auto insurance

Wells Fargo Agrees to Pay $300 Million to Settle With Shareholders Over Auto Insurance Disclosures

February 28, 2023

(Reuters) -Wells Fargo & Co agreed to pay $300 million to settle a shareholder lawsuit claiming the bank hid that it had pushed unnecessary insurance on auto loan customers, according to documents filed in U.S. court on Tuesday.

The Construction Laborers Pension Trust for Southern California, which led the class action brought on behalf of investors, said in federal court in San Francisco that Wells Fargo and its former chief executive, Timothy Sloan, had agreed to settle.

The bank did not admit wrongdoing.

The deal requires approval from U.S. Judge James Donato, who is overseeing the case. Trial in the case had been scheduled for Feb. 27.

“While we disagree with the allegations in this case, we are pleased to have resolved this legacy issue,” a Wells Fargo spokesperson said in a statement.

An attorney who represents Sloan did not immediately reply to a request for comment.

Scott Saham of Robbins Geller Rudman & Dowd, the law firm representing Wells Fargo shareholders, said the settlement “is part of remediating the entire spectrum of harm that you get in a complex fraud case.”

The lawsuit stems from one of the San Francisco-based bank’s past scandals over sales practices that resulted in government investigations and fines.

Wells Fargo disclosed in July 2017 that hundreds of thousands of customers had been unnecessarily charged for “collateral protection insurance,” which covers auto lenders when borrowers are uninsured. The bank said it had learned of concerns a year earlier.

Shareholders sued in 2018, alleging Wells Fargo misled them when Sloan said in November 2016 that he was “not aware of any issues” when asked about the bank’s sales practices and culture.

The bank also concealed auto insurance issues from the U.S. Senate Banking Committee in November 2016, the investors alleged.

The lawsuit sought damages for investors

Wells Fargo agrees to pay $300 mln to settle with shareholders over auto insurance disclosures

February 25, 2023

Feb 7 (Reuters) – Wells Fargo & Co (WFC.N) agreed to pay $300 million to settle a shareholder lawsuit claiming the bank hid that it had pushed unnecessary insurance on auto loan customers, according to documents filed in U.S. court on Tuesday.

The Construction Laborers Pension Trust for Southern California, which led the class action brought on behalf of investors, said in federal court in San Francisco that Wells Fargo and its former chief executive, Timothy Sloan, had agreed to settle.

The bank did not admit wrongdoing.

The deal requires approval from U.S. Judge James Donato, who is overseeing the case. Trial in the case had been scheduled for Feb. 27.

“While we disagree with the allegations in this case, we are pleased to have resolved this legacy issue,” a Wells Fargo spokesperson said in a statement.

An attorney who represents Sloan did not immediately reply to a request for comment.

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Scott Saham of Robbins Geller Rudman & Dowd, the law firm representing Wells Fargo shareholders, said the settlement “is part of remediating the entire spectrum of harm that you get in a complex fraud case.”

The lawsuit stems from one of the San Francisco-based bank’s past scandals over sales practices that resulted in government investigations and fines.

Wells Fargo disclosed in July 2017 that hundreds of thousands of customers had been unnecessarily charged for “collateral protection insurance,” which covers auto lenders when borrowers are uninsured. The bank said it had learned of concerns a year earlier.

Shareholders sued in 2018, alleging Wells Fargo misled them when Sloan said in November 2016 that he was “not aware of any issues” when asked about the bank‘s sales practices and culture.

The bank also concealed auto insurance issues from the U.S. Senate Banking Committee in

Car insurance rates going up, ways to save

February 18, 2023

TULSA, Okla. — There’s no doubt the price of gas is a huge factor in the cost of owning a vehicle these days.

But as the 2 News Oklahoma Problem Solvers found out, another cost is becoming another factor for families to consider, cost increases an average of nearly 14%.

Just like everything else, inflation is driving up the price of driving.

“Eggs are $10 a carton so I mean everything else is going to be insane,” Randy Holman halfway jokes.

Even the insurance for his car is costing more and more. 2 News caught up to Holman as he was heading to the tag office to drop off some cash for another vehicle expense.

“It seems like every corporation is trying to raise prices so I don’t see why insurance wouldn’t do the same.”

And the increasing cost for insurance causes some folks to make tough decisions. Heather told us, “When I got the notice my insurance premium was going up a couple hundred dollars, it caught me off guard. I wasn’t expecting it. Now my family will have to cut back at the grocery store.”

Insurance analysts tell us inflation is impacting insurance.

According to a recent report by Insurify the national average cost rose 9% in 2022, and is projected to rise another 7% in 2023. Bankrate.com says nationally, the average cost of full coverage is $2,014 a year, which is 2.93% of the average household income. But inflation isn’t the only thing impacting prices.

