Progressive's Snapshot program has been catching some attention from both consumers and other insurance companies for its innovativeness as well as its ability to collect higher quality data on its policyholders driving habits. The company continues to push forward with its program as it announced its fourth issued patent for the program this past on January 9.

This specific patent relates to producing a "driver safety score based on monitoring driving data," (Progressive Insurance Gets Fourth Pay-As-You-Drive Patent, Ben Zitney, Online Auto Insurance, http://news.onlineautoinsurance.com/companies/progressive-usage-based-car-insurance-patent-95973). President and CEO of Progressive, Glenn Renwick, says on the new patent that "for 15 years we have invested a great deal into the research, development, testing, and piloting of usage-based insurance programs and will continue to do so. It's gratifying to know that the U.S. Patent (and Trademark, or USPTO) office recognizes the uniqueness of our system technologies."

Since this is the fourth patent on this program Progressive has been issued, it is obvious that the company has been aggressive with their action patent their technologies, even the phrase "pay as you drive" has been registered to Progressive. With such actions, other insurance companies have begun to jump on the bandwagon, as the Celent report states 55% of the top 20 property and casualty insurers in the U.S. now have such programs to offer to their policyholders. It is the "lower manufacturing cost and other factors that are making the program more cost-effective for companies," (Progressive Insurance Gets Fourth Pay-As-You-Drive Patent, Ben Zitney, Online Auto Insurance).

The Snapshot program consists of data collecting device that is inserted into the diagnostic port of a vehicle and then information is relayed to the company, such as how many miles are drive, and the driver's safe habits such as braking and accelerating at a decent rate. This is why the program is so appealing to insurance companies; it allows insurers to obtain data that is more reliable than a driver's mileage estimate or data available on policyholders that is public.

The program is being dubbed a "win-win" by experts because "the data allows coverage providers to calculate risk and price coverage more accurately, and discount car insurance is awarded to drivers who are shown to be safe behind the wheel," (Progressive Insurance Gets Fourth Pay-As-You-Drive Patent, Ben Zitney, Online Auto Insurance). This voluntary program definitely can benefit the consumers who chose to partake in it, as it can save a consumer up to 30% if device shows they are logging low mileage and operating safely when braking and accelerating.

The program allows participants to keep track of their progress, which is available after only one month of being in the program. After that first initial month a policyholder is eligible for savings depending on the data that was received. This device will remain installed until the end of the sixth month when the policy term ends, which at that time a renewal discount can potentially be offered. This program has gained popularity as it is now used by 250,000 Progressive consumers in 39 different states and the District of Columbia, (Progressive Insurance Gets Fourth Pay-As-You-Drive Patent, Ben Zitney, Online Auto Insurance).

If you are insured with State Farm you may see a slight increase or decrease in your premium due to the company's annual vehicle insurance ratings for certain makes and models.

There are risks that come with insuring a specific type of vehicle and so the insurance company uses data on claims payments in order to calculate that risk for certain makes and models. This is done once a year in order to keep the calculations as accurate as possible. Other factors that go into the calculation are on an individual basis such as the policyholder's driving record, claims history, and location. This claim information will be used to "create separate indices that reflect the ricks of collision damage as well as damage and theft, with that information used to help determine premiums for collision and comprehensive coverages," (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News,

http://news.onlineautoinsurance.com/rates/state-farm-car-insurance-annual-ratings-95603).

State Farm also totals the claims which included injury to the drivers of the insured vehicle. Certain makes and models could potentially be eligible for a discount on their car insurance. The amounts paid out due to damages to other vehicles in a collision and their passengers' injuries were also calculated in order to help set up premiums for liability coverages, (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News).

The difference policyholders will see in their premiums next month? Well State Farm spokesman Dick Luedke says "it may go down a little, it may go up a little based on what the claims data shows. But we're talking a very small amount," (State Farm Insurance Updates Annual Vehicle Ratings, John Pirro, Online Auto Insurance News). State Farm wants this vehicle ratings system to service as a guide for consumers when shopping for new vehicles.

