Personal Auto – Business Insurance Coverage

How Telematics Turn Fleet Data Into Insurance Savings

paperless — Wed, 28 May 2025 20:52:14 +0000

Telematics Aren’t Surveillance – They’re Protection

In today’s fast-moving logistics industry, staying ahead means using the right tools. Telematics, once seen as optional or high-tech extras, are now essential. These tools go beyond just tracking vehicles – they help companies run smarter, safer, and more efficiently. What’s more, telematics are reshaping how commercial auto insurance works. They don’t just monitor fleets – they protect them.

What Are Telematics?

Telematics refers to the use of technology to collect and share data from vehicles. These systems track things like location, engine status, braking patterns, and speed. Many fleets also use electronic logging devices (ELDs) and dashboard cameras to gather even more information. Together, they offer a real-time picture of how each vehicle and driver is performing.

While these tools were first used by large carriers, today fleets of all sizes rely on them. It’s no longer just about meeting federal rules – it’s about cutting accidents, lowering costs, and improving performance. Even drivers who don’t have to use ELDs often choose to, because the data helps in ways that are hard to ignore.

How Telematics Benefit Fleets

For fleet managers, the advantages of telematics are clear. Real-time data helps reduce downtime, improve driver coaching, and extend vehicle life. Instead of guessing what went wrong, managers can use hard data to find and fix problems quickly. Better visibility into daily operations means better decision-making.

But one benefit is often overlooked: how telematics improve communication with insurance providers.

Smarter Fleet Insurance Through Data

Sharing accurate and timely data with insurers used to be a slow, manual process. Think spreadsheets, emails, and guesswork. But with telematics, fleet owners can now share real-time odometer readings, vehicle identification numbers (VINs), and usage data. That helps everyone understand exactly how each truck is used.

This makes a major difference in how insurance is priced and structured. Here’s why:

Verified Information: Telematics confirm details like mileage, location, and how long trucks are on the road. Insurers can trust the data, which leads to better pricing and more confidence in risk assessments.
Clear Communication: Everyone – from the fleet manager to the insurance underwriter – is working from the same set of facts. That means quicker decisions about coverage limits, deductibles, and policy updates.
Safer Fleets: The data shows patterns like frequent hard braking or high-speed driving. Fleets can use this to coach drivers and improve safety across the board, not just punish mistakes.
Fair Pricing: Fleets that drive safely can prove it. Insurers are more likely to reward safe operations with performance-based pricing, premium credits, or customized plans.

Telematics don’t micromanage drivers – they promote transparency. With everyone seeing the same real-world data, insurance renewals become smoother, coverage more precise, and safe fleets get the recognition they deserve.

Solving the Data Puzzle with TruckerCloud

Even with all the benefits, there’s still one big challenge: telematics data often comes from many different systems. Integrating all that information can be hard. That’s where TruckerCloud comes in.

TruckerCloud serves as a link between fleets and insurers. Their platform gathers real-time, standardized data from a wide range of telematics providers. The key advantage? Fleets don’t need to switch systems or upgrade hardware.

For insurers, this unified data stream means better underwriting, faster quote generation, and the ability to create safety programs tailored to actual fleet behavior. For fleet operators, it means the data they already collect can finally be used to their advantage – especially when it comes to insurance.

A New Way to View Telematics

It’s time to change how we think about telematics. They’re not tools for spying or control – they’re instruments of protection. They help businesses improve safety, build trust with insurers, and reduce operating costs. If you manage a fleet, now is the time to see your telematics system not just as a compliance tool, but as a valuable business asset.

Ready to use your telematics data to build a safer, more cost-effective fleet? Let’s start the conversation today.

New Minimum Liability Insurance Limits Coming to California: What You Need to Know

paperless — Thu, 07 Nov 2024 20:30:42 +0000

California drivers, take note! Starting January 1, 2025, a new law will raise the minimum liability insurance requirements for all vehicle owners. This change, enacted through Senate Bill 1107, aims to ensure greater financial protection for all road users. Here’s a breakdown of what this means for you and your auto insurance policy.

What Are the Current Minimum Liability Limits? Currently, California law mandates that vehicle owners carry a minimum liability insurance of:

$15,000 per person and $30,000 per accident for bodily injury.
$5,000 per accident for property damage. These limits are often expressed as 15/30/5.

What Changes with Senate Bill 1107? Effective January 1, 2025, the minimum liability insurance limits will increase to:

$30,000 per person and $60,000 per accident for bodily injury.
$15,000 per accident for property damage. These new limits are known as 30/60/15.

How Will This Affect Your Insurance Policy? If your current liability coverage is below 30/60/15, your insurance provider should automatically adjust your policy to meet these new minimums when it’s time for renewal. This change will lead to an increase in your insurance premium.

In addition, if your uninsured motorists’ coverage is below the minimum permitted by California law, your policy should be updated to meet the required coverage at your next renewal. You’ll receive updated policy documents reflecting these changes without any other alterations to the terms of your auto policy.

What’s Next? Your revised policy documents should be provided at the time of renewal. Updated information on these new limits should become available on your insurance carrier’s website starting from today, November 7, 2024, and will apply to policies effective from January 1, 2025, or later.

Plan Ahead To avoid any surprises, it’s wise to review your current policy coverage now and speak with your insurance agent. Ensuring that your coverage meets the new requirements can help you stay informed and prepared for potential premium changes.

Take the time to review your auto insurance policy today and reach out to your agent with any questions or concerns regarding these upcoming changes.

