IIS Insurance

California is one of the cheapest states for auto insurance Car insurance is required by law and whether we agree or not we need to have insurance, even if it is the minimum liability limits required by the state we live in. Nobody wants to pay and have any extra bills coming to the mail box, but there are some payments that are necessary, which includes auto insurance premiums. We want to be protected driving on the roads in case of any kind of accidents, even when we are no...t at fault. The Californians are lucky when it comes to auto insurance rates, because the rates here are one of the cheapest rates in the country. We definitely do not want to live in Michigan as the drivers there are paying much higher rates than most of the states. Whether you drive a 1975 Pontiac or a brand new Mercedes, if you are a resident of Michigan, you will be paying very high rates because of the law requirements the state has. Michigan law requires that every car insurance policy includes unlimited personal injury protection, which raises the rates much. California state requirements are quite different that Michigan and many other states. California requires bodily injury liability limits of 15,000 per person, 30,000 per accident, and only $5,000 per property damage. Such law limit requirements cannot cost too much to California drivers, but yet there are many uninsured drivers out there. Of course it is not too wise to settle for the lowest limits at the same time, but at least the drivers in our state have the option of paying less than most of the other states. Here is a list of 10 states where the drivers pay the most and the least for their auto insurance compared to their income percentagewise. Most expensive states: 1. Michigan: 8 percent 2. Louisiana: 5 percent 3. Kentucky: 4.5 percent 4. West Virginia: 4.3 percent 5. Mississippi: 4 percent 6. Arkansas: 3.7 percent 7. Delaware: 3.6 percent 8. New York: 3.5 percent 9. Nevada: 3.4 percent 10. Florida: 3.3 percent Least expensive states: 1. Massachusetts: 1.4 percent 2. North Carolina: 1.6 percent 3. Hawaii: 1.6 percent 4. Alaska: 1.7 percent 5. Oregon: 1.95 percent 6. Iowa: 1.97 percent 7. New Hampshire: 1.98 percent 8. California: 1.991 percent 9. Virginia: 1.992 percent 10. Maine: 1.993 percent Seeing these numbers we should not be complaining about the rates in California and make sure to carry insurance at all times.

Do we pay too much for auto insurance? Auto insurance prices change in all states and mostly they increase. According to a new survey released by Consumer Federation of America, auto insurance rates in California actually declined 4 percent between 1989 and 1998 but they jumped an average 38.9 percent nationwide. The states where the insurance prices have increased the most are Kentucky, Arkansas, Nebraska, South Dakota, and West Virginia. The states where the insurance prem...iums have increased the least are New Hampshire, Pennsylvania, Massachusetts, Maine and New Jersey, according to the same survey. An average cost of auto insurance for consumers nationwide is around $700 per vehicle, and over $1,500 per household. The money, that the insurance policyholders pay annually nationwide, totals $100 billion, according to Consumer Federation of America. Consumer Federation of America reports that in the last several years, insurers sharply increased premiums for homeowners and commercial insurance and reduced or eliminated coverage for tens of thousands of Americans in coastal areas. Insurers have succeeded in convincing Congress to continue taxpayer subsidies for terrorism losses and are seeking additional subsidies for catastrophe insurance. The study that was held by Consumer Federation of America released that balance sheets for property/casualty insurers are in better condition overall than at any time in history. Consumers have experienced a huge decrease in the amount of premium paid in benefits by the insurers, which went down from 72% in the late 1980s to only 60% today. Insurance policy holders always want to know if the premiums they are paying for their auto and home owner insurance policies are overpriced and if the money is actually being used to increase the profits of the insurance companies. But the representatives of the insurance industry usually claim and try to prove that the high rates and premiums are very necessary as they help to compensate for the excessive risks the insurance companies bear. The representatives of the insurance industry also claim that insurance is a low-risk investment. The property and casualty insurance industry represents a below-average risk compared to all stocks in the market, and it is considered safer than investing in a diversified mutual fund, according to Consumer Federation of America. The same source also tells that in recent years, insurers have reduced their financial risk by making wise use of reinsurance and securitization. It is obvious that insurers will always try to make more money while the insureds will always try to save money. See more

