Direct market insurance company GEICO announced recently that it is reducing its commercial auto insurance rates for business clients in the state of Texas.
These commercial insurance policies cover the vehicles used in business, including retailers, caterers, and contractors, but GEICO also provides general liability coverage and owners’ policies through GEICO Insurance Agency.
GEICO’s announcement did not specify the percentage of the decrease in rates being offered, nor has it said anything about plans to alter the rates for individual policies.
As always, it is our recommendation that insurance shoppers request quotes from three different companies, and do line by line comparisons before committing to a policy. This advice applies to both commercial and individual lines.
Legislators in the state of Iowa have sent their governor a bill proposing increased penalties for motorists who fail to comply with the warning signs displayed by school buses, and near bus stops.
The bill, dubbed Kadyn’s Law, is a response to the death of seven-year-old Kadyn Halverson, who was killed by a pickup truck on her way to a school bus last May.
Under the new law, failure to slow down when a school bus has its flashers on, or to stop when the STOP arm is extended, may result in up to 30 days in jail and/or fines of up to $675. Currently, no jail time is possible, and the maximum fine is $200. The new law would involve increased penalties for multiple violations.
There’s also an increased penalty for motorists whose failure to comply with bus warnings cause serious injury: a maximum fine of $500 and a suspension of their driver’s license for up to 90 days. If a death occurs, those penalties are doubled.
It goes without saying that these increased penalties will likely make motorists’ car insurance costs skyrocket, as well.
Why is this law important? According to Representative Dennis Cohoon (Burlington), the state of Iowa sees about 625 people a year convicted of violating school bus warnings.
Distracted driving laws – especially those specifically addressing texting behind the wheel of a car – are becoming more and more common. In some states, texting while driving is even a primary offense, and can get you points on your drivers’ license and increased car insurance rates.
Earlier this month, Vice President Joe Biden shared the news that, as part of a massive reform of the global financial sector, China had agreed to open up its auto insurance market to foreign competition.
During a meeting with Chinese Vice President Xi Jinping and several business leaders from the U.S., Biden said, China indicated that it would be moving forward with tax reforms meant to boost both domestic consumption and imports this year. Both of these are goals long-sought by Washington.
Biden, sitting next to the smiling Xi, said, “China’s also just told us it will open the third party liability auto insurance market to foreign companies.”
David F. Snyder, vice president and associate general counsel at the American Insurance Association (AIA), an insurance trade organization, commented on the announcement, telling Reuters reporters that this move was a “…significant step forward as it represents the result of several years of diligent work by U.S. and Chinese negotiators.”
He also said it would be of mutual benefit to both U.S. insurance companies and the people of China.
The state of Alabama has taken the first step toward joining the anti-texting while driving community. Specifically, a committee of the Alabama House of Representatives has approved a bill banning the reading or sending of text messages while driving.
The bill, which was sponsored by Representative Jim McClendon (R – Springville) passed the House Public Safety and Homeland Security Committee on February 8th, would institute a fine of $25 for a motorist’s first offense, $50 for the second, and $75 for the third. As well, cited drivers would receive one point on their driver’s license. In Alabama, drivers who have twelve points can lose their licenses.
This is not the first time Alabama has attempted to ban texting while driving. Last session, the proposed bill died in the Senate, but, as McClendon reminded his colleagues, behind-the-wheel texting is as dangerous as driving drunk.
The next step for this bill is for the full House to debate it. If the House approves it, the Senate will get its chance as well.
It’s no secret that in most states you have to have valid car insurance in order to register your car, but when people think of some states – North Dakota, for example – they tend to assume that there are about five cars registered there.
That assumption, while somewhat amusing, is a gross inaccuracy. In fact, Francis Ziegler, director of the North Dakota Transportation Department, reported last Tuesday that more than one million vehicles were registered last year. That’s a state record, and pretty impressive considering that the population of the state is only 684,000.
Granted, that number isn’t limited to just cars and trucks. It also includes motorcycles, buses, snowmobiles, trailers, boats and motor homes.
Why the increase? Ziegler believes it’s because of the booming oil-production in the western part of the state, and a robust economy across North Dakota.
He also says that vehicle dealers in his state are doing really well this year.
Every year at this time, we take a break from talking about what’s new in car insurance, and enjoy the lighter side of driving. Specifically, we celebrate the great ads that are shown during the Superbowl (it’s this Sunday, if you’re one of the five people who isn’t sure).
So, we’re not going to quote stats about how the higher number of people drinking could lead to more accidents this weekend, or remind you that a DUI will make your insurance rates go up.
Instead, we’re just going to share the latest commercial from Toyota:
