Local news stories affecting the auto body industry in New York, New Jersey, Pennsylvania, Delaware, Connecticut, Maryland, Rhode Island, Massachusetts, New Hampshire, Vermont and Maine
A new law in New York may affect the cost of automobile insurance. As of today the Department of Motor Vehicle added changes to an already in effect law that was established in 2001 regarding talking on your cell phone while driving. Previously drivers who were caught talking on the phone while driving were eligible to be charged up to a $100 fine. The new changes to this law also now make it so that violators will get two points added onto their driving record.
This two points is the lowest increment on the state’s drivers violation point system and is by far no guarantee that a motorists insurance premium will rise, however, it is a factor. If it is a drivers first violation most likely it will not affect their insurance at all, however, if a driver already had multiple infractions this two points could be what sends them over the edge.
Michael Barry, vice president of media relations for the Insurance Information Institute told Online Auto Insurance News that, “It is difficult to quantify whether the state’s new rules – adding two points to the license of a driver convicted of driving while talking on a cell phone – will raise anyone’s rates… Auto insurers examine dozens of variables when assessing risk.”
While major insurers are still deciding how to adjust the formula used when determining a drivers rates, most are simply stating that obviously the better a driving record is the better the possibility of cheaper insurance.
In New Jersey police can ticket any driver they spot who hasn't cleared snow and ice from a vehicle - and they're doing just that. The new law went in to effect in October and, after a grace period, more than 1800 citations were issued statewide in December and January.
"We are clamping down, the police are out there. We're taking it seriously because there's a serious problem," said Sgt. Brian Polite of the NJ State Police.
Polite says fines range from $25 to $75 but can go much higher if flying snow causes injury or damage.
"I've personally experienced the snow coming at me so they have to do what they have to do, it's for everyone's safety," said truck driver Victor Pedrosa.
Some drivers don't agree.
"I think it's ridiculous only because sometimes you might not have time to clean off the snow," said Shalona Covington of Crosswicks.
It's one thing to clean off a car, but truck drivers say it's not so easy to clean snow and ice from a big rig.
"It's real hard to get up on top of the trailer and get it off," said truck driver Keith Zimmerman. "You'd wind up killing yourself going on top of the roof."
With the new law in mind, National DCP in Westampton purchased a snow removal system to clean off the hundred-plus trucks moving out of its distribution center each day. Turnpike officials say a similar system will be installed at the Fenwick rest stop in Salem County to clear off trucks entering the toll road.
New Jersey saw an increase in the number of new insurance companies doing business in the state, and in carriers writing new lines, in 2010, according to state officials.
The state insurance department said that last year it admitted 27 new insurers and extended new business lines to 28 carriers. That number is up nearly eight percent from 2009 when the department approved 51 new admissions and business extensions, and up 25 percent from 2008 when the department approved 44, according to officials.
Department of Banking and Insurance (DOBI) Commissioner Tom Considine said that included in the 2010 admissions were 10 new commercial insurance carriers, six new workers’ compensation carriers and three new homeowners and auto insurance companies. Extensions were granted in the commercial lines, homeowners and workers’ compensation markets.
In addition, DOBI regulators reported that in 2010 they recovered more than $11.3 million from insurance companies for consumers and returned nearly $9.4 million to medical providers, including doctors and hospitals. Consumers and providers received the payments for claims processing delays, improper handling, and denials of claims, and premium refunds due to improper ratings or failures to return unearned premiums. Insurers made the payments resulting from probes into consumer complaints against licensees, enforcement investigations and errors found during market conduct examinations.
Delaware Insurance Commissioner Karen Weldin Stewart announced that the Department of Insurance was successful in a variety of actions resulting in over two millions dollars being returned to Delawareans. They include the prosecuting of complaints on behalf of consumers, providing dispute resolution through arbitration, agency exams and refunds to policyholders who had completed an approved defensive driving course from a major insurer.
The Commissioner said, “During the past two years, I have tried to re-engineer the Department of Insurance into a consumer driven agency. The success we have had in getting returned to business and individual consumers a total of over two million dollars in 2010 is a first step among a number of enduring initiatives and actions we are taking to better serve the citizens of our state. In addition to new ideas and initiatives, any success in serving our consumers involves maintaining our success in responding and sustaining our level of vigilance.”
Three former Chrysler and General Motors automobile dealers in Western Pennsylvania have joined about 125 others nationwide in suing the federal government on the grounds that their property -- their franchises -- was taken from them without compensation or due process, according to the Pittsburgh Tribune-Review on February 23, 2011.
Verona Motor Sales, formerly Verona Jeep, is one of five dealerships in Pennsylvania and 59 nationwide that claim they are owed $130 million in damages because the federal government did not pay them when their franchises were eliminated, according to the lawsuit filed last week in U.S. Court of Federal Claims in Washington.
The lawsuit contends that when the Treasury Department forced Chrysler Group LLC to reduce its dealership network in 2009, it was done without due process under the Constitution and protection of state dealer franchise laws.
"Our property was taken illegally. We lost untold thousands of dollars," said Bert Molitierno, owner of Verona Motor Sales, now a used-vehicle dealer with sites in Verona and Penn Hills.
The Treasury became involved in the automakers’ restructuring when the government gave Chrysler and its financial arm $14 billion and General Motors Co. $50 billion in bailout money.
They are accused of taking money from the shop in exchange for sending the shop cars that had been damaged in roadside accidents. The practice dates back to 2009, according to an affidavit. A criminal complaint also was filed against the owners of the shop, according to the Associated Press (AP).
The Baltimore Police Department and the FBI conducted the investigation, according to Baltimore Police Commissioner Frederick Bealefeld III.
Officers are expected to allow the vehicle’s owner to arrange for a tow on their own, or if they decline, to use police communication channels to contact an authorized towing company, according to AP. The officers charged said in reports that the owners arranged for their own tow or would leave that portion of the form blank, according to the complaint.
However, these officers allegedly told vehicle owners that Majestic could help with the insurance claim and waive the deductible, advising them not to call the insurance company before talking with the repair shop owner, the complaint alleges.
The U.S. Attorney's Office in Maryland says the officers allegedly would be on the scene of car accidents and direct the owners of the cars involved to have Majestic Auto Repair Shop in Baltimore County tow their vehicle, repair it and they could handle the insurance claim.
Prosecutors allege the officers would get $300 for each car they directed to Majestic.
U.S. Attorney for Maryland Rod Rosenstein expects there will be more arrests in the case.
Read more about the arrests from the U.S. Attorney's Office: