A man named Bill Portz found this out the hard way, Lieber noted. Portz and his neighbor simply called his insurance company to ask if they had a claim after Portz’s truck hit his neighbor’s wall. Neither person filed a claim, but Portz’s premium went up by $200 a year.
Like health insurance, auto insurance is fast becoming a political issue that is attracting big money and political action committees. Auto insurers are increasingly spending big money to ensure favorable treatment from politicians and the courts.
State Farm is the largest auto insurer in Louisiana; around one third of the state’s drivers have State Farm policies. Louisiana historically has had some of the nation’s highest car insurance rates.
Not having current auto insurance could get your car impounded, even if you are obeying the traffic laws when you drive. Police in some states are now using computer checks of license plate numbers to identify drivers without current insurance and stopping them.
It’s easy to see how Obamacare could lower auto insurance costs. The biggest expense paid by car insurance is medical care for those injured in accidents. By increasing the number of people with health insurance coverage, Obamacare could cover some of those costs.
It’s easy to see why many men get angry each month when they open their insurance bills. A guy who goes out of his way to drive safely pays higher rates than a woman with a pile of speeding tickets in her glove compartment.
Google is already making $110 million in advertising revenues from three auto insurance companies: GEICO, Progressive, and State Farm alone, TechCrunch noted. The potential profits from insurance will drive Google to improve its marriage of data and insurance.