If you are not happy with the new premium contact us for a competitive personal auto insurance quote. Call 877-239-0067 Option 1, or fill out a short personal auto insurance application online at https://paperless-insurance.com/pers/

DMV Point System: What It Is and How It Works

paperless — Wed, 14 Aug 2024 23:16:16 +0000

From parking violations to not buckling your seat belt, receiving a traffic ticket is never fun. Not only can they be costly, but some can add points to your driving record as well.

Below, we’ll answer frequently asked questions about the DMV point system and provide tips to keep you and your loved ones safe on the road.

What Is the DMV Point System, Anyway?

The DMV point system is a way for the Department of Motor Vehicles to track drivers who have been involved in traffic violations.

If you are convicted of a moving violation, a set number of points will be added to your driving record. Get enough points and you could face a license suspension or revocation, in addition to fines or other consequences.

Most states use this system, but not all, and the states that do have varying guidelines.

What Violations Add Points?

Points are added to your license for moving violations. These are traffic violations committed by the driver while the vehicle is in motion. Although the number of points assigned for each moving violation differs from state to state, generally more points are assigned for more severe violations.

The most common moving violations that add points to your license include:

Speeding
Running a stop sign
Running a red light
Reckless driving
Making an illegal turn
Not buckling your seat belt
Driving under the influence
Driving a commercial vehicle without a valid commercial license

What Violations Don’t Add Points?

There are also traffic violations that will not add points to your license. Note that although these will not add points to your license, you can still receive tickets for them. These are non-moving violations, which usually include:

Parking violations
Paperwork violations (e.g., failing to renew your registration)
Equipment violations (e.g., failing to replace a burnt-out headlight)

How Long Until My Points Expire?

Generally, the more severe the traffic offense, the longer the points will remain on your record.

In addition to having unique guidelines for the number of points assigned for each violation, states also have differing policies regarding the length of time points remain on your record.

In Connecticut, points will be removed from your driving record 24 months from the date they were assessed, for example.

Meanwhile, although just one state over, Rhode Island doesn’t use the point system at all. Instead, the state relies upon the sting of fines and the possibility of driver’s license suspensions or revocations to discourage drivers from challenging traffic laws.

What If I Accumulate Too Many Points?

As points or violations (if your state doesn’t use the point system) accumulate, your state may take a variety of actions, including:

Fees and fines, which might be as high as several thousand dollars
Warning letters
Mandatory driving classes
In-person hearings
License suspensions

If your license is suspended, your driving privileges are taken away for a certain period of time. After, you are allowed to drive again without having to obtain a new license (although you may be required to pay a suspension termination fee).

However, if you are caught driving with a suspended license, your license can be fully revoked. This means that after a certain period of time, you will have to apply for a new license and pass the DMV exams before your driving privileges are reinstated.

Other scenarios that can result in license revocation include:

Driving under the influence of drugs (including alcohol)
Street racing or other forms of reckless driving
Leaving the scene of an accident that resulted in an injury or fatality

Additionally, your license can be revoked if you are convicted of a non-driving offense, such as failing to answer a traffic summons, or a drug-related offense other than driving under the influence.

The accumulation of moving violations and points can have wide-ranging effects, from hefty fines to losing your driving privileges. Therefore, it’s in your best interest to keep your driving record as clean as possible.

Can I Do Anything to Decrease My Points?

Depending on your state, you can work towards removing points from your record. This can help you avoid a potential suspension, as well as the other problems that can arise if you are not allowed to drive.

Some states remove points from your driver’s license if you manage to keep a clean driving record for a specific period of time after receiving a ticket.

Another common way to have points deducted is to complete a driver safety course, which is allowed in many states. Your state’s DMV will strike a certain number of points from your record if you complete a course at an approved school. Keep in mind, though, that some states only allow drivers to deduct points this way a limited number of times within a given period.

Does My Driving Record Impact My Insurance Premium?

Insurance companies take your driving record into account when determining your premiums. Almost all insurance providers check their current customers’ driving records on a regular basis, as well as the records of those who apply for a new policy.

The general rule is that the more traffic violations you have, the higher your premiums will be. An exception to this is being ticketed for a non-moving violation, which rarely results in increased insurance costs.

If you are convicted of a major moving violation, such as driving under the influence or reckless driving, you will certainly see increased premiums. Insurers consider drivers with such violations to be high-risk drivers, who are more likely to be involved in a collision and file a claim than drivers with cleaner records.

Regulations regarding the period of time insurance providers are allowed to look back at customers’ driving records when calculating their premiums vary from one state to another, but it’s generally between three to five years (although it can be longer). This means that any ticket you received prior to that will not affect your insurance costs.

What Can I Do to Save Money and Stay Safe?

While some accidents are unavoidable, there are many ways you can practice safe driving or increase your skills (which may also help you save money!), including:

Avoiding distracted driving
Managing and navigating road rage
Knowing the rules of the road
Keeping your pets safe while driving
Staying well to stay safe behind the wheel
Taking a defensive driving class

According to the latest data from Consumer Affairs, “it’s estimated that there were over 243 million licensed drivers in the U.S. in 2023, and about 89% of Americans ages 25 and older have a driver’s license.” It’s up to each and every one of us to do our part to make the roads as safe as possible.

Securing Your Ride: Combatting the Surge in Kia and Hyundai Thefts

paperless — Thu, 01 Feb 2024 01:08:46 +0000

The Rise of Auto Theft: A New Challenge for Kia and Hyundai Owners

Are you a Kia or Hyundai owner? If so, it’s crucial to be aware of the recent surge in thefts targeting these vehicles. A trend fueled by a viral TikTok challenge is leading to an alarming increase in thefts, especially for models requiring a key for ignition. The National Highway Traffic Safety Administration (NHTSA) reports that about 4.5 million Kia and 3.8 million Hyundai cars are at risk. This post will guide you through essential steps to protect your vehicle from this growing threat.

