Auto Care Association Challenges Proposed Vehicle Cybersecurity Legislation
Posted on Oct 22, 2015
A U.S. House of Representatives subcommittee recently issued draft cybersecurity legislation including a provision for any person to access an “electronic unit (ECU) or critical system of a motor vehicle” without authentication. In a letter sent to the Subcommittee on Commerce, Manufacturing and Trade of the House Energy and Commerce Committee, the Auto care Association challenged the provision and warned that it could have an anti-competitive impact on the industry. Specifically, the Association focused the provision’s impact on independent repair shops, which account for 80% of...
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Google Potentially Positioning Itself To Enter Insurance Business
Posted on Oct 19, 2015
Google recently announced its intention to accept full responsibility for accidents caused by a defect in the design or components of their self-driving cars. Although some consider this statement a marketing ploy, at least one analyst considers this announcement Google’s “Trojan Horse” into the insurance industry. Blake Corbet, a managing director at PI Financial Corp., has suggested that the company’s willingness to accept responsibility for its driverless cars, along with its service allowing consumers to compare rates from different insurance providers, leaves it well-positioned to wedge...
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Auto Trade Associations Form Cyberattack Working Group
Posted on Oct 15, 2015
In order to address concerns about vehicle security and the risk of cyberattacks, the Alliance of Automobile Manufacturers and the Association of Global Automakers have established a working group to develop best practices. The working group, called the Information Sharing and Analysis Center, will represent all major automakers and will serve as a “hub” for sharing information on cybersecurity and potential threats. As the working group gets up and running, Congress is also considering requiring additional efforts by the auto industry. In early October, the House Energy and Commerce...
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California Approves Insurance Plan for Lyft Drivers
Posted on Oct 13, 2015
California Insurance Commissioner, Dave Jones recently approved a new product underwritten by MetLife Auto & Home, offering Lyft drivers personal auto coverage while passengers are in the car. This policy provides drivers with coverage at every stage of the ride sharing transaction. MetLife previously introduced the plan to Lyft drivers in Colorado, Illinois, Texas and Washington. To view the full article, visit Engadget.
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Why Electric Car Owners Pay Higher Insurance Premiums
Posted on Oct 13, 2015
A new study by NerdWallet indicates drivers of electric cars and their gas counterparts pay higher premiums in California. The study involved four models that had both gas and electronic versions of the same car: the Chevrolet Spark, Volkswagen Golf, Smart Fortwo, and Fiat 500. The insurance premiums for electric cars were on average 21% higher than quotes for the gas cars. The research identified two primary reasons why insurance premiums are higher for electronic cars. First, the base price of electric cars averaged 70% more than gas versions of the same car, meaning that an insurance...
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Rhode Island Department of Insurance Issues Bulletin Prohibiting Price Optimization
Posted on Sep 23, 2015
Rhode Island Superintendent of Insurance Joseph Torti III recently issued a bulletin advising Rhode Island personal line insurers that Rhode Island law prohibits the use of certain price optimization techniques in determining property/casualty rates. Under Rhode Island law, applicants for insurance with identical risk classification profiles must be charged the same premium. Any techniques that produce rates that fail to reflect difference in expected losses and expenses with reasonable accuracy are prohibited under the law as unfairly discriminatory. Rate adjustments may not be based on...
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Auto Insurance Myths Persist
Posted on Sep 21, 2015
A study by InsuranceQuotes.com found that drivers have startling misconceptions about auto insurance. Forty-four percent of those surveyed believed that drivers with red cars pay more in auto insurance. More than one third (34%) of participants held the mistaken belief that personal items taken during burglaries of their cars are covered by auto insurance. Additionally, 17% of those surveyed did not know that their residence plays a major factor in their premiums. To view the full article, visit CNBC.
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Automatic Emergency Braking to Become Standard on Many New Cars
Posted on Sep 11, 2015
The Insurance Institute for Highway Safety (IIHS) has announced that a group of ten large automakers will make automatic emergency braking standard on new vehicles in the U.S. The group includes Volkswagen, General Motors, BMW, Ford, and Toyota. Automatic emergency braking uses radar, cameras, and lasers to monitor road conditions and autonomously apply brakes to avoid collision. Some automakers will offer the option as soon as 2016. To view the full article, visit Repairer Driven News.
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Study Claims Auto Insurance Becoming More Affordable
Posted on Sep 7, 2015
A new study claims that personal auto insurance has become more affordable across all income groups in several states. The study, issued by the Insurance Research Council (IRC), found that all but four states have improved in auto insurance affordability between the 2000s to present. Auto insurance was least affordable in Louisiana, Florida, New York, Delaware, and Michigan. On the other end of the spectrum, auto insurance was most affordable in North Dakota, Iowa, New Hampshire, Virginia, and Wyoming. To view the full article, visit Insurance Journal.
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