Farrell why the premium on Porter's car had increased fairly drastically over the years, despite the depreciating car value, and whether the company considered R990 a market-related premium.

She said all the company's policies were adjusted annually, and that the customer had a choice of insuring the vehicle for its trade, market or retail value.

"These values are then used, as calculated by the Auto Dealers Guide, as one of the factors in determining the premium.

"This revised value may not cause the vehicle's premium to decline."

"As vehicle value is only one factor taken into account in calculating a premium, repair costs for that vehicle being another - and these continue to increase."

As for the Porter premium, she said the company's records reflected that the premium reduction was due to a change in address, but Porter said the couple had not moved for several years.

"Premiums charged by us are based on our specific underwriting criteria."

"Each underwriter uses its own underwriting rules and criteria and they rate accordingly."

First for Women had many "value-adds" such as roadside assistance, directions assistance and trip monitor, she said.

"We are not in a position to comment on the other insurer's premium for Mrs Porter, nor as to whether this premium is market-related or not. We can, however, say that our premiums are based on what we deem the correct rate risk for Mrs Porter.

"There will always be premiums in the market that are cheaper or more expensive - based on different cover options, insurers' costs and risk appetite.

'COMPARE APPLES WITH APPLES'

"For this reason you are correct in saying that policyholders should be savvy and certain that they are getting value for their money. They should always be aware, though, that when they are shopping around, they should compare apples with apples, and make sure they are not sacrificing cover for cost."

Valid advice. In 2013 the SA Insurance Association amended its Code of Conduct, formalising the insurance practice of regularly and automatically reassessing the value of cars, without prompting from the customer.

Even so, it's definitely worth being proactive about your premium, particularly if you've been insured by a company for some time.

Don't make any assumptions with regard to your cover. Interrogate what you're paying, and what cover it's buying you, and make sure that you take a very close look at a policy's exclusions and excesses when comparison shopping.

Pretoria News

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One in 10 Canadian customers switch auto insurance carriers: JD Power survey

One in five Canadian auto insurance customers taking part in the J.D. Power 2014 Canadian Auto Insurance Satisfaction Study have shopped for a new insurer in the past 12 months, but just 9% have made the switch.





The study measures insurance customer experiences with their primary auto insurer in Canada. Customer satisfaction is measured across five factors (in order of importance): interaction; price; policy offerings; billing and payment; and claims. Insurers are also ranked in Ontario, Alberta and Quebec.

Each insurance company conquests less than an average of 1% of customers shopping for a new insurance policy, notes a statement from J.D. Power, which released the study results Tuesday.

Findings show that brand awareness limits the ability of most carriers to attract shoppers, who typically limit their search to an average of only 1.5 quotes.

"Even the largest national insurance companies have limited awareness," Jeremy Bowler, senior director of the insurance practice at J.D. Power, says in the statement. "Some of the big carriers may be well-known in one city or province, but have little or no awareness outside of that market. To grow their business, they need to build brand awareness, which traditionally requires significant advertising investment," Bowler adds.

If an insurer does win a new customer, J.D. Power advises that every touch point that insurer has with the customer is crucial and can be the difference between a loyal customer and a defector. Of these touch points, study results show the three most critical are the following: the annual or semi-annual renewal notice; when a customer contacts their insurer for non-claims-related reasons (62% of customers have contacted their insurer either directly or through an agent in the past 12 months regarding a non-claim-related issue); and when a customer files a claim (12% of customers filed an auto claim in the past year).

The survey also found that price - historically a key differentiator among insurance companies - is having less of an impact on overall satisfaction.

Based on a 1,000-point scale, the overall customer satisfaction of those polled drops to 758 in 2014 from 766 in 2013. The majority of the year-over-year drop is attributed to declines in satisfaction with claims (-29 points), interaction (-13 points) and billing and payment (-12 points), the statement adds. Price is the only factor in which satisfaction improves.

Policyholders in Quebec reported being most satisfied, J.D. Power reports, primarily because the provincial government insures against injuries to people, thus bodily injury coverage is not required for vehicle owners, keeping premiums lower than in other provinces. The satisfaction level in Quebec increased from 802 in the 2013 findings to 804 in the 2014 findings.

But satisfaction levels in Alberta and Ontario are both down, dropping from 747 to 744 and from 756 to 749, respectively.

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Lyft Partners With MetLife To Provide Auto Insurance For Drivers And Passengers

"MetLife has recognized the opportunity to serve Lyft users in this emerging marketplace for community-powered transportation, with millions of rides shared among users across the country."

A small bit of news from the Lyft camp: The ride-share platform just announced a new partnership with MetLife to provide auto insurance for drivers. "MetLife has recognized the opportunity to serve Lyft users in this emerging marketplace for community-powered transportation, with millions of rides shared among users across the country," wrote Lyft in an email. The terms of the agreement are vague, but the two will purportedly work together in the coming months to "develop insurance solutions that further protect Lyft's drivers and passengers."

Back in February, Lyft announced that it was providing additional coverage for drivers up to $1 million as long as they weren't at fault, as the startup tries to prove that it's ready to take its pink-mustache'd rides national.







Chris is a staff writer at Fast Company, where he covers technology and culture. His work has also appeared in The Week, TIME, Men's Journal, The Atlantic, and Esquire, among other places. Reach him: cgayomali@fastcompany.com, and/or follow him on Twitter for bad jokes: @chrisgayomali

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Four things Canadians would rather do than think about insurance

TD Insurance study finds majority of Canadians would rather avoid insurance decisions

TORONTO, May 6, 2014 /CNW/ - When it comes to thinking about insurance, new research has found that there are a lot of unpleasant tasks Canadians would rather do in place of researching coverage options. A recent survey commissioned by TD Insurance found that 62 per cent of respondents would prefer to shovel snow, spend a Saturday doing laundry, go to the dentist, or even wait in an airport security line rather than think or talk about insurance coverage.

The national survey also explored Canadians' ability to estimate risks and the likelihood of certain events. The findings indicate that as a group, Canadians generally underestimate risks. For example, the survey found that 81 per cent of participants underestimated the likelihood of a home break-in, which is about 1 in 200 according to Statistics Canada. Furthermore, two thirds (67 per cent) of those surveyed reported seeing themselves as more safety conscious than the rest of the population, even though statistically this can't be the case.

"When the probability of risks are not well-known it can be difficult to seek out insurance coverage that offers the right protection," said Craig Richardson, Vice President at TD Insurance. "We encourage customers to talk to their insurance providers to better understand their coverage. We strive to help customers weigh options against risks and factor in the necessary considerations to choose coverage that best reflects their needs."

The survey found that respondents were as likely to overestimate potential risks as they were to underestimate them. Asked to predict the chances of being injured, even slightly, in an auto accident in a typical year, 36 per cent underestimated the likelihood but 30 per cent overestimated. According to Transport Canada statistics the odds are approximately 1 in 130.

"Studies have shown that many people prefer to avoid thinking about negative situations, even if they believe those situations are likely to happen," said Dr. Edwin Weinstein, a Psychologist and President of the Brondesbury Group who advised TD on its research for this initiative. "Shopping for insurance is one of those times in life where you're forced to think about situations you would rather avoid. It's not surprising that people would choose to shovel snow than consider the possibility that unpleasant things can happen."

The results also showed risk assessments differ across gender and age groups. For example, men were more likely than women to identify themselves as above average in safety consciousness and health. Almost three quarters of men (72 per cent) said they were more safety conscious than others, whereas only 62 per cent of women made the same claim. And, at 53 per cent, men were also more likely than women to believe they were healthier than others their age - only 44 per cent of women identified themselves as having above average health. Interestingly seniors over 65 years of age were the group most likely to rate themselves healthier than others their age, with 65 per cent choosing this option.

"It's great to have a positive outlook in life, but it's also important to be prepared," said Richardson. "Our advice is to expect the best, but plan for bumps in the road. For example creditor protection insurance - on a mortgage, car loan or even a credit card - can help ensure one doesn't default on a loan in the case of a life event that makes it difficult to make payments."

About the TD Insurance State of Insurance Report

TD Insurance commissioned Research House (a member of the Environics Group), to conduct an online survey of 1000 Canadians aged 18 and older. Responses were collected from March 18 - 24, 2014. Analyses and interpretation was provided by the Brondesbury Group.

About TD Insurance

TD Insurance offers a wide range of products to help protect customers including credit protection, auto, home, health, life, and travel insurance. With more than 4 million customers, TD Insurance authorized products and services are available through a network of more than 1,150 TD Canada Trust branches, the Internet, and telephone. For more information, visit www.tdinsurance.com.

SOURCE TD Insurance



For further information:

Media Contacts

Natasha Ferrari TD Bank Group 416-983-7180natasha.ferrari@td.com

Andrew Addison FleishmanHillard 416-935-3648andrew.addison@fleishman.ca

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General Auto Insurance Finder Now Locates State Coverage Prices Online

Jacksonville, FL (PRWEB) May 05, 2014

A new finder tool established by the Insurance Pros USA company is now able to locate better state insurer rates online. The general auto insurance finder at http://ift.tt/PpoZfl is now in place for car owners to use this year.

The state level companies that are positioned in the finder system include medium to large size agencies that specialize in state minimum protection. Apart from the basic plans, full coverage and other policies that require customization can be quoted.

"The statewide base of insurers that exist inside of our system are helping consumers to explore upfront prices from companies instead of calling more than one agency to review costs," said an Insurance Pros USA rep.

One of the immediate consumer advantages that are presented upon use of the system is the privacy that is enabled. Unlike systems that demand input of vehicle or driver data, the Insurance Pros system uses a zip code system for matching state and national providers.

"Our system is safe to use and supplies immediate prices for requested coverage policies to allow consumers a change to review costs before purchasing plans," the source confirmed.

The Insurance Pros USA insurer system is also programmed to display different plans for the public. Apart from automotive industry rates, policies for life and health can be explored at http://ift.tt/1jHhGs1.

About InsuranceProsUSA.com

The InsuranceProsUSA.com company supplies its set of tools available on the homepage to allow public research and reviews for different insurance agencies in America. The company staff helps to keep the information that is displayed to the public accurate. The InsuranceProsUSA.com website currently displays health, life, renters, auto, business and other products in the insurance industry to allow consumers easy access to price and coverage information to help with purchase decisions.

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Outrage at 37000 word car insurance policy

Car insurance policy with more words that Orwell's 'Animal Farm' criticised for being too confusing



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Drive down your motor cover: Paying less for car insurance

In fact, new research from Age UK Enterprises reveals that four fifths of drivers describe their car as being "crucial" or very important" to their daily lives.This reliance means ensuring our vehicles remain roadworthy - and that we are adequately covered - is vital.Car insurance is one of the few types of cover that is compulsory, but the good news is premiums have dropped over the past 12 months.This has been, in part at least, down to insurers reacting to new measures designed to combat false whiplash claims and other scams.

Shopping around is still vital to ensure you find the right policy with the cover you need at a good price

Lee Griffin, of GoCompare.com

New figures from the AA show the cost of car cover has come down by more than £100 in 12 months, with its average "shoparound" figure for comprehensive motor insurance having fallen to £531 for the first three months of the year.This is 5.6 per cent down on the last three months of 2013, and 16.6 per cent down on January to March 2013.Young drivers who face some of the steepest costs for motor cover, enjoyed some of the biggest falls, with costs for those aged 17-22 falling 10 per cent to an average quoted premium of £1,158. However, while prices have dropped, premiums are still significantly higher than all other age bands.Separate new figures from the Association of British Insurers (ABI) paint a similar picture.According to its tracker, which reflects what motorists are actually paying each quarter for comprehensive motor insurance, in the first three months of this year the average premium fell by 3 per cent on the previous quarter to £358. Since the first three months of 2012, the average comprehensive premium paid has fallen by 14 per cent.But while these findings might sound like cause to celebrate, motoring experts warn drivers not to automatically expect a discount at their next renewal."Shopping around is still vital to ensure you find the right policy with the cover you need at a good price," says Lee Griffin from GoCompare.com. Related articles