Unfortunately out on the roads today distracted drivers have become part of the everyday norm. However; a recent exercise done by Allstate insurance company has revealed just how much of a problem it has become.

Allstate issued their Roadwatch, which was conducted by students throughout the state of California. The students monitored on October 11, for a one hour time period, 62 different intersections near high schools and reported back with any incidences of distracted driving. The results; Allstate noted that the "distractions during this learning-focused Allstate Roadwatch ranged from the ordinary-cell phone use as either texting or not using a hands-free device-to the extraordinary-kissing, writing and feeding children who were riding in the car," (Distracted Driving Out of Control-Allstate Research Finds More Than 100 Examples in An Hour, American Motorcyclist, December Issue 2011, Pg. 16.). Those who monitored the intersections for distracted drivers reported 6,700 incidents of distracted driving, which averages out to be more than 100 cases of distracted driving during the one hour time period. The absolute top distractions were; "eating or drinking, using a cell phone without a hands-free-device, texting or reading a cell phone, and personal grooming," (Distracted Driving Out of Control-Allstate Research Finds More Than 100 Examples in An Hour, American Motorcyclist, December Issue 2011).

The AMA (American Motorcycle Association) is taking a stand as the Board of Directors is officially adopting a position in the matter of distracted driving in hopes to tackle the issue at a government level. Distracted driving has always had attention in the biker community, as there have been "far too many cases documented of motorcyclists being injured or killed as the results of other vehicle operators being distracted or inattentive," says Imre Szauter, AMA Government Affair Manager. When it boils down, it's not just motorcyclists that are in harm's way, but everyone from "pedestrians, bicyclists, roadside assistance and emergency medical personnel, highway construction workers, law enforcement personnel, and so on," (Distracted and Inattentive Vehicle Operation, American Motorcyclist,

http://www.americanmotorcyclist.com/Rights/

PositionStatements/DistractedAndInattentiveVehicleOperation.aspx).

According to a research report released by the National Highway Traffic Safety Administration (NHTSA) and the Virginia Tech Transportation Institute (VTTI), "driver inattention is the leading factor in most crashes and near-crashes, with nearly 80 percent of crashes and 65 percent of near-crashes having some kind of involvement of driver inattention occurring within the three seconds before the event," (Distracted and Inattentive Vehicle Operation, American Motorcyclist,http://www.americanmotorcyclist.com/Rights/

PositionStatements/DistractedAndInattentiveVehicleOperation.aspx).

With reports like that it is no wonder that states have begun to enforce bills that penalize distracted driving. The AMA is working in their new position on the issue to fight for stronger penalties against distracted drivers in the result of an accident such as "enhanced fines, operator's license suspension, points assessed on an operator's record, community service, and imprisonment," (Distracted and Inattentive Vehicle Operation, AmericanMotorcyclist,

http://www.americanmotorcyclist.com/Rights/

PositionStatements/DistractedAndInattentiveVehicleOperation.aspx).

How you can have an effect on the issue now; don't become a distracted driver yourself and be aware of drivers around you who are distracted. Unfortunately there is not much you can do about a distracted driver on the same roadway as you expect to be alert.

As we begin to wrap up another year and welcome 2012, there are some important vehicle and motorcycle recalls that will be popping up that drivers should be aware of. Subaru, Honda, and Nissan will all be announcing recalls before or just after the New Year.

Honda's recall will involve 126.000 GL-1800 motorcycle from 2001 to 2012 models. The reason for the recall, “a problem with a secondary brake master cylinder can cause the rear break to drag, potentially causing a crash or fire,” (Subaru, Honda, recall vehicles due to brake issues, The Associated Press, CBS News

http://www.cbsnews.com/8301-505245_162-57336702/subaru-honda-recall-vehicles-due-to-brake-issues/

). Honda submitted documentation to the National Highway Traffic Safety Administration and in the documents included the report of 26 complaints, of which two involved fires.  Look for this recall in early January.

