A press release from General Motors and OnStar today announced an insurance discount program for low-mileage drivers.
The program uses OnStar technology to track drivers’ mileage. If the users drive under 15,000 miles annually, they can keep up to 54% on their premiums. As of now, roughly 10,000 drivers have enrolled in the program.
When a driver subscribes to the program, they are given an automatic 11% discount. The monthly mileage is then taken (with the user’s permission) from their odometer and emailed to GMAC Insurance. The company takes that value and deducts an amount based on the distance driven. The press release goes on to say that there is no penalty for driving over 15,000 miles, and the driver is still given the OnStar subscriber discount.
Gary Kusumi, President and CEO of GMAC Insurance says, “Customers who drive less should pay less, and this program allows customers to use technology already in their vehicles to give them the discounts they deserve. Giving consumers the power of cost control is a welcome come, especially as people manage their transportation costs more closely in the midst of fluctuating gas prices. The program also encourages people to limit unnecessary driving, helping the environment in the process.”
Chet Huber, President of OnStar went on to say, “We are bringing more value to the 2.8 million subscribers who receive monthly OnStar Vehicle Diagnostics emails. Not only are we providing them with information about the health of key operating systems in their vehicles, we are helping them to save on their transportation costs as well.”
The press release points out that the OnStar Vehicle Diagnostics program is only available in GM vehicles. It does not mention if there are plans to introduce it to other manufacturers. The company insists that no additional data is collected besides that needed to read mileage.
Also, the service is currently available in only 34 states, but the companies have plans to expand that number next year.
The highest amount that can be saved is 54%, if the driver drives between 0 and 500 miles. The lowest amount is 13%, which occurs if the driver drives between 12,501 and 15,000 miles.
OnStar, a subsidiary of General Motors, has been the subject of some controversy. Although the website’s privacy statement addresses various concerns, saying that it does not continuously track vehicles or collect personal information, some are skeptical. An example of this is an OnStar privacy website which says, “OnStar is also one of the best tools available that the government and big business could utilize to invade your privacy.”
Sources:
http://www.prnewswire.com/cgi-bin/stories.pl? ACCT=104&STORY=/www/story/07-17-2007/0004626618&EDATE=
http://www.onstar.com/us_english/jsp/privacy_policy.jsp
http://www.onstarprivacy.com/
Filed under Automotive Business Insurance by on Mar 14th, 2011. Comment. 
For anyone that owns and drive a vehicle, the high cost of automotive insurance can certainly be frustrating. Some car owners pay thousands of dollars per years to insure their vehicles. For some, the high cost of insurance is justified, but for other drivers there is a low cost option that may make perfect sense for you.
Typically, cars are insured through a large automotive insurance company. The customer selects the type of insurance that they prefer and they pay a yearly premium based on the amount of coverage chosen, the type of vehicle insured, and the driving narrate of the owner. There are several other factors that affect your individual rate, but they are not principal to discussing obtaining cheap insurance.
Most owners select collision coverage for their vehicle. Collision coverage basically means that if your vehicle is interested in an accident, your insurance company will cover either part or all of the repair costs. Collision coverage is required if your vehicle is a lease of financed by another party. Collision coverage is costly and mainly make financial sense for cars 5 years old or less.
Stepping down from collision coverage is something referred to as comprehensive coverage. This type of insurance will not shroud expenses from repair involving the collision between your vehicle and another vehicle. However, comprehensive covers your vehicle for theft, vandalism, fire, and acts of nature. This coverage is significantly less expensive than collision coverage.
Now we will move on to the next form of coverage which also is the cheapest insurance you can purchase. This coverage is referred to as PL/PD. PL/PD stands for personal liability and property damage. This type of automotive insurance does not actually cover damage to your vehicle. It covers any distress that your vehicle may partake in. For example, you drive your vehicle into a building a destroy the building. Your insurance will screen the damage done to the building but will not cover the afflict done to your vehicle. Liability coverage also protects you from lawsuits that may arrive forth involving damage done by your vehicle.
PL/PD insurance is significantly cheaper than either comprehensive or collision insurance. However, this type of insurance also has its downsides. Weighing the costs against the benefits is a tough choice to earn, but for those on a tight budget who currently own an older model vehicle, PL/PD may be the right choice for you. It can save you thousands per year over other forms of insurance and may be perfect for you.
Filed under Automotive Repair Insurance by on Feb 27th, 2011. Comment.
Car insurance is like most other insurance, you don’t miss it until you really need it. Unfortunately at that time it’s too late to buy it!
While car insurance is optional in some areas, most states require you to either have car insurance or a retainer on file with the DMV. Some DMV’s allow you to show proof of funds that prove you can afford to pay anything that the car insurance company would normally handle.
While it would be nice if we all could have that kind of money in the bank, it’s not a reality which makes car insurance even more of a necessity.
Here are a few quick tips that can make shopping for car insurance easier on you and your wallet.
1. Shop online first.
Rather than calling a few insurance companies, get quotes online. When you’ve given the information, print out the quote sheet. Keep that handy so you have it to compare when you do speak to someone on the phone. There are a few sites, such as Progressive.com that will give you their rate, and the rate of competing companies. From my experience the rates of the other companies have been honest rates and even lower at times. The last time I switched insurance companies, I compared rates at Progressive and then called the lowest priced company and got the rate lowered a cramped more.
2. Get your discounts.
Whether you know it or not, you’re probably entitled to a car insurance discount. Some of these discounts are as a result of your vehicle. Many companies offer a discount for air bags, Anti-lock brakes (ABS), active and passive theft deterrent, and even the location where it is stored at night (in a garage versus out on the street). My insurance company gives me a discount for being a good driver and having my homeowners insurance with them as well. Some companies have specials during a certain time of year that you might be able to gather. If you work for a nationwide company, there is a chance that they have a discount view with an insurance company. You can talk to a veteran of the company about discounts.
3. Compare apples to apples.
Once you get someone on the phone, they’ll likely try to sell you on less coverage because it costs less. If you get less coverage than the online quotes, you’re not comparing fairly, and you’re cheating yourself. When comparing rates, make sure the deductibles are the same and the limits are the same as well. Perform sure you know how many miles you drive per day to work and how many miles you drive per year. Some companies base their rate of the expected amount that you drive. If you change jobs or move closer to your work, make sure and call your company and see if they’ll give you a discount.
By using these 3 quick and easy tips, I saved $275 last year on my car insurance. I didn’t switch companies but I do drive a noteworthy amount less and raised my deductibles.
When it’s time to renew your car insurance, don’t just mail a check, do some homework and see if you can save some money!
Filed under Car Insurance by on Feb 25th, 2011. Comment.
A new web site specialized on information on Disability and Long-Term Care Insurance has been launched by famous Frank N. Darras, a nation’s leading disability and long-term care insurance lawyer, according to a press release.
I found the the new web site, http://www.darrasnews.com/ to have a variety of timely news articles to help define issues in disability and long-term care that affect people across America. The web area is easy to navigate and it has a comprehensive question and answer fragment that explain a variety of facets about different types of disability and long-term care insurance policies. It also has a News Section to keep up-to-date on Disability and Long-Term Care Insurance
In Darra’s own words: “You can find sound advice that will help you build informed decisions when evaluating your current policies or purchasing insurance to cover you and your family, should the unthinkable happen,”
According to the press release Darras is famous for his determination and diligence, and has recovered more than a half billion dollars on behalf of the disadvantaged and disabled. The majority of his nationwide clients are disabled and/or elderly, often easy targets for unreasonable bad faith and wrongdoing on behalf of multinational corporations, the press release reports.
Darrasnews.com provides answers, which are key to empowerment when dealing with the complicated language of insurance, specifically catered to the Disability and Long-Term Care Insurance.
In most Long Term Disabilities policies, “disabled” is defined as having an illness or an injury that prevents you from performing the material and substantial duties of your regular occupation on a full-time basis with reasonable continuity. However, issues may arise and insurance companies may deny Long Term Disabilities benefits to people based on legalese that common people may not understand. This is where Web sites such as Darras’ comes handy.
Who Is Frank Darras?
Frank N. Darras is managing partner of Shernoff, Bidart & Darras, LLP, in Ontario, California. He heads the firm’s disability and long-term care insurance department and is singled out as one of America’s leading plaintiffs’ lawyers. Darras’ client list literally reads like the who’s who of sports figures, business professionals, doctors, lawyers, film stars and television personalities.
