One of the leading auto insurers in Canada, Aviva Canada Inc, wants drivers in Toronto, and elsewhere in Canada, to drive safely this winter, citing historical data as a motivating factor. According to a recent report from Canada Newswire, the insurance provider sees an average increase in claims of more than 38% during months with winter road conditions, as compared to the rest of the year. In addition, winter weather accounted for collision-related claim payments totaling more than $38.5 million (Canadian) between December, 2007 and February, 2008. The blame, Aviva reps say, is due to the first snowfall of any given year.

Jim Haskins, Executive Vice President of Claims and Procurement for Aviva Canada, explains, “While Canadians are traditionally very experienced winter drivers, the first snowfall of the year can be extremely challenging even for the most apt motorist. Icy road conditions result in vehicle sliding and skidding, which are the most common cause of collisions particularly at the start of the season.”

Aviva’s data also shows that roughly 5.6 % of insured drivers file claims in winter, as opposed to 4.1% – the average number of people filing claims during the rest of the year. Again, winter road conditions, are to blame. Black ice, sleet, and snow can force drivers to focus all their attention on the road directly in front of their cars, rather than on everything around them. This focus means that there’s less attention paid to vehicles to the left and right, which, in turn, causes fender benders and side-on collisions to become more common.

In an effort to reduce the number of winter accidents, the customer service department at Aviva Canada offers the following helpful hints:

- Invest in snow tires and new windshield wipers. The tires are especially important, as they allow drivers to stop up to 40% faster than they can when using all-season tires.
- Always keep an emergency kit in your car. It should include a flashlight, snow shovel, thermal blanket, extra windshield washer fluid and anti-freeze, jumper cables, hazard flares, and a few non-perishable food items, like granola bars, or beef jerky.
- Drive slowly, and maintain a safe distance between your car and the one in front of you.
- Program the numbers of your insurance company, and a towing company, into your cell phone, and keep a copy of your insurance card in your car.
- Check the road conditions for your destination before you leave home, and if they’re at all questionable, be sure someone knows your route, and when to expect you.
- Don’t take chances: if the roads are bad, don’t travel at all.

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Motorists in California are now starting to be afraid that auto insurance will soon become a thing for the privileged few who can afford it. As both car insurance premium rates and unemployment rates go in the same upward direction, it’s only a matter of time until drivers run the risk of driving without being insured.

According to reports, the state of California may be facing problems regarding unemployment. In the San Joaquin Valley in central California where a huge number of former employees were retrenched, high unemployment may result to more car owners driving in the state’s public roads without auto insurance because they don’t have enough to pay for it. In Fresno County, the percentage of unemployed citizens last September reached 14.1%; a lot higher when compared to 9.4% last year.

To save the day, the California Highway Patrol and the Department of Insurance are working hand in hand to educate low-income motorists about getting a low-cost car insurance program. Low-cost insurance in California offers basic liability coverage as mandated by state law. The Department of Insurance believes that only in making more drivers understand low-cost auto insurance will they lessen the number of motorists who prefer to not be insured at all simply because they afford it. A report by the Insurance Research Council released earlier this year announced that the impending increase unemployment across the country can cause a whopping increase in the number of uninsured drivers.

According to Department of Insurance state associate deputy commissioner Darrell Ng, the recent statistics from 2007 reveal that about 18% of Californians did not have vehicle insurance. Reports from the Department who that the 2007’s 18% estimate was highest in the past ten years, as it was only back in 1997 that the percentage of uninsured California drivers exceed 15%. Now, insurance experts are afraid that the numbers will go increase even more with the increasing number of job losses across California.

Commissioner Darrell Ng is set to help California Highway Patrol officials in San Joaquin Valley and Fresno in promoting the California Low Cost Automobile Insurance Program. The said program assists low-income motorists in purchasing insurance that satisfies their legal obligation.

Insurance Commissioner Steve Poizner said in an interview that day after day around one million uninsured motorists drive around the roads of California. According to Poizner, with the rate of how things are going, driving in California can be very risky – it’s not worth the severe financial risk of getting involved in accident. Poizner also adds that low-cost car insurance give little room for excuses on whether to be insured or not.

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One of the highest expenses you can expect to shoulder when owning a car or vehicle is insurance. Usually, automobile insurance costs far exceed expenses or money spent for gasoline, permits, licenses, registration, routine maintenance and spare parts. Out of all drivers on the road, those who have been driving for a short while can expect higher costs or premium rates, to the extent that the total may even be equal to the price of a car. This is true even for basic insurance coverage or policy.

Some insurance companies or firms offer a type of coverage especially designed for female drivers. Women can avail of this type of coverage and pay lesser premium fees and other expenses. Although this is basically the same as any other car insurance policy, the difference lies on the fact that female drivers are generally known to be involved in less risk than men.

The business of insurance is grounded on risk-taking. If there is a risk, there is insurable interest. If a risk causes loss, an insurer pays up. If a risk does not take place, an insurer gets to keep premiums. Whenever there is a claim made by a client, a company tries to compute how much they are going to lose if they pay the claim. Now, this would depend on risks involved. Insurance companies would often adjust the amount of premiums that will enable them to conveniently make a justified payment without losing profit. Getting to know their clients and finding out who among them poses the highest risk – thus highest expense – is a key strategy in making sure that they will not go bankrupt.