The Subaru recall will include about 32,000 Legacy, Outback, Impreza 2012 models. The issue with these being that there is a defect in the brake master cylinder, which has the potential to cause the brake pedal to travel further than expected, (Subaru, Honda, recall vehicles due to brake issues, The Associated Press, CBS News). Although luckily no accidents have been reported, Subaru has a reported 112 complaints in regards to the defect from their dealerships. Another plus, “only about 3,000 of the cars were sold, and the rest are either on dealer lots or en route to dealers. They will be fixed before being sold,” (Subaru, Honda, recall vehicles due to brake issues, The Associated Press, CBS News). This recall will begin later this month.

In both in of these recalls owners of these models will be instructed to bring in their vehicle to a dealership for inspection, and if the defective is present, replacement parts will be available.

The Nissan recall involves more than 7,000 of the Rogue crossover from 2011. The reason for this recall; an issue with the potential failure of the electric power steering. Nissan filed documents with the NHTSA that indicated that “as the circuit board fails, the power steering assist features will stop functioning, increasing the force needed to steer the vehicle and increasing the risk of a crash,” (Subaru, Honda, recall vehicles due to brake issues, The Associated Press, CBS News). Thankfully, no accidents have been reported due to this defective however.

Drive a hybrid? Or recently been on the fence about buying one? Then a recent study may spark your interest. The Highway Loss Data (HLDI) found that drivers of hybrids are 25 percent less likely to acquire injuries when in an accident than the average car and truck.

The reason? The data obtained from the HLDI study accounts it to weight. The battery packs and other components make these fuel efficient vehicles 10 percent heavier than the average car.

The author of the report and vice president of the nonprofit research organization Matt Moore, concludes it is this "extra mass that gives them an advantage in crashes that their conventional twins don't have," (HLDI Study Shows Positive Safety Trend for Hybrid Vehicles, John Pirro, Online Auto Insurance,

http://news.onlineautoinsurance.com/consumer/hybrid-vehicle-crash-car-insurance-study-95564).

It all comes down to the calculation of force. In a collision between two different vehicles; the heavier, larger car will push the lighter upon impact. This means "less force on people in the heavier vehicle and more on the people in the lighter one. Greater force means greater risk, so people in the smaller, lighter vehicle are more likely to be injured,"(HLDI Study Shows Positive Safety Trend for Hybrid Vehicles, John Pirro, Online Auto Insurance).

To give you an idea of the difference in weight, one example from the study found that the hybrid Honda Accord midsize sedan weighs in at about 3,600 pounds, that's 480 pounds more than the conventional Accord model.

So what does this mean for hybrid owners and potential buyers? In years past eco-conscious drivers had to for-go safety for fuel economy, but after this study it appears that may no longer be the case, as Moore says "saving at the pump no longer means you have to skimp on crash protection," (HLDI Study Shows Positive Safety Trend for Hybrid Vehicles, John Pirro, Online Auto Insurance).

It is unclear if this will have an effect on hybrid owner's insurance policies. This specific study looked at the first-party coverage only, which is the policyholder's and their potential passengers in the event of an accident. If there were to be any reduction in insurance costs it would be limited to those coverages, the policyholder's own, (HLDI Study Shows Positive Safety Trend for Hybrid Vehicles, John Pirro, Online Auto Insurance). Although this study may attract the attention of insurers, it is fairly standard that rates are adjusted and calculated based on the insurance company's own internal data.

According to a recent report from the AAA auto club, the average cost per fatal auto accident in the U.S. is $6 million.