IS CHEAPER ALWAYS BETTER, IS CHEAP GOOD ENOUGH? The possibility of a car accident is one of the main reasons drivers need to carry auto insurance. Drivers need to carry at least the minimum state required liability limits to drive legally in California. Most consumers are looking for best deals on car insurance and are constantly shopping around for lower rates. But does a best deal mean having a lower rate, or does it mean having a good coverage on an auto insurance policy? ...Choosing a higher rate for a better coverage is a wiser decision but not always people can afford that higher rate. Insurance rates change all the time and most of the times they go higher than they already are. Every driver should think twice before making his or her final decision on the amount of coverage to purchase. If you decide to go with minimum state required limits you should take into consideration that those limits are set for those drivers who have no substantial assets. For example, if you own a property then your assets could easily be in jeopardy if you were to have a serious accident. Being sure in your driving skills and experience and knowing that you are a good driver is not enough to protect you and your close ones from accidents and the consequences they can bring. Getting a higher coverage, such as $100,000 liability limits per person, $300,000 liability limits per accident, and $50,000 liability limits for property can protect better not only your assets, but will definitely give you a peace of mind and a big relief. The higher coverage that can also be purchased through umbrella policy can give you an added protection beyond the limits of your auto and homeowner’s policies and not necessarily will cost you a fortune. The auto insurance shoppers should not fall for false advertisements that offer low rates and great insurance coverage, as it is impossible to have a low rate they might offer and be protected good enough to avoid complications in case of accidents. But this does not mean that a better coverage will cost you too much and will be extremely unaffordable. This is when you should try to find the right agent, who can shop around for you and find you the best deal that will combine both lower rates and higher coverage that are available in the market at that time. See more

What is Prop 33? November 6, 2012 is right around the corner, which means California residents need to participate in the election by voting YES or NO for Proposition 33. To better understand and make the right decision on the election, people should take a closer look at what this measure will give them. Proposition 33 is a measure that will add a section to the Insurance Code and will be known as the 2012 Automobile Insurance Discount Act. The purpose of this measure is... to give discounted insurance rates to California Insurance consumers if they have followed the mandatory insurance law without any interruptions and lapses. In the state of California the Insurance Commissioner is legally assigned to regulate insurance rates and to determine what discounts insurance companies should give to the drivers. Regardless of the insurance company the consumers have used, they should be allowed to receive discounts for continuously following the mandatory insurance laws of the state. By adding the option of receiving more discounts and paying less premiums, the Insurance Commissioner is trying to motivate the consumers to continue having insurance and to make sure not to have any interruptions of coverage. By adding this measure the state is decreasing auto insurance rates for some consumers but at the same time the rates are being increased for the rest of the drivers. The drivers with no history of continuous coverage will be facing higher rates. IF YOU VOTE YES: A YES vote on this measure means that auto insurance companies will be able to offer new customers a discount on car insurance premiums based on the number of years in the previous five years that the customer was insured. IF YOU VOTE NO: A NO vote on this measure means that insurance companies will be able to continue to provide discounts to their long-term car insurance customers, but at the same time would be prohibited from providing a discount to new customers, who are switching from other insurance companies. Just like any other proposition, Prop 33 has its pros and cons. The pro of this new measure is the ability of keeping a loyalty discount that insurance companies are offering their customers for being continuously insured with them, even when the customers decide to switch to different insurance companies. The con of this measure is the increased rates for drivers that do not have a history of continuous coverage, even if that interruption of the coverage had legitimate reasons. See more

Text and drive or stay away from fatal accidents How important can a text message be or can it be more important than a human’s life? Thousands of people get into accidents because of texting while driving and most of the accidents have a tragic ending. There is a reason why states are imposing hands-free driving laws and assigning fees for breaking the law. This gives a little hope that drivers would avoid texting not willing to get tickets and points on their records. Calif...ornia wanted to stiffen the fines and penalties attached to texting while driving recently but the legislation was vetoed by Gov. Jerry Brown on Friday, October 05, 2012. Lawmakers in the state Legislature wanted to elevate the fine for texting while driving from $20 to $30 for the first time and from $50 to $60 for the following offences. According to this bill that was not passed, the drivers would be charged a one-point penalty against their driving record after the second and any following violations. But the governor decided to veto the legislation for the second time in past few years. Gov. Jerry Brown said he did not want to change the fines as he believed that the existing ones were already high enough and adding $10 would not make a difference on drivers’ behavior. According to Brown, current law establishes a $213 total fine for cell phone use and $336 for texting while driving, which already includes county and court costs the violators need to pay. If the drivers keep getting tickets for not obeying hands-free law, they will be getting points on their records, which will eventually affect their insurance premiums and take away a good driver discount, which can be up to 20%. Paying higher premiums is another way of punishment and an additional expense that the violators of the law will be facing. After California barred use of hand-held devices in 2008 and texting while driving in 2009, there was a 20% drop in statewide traffic fatalities after the first year of implementing hands-free laws. See more