Smart Auto Insurance Blog

Insurance.com recently announced, via press release, the addition of Infinity Insurance Company to their stable of auto insurers on their platform.

Infinity Insurance will offer comparison car insurance quotes in California both online and by phone, and joins Insurance.com’s impressive group of insurance companies, which now numbers 15.

Other top companies that participate in Insurance.com’s comparison quoting engine include: Hartford, Liberty Mutual, Progressive, Safeco, Travelers and many other leading car insurance companies.

According to Richmond BizSense’s Al Harris, a new auto insurance company is entering the U.S. market. U.K.-based Admiral Americas is planning a slow, state-by-state expansion that will bring its renowned frugality and focus on younger, urban drivers to the market.

Some people might consider it risky to start selling policies in the United States during these economic times, but their President and CEO claims that being able to acquire resources inexpensively is an advantage. In addition, consumers are more willing than ever to compare auto insurance quotes and switch to a cheaper insurer.

Admiral Americas will sell auto insurance via Internet and phone only.

In the Insurance Journal, it was reported that Attorney General Martha Coakley is wary of a potential entrant into the Massachusetts auto insurance market. Occidental Fire and Casualty Insurance Company recently filed its proposed rates for high-risk drivers, and they are 10% more expensive than average high-risk policies in the state.

Occidental also wants to charge several surcharges and fees that are either illegal in Massachusetts or considered unfair, including:

• A 35% surcharge for those unable to verify their driving records, including recent immigrants from non-English speaking countries who can’t get their records in English. That’s on top of the higher premium for inexperienced drivers.
• Drivers filing glass claims have to pay Occidental two deductibles: a comprehensive deductible and a separate glass deductible
• A fee of $25 tacked onto each initial policy purchase
• Fees of $8 per installment

In addition, Occidental does not allow drivers to reinstate their auto insurance policies after being canceled for nonpayment, which is against Massachusetts law. (Buying a new policy after having one canceled results in more costly auto insurance premiums.) Coakley is especially concerned because Occidental is targeting inner-city communities, where residents tend to have fewer auto insurance options.

In the Detroit Free Press, Kathleen Gray reports that 12 Michigan auto insurance companies have agreed to freeze their rates for a year. However, 96 other insurers have not agreed to the rate freeze as of the March 1st deadline. Governor Jennifer Granholm requested that insurers freeze their auto insurance premiums for a year while the state legislature works on auto insurance reform. 

The insurance companies that have agreed to freeze their auto insurance rates are:

• American Bankers’ Insurance Company of Florida
• American International South Insurance Company
• American Reliable Insurance
• Wolverine Mutual Insurance Company
• Pharmacists Mutual Insurance Company
• Great Lakes Casualty Insurance Company
• Electric Insurance Company
• Essentia Insurance Company
• Meritplan Insurance Company
• IDS Property Casualty Insurance Company
• Liberty Mutual Property Insurance Company
• Merchants Mutual Insurance Company

On MainStreet.com, Carl Winfield recently explained important facts about Allstate’s auto accident forgiveness program, which has been available since 2006 but is gaining attention now. It’s a tempting option to prevent increasing auto insurance costs, but it’s not for everyone. Here are some frequently asked questions and answers about their accident forgiveness policy.

Q: What exactly is auto accident forgiveness?

A: It’s a policy that will ensure that your auto insurance premiums do not rise after a car accident.

Q: How much does accident forgiveness normally cost on a policy?

A: There tends to be an additional fee added to accident forgiveness plans; an typical fee is about $43 added to the premium every six months. However, premiums can jump far higher with an accident; sometimes they may even double.

Q: Who is eligible for Allstate’s Your Choice policies with accident forgiveness?

A: 

• Policyholders on the most inexpensive standard plan will have to maintain a clean driving record for five years before being eligible for accident forgiveness.
• Mid-range plan customers can take advantage of accident forgiveness immediately.
• Drivers with Allstate’s top-line, most expensive plan will also have access to accident forgiveness as soon as they buy the policy.

Progressive Insurance Company has expanded their optional usage-based auto insurance program to include drivers in Missouri.  The program called MyRate gives drivers a customized auto insurance rate based on their driving habits, (i.e. how much, and when their car is driven.)

New Missouri auto insurance customers get an immediate first-term discount of up to 10% when they sign up for MyRate.   When they renew their policy, they could save as much as 25%. or be charged up to 9% more, based on their driving habits.

The MyRate program is now being rolled out nationally pending regulatory approval on a state-by-state basis.

More information about Missouri auto insurance.

A recent editorial in the Baltimore Sun has expressed support for a proposal in the state legislature regarding Maryland auto insurance. State Senator Catherine E. Pugh’s legislation would allow the Maryland Automobile Insurance Fund, the auto insurer of last resort, to let policyholders pay their premiums in installments (i.e. monthly).

Currently, unlike private insurance companies, a state law only allows drivers with MAIF policies to pay for a full year in advance; many then turn to private financing companies that charge high interest rates, effectively adding $200 to $400 to the cost of yearly premiums. MAIF auto insurance rates are, on average, $3,219 per year.