Proactive Measures by Kia and Hyundai

Kia and Hyundai have responded to this crisis by offering free anti-theft software upgrades to affected owners. Kia owners can access these upgrades through the Kia Owner’s portal or by contacting Kia directly. Hyundai offers a similar program, details of which can be found on the Hyundai Anti-Theft website.

Additionally, both companies provide steering wheel locks, either complimentary or with a reimbursement option, to enhance vehicle security.

General Car Theft Prevention Techniques

Beyond brand-specific measures, general car theft prevention techniques are vital. The National Insurance Crime Bureau (NICB) highlights the importance of not leaving keys or fobs in the vehicle. Simple habits, like using a remote car starter or installing a remote kill switch, can significantly deter thefts. Parking in safe, well-lit areas and using additional security devices, such as catalytic converter clamps, can also be effective.

The Role of Comprehensive Auto Insurance

Despite taking precautions, the possibility of theft remains. In such cases, comprehensive auto insurance becomes essential. This coverage can help mitigate financial losses due to theft, including providing a rental car while your claim is processed. However, be aware of the deductible and the actual cash value of your vehicle, as these factors will affect the payout. For added protection, consider gap insurance, especially if you owe more on your vehicle than its current value.

Conclusion: Stay Informed and Prepared

With the rise in vehicle thefts, especially among Kia and Hyundai models, staying informed and prepared is more important than ever. Implementing anti-theft measures, being mindful of your vehicle’s security, and ensuring adequate insurance coverage are key steps in protecting your investment and peace of mind.

The Current State and Future Prospects of Auto and Homeowners Insurance in the U.S.

paperless — Mon, 04 Dec 2023 21:27:57 +0000

The U.S. personal lines insurance industry, a critical sector encompassing auto and homeowners insurance, is at a crossroads. Recent assessments by AM Best reveal a sustained negative outlook for this sector, a decision initially influenced by the auto insurance segment’s struggles in September 2022. This outlook has now expanded to include homeowners insurance, indicating a shift from stability to uncertainty.

The Struggle for Underwriting Profitability

A key challenge facing the personal lines sector is the uphill battle in regaining underwriting profitability. While many insurers maintain strong risk-adjusted capitalization, a notable fraction is witnessing a thinning of their capital cushion, attributed mainly to continuous underwriting losses. This precarious situation is aggravated by the increasing need to implement rate hikes, a task made complex by varying regulatory landscapes and amplified by broader economic trends.

Specific Challenges in Auto and Homeowners Insurance

Auto insurance companies have been particularly impacted. Escalating repair and medical costs, heightened fatality rates, and shortages in parts and labor have all contributed to the negative outlook. These factors were significant enough for AM Best to revise its perspective on this segment over a year ago.

Homeowners insurance, meanwhile, faces its own set of challenges. Three consecutive years of net underwriting losses have been recorded, primarily due to a higher frequency of natural disasters, inflationary pressures, and soaring reinsurance costs. Secondary weather perils, now more frequent and severe, often remain within insurers’ net retentions, highlighting weaknesses in some enterprise risk management strategies. The evolving reinsurance market dynamics are prompting insurers to increase their retention levels, exposing them further to catastrophe risks.

Risk-Adjusted Capitalization: A Double-Edged Sword

Despite these hurdles, most companies in the sector still boast robust risk-adjusted capitalization, a testament to their effective risk management practices. However, the continued underwriting losses, especially in catastrophe-prone areas, are beginning to erode this capital buffer. Increasing reinsurance retention and co-participation levels only add to the challenges, significantly affecting insurers’ outcomes following catastrophic events.

A Glimmer of Hope: Technology and Innovation

On a brighter note, the industry is experiencing a rapid embrace of technology and enhanced catastrophe risk management practices. Digital technology adoption is on the rise, with insurers focusing on product innovation. This trend is particularly evident in the homeowners insurance segment, where the presence of large, homogeneous risks presents opportunities for scalable and replicable innovations.

Carriers are leveraging advanced underwriting models and technology platforms to refine pricing strategies. This enhanced pricing sophistication enables them to tailor coverage and prices more effectively, addressing the unique needs of their clientele. Such technological advancements are pivotal in improving risk selection and mitigation strategies, streamlining claims processing, reducing service costs, and refining product offerings.

The Path Forward

As the industry navigates through these turbulent times, insurers continue to prioritize rate adequacy, technology adoption, and catastrophe risk management. These efforts, though challenging, hold the potential for greater earnings stability and resilience in the face of evolving market conditions.

In conclusion, the U.S. personal lines insurance sector, encompassing both auto and homeowners insurance, is navigating a period of significant challenges. The current landscape is marked by an uphill struggle to return to underwriting profitability, compounded by regulatory complexities and broader economic trends. However, the sector’s ongoing commitment to technological innovation and improved risk management practices offers a beacon of hope. As insurers adapt to these changes, there is potential for a more stable and prosperous future in this vital industry.

Marital Status and Personal Insurance

paperless — Tue, 01 Feb 2022 20:55:24 +0000

Your particular insurance needs depend, in part, on who you live with and your relationship to them. Most changes to your relationship status will warrant an insurance policy update.

If you don’t update that information, your insurance company may have incomplete information about who’s sharing your home or your car, and you may have too little or too much coverage.