In addition to high profile clients, Darras helps people unable to afford representation and tackles America’s most difficult insurance abominable faith cases. Litigating across the nation, he evaluates over 12,000 new cases per year. He is “America’s Choice” for insurance related representation and every year, Darras returns more than $40 million to the disadvantaged and the disabled.
“Americans buy insurance and pay hefty premiums in order to protect their families from catastrophe and to have peace of mind and security when disaster strikes. They should gather what they were promised and paid so dearly for,” says Darras. “Those who are wrongfully mistreated deserve compassionate, experienced and competent representation.”
Source:
Darrasnews.com Press release. URL: http://www.prnewswire.com/cgi-bin/stories.pl? ACCT=104&STORY=/www/story/09-11-2007/0004660211&EDATE=
Darrasnews.com. URL: www.darrasnews.com
Filed under Auto Insurance Companies by on Feb 22nd, 2011. Comment.
Switching auto insurance is a temptation that should be carefully considered, and you should only change if you are absolutely obvious that it will save you money or hassle. There are a million broad offers from companies all over the planet hoping to get a piece of your insurance business. It can be quite confusing trying to compare your old policy to your new one, but this is the only way to tell if you are truly getting a great deal on car insurance.
Be Distinct to Destroy Your First Policy
One of the first things which can go execrable when changing insurance companies is that the old company might not quite get the message, and you might continue to receive invoices from them. There can be cases where they send you to a collections agency over this premium if you cannot exhibit in writing that you canceled them in time. This can sometimes happen if you cancel over the phone, since data entry issues can occur where records are lost or are not updated properly. This can be avoided by cancelling in writing, and also by making sure to alert the old company of your intent to cancel well in advance. This period of transition is a time to be extra careful behind the wheel, because it will be hard to work through things if you have an accident after canceling the old and still working on starting the new. In a perfect world, the one coverage would end and at the same exact moment the new would start, but sometimes you may need to settle for a few days of overlap in premiums, which is preferable to a gap in coverage.
Make Sure Your Recent Insurance Starts on Time
Sometimes something goes wrong, and the new car insurance company does not enable your new policy until some date after the old one is already shut down. Again, it is wise to collect your new policy originate date in writing, and make sure you follow up with your modern company around the time the switch is supposed to occur. If you are a week from the two insurance companies switching and do not have a policy in hand from the recent company, then get over to their office and get out why. If you do have a brief lapse, there is a chance that you could have an accident, and then it would be a huge battle for you to accumulate anything resolved. This often happens with health insurance changes as well.
Check to See If You Are Under-Insured
Sometimes, the new auto insurance company does not provide you with the same level of coverage as your former insurer, and you are now saving money but may also be under-insured. You don’t want to find out about this after you have an accident, so make sure to do a side-by-side comparison of your old policy against the new one. Remember, the agent is there to clarify any items that you may find confusing. Take the time to go over this line by line, and make notes in an insurance folder so that you know what was happening when you decided to switch. Keep this folder in a handy and honorable place, and re-evaluate your coverage every six months to be certain you are getting the best coverage at the best rates.
Verify the Security of Your Policy
The fourth thing that may go wrong when switching car insurance is that the new company may have far more strict cancellation policies or stronger policies on dropping you in the event that you ever make a claim. I was with one company for over 20 years, and after I had one accident they dropped me like a hot rock. I was shocked at how fast they dropped me. Make sure you understand their terms regarding making claims and dropping your policy. It is wise to do this at the beginning, when everyone is still happy with each other, and they are detached interested in having you as a customer.
Find Out What Will Happen If You Can’t Obtain a Payment
The fifth thing that can go wrong in your new insurance coverage is that you could have setbacks where you cannot make your premium payment on time. What happens with your insurance? Do they turn off your policy instantly, or will they work with you until you get abet on your feet? There is nothing more frustrating than having to fight with an insurance company over your payment amount when you really are struggling to invent ends meet. Talk to them about this kind of thing in advance, and ask them if they have any programs that could help you if there was a loss of employment or other situation where you cannot reliably make your premiums.
All things considered, using the Internet and working closely with your agent can execute switching your auto insurance go very smoothly, with no hitches or glitches. Making distinct you know your local insurance agent can make this change a lot easier to manage, so take the time to visit with your agent periodically. Once you have established a rapport with them, it will back invent the entire insurance process easier.
Filed under Auto Insurance Companies by on Feb 20th, 2011. Comment.
