Smart Auto Insurance Blog

Many consumers associate the term “non-standard” auto insurance with high risk, but this isn’t always the case.  According to the Founders Auto Insurance website the terms are often synonymous.  They do point out however that “non-standard” simply means not adhering or conforming to the standard policy.

Many of Founder’s forms, classes, and territories do actually conform to auto insurance industry standards, but some aspects do not making part of it “non-standard”.  Most non-standard auto insurance companies start off with a standard methodology, and make appropriate modifications to suit their customer’s needs which are always changing.  They take into consideration the economy, the market demand, and consumer needs and tailor the policies to fit the times.

Founders Insurance offers vehicle surcharging, modified territories, and they create classes based on what is going on in the market.  There is a unique risk selection criteria, but a very high percent of new business at Founders has been previously insured with a clean driving record.  Founders also follow similar models for their homeowners insurance and commercial liability & property policy options.

We haven’t been hearing too much about the successes of a variety of industries during this economic downtown, but good news out there for some auto insurance companies.  According to the article “State Farm Profit Double” found on KansasCity.com, State Farm seems to be doing pretty well.

State Farm Auto Insurance Co., the largest US home and car insurance company, reported full-year profit more than doubled as underwriting losses were narrowed.  Net income for the year 2010 increased to $1.8 billion from $777 million the previous year.  The insurance company is owned by policyholders and reports results every year.

Chief Executive Officer Ed Rust leads State Farm which was helped by some debt relief and equity markets as well as a relatively mild hurricane season.  A rebound policy sales overall in addition to an increase in personal auto and home coverage rose revenue at US property-casualty insurers.  As we start 2011, State Farm expects to continue doing well and is working hard to ensure this is the case.  In today’s economic environment, this is great to hear.