Insurance Needs for Single or Single with Roommates

Whether you rent or own, whether you live alone or with roommates, you should have an insurance policy to cover your home and possessions, as well as the necessary car insurance. Your guests, your roommates, and their guests can all cause damage to your home or car (and so can you, for that matter).

Car Insurance

If you’re living with roommates, your insurance company may want you to add your roommates to your car insurance policy, just in case they drive your car and end up in a crash. Be sure to check with your insurance company. The last thing you want is for your roommate to cause damage to your car that your insurance won’t cover.

Home Insurance

If you’re renting, the person on the lease typically purchases the renters insurance. If both your names are on the lease, you’ll need separate renters insurance policies. Most insurance companies will not write one policy for unrelated friends.

If one name isn’t on the lease and that person doesn’t have a policy, the possessions they keep in the home are likely still covered by the policyholder’s insurer.

Yet, any possessions lost, destroyed or damaged outside of the home may not be covered . If this person’s phone was stolen while they’re out, for instance, it wouldn’t be covered.

To have off-premises possessions covered, the policy-holder would have to buy an insurance endorsement to provide their roommate with off-premises possessions and liability protection.

If one person has bought a place and the other roommates are paying rent to them—think Blanche and the other Golden Girls—the owner should get a homeowners insurance or condo insurance policy, and the renters should each get a renters insurance policy.

Insurance Coverage for Unmarried Partners

Nearly every state requires insurance companies to recognize and provide coverage for domestic partnerships. But whether you need to register officially as domestic partners depends on the insurance company. Each insurance company might require something different to confirm the domestic partnership. If you or your significant other are not domestic partners, you may need to buy separate insurance policies, the way roommates would.

Car Insurance

Sharing your home with someone doesn’t necessarily mean that you are sharing your car with that person; but if you are, you’ll need to update your car insurance.

You should discuss your driving record with your partner. If one of you has a bad driving record, their premiums could be higher. For this reason, the two of you may want to keep your auto insurance policies separate. But, you might be eligible for a discount if you combine your car insurance policies into one.

Home Insurance

If you are cohabitating and registered as domestic partners, it’s required to have both names on the home insurance.

Insurance Options for Married Couples

Once someone becomes married, this means they will usually begin to share assets with their spouse, like a home and car. It is important to know what you need to do to ensure your assets are protected at all times.

Car Insurance

Once you get married, you and your spouse need to be on the same car insurance policy. This way, if one of you drives the other’s car and gets into an accident, you’ll still be covered. And, you’ll likely receive a discount for combining policies.

If your spouse has a terrible driving record, this could dramatically increase your insurance premiums. In some states, such as California, you could exclude your spouse from your car insurance by adding a named driver exclusion endorsement to your policy.

The excluded driver wouldn’t be allowed to drive your car. If they did, and then needed to make an insurance claim, your insurance company wouldn’t be required to pay the claim.

Some states, such as New York and Virginia, don’t allow you to exclude anyone in a household from your policy.

Home Insurance

The moment you get married, your spouse is covered by your homeowners, renters or condo insurance, so long as your spouse lives in the household with you. You should still inform your insurance carrier of the good news.

Make sure that you reevaluate your coverage to determine whether it’s enough to protect any additional possessions. If, for example, the engagement ring and wedding bands are worth more than what your valuable items insurance will cover, then consider adding extra coverage for those items.

Insurance Changes After Separation or Divorce

Becoming recently separated or divorced is a challenging time for couples. Understanding the necessary steps in updating your insurance coverage will help ensure that all assets will be protected properly.

Car Insurance

You’ll also need to get a new title issued for your car if both spouses were previously listed as owners. If there’s an accident, the other driver will go after the car owner, not the driver.

If you and your spouse cannot agree on a resolution for your car, you may need to negotiate this through the divorce court. You can’t just remove your ex from the insurance policy, either, because most insurance companies want a signature from each person to acknowledge the change.

Note that your car insurance discounts may disappear, particularly those tied to multiple drivers and vehicles.

Home Insurance

If you are married but separated—meaning that you no longer share the household with your spouse but are not officially divorced—you are no longer considered an insured on the policy.

If you still have possessions at the home you shared with your spouse, but there’s a fire in the house that causes damage to your possessions. Your spouse will receive the reimbursement check for those damages, not you. So, if you move out, take your belongings with you.

If you and your spouse are divorcing and one spouse is keeping the home, the other will need to sign a quit claim so that the deed to the home can be reissued in the sole owner’s name.

The homeowners insurance policy is tied to the deed to the property, so if both spouses’ names are on the deed, you can’t just remove them from the insurance policy.

Insurance Next Steps for People Who Are Recently Widowed

The death of a spouse can be one of the most difficult life experiences many of us will ever have to face. It’s a huge adjustment. Knowing that you have the protection you need, and are not paying for coverage you don’t, may help provide some peace of mind.

Car Insurance

If your spouse is named on the policy, you’ll need to change the policy to your name only. This can be done immediately — even if you need to re-register the car and haven’t done so yet. (Check with your state Motor Vehicle Department to verify requirements.)

If you plan to keep your spouse’s car, you’ll need to know when you should keep full coverage and when you can suspend it. It will be important to understand who can drive the car and be fully covered in case of an accident.

If you do sell the car, let your insurance company know on what date that will take place. They can stop your coverage at the right time, and you won’t wind up paying for insurance on a car you no longer own.

If you have one car, and your spouse was the only licensed driver, you may decide to keep that car and arrange for someone to drive you occasionally. In that case, your insurance company will explain how to handle the insurance.

Home Insurance

Even if your spouse’s name is still on the deed to the home, it should be removed from your insurance policy.

