Car Insurance Weblog

Recently Mississippi announced they were doubling the minimum required car insurance coverage. Liability coverage is still all that is needed, but the policy minimum for injury / death and property damage doubled. This does not mean car insurance prices will double, as many insured motorists were already insured above the state minimum.

The Sun Herald reports:

The amount of liability insurance coverage required to pay for damages to vehicles and other property in an accident will increase from $10,000 to $25,000. Claims paid out under this coverage can include the other person's medical bills and repairs to the other person's automobile or property.

The coverage needed to pay for injury or death will increase from $10,000 to $25,000 for one person, and from $20,000 to $50,000 for injury or death involving two or more people.

They also gave examples of how automotive insurance rates may change

A 38-year-old married female living in Jackson, driving a 2004 Nissan Altima with no tickets or violations would pay about $505 for a six-month policy, but that would increase to $572 after the law takes effect.

A 35-year-old single male living in Jackson, driving a 2004 Toyota Camry with no tickets or violations would pay about $527 today for six months coverage, increasing to $604 after the new year.

"How much more you will pay depends on three things: Your current level of liability limits, the new limits you choose - you can choose the new minimum limits or an amount greater than the new minimum limits - and the coverages you buy," Granger said.

Progressive Corporation is testing a new program to help safe drivers save on their car insurance rates. Selected drivers volunteered to place small lego sized monitors in their car to allow Progressive to track things such as speed, starts and stops, and time of driving. Based on the additional variables Progressive believes they may be able to divide drivers into more precise channels to charge more precise insurance rates.

This is just a test to try to learn how to classify drivers. I do not believe it is going to be something that they try to adopt widely any time soon, as that could likely lead to a bunch of bad press from privacy advocates.

I have to wonder if people are more inclined to drive safe because they know their driving is being tracked (and how that may skew this type of test)? Knowing how I drive, I probably would not be installing one of these. ;) The Sun Sentinal reports:

Gene Mahoney considers daredevil drivers a major culprit in the high cost of auto insurance, and he doesn't want to pay for their recklessness. So he recently agreed to install a feature in his 1997 Isuzu Rodeo that he hopes will cut his premiums: an electronic monitor to record how far and fast he drives.

In six months, he'll transfer the monitor's data to his home computer and send it electronically to his auto insurer, Progressive Corp. Once he does, the company will provide an immediate $50 break on his semiannual premium. The monitor eventually may earn Mahoney other discounts, too.

Driving around San Antonio uninsured will soon cost you far more than a standard fine. Starting January 1st any driver caught without insurance will

• be ticketed
• have their car towed to the pound
• not be able to get their car back until they show proof of insuranceRead

Read more: Car Insurance Crackdown

Massachussets is currently the only state to offer a one-rate automotive insurance system. Over the years well connected insurance companies have leveraged their positions and smiled as they gleefully watched the rates go up.

Attorney General Tom Reilly called for an 18% reduction in state auto insurance rates, and Governor Romney wants to do away entirely with the one-rate system. WCVB reports:

A group headed by the auto industry has produced commercials blasting [Governor] Romney's plan, but drivers in Massachusetts pay the fourth-highest car insurance rates in the country and Romney says he wants to change that. The state sets one rate for all companies -- the only state to have a one-rate system.

Romney's plan would establish a competitive system, mandating a 5 percent reduction for clean drivers the first year and setting a 15 percent maximum hike for bad drivers. Drivers would have three years instead of six to wipe their records clean of violations, and there would be no automatic penalty for teenagers with clean records. If drivers receive five surcharges in three years they must undergo training or lose their licenses for 30 days.

Read more: Battle Over Car Insurance Rate System To Start