According to a recent study performed by the Insurance Research Council (IRC), the no-fault system for Michigan auto insurance has experienced an increase of 192 percent in the average claimed losses for lost wages, medical expense, and other injury-related costs linked to vehicle accidents within the state, in a period from 2002 to 2001. The IRC study of auto injury insurance claims in no fault systems also demonstrated that within that same period of time, there was an average increase of 13 percent every year within that state. It identified…
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Connecticut lawmakers mull over plan to make license plates transmit insurance information
Proof of auto insurance in Connecticut Connecticut lawmakers are considering a new plan that could make checking for auto insurance coverage easier. The plan would have small transmitters embedded in the license plates of vehicles. These transmitters would be able to send out insurance verification via RFID signals. Legislators believe that this system would be a more efficient way to track uninsured drivers and issue tickets. If the plan is enacted, the state could collect as much as $29 million each year. According to the Insurance Research Council, a non-profit…
Read MoreUnderstanding what is – and is not – covered by tornado insurance
The surge of destructive and deadly twisters last week has put the spotlight on tornado insurance once more, as consumers attempt to understand the type of coverage that it will provide, including why many homeowners are still forced to pay repair bills related to tornado damage regardless of their policies. The Insurance Information Institute has said that the majority of insurance policies for homeowners, businesses, and vehicles will include tornadoes as an element of their standard severe weather and wind coverage. Typically speaking, renters’ and homeowners’ insurance will cover the…
Read MoreThe insurance company’s strategy for finding fraud
Data from the Insurance Research Council has indicated that there is about $5 to $7 billion in inflated auto insurance claims made every year, though the overall cost that would occur if insurance companies in any sector did not make efforts to detect scams would be significantly higher. Every time fraudulent claims get past the insurers, the end result is that the cost will trickle down to the clients and lead to higher premiums. Therefore, insurance companies have put extensive efforts into place to help prevent scams from occurring in…
Read MoreData shows one in seven American drivers is uninsured, despite legal requirement
Regardless of the fact that almost every American state has an auto insurance requirement law, one in every seven drivers is still uninsured. This statistic was assembled by an industry group, which estimated that 13.8 percent of all drivers in the country do not have auto insurance. This number has risen since before the beginning of the economic downturn, as many people struggle to make ends meet and have allowed their coverage to lapse. Vice president David Corum, from the Insurance Research Council – which is an insurer-supported non-profit organization…
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