If you decide to establish joint ownership of your home with a son or daughter, it may be appropriate to list your child’s name, along with yours, on the policy. There’s a difference in how this is handled; it depends on whether the son or daughter lives with you. Talk to your agent or insurance company so you can be confident the policy is written for your specific needs.

If you plan to sell your home, or if you’ll be moving from a house to a condo or apartment—talk to your agent or insurance company. They can help ensure you have the coverage you need for your new situation.

Sometimes a house in transition remains vacant (which means there is nothing in it, not just that it’s unoccupied) for a significant period of time. Be sure to tell your insurance company if this is or will be your situation. It’s important that your home is covered, even if it’s empty.

Umbrella Insurance

Umbrella insurance policies increase liability coverage for both your homeowners and car insurance policies. As with your other policies, you should review your umbrella insurance policy during any life change. If you combine households, you may need more coverage, but after a divorce, you may need less coverage.

Whenever you go through life-altering events, it’s a good time to reassess your insurance coverage.

Distracted Driving and Insurance Premium

paperless — Thu, 26 Aug 2021 17:57:46 +0000

Most drivers are aware of the dangers of driving while distracted. However, something that many drivers do not realize is that in addition to the legal ramifications, these distractions can affect the premiums you pay for your auto insurance.

While any number of things can distract a driver from the road — including eating, adjusting the sound system, or talking to people in your vehicle — the distraction that often has the biggest and most dangerous impact is using a cell phone or other mobile device while driving. That is why it is great to look into cars equipped with hands free devices while driving– such as Bluetooth.

According to National Highway Traffic Safety Administration (NHTSA) data, driving while distracted killed 3,450 people in 2016. The vast majority of those accidents occurred because the driver was using a cell phone.

While concern about accidents should be enough to deter drivers from engaging in this risky behavior, state legislatures are also adding financial penalties to distracted driving.

Here’s what you need to know about the financial and legal penalties for driving while distracted.

Distracted Driving and State Laws

With the exception of Arizona, Missouri, and Montana, all U.S. states, as well as the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands, have instituted a ban on texting while driving for drivers of all ages.

Most states have made texting while driving a primary offense, which means law enforcement has the right to pull over an offender simply for violating the ban.

In states where the texting prohibition is a secondary offense for those over the age of 18, such as Florida, Nebraska, Ohio, and South Dakota, the texting ban can only be enforced if the driver is also violating a primary offense. For example, if a driver fails to stop at a stop sign because she is distracted by her cell phone, the officer who pulls her over for failing to stop can also cite her for texting while driving.

The penalties for texting while driving vary from state to state. At one end of the spectrum are states like Virginia that charge a $20 fine for a first offense. On the other end are states like Alaska that can levy a maximum fine of $10,000, plus a maximum of 10 days in prison for a first offense. In between those extremes, drivers face financial penalties ranging from $30 to $750 and additional penalties that may range from demerit points on their licenses to jail time.

In every state with a texting ban, the penalty goes up with subsequent offenses. Drivers in states that assign moving violation points for texting while driving are more likely to see a negative effect on their auto insurance premiums.

Additionally, even if you yourself are not a distracted driver, other people’s distracted driving can affect your insurance premiums. One factor that can affect your auto insurance rates is the number and severity of crashes across the population of drivers in the country and in your state. To the extent that distracted driving contributes to an increase in accidents, other people’s distracted driving can cause your auto insurance rates to increase.

Teens and Distracted Driving

For a variety of reasons, you can expect to see increased premiums when you add teenagers to your auto insurance. One reason is that insurers recognize that teen drivers are the most likely to be distracted behind the wheel. According to the AAA Foundation for Traffic Safety, “distraction was a factor in nearly 6 out of 10 moderate-to-severe teen crashes.”

Distraction for teens does not necessarily come from their phones. In 15% of all teen distracted driver accidents, the distraction was talking to or interacting with a passenger in the car, whereas an electronic device was the distracting element in only 12% of such crashes. Another 11% were caused by distractions occurring inside of the vehicle such as eating while driving, reaching for objects or adjusting music and GPS settings. There are ways that parents can monitor their teen driver with car tracking devices that can help prevent these risks.

The concern over distracted driving is one of the reasons why many states have instituted graduated driver’s licensing programs. These programs ease teens into the skills of driving, while placing hard limits on when and with whom teens are allowed to drive. States also impose harsher penalties on teens who drive while distracted to help deter distracted driving behavior.

Mitigating the Dangers of Distracted Driving

Safe drivers who want to keep themselves out of danger may wonder what they can do to reduce the problem of distracted driving.

To start, it’s important to understand which behaviors are most likely to distract you behind the wheel or cause accidents. This means that in addition to refraining from using your phone while driving (and pulling over if a passenger is distracting you), you also need to drive defensively, leave enough room between yourself and vehicles in front of you, check your blind spots, refrain from driving while fatigued or impaired, and wear your seat belt (and insist that your passengers are also properly secured).

For parents, modeling good driving behavior goes a long way to helping novice drivers learn safe habits. Parents need to set clear rules and expectations for teen drivers, and monitor their driving to make sure they are ready to take on the responsibility of getting behind the wheel.

Using Technology to Be a Safer Driver

Though cell phones may be behind the majority of distracted driving incidents, mobile technology can also help to both reduce distractions and reward you for safe driving.

For example, drivers of all ages can take advantage of Apple’s Do Not Disturb While Driving© feature that seeks to minimize distractions by muting the driver’s incoming calls, texts, and notifications. Both iPhone and Android devices can generate an auto-reply message to alert those calling or sending a text that you that you’ll be back in touch when it’s safe to do so.