Statistics show that a majority of road accidents have been caused by young and inexperienced drivers, most of them male. This same data shows that women, whether young or otherwise, have been involved in fewer accidents than men. Add this to the fact that there are usually more women than men in the outdoor population. This results in men being required to pay higher premiums. Women are allowed to pay lesser amounts because a company expects to make a profit because there is practically no risk involved. Even if women drivers do get involved in accidents, the amount of claims will almost never surpass the amount of profits.

This is also a reason why insurance companies have been aggressive in selling policies to women drivers. They have to compensate for losses they experienced in paying off claims involving accidents caused by men. It becomes a norm to expect that women are low-risk policy holders. The present trend has evolved to design insurance programs solely for women drivers – one with sufficient coverage albeit a lower rate of premium.

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Insurers cannot quantify its effects yet but they say efforts by law enforcers in curbing vehicle theft would eventually push Denver auto insurance costs down. Aided by new technology along with their dedication, the police have trimmed down the rates of stolen vehicles by double digits.

Local law enforcers have been employing new technologies to protect car owners from vehicle thieves. Sheriffs in some counties plant GPS tracking devices on farm tractors or four-wheeler trucks left out to trick machinery thieves.

Cops in Metropolitan Denver drive vehicles equipped with computerized license plate readers that can detect stolen vehicles in one whole grocery parking lot within seconds.

Vehicle owners are also doing their part in fighting the crime, buying glass-etching paste to permanently burn their vehicle identification number (VIN) permanently onto each window. Car manufacturers refuse to be left behind, equipping new models with enhanced anti-theft devices. Manufacturing innovations like computer-coded car keys were also very helpful in stalling vehicle thieves.

Additionally, the state has enacted a law which collects $1 from car insurers for every vehicle availing their policy. That means law enforcers have $3.5 million more in their funds to keep Denver vehicles safe from thieves.

And statistics show that combined efforts from automakers, police, and car owners are working very well, decreasing annual car theft rates by 20 to 30 percent.

In Colorado, the number of vehicles stolen in 2008 dropped by 22 percent. That means 3,614 fewer car owners filing for auto insurance claims because of theft, saving insurers $24.4 million in replacement value.

In Denver, rate dropped by 30 percent in 2008. That means there were only 3,591 stole cars in the state’s capital last year, down from 5,104 cars the preceding year. The City of Pueblo reported an even more stunning improvement, with the number of car owners filing for vehicle theft claims going down by 67 percent last year.

In the whole United States, the rate of stolen vehicles has gone down by more than a half from 1991 to 2008. During the 19-year period, only 315 cars were stolen from every population of 100,000 compared to 659 in the preceding years. That totals to 700,000 less car owners filing for a theft claim.

Auto insurance companies say the crackdown against vehicle thieves should eventually trim down premium rates for policyholders, but they cannot exactly determine yet how much it would help in reducing costs.
Insurance underwriters note that protection against theft usually make up 25 percent of the cost of a comprehensive coverage.

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An auto insurance provider, popular among car owners struggling with their credit, has closed several offices and has stopped accepting new applicants in some Florida areas, including Tampa.

Direct General Insurance Agency Inc., which provides coverage in the state under the Florida No-Fault and Cash Register brands, closed nine retail stores this week causing disappointment among policy holders. They closed five offices in Tampa, one in West Palm Beach, another one in Fort Myers, and two in Miami.

A company spokeswoman says it is no longer writing new car policies in those areas. But she assures current policy holders that they will not be dropped and will continue to receive coverage until their policy expires.

The spokeswoman explained that the company has to close offices because of undergoing fraud investigation. She declined to give details but says they are working with criminal investigators because their company has been acquiring extraordinary levels of losses which are probably caused by fraudulent activities.

Customers expressed frustration over the news because they were not notified about the changes.
However, state law does not require an insurer to notify regulators or policy holders unless they complete stop operation or unless they drop 1,000 policies. Closing offices do not require notification, legal experts add.

Althea, a Tampa car owner, reported that she showed up last Friday with her monthly payment only to find out that the doors to Florida No-Fault Insurance Agency were barred. They only found a sign and a phone number taped to the door.

Customers who dial the number hear a recorded message from the other end saying that the insurer is no longer accepting new policies in the area because of present conditions in Florida.
Althea said she really needed an affordable coverage for her car since she is a single parent and makes minimum wage.

The company spokeswoman tells policy holders that the closing is temporary and they intend to resume operation immediately after the case is resolved.

But car owners said there are not too many options left for them who do not have a credit card. They explained that is part of the reason why they chose No-Fault. Drivers who do not have a debit or credit card cannot pay online or through phone so they have to hand-carry their payment to company offices.
Motorists who have been with the company for years said they are worried about what will happen when their policy expires.

The company says it will continue to write policies in areas that are not affected by the changes.

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