Legal system drives up Louisiana rates
Louisiana's No. 2 position in Insure.com's rankings does not surprise local agents.
"We've had high rates for a long time now," says Brad Bourg, the president of Independent Insurance Agents & Brokers of Louisiana and president of Bourg Insurance Agency in Prairieville, Donaldsonville and Chauvin, La. "Car insurance premiums are a big part of a household budget. It's incredible what some of these rates are."
Eagan says the state's judicial system pumps up auto insurance quotes.
Lawsuits involving car accident claims for less than $50,000 are heard by elected judges versus juries, who, according to local perceptions, tend to "side with the little guy," Eagan says. Personal injury attorneys advertise heavily on TV, encouraging people who have been involved in car accidents to seek legal representation, which leads to more lawsuits and higher auto insurance rates.
But both Bourg and Eagan say insurance companies have recently stepped up competition -- a good sign for the market. They're pushing hard for more auto business from agents and have been accepting more "risky" customers than in the past.
Oklahoma's wild weather
Oklahoma is struggling not only with uninsured drivers but also with weather that leads to floods of insurance claims. Last year was one of the worst for storms, including a storm in May that dropped softball-sized hail on Oklahoma City.
"Cars didn't just look beaten up," says Denise Johnson, the chairwoman of Independent Insurance Agents of Oklahoma and an agent at ECI Agency in Piedmont, Okla. "They looked like someone had taken a sledgehammer to them. All the windows were broken out."
Vermont sensibilities freeze out high prices
John Handy, the president of Vermont Insurance Agents Association and principal of The Essex Agency in Essex Junction, Vt., says Vermont's rural sensibilities and lack of traffic congestion help keep rates low.
"Because Vermont is still not thought of as a particularly litigious state, we have a lot of auto insurance carriers vying for a fairly small piece of the pie," he says. "And despite our long, hard winters, Vermont drivers are a seasoned lot. We tend to hunker down and stay off the roads."
All that hunkering down keeps crashes and claims low.
South Carolina rates get some sun
Car insurance prices haven't always been affordable in South Carolina.
G. Frank Sheppard, the president of Independent Insurance Agents & Brokers of South Carolina, says today's low rates stem from a 15-year effort to make the insurance market more competitive.
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Starting in 1996, the state changed its regulations, giving car insurance companies more flexibility to base rates on driver risk and turn away customers. Before those changes were made, Sheppard says, "We had a lot of national players quit playing in South Carolina."
2011 average annual auto insurance premiums
|State average||Annual premium||State average||Annual premium|
|National average||$1,561||South Carolina||$1,095|
About the rankings
Insure.com's state rankings show the relative cost of auto insurance among states. Insure.com commissioned a survey from Quadrant Information Services. Average insurance rates were calculated for more than 2,000 vehicles for model year 2011. Rates are based on a 40-year-old single male driver who commutes 12 miles to work. The sample policy had limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The policy included uninsured motorist coverage.
This article was reported by Barbara Marquand for Insure.com.
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We live in Michigan. 10 years ago, my wife had an accident and badly injured her leg. STATE FARM paid for her medical treatments for 2 years, when we got yet ANOTHER adjuster (the 5th one in 2 years) who misread my wifes medical history, and concluded that WE were pulling a fast one on them.
This lady (because I know I cant say ****) Turned the doctors reports around, to show, we were treating an existing injury. SATE FARM them THREATENED to TAKE OUR HOUSE if we continued to pester them.
My wife has now has to live with pain from an AUTOMOBILE accident, that SHOULD be covered by STATEFARM, BUT we are OLD and CANT fight back against a HUGE company, LONG KNOWN for SCREWING their insured people!
Like their T.V. ads say,"Like a good neighbor, State farm is there" What they dont mention is "READY TO **** YOU WIFE, THE MINUTE YOUR GONE!"