In addition, telematics technology can measure your driving habits via a free mobile app that can be downloaded to any smart phone. While you are driving, the app will run passively in the background, using sensors that are already in your phone, such as GPS, accelerometer, and gyroscope.

Since this technology is app-based, rather than a tracker installed in a specific car, it will track your driving anytime you get behind the wheel, even if you are driving someone else’s car. This means you will also have to alert the app anytime you are a passenger, or traveling by bicycle, bus, train, or other form of transportation to ensure only your driving habits are measured.

Telematics apps measure things like the time of day you drive, your speed, instances of hard braking, and distance traveled. These measurements can help your insurer understand when and how you drive. In many cases, insurers will offer both a small discount for signing up for such a program, and a potential safe driving discount after a period of data collection (typically about six months) if you have shown yourself to be a safe driver.

Keeping Your Eyes on the Road

Distracted driving has always been a concern on the road, but the sheer number of potential distractions has increased with all the advances in mobile technology.

Mobile phones offer multiple ways to lose focus on your driving — whether it’s the need to use a hand-held device, concentrating on your conversation (even when you’re using a hands-free device), or the temptation to check (or send) a “quick” text. Even cogitative instances like drowsy driving or aggressive driving can be a distraction.

To put the texting dangers into perspective, the NHTSA reports, “Sending or reading a text takes your eyes off the road for five seconds. At 55 mph, that’s like driving the length of an entire football field with your eyes closed.” Probably not a choice you’d consciously make.

But even though new technology can be a distraction behind the wheel, it can also offer solutions to the problems of distracted driving. Taking advantage of do not disturb options on your phone and telematics tracking apps from your insurer can give you the tools you need to help keep your eyes on the road, your hands on the wheel, and — perhaps most importantly — your mind focused on your driving.

Catalytic Converter and Insurance

paperless — Mon, 16 Aug 2021 19:17:29 +0000

First of all, both your personal auto insurance and business auto insurance cover the damage to your autos with a theft of catalytic converter, as long as you have full coverage. You should open a claim an the payment will be processed with comprehensive part of your insurance policy. You’ll likely need to pay your deductible.

Thieves have targeted catalytic converters for years, but recently these crimes have been on the rise. According to the National Insurance Crime Bureau (NICB), there were 1,298 reported catalytic converter thefts in 2018. That increased to 3,389 in 2019 and skyrocketed to 14,433 in 2020. Why do people steal catalytic converters? These automobile parts help convert toxic gas into carbon monoxide and nitrous oxide, which are less hazardous pollutants. To do this, they use precious metals that recyclers can get a lot of money for, including:

Rhodium
Palladium
Platinum

Catalytic converters are a part of your car’s exhaust system. They’re located between the engine and the muffler. Thieves will often slide right under your car or truck to steal your converter. However, it is possible to keep your car safe if you take the right precautions. To learn more, read through our five tips below.

Five Ways You Can Prevent Theft on Your Catalytic Converter

If you’re worried about a catalytic converter theft with your vehicle, some steps you can take, include:

Storing your vehicle inside whenever possible: Parking your car in your home garage is a great option. If you don’t have a garage, you can install motion sensing lights in your driveway. You can also find a parking garage or other type of secured parking area.
Considering sensors: You can get gate opening sensors or other detection devices that will trigger a burglar alarm and lights. You can also get deterrent devices like Catstrap^TM or CatClamp^TMto keep your car safe.
Re-calibrating your vehicle’s alarm: You can re-set your alarm to detect any vibrations. This can help it go off when thieves are tampering with your vehicle.
Parking in strategic locations: Don’t just park anywhere. Make sure you’re leaving your car in a space that’s well lit, highly visible and has security cameras. If you have a high-riding vehicle like a truck or SUV, you can park them near cars that are lower to the ground to make it more difficult to access underneath.
Marking your catalytic converter: You can etch your vehicle identification number (VIN) into your catalytic converter. If it’s stolen, this can help police trace it and identify thieves.

What Should You Do If Someone Steals Your Catalytic Converter?

If someone steals your catalytic converter, you should report it to the police immediately. You can then contact your insurance carrier and check your comprehensive insurance coverage. Your catalytic converter is very costly to replace. So, regardless what kind of car you drive, you’ll want to take action and prevent thieves from targeting your vehicle. It can be as easy as parking in your garage every night or in a well-lit area. You can also re-calibrate your car alarm and install sensors on your property for even more protection. Whatever course of action you decide on, you won’t regret it. Remember, these thefts are on the rise across the country.

Auto Insurance Score Explained

paperless — Tue, 09 Feb 2021 20:28:35 +0000

An insurance score is a score calculated from information on your credit report. Your credit information can be very predictive of future accidents or insurance claims, which is why many insurance companies use this information to develop accurate rates.

Your credit score is one of the factors that can affect your car insurance premium. If you want to understand better what goes into the pricing of your car insurance and how you can lower it, you need to be aware of the relationship between your credit score and your insurance score.

Why Does Your Credit Score Matters to Your Insurance Score?

Insurers first started using credit scores to help determine premium rates in the mid-1990s. They realized that there was a significant relationship between a customer’s credit score and how likely they were to file a claim. Those with lower credit scores were more likely to file a claim and those with higher credit scores were less likely to file a claim. At least two studies have supported this observation: a 2003 study by the Bureau of Business Research and a 2007 study by the Federal Trade Commission.

Although this connection exists and is well-known among insurance underwriters, the reason for it isn’t clear. Some speculate that drivers who pay their bills on time are more likely to be responsible in general, and thus, less likely to be involved in an accident. Note that the use of credit scores to determine auto insurance rates is prohibited in California, Hawaii, and Massachusetts (Maryland and Hawaii for homeowners insurance).

What Is the Difference Between a Credit Score and an Auto Insurance Score?

When calculating your car insurance rate, insurers use your credit score to derive something called an insurance score or a credit-based insurance score.

Each insurance company has its own formula that determines how much weight is placed on insurance score when calculating rate. This is why your rate may vary from insurer to insurer.

To calculate your insurance score, the insurer uses your:

Credit score
Accident history
Claim history

The latter information can be accessed via one of two databases: the Automated Property Loss Underwriting System (A-PLUS) and the Comprehensive Loss Underwriting Exchange (CLUE).

Like credit scores, insurance scores are three-digit numbers. They range from a low of 200 to a high of 997. In general, scores below 500 are considered poor and scores above 770 are considered good.

Drivers who wish to know their insurance score may order a report from LexisNexis or contact their insurance carrier.

What Information Goes Into an Insurance Score?

There are a variety of companies that created credit-based insurance scores for insurance companies to use. FICO looks at five general areas to best determine how you manage risk. These five areas include:

Your payment history
Outstanding debt
Credit history length
Your pursuit of new credit
The types of credit you have that comprise your credit mix

Each of these areas is weighted differently to come up with your total credit score. Race, religion, gender, marital status, age, income, the location of residence, and additional information not included in your credit report do not factor into your insurance score.

What Are the Concerns About Credit and Insurance Scores

Although the use of credit and insurance scores is widespread, some consumer protection groups worry about the fairness of using them to determine auto insurance premiums.

Before the use of credit and insurance scores, insurance companies based their rate decisions on traditional actuarial research only. This was a lengthy process that involved developing a theory about driver behavior and collecting data to determine whether it was correct. For example, one theory might be that drivers with a DUI conviction will file more insurance claims in the year following the DUI. Actuaries would then examine the statistical evidence to determine whether that theory could be supported.

Not only was this method for evaluating risk slow, but by itself, it wasn’t very accurate. However, insurers have found that using credit and insurance scores as a factor in their decisions has helped to better align drivers with appropriate insurance rates. Lower-risk drivers pay less for their insurance premiums and higher-risk drivers are charged at a rate that is fair relative to their risk level.

Can You Improve Your Credit Score and Insurance Score?

If you’re concerned about your insurance premium, there’s good news: Improving your credit score can improve your insurance score and possibly, lower your premiums. Consumer Reports found that for a driver with an excellent credit score, a single moving violation might increase their premium by $122 per year. For a driver with a good score, their rate would go up by $233. And for a driver with a poor score, their rate would go up by $1,301—and that was for the same violation.

There are several things you can do to raise your credit score. These three steps will give you the biggest return on the investment:

1. Address errors on your credit report.

According to the FTC, one in four people have errors on their credit reports, and about five percent of people have mistakes that are substantial enough to significantly lower their credit score. If you’re in that situation, you can have the errors corrected. Periodically review your credit report and dispute any mistakes that you come across.

2. Pay your bills on time, every time.

On-time payment is one of the most significant factors that influence your credit score. Even paying a bill a few days late can negatively affect your credit. Set up automatic bill pay or add payment reminders to your calendar to help you develop the habit of paying your bills on time.

3. Reduce the amount of debt you have.

Other than payment history, what will have the biggest impact on your credit score is your credit utilization—that is, how much you owe on your credit cards compared to their credit limits. If you consistently max out your cards, then it will negatively affect your credit score. To avoid maxing out your cards, make a budget, track your spending, and if necessary, speak to an expert about your finances.

Final Tip:

Consider looking for insurance companies that offer discounts for positive actions such as:

Adding an anti-theft device such as alarms or tracking devices
Completing a defensive driver course
Driving a green car: hybrid or electric

How Moving Affects Your Auto and Home Insurance

paperless — Tue, 15 Dec 2020 23:53:50 +0000

Moving can come with a lot of stress. Not only do you have to figure out moving costs, pack and orchestrate the movers, but you also have to update your address across all relevant forms. Two important things to pay special attention to during this time are your auto insurance and home insurance.

No one wants to spend hours getting new insurance quotes or transferring over insurance information, but doing so will protect you, your home, and your vehicle during and after your move. Here, we’ve answered the most common auto and home insurance questions to help cover your bases during your upcoming move.

How Moving Affects Your Auto Insurance

Will my auto insurance rate change when I move? Even if you’re a great driver, you still could have an uptick in your insurance premium when you move. This has nothing to do with you as a driver, and everything to do with your vehicle being in a new environment with a new set of risks. Your car insurance company will consider changes in traffic patterns, weather patterns, and assess the risks of where the car is parked/kept. And if your new home leads to a longer commute, that could also increase your rate.

For example, if you move from Winston-Salem, North Carolina to Los Angeles, you can expect a higher rate, since you’ll be driving in higher-traffic areas and parked in higher-risk areas. But, if you move from a large city to a small town with reasonable weather, you can expect your rates to drop.

Even if you are moving within your current state, your rate could be different. It all depends on the risk factors for your new location.

How Do I Change My Car Insurance When I Move to a Different City Within My State?

If you only have an auto policy with your insurance company, you’ll just need to update your address. You can give your insurance company a call, or depending on your insurer, make the change online. Make sure you know your new zip code and your place of employment’s zip code, if it is different.

Will My Insurance Coverage Change If I Move to a New State?

Yes, and it is important to know what your new insurance policy will cover. Even if you stay with the same insurance company, do not assume that your coverage will stay the same. Different states have different auto insurance laws and minimums.

For example, personal injury protection (a.k.a. no-fault insurance) is required in 12 states and Puerto Rico, optional in five states plus District of Columbia, and not available in others. If you move from California, a fault or tort state, to Kentucky, a no-fault state, you’ll have to pay more for personal injury protection coverage.

How Do I Change My Car Insurance When I Move to a New State?

First things first, prevent gaps in your auto insurance. Do not cancel your current car insurance policy until you have a new one in place.

A gap in car insurance can result in costly issues. Not only might you have to pay for all damage if an accident occurs, but you might also incur fines or jail time for driving without insurance.

You can avoid gaps by not canceling your current policy until your new one is in place.

Once you’ve officially moved, it’s crucial that you register your vehicle in your new state and update your insurance within the state’s time frame. You may be able to stay with the same insurance company if the company offers coverage in your new location. However, you will need to go through a full re-write of your policy.

When and How Do I Register My Vehicle in My New State?

Each state has different requirements, but it’s best to change your registration and insurance within the first 30 days of moving. Note that if you are moving to California, you must register your vehicle within 20 days of established residency.

Some states even allow you to pre-register plates, which can save a lot of time and headache at the DMV. You can check online to find out what’s required of you before you can register your vehicle. Most likely, you will need:

The title of your car in your name
Proof of insurance at your new address
Proof that the vehicle has passed an emissions test or smog check.
Proof that the vehicle has passed a vehicle safety inspection.

When Can I Cancel My Old Auto Insurance Policy?

Each state operates differently, so familiarize yourself with the different laws. For example, In New York, you cannot cancel your policy until you turn in your plates. In other states, your old policy may be canceled immediately once you register your car in a new state. Don’t hesitate to call and ask your insurance company when it will be safe to cancel your old policy.

I’m a Snowbird. Do I Need to Change My Insurance?
Like to travel to warmer weather for several months out of the year? We don’t blame you. Before leaving for your extended vacation, however, make sure you have the necessary insurance coverage. Your coverage needs will vary depending on your answers to several questions, including:

Will you take your vehicle with you?
How long will you be staying in a different state?
Which state will be your second home?

Explain your situation to your current agent or carrier to determine whether extra coverage is needed. You might be able to purchase temporary coverage, or you might not need any additional coverage at all. It all depends on each state’s requirements.

How Much Should You Save to Move?

How Moving Affects Your Home Insurance

Will my home insurance rate change when I move? Home insurance premiums vary by state and the characteristics of your actual dwelling. Depending on the area and the cost of your home, your new home insurance rate might be more or less than what you are currently paying. Don’t automatically assume that moving to a safer neighborhood qualifies you for a better home insurance rate. Rates are determined by zip code, not neighborhood.

Will My Coverage Be the Same If I Move to a Different State?

Check with your current insurer to determine whether you can transfer policies or will need to find a new insurance company. Standard home insurance is similar across most states, although pricing varies widely. Some states are more prone to natural disasters, and if you’re moving to such a state, additional coverage should be purchased. For example, Oregon is considered an earthquake state, and additional coverage is recommended.

What Do I Need to Tell My Insurance Company?

When you call for a new quote, the agent will walk you through a detailed questionnaire to determine an accurate rate. Here are a few questions the insurance company will likely ask.

What is your new address?
Is your home inside or outside city limits?
How far is your home from the nearest fire hydrant?
How far is your home from the nearest fire station?
What is the name of the fire protection provider?
Is your home located within 2,000 feet of a shoreline?
Does the home have dead bolts? Smoke detectors? A sprinkler system? An active security system monitored by an alarm company?
Does your new home have a pool? A trampoline?
Do you need to change your personal property coverage?
What is the closing date and move-in date?
You may also have to provide details of the home’s construction and features.

Are Your Possessions Covered While Moving?

This depends on your coverage. Many policies will cover your possessions in your home, a moving truck, or the back of your minivan. Call your current provider to determine what and how much is covered.

If your possessions are not covered, you might be able to purchase coverage through your moving company. Pay attention to how much will be covered and purchase additional protection if necessary.

How Do I Prevent Gaps in My Home Insurance?

You don’t want any gaps in your home insurance, especially if you are relying on that insurance to cover your personal belongings when you move. Your insurance agent can help you time the cancellation of your old policy to make sure there are no gaps. Plan for delays in the home buying and selling processes, and speak to your insurer about what you should do if your old house ends up sitting on the market.

Do I Still Need Home Insurance If I Am Not Moving Into a Home?

Moving Into a Condo/Rental Home/Apartment/Assisted Living Facility? You will not need home insurance, but you will need condo insurance, renters insurance, or assisted living resident insurance. Remember that even if you no longer need to protect your dwelling itself (as is the case when you move into a rental or assisted living facility), you do still need to protect your personal property from damage and yourself from liability.

If you move into a condo, be sure you understand the details of your agreement with the condo association so that you can discuss your insurance needs and purchase the right coverage from your insurance company.

Although your moving to-do list might be a mile long, don’t put off insurance changes until the last minute.

Final tip: Start thinking about your auto and home insurance policies at least a couple months prior to moving. The last thing you want is to have a gap in your coverage or miss a major registration deadline.

Calling all snowbirds, home buyers and sellers, and movers and shakers! Relieve some of your moving stress. Find more moving tips in our monthly newsletter.

Take the guess work out of not only preparing for your move, but also for buying and selling your home, and home safety and maintenance tips. All this and more to help you thrive in your new living space.