| Minnesota Should Start Checking For Auto Insurance Again
For years when you went to buy your tabs, the Minnesota Department of Motor Vehicles would check to see if you had car insurance. Basically, you would bring your insurance card in and they would sell you the tabs. I'm sure people lied, used others insurance , or figured out some way around the law. But, the reality is that most people produced the necessary proof. If nothing else, it reminded people each year about the coverage. But, for some reason the department stopped checking. It may have been claimed as some sort of budget cutting savings, but with as little that went into checking, I simply don't see where the saving are. It's time that this issue got remedied and we went back to the old successful way of checking. If nothing else, it would be worth at least looking at Arizona's recent law changes.
Insurance claims rose 14% last year
Insurance costs, particularly motor premiums, are likely to rise this year as the sector struggles with rising claims and falling operating profits. The Irish Insurance Federation's (IIF) annual Factfile survey for 2008, showed gross insurance premium income fell by 26 per cent to €13.4 billion, with the group saying this trend has been maintained in 2009.
Last year the Irish Insurance Federation's 22 domestic non-life members, which account for 95 per cent of the Irish market, saw their net underwriting profit drop 79 per cent to €228 million.
The value of gross premiums written by non-life members declined by 7.7 per cent to €3.33 billion, while the number of new claims rose to 605,883, up 14 per cent.
The IIF said 53 per cent of the new claims were car insurance while 32 per cent related to property insurance, partly due to the storms last August.
Watch out for rising excesses for house insurance
While prices haven't shot up like car insurance, which has seen an 11% increase over the past year, the excesses - the first part of any claim that customers pay - are rising. In 2008 the number of insurers quoting a £50 excess was 56%. That's now dropped to 45%. Meanwhile, the number quoting a £100 excess has increased from 28% to 35% and some are applying £200 excesses. .
Day-off Drivers to Get Discounts on Car Insurance
Drivers participating in the campaign to park their cars one working day a week will benefit from discounts on their car insurance premiums from December.
The Financial Services Commission and the Financial Supervisory Service on Wednesday said they are finalizing the discount program and will conduct a test run in the fourth quarter. They expect to fully implement it from December.
"Basically we agreed to apply reduced rates to owners of cars that have on-board diagnostic (OBD) system," an insurance industry official said. "The range of the discount is currently being discussed at between 5 to 10 percent."
Driving information is recorded in the OBD system, making it possible to check whether a driver is actually taking part in the campaign.
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