The report compared drivers' costs while in traffic congestion within 99 different urban settings to that of the cost of the nation's motor vehicle accidents, and the outcome was that the cost of collisions was three times that of congestion at $299.5 billion to $99.7 billion, (AAA: Fatal motor vehicle crash cost $6 million, Larry Copeland, USA Today,

http://www.usatoday.com/news/nation/story/2011-11-02/fatal-vehicle-crashes-cost-millions/51051030/1). Within that $99.7 billion due to congestion is the cost of gas used while idle plus the amount of time the driver wastes sitting in traffic. These two estimated amounts come from the Federal Highway Administration statistics which place dollar value on these factors: "property damage, lost earnings, loss of household activities, medical costs, emergency services, travel delays, vocational rehabilitation, lost time at work, administrative costs, legal costs, pain and suffering, and lost quality of life," (Larry Copeland, USA Today).

The director of federal relations for AAA Chris Plaushin, states that the auto club "wanted to raise the profile and raise the awareness. Right now, it's jobs, it's construction, it's economic growth that are being talked about. This part of our effort is to bang the drum about safety," (AAA: Fatal motor vehicle crash cost $6 million, Larry Copeland, USA Today). Although it may be common knowledge that auto collisions are costly, when looking at it from a national perspective rather than an individual one, the costs and rates become alarming. That's why Plaushin hopes that studies such as this most recent one will help bring attention to the matter and hopefully result in solutions that potentially could prevent such costs and accidents.

Beyond the cost of this matter, another need for attention is that auto accidents are the leading cause of death for those ages 5-24 in the US. Saving money, but more importantly saving lives will hopefully be the outcome from this study. Suggestions from the AAA to reduce fatal crashes and financial burden due to auto accidents are installing more cable barriers along medians to prevent crossover accidents, modernized roundabouts and rumble strips, (Larry Copeland, USA Today).

Do you own a Mini Cooper model S 2007 or 2008? If so, there has been a recent investigation you should know about. This Mini Cooper model has had reports of catching on fire, in some cases even when the car is not running.

The National Highway Traffic Safety Administration received a dozen complaints of engine compartments starting on fire in the 2007 and 2008 S models of the Mini Cooper Clubman and Cooper Convertible, (NHTSA Investigation Reports of Mini Cooper Vehicle Fires, Gregor McGavin, Online Auto Insurance,

http://news.onlineautoinsurance.com/consumer/nhtsa-safety-investigation-car-insurance-95318). Of those twelve reported five of the vehicles were completely destroyed, and eight of the complainants claimed the fire occurred even though the ignition was off.

This same model of vehicle, but manufactured from November 2006 to July 2008, was recalled in April. About 28,500 cars were recalled due to 50 reports of owners being burned by the exhaust pipes because they came out too far from the bumper. Of these reports there were several significant second-degree burns that caused blistering and scarring, one even resulted in a third-degree burn, (Office of Defects Investigations of the National Highway Traffic Safety Administration).

The clear concern here is that the owners of these vehicles could potentially become injured as a result of this defect. However; another issue is that owners could have difficulty with their insurance coverage. It is unlikely that motorists would be "found financially liable for damages that are proved to have been caused by defective automotive equipment, they could still face the sometimes lengthy process of seeking reimbursement under their automobile insurance coverage policy," (NHTSA Investigation Reports of Mini Cooper Vehicle Fires, Gregor McGavin, Online Auto Insurance,

http://news.onlineautoinsurance.com/consumer/nhtsa-safety-investigation-car-insurance-95318).

Luckily, no injuries have resulted of the dozen recently reported engine fires. However; the National Highway Traffic Safety Administration has yet to determine if a recall is necessary. If that does end up being the outcome, 36,000 Mini Cooper S models will be affected.

Today it is not uncommon to hear someone say "I'll tweet you," "Facebook me," or "Add me on Google Plus," so perhaps it should come as no surprise that your insurance company wants to connect with you on those very same social medias.

A recent study conducted by Boston-based research and advisory firm, Celent, showed that within the next three years it will become common practice for insurers to use information found on such social medias as Twitter, Facebook, etc. to reveal risk, much like how auto insurers in some state look at credit history, (Report: Insurers to Make Greater Use of Policyholders' Social Data, Online Auto Insurance, Gregor McGavin, http://news.onlineautoinsurance.com/companies/social-media-and-car-insurance-95305).

This type of search has already begun somewhat in case of questionable claims. One such example "is when an individual claimed a ‘debilitating, work-related injury.' But when the investigator checked out the claimant's social media profile, there were photos of the individual performing activities like breakdancing," (Report: Insurers to Make Greater Use of Policyholders' Social Data). Mike Fitzgerald, a senior analyst with Celent's insurance group and co-author of the report believes that "the information that is posted by individuals on multiple sites reflects their preferences, lifestyles, and habits." Clearly with regards to the breakdancer with a bad back, insurers could potentially have the ability to eliminate false claims.

What would be the underlining use for the information gathered on policyholders? To determine "grounds of deniability, identify sources of income, collect ‘additional evident in litigation' and discover information the claimant has hidden from the insurer," (Report: Insurers to Make Greater Use of Policyholders' Social Data). Of course with this come some legal and ethical issues. Several employers already utilize social medias to determine a qualified applicant. Insurers have brainstormed to come up with a few ideas to encourage policyholders to allow access to their social profiles, "one methods is possibly offering discounts to policyholders who do so, including those who are checking car insurance quotes online in search the best deals," (Report: Insurers to Make Greater Use of Policyholders' Social Data).

Social medias however tend to attract a specific age demographic, with 77 percent being between the ages of 18-29, 55 percent between the ages of 30-49 and only 23 percent 50 and older. So with these statistics, it appears that insurers will potentially have an easier time collecting data on their younger policyholders.

With new technologies it is necessary for companies to adapt their companies as advances are made as to not get left behind. Celent believes this as "the use of data in other processes is a natural evolution for insurers' engagement with customers. Insurers already improve customer experience by leveraging third-party data and, over time, social date will be added into the mix," (Report: Insurers to Make Greater Use of Policyholders' Social Data). A social profile can tell you a lot about a person depending on how much one shares, it's no wonder that insurance companies wouldn't mind collecting that data on a larger scale to take a peek in their policyholders' lifestyles to see how they really live, and not rely solely what's put on paper.

Since 2008 Ohio auto insurance companies have slowly been raising their premiums, about an eight percent increase to be exact. And it doesn't stop there; Ohio Insurance Institute (OII) estimates an additional 3.7 percent rise between 2010 and 2011.

Out of the top 10 car insurance companies in 2010 six raised premium costs, three lowered, and one kept the same rate from the previous year, (Ohio Auto Premiums Expected to Rise 8 percent from 2008 to 2011, Ben Zitney, Online Auto Insurance News,

http://news.onlineautoinsurance.com/rates/ohio-car-insurance-report-94869). Of the six that increased premiums, the largest came from Grange Mutual at 5 percent.

What causes these increases? Regulators state that "auto rates fluctuate due to changes in repair costs, medical costs, the number of cars on the road and the occurrence of weather-related claims,"(Ohio Auto Premiums Expected to Rise 8 percent from 2008 to 2011, Ben Zitney). Providers expected more weather related claims due to the massive thunderstorms in May, and rightfully so as OII states that more than 27,000 claims were filed because of the storms, with damages accumulating to more than $80 million.

However; even with the eight percent increase that will be seen from 2008 to 2011, state officials say that Ohio residents still are paying some of the lowest premium costs in the U.S. ranking 11th with the lowest average policy in 2008. The top two cities with the lowest car insurance are in Ohio, Wapakonet and Fairfield, (Ohio Auto Premiums Expect to Rise 8 percent 2008 to 2011, Ben Zitney).

So even though rates have increased, seems the only thing to do is see the silver-lining if you are an Ohioan because when it comes to insurance costs; the grass is still a bit greener on your side.