@Someone, do yourself a great big favor, and get away from State Farm!! I had "home owners" insurance with them several years ago, when my house burned down. My home was insured for $108k, the check I got was for $68k!! The "contents" of my home was insured for "full value", but I only got 50% of the value!! You would not believe the hassle I went through trying to collect on my policy! To make it short, after "7 months", and me hiring a lawyer to hurry them up, I finally got the check for $68k, a FULL $40,000.00 short of the policy I had been paying on!!!! The funny thing though is, right after we settled, they sent me a "monthly premium bill" for my home owners insurance!!! Needless to say they didn't get it!!!
OFIR is the State of Michigan agency responsible for regulating Michigan’s financial industries including consumer finance, financial institutions, insurance and securities.
The agency consists of over 350 professionals dedicated to protecting Michigan consumers.
Just get your records together and give them a call. I guarantee you that State Farm will be brought in line very quickly.
High insurance rates? Someone has to pay for the risky shadow market derivatives many of these insurance companies gambleds with previously and lost their rear ejection ports on. Can you say financial giants like AIG, Lehman Bros and so forth including our largest banks.
Of course, it's all and only the faulty of bad drivers and the unisured.
The real problem is not so much the insurance companies as it is with individual state laws, all of the states mentioned and most states in general are what is called "no fault" states, that is basically to say that if you are in a wreck your insurance pays for your car and the other person's insurance pays for thiers, any other damages, Personal or losses have to be settled in civil court.
Ohio is one of the few states left that is what is called a "liability" state whoever is at fault and therefore cited in the accident, thier insurance has to pay for both cars, this is what is known as "Fair", a concept not understood by insurance companies, they would rather put thier confidence in thier lawers and hack it out a settlement in court.
In states like Ohio, if you get rear-ended you pay nothing, at all! the other driver's insurance pays for your car, your injuries, your lost wages etc. and insurance companies can,t fight it, the cited party is guilty, case closed.
Therefore bad drivers get really crappy rates and good drivers can get really good rates.
This makes people want to be better drivers, I use myself as an example, I am 49 years old, no tickets in 18 years, no accidents that were my fault, I have full coverage on two vehicles and it only costs me $59.00 a month.
Insurance companies hate Ohio.
Gee why isnt there a recovery? Well-timed almost trillion dollar stimulus - that did not put one physical liquid dollar into an American consumer's pocket. It just lined the big banks, insurance company's, big DoD contractors and bail-out for not-knowing-how-to-run-their-businesses-correctly pockets. What they should do is erase everyone's credit and give us all $15-30k each and that would be our bail-out.
What would happen then? Well, the banks would know everyone would have 15-30k and all have great credit. They would have no choice but to lend money and the bastions of inaccurate credit [bureaus] data should / would be required to adhere to stricter regulations on recording accurate data. Not one of us can get a loan right now. Those with good credit will end up with better credit and spending would abound. That is how the $787 billion should have been used. Take the money out of the war and overseas tills and invest it in USAmericans! If not, then get rid of the credit bureaus. They are a big part of the problem.!! (Bad credit makes your car insurance higher??? what a bunch of CRAP - it has nothing to do with your driving).
Also, all they did in 2010 is time a stimulus with the early part of the year when people got income taxes back and it looked like things were getting better. a very short-term, short-sighted goal just to make it look like some govt officials knew what they were doing. How could they not think it would be temporary? Go ahead and invest in China! Right. Invest in America but let the bastards fail so others can take over who want to run business as it should be run not be rewarded for failure! ALL THAT MONEY SHOULD BE IN THE AMERICAN CITIZEN/CONSUMERS POCKETS AND THEIR CREDIT SHOULD BE A-1!! THEN YOU WILL HAVE A MAJOR PART OF THE PROBLEM FIXED.
And, yes, the stock market is rigged and has been legal robbery for too long now!! Dont forget the cash reserves in corporate tills is enough to pay all the unemployed for years at 70k / year. They are too afraid to hire. It is something to think about. Watch for more Bernie Mad(e)offs!!!