Equally, some warn that the current low prices may not last. "Premiums are expected to start rising again this year," says the AA's Simon Douglas.So what steps can motorists take to keep a lid on costs? In recent weeks, there has been a flurry of activity around the use of so-called "dashcams" - small cameras that you position in your car to film the driver's view. The aim is to help reduce premiums for careful motorists by enabling the insurer to establish accurately and quickly who was at fault when an accident happens.At the end of April, SwiftCover became the first major insurance provider to offer discounts to motorists using one of these cameras, following in the footsteps of specialist providers, such as Adrian Flux.According to Swiftcover, users will get a discount of 10 per cent, resulting in an average annual saving of £33."Dashboard-mounted cameras can be useful in combatting crash-for-cash and other fraudulent 'orchestrated accident' claims," says Griffin. "Using the video footage, it is possible to prove whether someone's claim is legitimate or not. It could also help to determine who is to blame - making the claims process more efficient."Elsewhere, Halfords has linked up with in-car technology producer, Nextbase, and is now offering customers buying a dash-cam a free subscription to Police Witness - a service that holds dangerous drivers to account by presenting the footage to the authorities."Dash-cams can act as an independent witness should the need arise, helping to guard against fraud," says Stuart Humphreys from Halfords. "These devices can ensure the shock and stress experienced following an accident isn't compounded by a biased account of events that can lead to unfair rises in insurance premiums." Tips to cut costs Consider opting for a higher voluntary excess, though you will need to decide if a slightly cheaper premium is worth the risk of having to contribute more towards the cost of any potential claim. Think about adding another driver with a clean licence and several years' claim-free driving to your policy. But if you are the main driver ensure that you are noted as such to avoid committing a fraud known as fronting. This could invalidate your insurance. While it may be tempting to spread the cost of your car premium over a year, it is usually cheaper to pay for the premium up front.

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Law surged New York auto insurance rates when it was supposed to lower them ...

Allison Joyce/Getty Images

ALBANY - New York drivers have been taken for a costly ride by a 2008 law that was supposed to lower auto insurance rates, a new study found.

Auto insurance rates in New York have jumped 6.2% since state lawmakers enacted a so-called flexible rating system that gave insurers greater freedom to change rates without approval, according to a report from the Consumer Federation of America.

Over the same time period, the nationwide average has increased less than 1% and California - which has tight regulation of the auto insurance market - has seen a 5.5% decrease in rates, according to the federation.

"The more pricing freedom companies got, the higher the rates went over time," said Robert Hunter, director of insurance for the Consumer Federation of America.

Hunter said the system has also led to higher insurance costs for residents of New York's low and moderate-income neighborhoods because companies consider those drivers a higher risk.

New York's flexible rating system allows insurers to raise or increase rates by as much as 5% without prior approval from state regulators. New York is one of only four states to use such a system.



David Scull/Bloomberg News

Backers of the flexible rating system argued it would spur more competition and help consumers by allowing the insurance companies to lower rates more quickly when their bottom lines improved.

"It was sold as something that would drive down rates and lower costs," said Russ Haven of the New York Public Interest Research Group. "Compared to how other states are doing, New York is coming out worse."

Haven said the state should return to a system where every rate change is reviewed by regulators.

Ellen Melchionni, president of the New York Insurance Association, placed the blame for rising rates on abuse of New York's generous no-fault insurance laws - not the flex system.

"Fraud is a major problem in New York, with no-fault being particularly ripe for criminal activities," Melchionni said.

gblain@nydailynews.com

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Obamacare May Reduce Auto Insurance Rates

A benefit of the Affordable Care Act (ACA) may be a drop in car insurance premiums as health care providers shoulder more of the treatment costs tied to accidents and injuries, according to a new report from a leading think-tank.

The non-profit Rand Corporation says the rise in the number of people with medical coverage under the ACA, also known as Obamacare, could result in a "modest" drop in claims against auto insurers. In turn, the cost savings could be passed to consumers as insurance companies and state regulators evaluate and refine coverage rates, according to Rand's report, "How Will the Affordable Care Act Affect Liability Insurance Costs?"

"The Affordable Care Act is unlikely to dramatically affect liability costs, but it may influence small and moderate changes in costs over the next several years," says David Auerbach, a Rand policy researcher and the study's lead author. "For example, auto insurers may spend less for treating injuries, while it may cost a bit more to provide physicians with medical malpractice coverage."

Besides auto insurance rates, expenses tied to homeowners insurance, workers' compensation and general business liability insurance may also fall once the ACA further takes hold. But on the downside, expenses for malpractice coverage could rise, according to the report.

Obamacare to trim insurance costs by up to 5 percent?"Researchers say the changes could be as much as 5 percent of costs (for auto, home and the other forms of liability insurance) in some states, but caution there is considerable uncertainty surrounding such estimates," the study notes.

Auerbach and Rand point out that liability insurers currently reimburse tens of billions of dollars each year for medical care related to car crashes and workplace injuries, among other claims. "For example, auto insurers collectively paid $35 billion for medical costs associated with accidents in 2007, about 2 percent of all U.S. health care costs in that year," according to Rand.

The reason for a possible jump in malpractice claims faced by doctors and health providers is simple: Rand says that more claims could be filed as more people get medical coverage.

"Insured individuals have more contacts with physicians, make more visits and receive more procedures," according to the report. "Such a shift could drive malpractice costs modestly higher."

The malpractice figures are already significant. The study points out that "In 2012, nearly 12,000 medical malpractice claims paid on behalf of individual physicians and other providers accounted for $4.3 billion in costs. A substantial additional number of claims were paid on behalf of institutions, such as hospitals, some of which self-insure, that are not included in the $4.3 billion number."

The study was sponsored by Swiss Re, which stresses the powerful effects the ACA may ultimately have on the insurance industry and elsewhere. "Businesses and policymakers need to understand how and why their risk profiles might change as the Affordable Care Act is implemented," says Jayne Plunkett, Swiss Re's head of casualty reinsurance, in a statement.

A surge in medical insurance enrollments In a separate survey released this week, Rand says that 9.3 million more Americans have health insurance now than in September 2013, largely because of the ACA. While noting that any survey has a margin of error, Rand adds that its findings don't include the 3.2 million who signed up for coverage in late March and early April. That enrollment surge could "dramatically affect" the total figures, according to Rand.

Rand estimates that Americans without insurance fell to 15.8 percent, from 20.5 percent.

Of those who secured new medical coverage, 8.2 million didn't buy it on the ACA's federal or state-run exchanges, but through an employer. Rand says the increase is likely because of a drop in unemployment, which opened the door for many to be eligible for workplace plans, and ACA incentives encouraging employees to get coverage.

Rand adds that 3.9 million secured health insurance through the exchanges, 36 percent of them previously uninsured. The number is expected to rise as the March and April numbers come in, according to the survey.

In declaring the ACA an unfolding success, the Obama administration recently said that more than 7 million people have signed up for coverage through the marketplace exchanges. This article Obamacare May Reduce Auto Insurance Rates originally appeared on Insurance.com.

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Bradford MP David Ward welcomes car insurance fall

Bradford MP David Ward welcomes car insurance fall

10:00am Thursday 1st May 2014 in News



A Bradford MP who has campaigned against the high cost of car insurance in the city has welcomed an announcement that premiums have fallen to a three-year low.

David Ward has been involved in trying to make car insurance more affordable in the city and said the reduced premiums was a result of changes brought about by the coalition Government.

According to the AA, the average motor insurance cost for comprehensive cover is now £531, which is down by 5.6 per cent in the first three months of the year. Full year figures to the end of March show a 16.6 per cent fall, leaving motorists £105 a year better off, on average.

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Democrats Propose New Auto Insurance Bills

Michigan House Democrats are pushing bills that they say will help lower auto insurance rates, without capping "no-fault" protection.

The bills would increase penalties on insurance companies that act in bad faith. They would require the companies to justify rate hikes and offer better protection for whistle blowers.

The Democrats also want to open up the "Michigan Catastrophic Claims Association" to more public scrutiny.

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