Tag: Insurance

By on January 20, 2022

The Insurance Institute for Highway Safety (IIHS) has said it is developing a new rating system to evaluate the existing safeguards found inside vehicles equipped with partial automation. Considering how commonplace advanced driving aids have become, you might be thinking this was long overdue. However, insurers were blindly praising advanced driving suites a few years ago — until they actually started testing them in earnest.

As luck would have it, there’s been mounting research supporting claims modern automotive tech encourages drivers to tune out and become distracted. While this wouldn’t be a big deal if the relevant features all functioned perfectly, the reality is that most are far less effective than advertised and practically all of them run the risk of being completely undone by inclement weather or poor lighting. Confusingly, the IIHS believes the best solution here is to make sure systems constantly monitor the driver to ensure the driver is constantly monitoring the system.  (Read More…)

By on December 8, 2021

Despite being one of the last hero states to not require routine vehicle inspections, Michigan is infamous for boasting the highest auto insurance rates in the whole country. Blame the double-edged sword that is the state’s no-fault insurance scheme, the region’s relatively high number of uninsured motorists, or the general popularity of personal injury lawsuits (an American pastime). Heck, blame the whole insurance industry while you’re at it because it’s the one that managed to become wildly profitable off the concept that you’ll be bankrupted if you don’t pay in.

But don’t blame Michigan’s formerly mandatory unlimited personal injury protection (PIP) requirement that’s been around for decades, because it was done away with in 2019. The previous arrangement required drivers in The Mitten State to purchase unlimited PIP insurance, allotting for those at fault (no-fault insurance schemes be damned) to provide a lifetime of medical benefits to victims. On Tuesday, Gov. Gretchen Whitmer’s administration announced that the Michigan Catastrophic Claims Association (MCCA) fund will also be issuing $400 checks to drivers in the spring of 2022 as part of a $5 billion surplus that’s being handed off to insurers.  (Read More…)

By on December 7, 2021

On Tuesday, Stellantis announced a plan to cultivate €20 billion ($23 billion USD) per year by 2030 via “software-enabled product offerings and subscriptions.” However, the automaker will first need to increase the number of connected vehicles it has sold from 12 million (today) to 34 million by the specified date.

This is something we’ve seen most major manufacturers explore, with some brands firmly committing themselves to monetizing vehicular connectivity through over-the-air (OTA) updates, data mining, and subscription services. Though much of this looks decidedly unappetizing, often representing a clever way for companies to repeatedly charge customers for equipment that’s already been installed.   (Read More…)

By on June 17, 2021

It’s always nice to get a break from the endless stream of industry marketing materials about electrification, though this week’s impromptu theme still involves going green. Following news that General Motors is considering changing its drug testing policies to exclude marijuana, there has been heavy coverage of an Insurance Institute for Highway Safety (IIHS) study claiming states that have legalized recreational use of cannabis are seeing more crashes.

But the framing seems wildly irresponsible as it fails to highlight the problem being heavily tied to individuals operating a vehicle under the influence of marijuana and alcohol combined. It’s more or less what the IIHS attempted to do in 2018 with help from the Highway Loss Data Institute (HLDI). Our guess is that the duo is seeking out fresh reasons for insurance companies to raise rates in regions that have legalized pot because even their own research complicates the issue.  (Read More…)

By on January 25, 2021

muscle car

Classic muscle cars are legendary, some blend of parts not originally meant to go together. Our question is, of all the muscle cars produced, which is the most muscular?

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By on January 22, 2021

F-series

The most popular car for 2021 isn’t a car at all, it’s the Ford F-series pickup. Among the top 10 most popular cars, the Silverado and the Tacoma, both trucks, join the F-150.

(Read More…)

By on November 19, 2020

General Motors is making moves to offer insurance plans under its data-focused OnStar connected services, which is convenient since the feature comes equipped on all new models the company sells inside North America. Participating customers will be required to allow the automaker to track their driving behavior in real-time. As a perk for handing over their right to privacy, GM will offer discounts to motorists that never exceed the speed limit or accidentally roll through a stop sign.

It’s part of a usage-based insurance trend that’s becoming increasingly common within the industry. It started years ago with customers agreeing to have insurers install tracking devices in their vehicles in exchange for lower rates — assuming they displayed what the agency deemed safe driving practices throughout the duration. But, now that cars are becoming connected to the internet, this can be done automatically with on-board technologies. Consumer advocacy groups are growing worried that insurers will eventually make vehicle tracking mandatory and use it as an excuse to issue predatory fees.

Frankly, so are we.

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By on April 6, 2020

With the coronavirus pandemic providing little in the way of silver linings (even rock-bottom gas prices aren’t much of a bonus if you’re living under lockdown orders), Allstate has provided one of its own.

Given the vastly reduced number of vehicles on the road and the anticipated cratering in insurance claims, the provider is giving customers a temporary break. (Read More…)

By on March 3, 2020

Ford badge emblem logo

Adhering to the latest industry trends, Ford has made a deal with insurer Allstate to share customer driving data and plans to issue a loyalty credit card tied into its rewards program. While the latter is in the service of retaining customers (with the help of Visa) in the second quarter of this year, the insurance partnership is technically already active. The Blue Oval is by no means the only automaker involved in such programs.

Like other automakers, Ford has already partnered with insurance companies in regional programs aimed at assessing how customers drive, using the collected information to adjust policies. Originally, this involved devices installed with the customer’s consent that transmitted telemetric data back to home base. Later versions were able to use on-board systems in conjunction with a downloadable app. Now, with connected cars becoming the norm, Allstate says it can just get the information directly from vehicles via manufacturer data centers.  (Read More…)

By on August 29, 2019

Late Wednesday, Tesla seemingly gave Tesla owners and intenders what they’ve been looking for: an opportunity to lower their insurance premiums. For a number of reasons, mainly high claim frequencies and the cost thereof, Tesla owners often find themselves saddled with sky-high coverage costs.

What if Tesla provided that insurance?

Owners will soon find out the pros and cons of such a setup, as Tesla has now rolled out its promised Tesla Insurance — a product the automaker claims will benefit owners by offering “up to 20% lower rates, and in some cases as much as 30%.” (Read More…)

By on June 10, 2019

Wells Fargo will reportedly pay customers a minimum of $386 million to settle class-action claims that the bank covertly signed customers up for auto insurance they did not want or need.

Back in the summer of 2017, the bank found itself implicated in widespread auto insurance and mortgage lending abuses. Over a year later, Wells Fargo was slapped with a $1 billion fine from the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency to settle U.S. investigations into the company’s insurance and mortgage practices.

While the auto insurance plan ended in 2016, roughly 800,000 customers (or 600k by Wells Fargo’s estimates) were believed to be affected by the auto insurance issue over roughly a four-year period. For most, that meant being overcharged for insurance they didn’t need., but some customers ended up with their vehicles repossessed and their credit rating demolished, promoting the class-action suit.  (Read More…)

By on April 30, 2019

With mobile phones now a ubiquitous part of modern-day life, distracted driving has ballooned into a legitimate public safety problem. Alarming studies continue to pour in, with many claiming that driver cell phone use is likely underreported by authorities in crash reports. It’s hard to quantify, especially since nobody wants to admit that their moment of weakness may have contributed to an accident.

Add in a National Highway Traffic Safety Administration survey that found 30 percent of drivers aged 21 to 34 believe texting doesn’t negatively impact their driving, and you’d be forgiven for picking up your keys with sweaty palms.

A new study claims the issue has only gotten worse, with drivers spending more time on their phone than ever before. However, the way the data was acquired is disconcerting in itself. Insurance companies are tapping traffic data startups to monitor people’s phones, and they’re already capable of tracking millions of American devices.  (Read More…)

By on April 25, 2019

The Insurance Institute for Highway Safety, currently on a never-ending quest to improve automotive safety and provide underwriters with data, suggested on Thursday that rear-seat passengers are getting the short end of the stick. The announcement comes shortly after the State of Washington announced a new law that would update its Child Passenger Restraint Law, requiring older children to utilize a booster seat.

Having looked at rear-seat safety for years, the IIHS claims rear-seat occupants are now at a disadvantage compared to occupants in the front row. The group aims to develop a new evaluation method to encourage automakers to improve safety systems for back seat passengers and track their progress.  (Read More…)

By on February 13, 2019

Image: Shutterstock

You can’t keep Dave Assman down. After repeatedly having his request for a personalized license plate rejected for being too offensive, the Saskatchewan Ram owner decided to advertise his family name in a manner no one can miss.

While Assman’s provincial government insurer won’t greenlight a plate, there’s nothing they can do to stop him from displaying an image of the plate that dare not speak its name, loud and proud, on the vehicle itself. Take that, bureaucratic puritans. (Read More…)

By on November 7, 2018

Wells Fargo, Mike Mozart/Flickr (CC BY 2.0)

Roughly a year ago, Wells Fargo got itself into hot water over shady business practices relating to widespread auto insurance and mortgage lending abuse. After a lengthy investigation, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency eventually suggested Well Fargo pay $1 billion to “resolve” the governmental probes. President Donald Trump then said federal agencies needed to go after the bank hard to set an example. The agencies came back with a consent order saying it was time to pay up.

Despite the insurance issue affecting an estimated 800,000 customers over a four-year period, Wells Fargo seemed able to recover from the scandal and move past it. However, new allegations claim the bank’s leadership was aware customers were probably being overcharged several years before it finally cancelled the program.  (Read More…)

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