Insurance is a joke in most cases and the dictorial requirements that we must have insurance is a brainwash we all need to realize. If you are in the insurance business insurance companies are GAMBLING by taking your money and trying not to pay per the terms of a policy if a claim is filed. Well, if you are in the gambling business then you need to face the facts [insurance companies] that if you lose you pay. That is the gamble.
Lastly, do not think we the USAmericans dont know what is up. We know what is going on here is greed and power for personal gain. That makes the rich richer and we will look like a huge third-world economy before you know it. Economic terrorism has been going on at all levels and at varying degrees against the US for a long time now. Not just terrorism as we define it. Now it is taking it's toll. They want to drive the American people out of their "lifestyle" and cause us to revolt against the Government. A lot more going on under the hood here than we may know.
Look at the symbolic attack on 911 and the previous attacks. They were targeting the Twin Towers. They deemed this the epitomy of the Western culture. Like us taking out mosques in their countries.
I know these were extremists, but how many Muslims out there are in silent cheer at what is happening? We will never know for sure now will we?
Anyone with further discussions on this can contact me directly.
It's ironic when you think about it, all the things that we are required or have to buy keep going up and because of that the things that we would "LIKE TO BUY" we can no longer afford because everything else costs so much. Based on that our economy will never improve. The wants are the things that stimulate our economy and show economic growth but because everyone is spending all their money on the neccessities there is nothing left to do the fun things or buy the wants.
Jobs also are a problem obviously in this country with all the layoffs. Those companies that are hiring see an opportunity to pay their new employees less because of the high unemployment rates which leads to more people in the work force making less thus not being able to afford the wants once again. Those who did not get laid off in many instances are forced to take pay cuts in order to keep their jobs. Many of whom can no longer afford to buy the extra's or possibly pay for what they currently have. Meanwhile the execs that helped to destroy our economy are still getting their fat bonus's all on the backs of the non existent middle class. It must have been nice to grow up in the 40's and 50's and be able to afford to support your family, buy a house, car, food, clothes and maybe even send your kids to college. I'm sure they had their economic hardships back then, but when inflation and cost of living expenses get to the point that practically everyone in the country is living check to check we definitely are going to be in trouble or should I say already are in trouble and I'm really concerned about my children and grand children. It appears that the middle class and American dream is only available for the wealthy, unfortunately it's on the backs of the middle and lower income brackets. Retirement, what's that, most of us will be forced to work until we're 80 or dead, that's the new American dream and I'm so not looking forward to it.
This so called global economy that we were forced to adhere too is part of our demise. Why didn't they call it what it actually was "SELLING YOUR JOBS TO THE LOWEST BIDDER OVERSEAS." Once again an effort by the upper management to eliminate your job and line their pocket with more of your hard earned money. Of course when they do their books they will make it appear as though they lost money still which in turn will not boost the economy any or allow for any pay out to their investors or the government tax obligation, then they will lay you off and hire a few more people overseas. The whole idea is designed to keep you strapped and keep you down. Economic prosperity will not recover unless our entrepreneurs start giving a damn about their employees like they did back in the early days of the industrial revolution. Back then they gave a damn and oddly enough showed a profit, why can't they do that now, oh yeah, doesn't benefit them and 100 million dollar bonus's weren't awarded back then. Repeal NAFTA, put Americans back to work and start investing in America is the only solution. I'm tired of taking care of or policeing third world countries on my coin. Give me a job and a chance to succeed and invest in our future and our economy will prosper and the value of the dollar will recover.
I just seen a new Hip Hop group on youtube:KENDO/DMC yes thats DMC from RUN-DMC "Rock Harder" HOT!!! or youtube;KendoTAF wow AMAZING ok I think I just found my new fav hip hop/ rock song for the summer "Rock Harder"
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