“Drivers are getting into more traffic accidents, and those accidents are getting more expensive to remediate,” says Chase Gardner, a data analyst for Insurify.

Gardner says the cost of repair parts, labor shortages, and supply chain disruptions are making claims more expensive for insurance companies to pay out.

“Even if you got

What Is Comprehensive Car Insurance… and Is it Worth It?

February 17, 2023

https://www.vecteezy.com/photo/5407914-car-salespeople-are-holding-car-keys-by-submitting-to-new-car-buyers-with-car-insurance-concept

In the U.S., drivers are legally required to carry liability insurance but comprehensive insurance is usually optional. If someone owns a vehicle outright, he or she is not required to have comprehensive car insurance. But if someone finances a vehicle, sometimes the car loan company could require him or her to take out comprehensive insurance.

In the following article, we will discuss what comprehensive car insurance is in detail and whether it is worth getting, even if you are not legally required to have it.

What is comprehensive car insurance?

Comprehensive car insurance covers damage to your car that results from causes other than collisions.

As with other types of auto insurance, comprehensive coverage pays for part of your loss after damage to your car. The other part, known as the deductible, is the amount you have to pay.

The damages that your insurance payment can be used for includes repairs and even a new vehicle.

What does comprehensive car insurance cover?

We have mentioned that comprehensive car insurance covers damage to your vehicle other than that caused by collisions. But neither does comprehensive insurance cover personal items that are stolen from your car or damage to your car that has been caused by potholes.

So, what types of damages does it cover?

Well, with comprehensive car insurance in place, you will have coverage for damage that is caused by things like:

Natural disasters, such as tornadoes, floods, and earthquakes.
Vandalism.
Riots.
A run-in with an animal, such as a deer.
Break-ins.
Theft.
Fires.
Fallen objects, such as rocks and tree branches.

Is comprehensive car insurance available around the world?

Yes, comprehensive car insurance is available around the world.

Though, you should make sure that it is available in your specific country before you begin weighing up

Inflation may be falling, but not the cost of your car insurance

February 12, 2023

MIAMI – If you think news that inflation is easing means you’re not going to get hit with any more higher prices, think again.

At least, that is, if you’re paying for car insurance. There’s a very good chance your premiums this year will go up – by a lot.

The average cost of full coverage auto insurance has hit $2,014 a year nationally, up nearly 14% from last year, according to Bankrate’s annual True Cost of Auto Insurance Report, released Monday.

Why? It’s a lagging effect of high inflation from the last two years that resulted from labor and parts shortages, which in turn drove up the cost of paying insurance claims on car repairs and related insured expenses.

“Car insurance rates are reactionary,” said Cate Deventer, Bankrate’s insurance analyst.

But the good news, she added, is this: “If inflation keeps cooling we could see insurers file for rate decreases in future years.”

Plenty of other factors may increase your individual premium.

For instance, putting your teen child as a driver on your policy will jack up the rate.

Ditto if you got into an accident, had speeding tickets, or were convicted of a DUI.

Expect to pay more, too, if your credit score fell or you let your auto coverage temporarily lapse.

Another big factor in how much your premiums will cost is where you live.

“Each geographic area has different risks and costs of living, [so] the cost for car insurance varies across the nation,” Deventer said.

Among major metro areas, Bankrate found that average 2023 premiums rose the most in Orlando (up nearly 23% to $3,078), followed by Phoenix (up nearly 17% to $2,164). They fell the most in Philadelphia (down nearly 22% to $1,872) and New York City (down 14% to $2,649).

Meanwhile, as a

The cheapest cars to insure in 2023

February 8, 2023

When shopping for a large purchase, like a car, it’s not surprising that consumers want to find the best deals. When trying to budget for a vehicle, you probably consider the overall price, especially if you plan to get a loan. You might also consider the resale value and the fuel efficiency, given the higher cost of gasoline. But not everyone considers insurance costs. Some vehicles cost more to insure than others and over time, insurance rates can add up. Bankrate assessed auto insurance rates for the most popular car models to determine the cheapest cars to insure.

The 10 cheapest cars to insure

The cost to buy a new vehicle has skyrocketed since 2020, although used vehicle prices have started to fall since their peak in 2021. With inflation still elevated and car insurance rates rising to keep pace, you may be wondering if cheap car insurance could help offset some of these increased prices. While buying a different vehicle to get cheaper car insurance may seem like a drastic step, it could be a practical one, especially if you’re already in the market for a new or new-to-you ride.

