October 9, 2008- In Ohio, local government and national insurance companies are adding up the damage caused by Hurricane Ike. The Ohio Insurance Institute is reporting about $553.1 million in insured losses- most caused by the  winds created by the hurricane.

This storm is the highest damage total in the state  since 1974 when Ohio residents were hit by Xenia tornado outbreak.  The Xenia tornadoes caused roughly $600 million in damages- equal to about $1 billion today.

About 121,624 claims were filed.  Of these claims, an estimated 88 percent were home insurance claims. Most home insurance insurance claims, which totaled about $461 million,  involved roof, siding, window and wall damage cause by toppled trees.  Auto claims made up 7.5 percent of claims totalling about $22.7 million in damages.  The remaining claims consisted of claims for commercials property damage, business interuption and refrigerated property losses totaling $69.1 million.

Now in Texas, the Department of Public Safety troopers are using a system that instantly verifies whether a driver has liability insurance.

“If you don’t have liability insurance for your vehicle, your chances of getting a ticket just went up dramatically,” said DPS Lt. Louis Sanchez.

Previously, if you carried a valid insurance card, that was proof enough of being insured. Now, law enforcement officers will be able to tell through the new database if you are not insured or if you have had a lapse in coverage- which your insurance card would not expose.

“As we receive information regarding the compatibility and reliability of the information from DPS, which is provided by this database, we will be in a better position to answer questions regarding its utility and its effect on our policies,” said Executive Assistant Chief Mike Thaler.

Driving with liability insurance in Texas carries a maximum fine of $350.

A recent study examined the trends in auto insurance consumers actively looking for auto insurance policies. The study, performed by J.D. Power and Associates, found that on on average, major auto insurance companies only capture about two percent of all auto insurance customers.  Surprisingly, 36 percent of auto insurance shoppers ignored the top insurance brands when they made their purchasing decision.

A recent article in the Insurance Journal quoted the Senior Director of Insurance Practice at J.D. Power and Associates, Jeremy Bowler, saying that, ” Unwillingness to consider a brand is generally caused by a previous experience with a  company, a lack of bundled or desired options, or feedback from friends and family.  In particular, the impact of reccomendations and referals is critical to whether or not a prospective customer will even consider an insurance company”.

The study also found that traditional insurance sales methods (phone, in person) might be closing more policies than online attempts. With traditional close rates being about 52%, stricly online methods only conjure in sales from approximately 20% of their leads.

Bowler went on to say, however, that, “One interesting tactic being implemented in the industry is for one insurer to offer quotes from multiple competitors.  One in three shoppers who receive a competitors quote from the company they are currently investigating don’t bother to call or visit that competing company directly to obtain a real quote from them.”

Editorial Note:  At homeInsurance.com we offer competitive auto insurance quotes using the same “multiple company shopping” process that we implement for our home insurance sales. We agree with Mr. Bowler’s statement because we see the benefits of shopping multiple quotes for our customers everyday.  Not only do our customer’s save time, but we can also usually save our customers up to 50% on their premiums. Hopefully, as consumers become more aware of comparison shopping, more homeowners will begin to benefit from this free service.  Remember, even if you do not decide to use a comparison site like HomeInsurance.com, always do your own comparisons- shop around to get the best rates.

Last week, North Carolina Insurance Commissioner Jim Long signed an order requiring a 16.1 percent percent decrease in auto rates and an 11.7 percent decrease in motorcyle liability rates. This was a complete turnaround considering the state’s rate bureau had requested a 12.9 percent increase in auto rates for NC drivers. Long and the rest of the insurance department felt the request to raise rates was completely unwarranted since the market for auto insurance has not changed significantly in the past year.

State experts claim that the rate bureau used inaccurate calculations to determine the proposed increase. For example, claims for “at risk” drivers were included in the calculations even though bureau rates do not apply to these drivers.  The state’s reinsurance facility files separate rate proposals for these types of drivers. Commissioner Long agreed with department experts that the bureau’s calculations painted a deceiving picture of the need for a rate increase.

The rate bureau can choose to appeal Long’s order, and insurance companies can choose to temporality raise rates while waiting for the court’s decision of the appeal.  These companies will, however, be required to hold any funds collected from the rate increase in escrow.  In the event that the bureau loses the appeal, the insurance companies will be  required to return the escrowed funds (plus interest) to policyholders. 

To the dismay of teenagers and delight of their parents around the country, Safeco Insurance Company has just made it possible for parents to track the driving habits of teen drivers who are new behind the wheel. With their new Teensurance Safety Beacon, parents can track where their teenagers drive, how fast they are driving, and so much more.  Some of the features include:

·         Stolen Vehicle Retrieval Support- will alert you if your vehicle is moved unexpectedly

·         Remote Door unlock- unlocks doors when a teen locks themselves out

·         Speed Reminders- notifies you if your car is operated outside of your set speed threshhold

·         Instant locate- see vehicle location, direction and speed on a real time map

·         Safe Driving Zones- set a perimeter and be alerted if your vehicle travels outside of that zone

·         Arrival and Departure Notifications- be notified when your teen arrives at their desintation

·         Driving Curfew Reminders- get a message if your vehicle is operated outside of curfew

At only $14.99/month, parents might find Teensurance an irresistible offer for a tremendous peace of mind.  Installation is free and 24/7 roadside assistance is included with the deal.

But remember, the most important way to ensure the safety of your teen behind the wheel is to teach them safe driving habits, set ground rules, keep lines of communication open, and promote the idea of driving as a privilege. 

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