Below, we showcase the 10 cheapest vehicles to insure based on our assessment of average rates for 27 vehicle makes and models. For comparison, the national average cost of car insurance is $2,014 per year for full coverage. We’ve included the average full coverage premium, as well as the starting manufacturer suggested retail price (MSRP), for each vehicle (remember that the MSRP will vary based on the trim package and optional features). We also highlight the percentage of the MSRP spent on car insurance, so you can decide if the average premium makes sense for the cost of the car, especially when compared to your financial

NJ auto insurance increase a necessary pain | Editorial

September 8, 2022

New Jersey drivers will never be happy with the cost of their auto insurance. The congestion of its roadways, the highest population density of any state, and a high crime rate ensure average car insurance premiums will be higher than average.

Residents who choose minimum coverage pay the fifth highest average rate in the nation — $855 a year — for the basic policy to meet state requirements, according to bankrate.com. New York’s minimum coverage is the highest at $1,339.

Rates are higher in New York even though much of that state isn’t urbanized. One reason is that the minimum coverage required by New York and nearly all other states is more than here. New Jersey is one of just four states requiring only $15,000 of personal injury coverage (and Florida mandates only $10,000). The vast majority of states require $25,000 and three require $50,000 worth.

The appeal of lesser and cheaper insurance coverage is obvious, and it has some advantages. New Jersey has the fewest uninsured drivers in the nation.

Too little coverage, though, is only next best to no coverage. Average injury claims are $18,000, leaving most accident victims short on compensation. Many claims far exceed that average, and for those victims being hit by a minimally covered driver is barely better than by a driver with no insurance.

This year legislative leaders decided to finally address New Jersey’s inadequate minimum auto insurance. The coverage requirement had not been increased in 50 years — ridiculous in view of inflation and especially soaring medical costs.

The proposed fix was equally ridiculous minimum personal injury coverage of $250,000 for basic and standard auto policies. That would have made New Jersey’s minimum five times higher than any other state and 16 times higher than

Allstate still losing money on auto insurance, despite rate increases

September 4, 2022

Allstate still losing money on auto insurance, despite rate increases

By Dave LaChance
on July 25, 2022
Insurance

In spite of raising rates by an average of 8.3% in all 50 states, Allstate continues to lose money on auto insurance, according to the company’s second quarter underwriting results.

The carrier said it paid out nearly $1.08 to cover claims and expenses in its auto business for every dollar of premium it collected. Even subtracting the effects of claims payments due to wind and hail storms, mainly in the Midwest, Allstate paid out $1.02 for every dollar in premium.

Allstate has been carrying out its pledge to investors to aggressively pursue rate increases to bring its auto insurance business back to profitability. The company reported implementing rate increases totaling $258 million in the month and $601 million in the quarter, after implementing $862 million and $702 million of rate increases in the first quarter of 2022 and fourth quarter of 2021, respectively.

In a Securities & Exchange Commission filing, Allstate said it is not done seeking higher rates. “Allstate continues to implement significant insurance rate increases given ongoing inflationary impacts on claim severities,” it said.

The carrier reported three factors reflecting “persistent increases” in loss costs:

Increases in physical damage costs are geographically widespread and reflect higher part prices, labor rates, and length of claim resolution.
Increases in injury claim costs reflect more severe auto accidents, increased medical inflation, higher consumption of medical treatment, and more claims with attorney representation.
Claims reported in 2021 but settled in 2022 were subject to the rising vehicle values, parts prices, and labor rates experienced during 2022, which contributed to the adverse loss of reserve development.

allstate-auto-insurance-rate-hikes” class=”external”Crain’s Chicago Business reported that, with the increases, the carrier’s rates are now

Thinking about switching? Check out the top offers on Bankrate.

The do’s and don’ts of switching auto insurance policies to save money

September 3, 2022

This article is brought to you by Bankrate and created by In The Know’s commerce team. If you decide to purchase products through the links below, we may receive a commission. Pricing and availability are subject to change.

Lots of people take an in-depth look at their budget at the beginning of the new year. The holiday season may have in more spending than usual. But with the new year, it’s an opportunity to rein in those expenses a bit.

Cutting things like dining out and wardrobe upgrades are obvious ways to spend less each month. But you may be looking for even more substantial savings. With fixed expenses, like rent or your car payment, there isn’t much you can do. But what about your auto insurance? Of course, having insurance is mandatory if you have a car — but could changing your policy add a few extra dollars to your bank account each month?

To help explore the do’s and don’ts of adjusting your auto insurance policy, we talked to Cate Deventer, an insurance writer and editor at Bankrate.com. Here’s what you should know.

Don’ts

Don’t scale back your coverage to save money. “If your monthly budget is really stretched, it might seem like a good idea to lower your car insurance coverage or limits to save money. This is not something insurance professionals recommend doing,” Deventer says. “While it may lower your monthly bill, you’ll actually be at a greater financial risk if you get into an accident.”

Don’t change providers frequently. “You probably don’t want to switch insurance providers too often because you might be missing out on things like loyalty discounts. If you’re changing providers every year, you’re never really building up that track