Smart Auto Insurance Blog

A recent press release from Business Wire announces that Progressive Auto Insurance has been recognized for excellence in online auto insurance assistance.  In today’s online environment, more and more consumers are turning to the Internet to compare auto insurance quotes and benefits.  ProgressiveAgent.com offers a wide variety of services making the user experience easier and more straight forward and this has been recognized through receipt of the Standard of Excellence award from the 2011 Web Marketing Association’s WebAwards competition.

Progressive’s Agency distribution business leader, Karen Barone, says this website was specifically designed to make it easier for consumers to use a local agent and also help agents grown their businesses.  They feel honored to receive this award and feel good that they are doing things right.  ProgressiveAgent.com helps consumers find quotes, find a local agent, and also research insurance options.  You can learn more about Progressive’s variety of insurance options including boat, commercial auto and motorcycle insurance.

The judges at the online awards competition say ProgressiveAgent.com is useful and easy to navigate.  Many websites are looked at and seven criteria are considered.  This includes design, copywriting, innovation, content, interactivity, technology, and ease of use.  Websites across the nation are considered and 96 industries were reviewed by judges.  This is a great opportunity for websites to compete and show off their best practices through the competition.  Overall, it should make user experience better for all consumers turning to the Internet for their shopping needs.

Written by Sara Smart

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American Commerce Insurance, which offers auto insurance, has received an A+ rating from the rating agency Satndard & Poor.  According to the press release on the American Commerce website, the financial strength rating from increased from an A on MAPFRE USA’s subsidiaries - Commerce and Citation - and the outlook is promising.  They consider the companies to be strategically important and because of this their credit rating has been raised from BBB to BBB+.

AM Best also continues to rate MAPFRE companies as A+ Superior.  These high rating are truly key in the success of companies such as American Commerce.  Standard & Poor’s report says that the decision reflects their capitalization and states that their future is very strong.  The rating agency also says in their report that MAPFRE USA continues to have a strong competitive position in Massachusetts and they have a strong market presences in auto insurance specifically.  They carry about 29% of the personal auto insurance market and about 12% of commercial auto insurance products.

This report is a huge success for the company.  American Commerce and MAPFRE companies pride themselves on offering superior products and top notch customer service.  With their solid book of business, this continues to be the case.  The report also highlights the strength of their underwriting discipline and the strong management behaviors.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

Industry studies continuously show Louisiana auto insurance rates to be sky high and this is frustrating residents more and more.  They want to know why this is happening and why they are subject to some of the highest auto insurance rates in the nation.  The article “Car Insurance Costs” by John DeSantis on HoumaToday.com, offers some insight as to why this is consistently the case.

If you talk to local auto insurance agents, many believe the higher number of lawsuits involving auto insurance claims is to blame.  This is just one of many factors, but this is a very direct reason why rates have been increasing.  Auto insurance fraud, auto theft, traffic congestion, and overall claims filed all play into auto insurance rates being generally higher in Louisiana.

Some Louisiana officials are working hard towards reform to keep costs down.  Specifically, there is one law being worked on to make it more likely for insurers to settle rather than to fight cases they may win.  The director of Louisiana Lawsuit Abuse Watch, a non-profit organization out of Baton Rouge, says a particular law requires that a claim of at least $50,000 or more be made before a jury trial is assigned to a case and she feels this is unfair.  She says this isn’t fair to auto insurance companies defending lawsuits because many cases end up in front of judges and wastes a lot of time and money.  She feels there are cases where the judge is more likely to find for the plaintiff, although this is not always the case.

Written by Sara Smart

Follow me on Twitter: http://twitter.com/#!/SaraSmart55

State Auto Financial is an Ohio auto insurance and property/casualty insurance company and they saw a huge influx of claims throughout Ohio and the rest of the mid-west in May due to devastating storms.  They expect a pre-tax loss of around $45 million to $50 million from the storms throughout May.  Three specific catastrophes affected 23 of the states they operate in, including the massive tornado that hit Joplin, Missouri on May 22nd.  Auto insurance claims as well as property claims from tornadoes, wind and hail poured in quickly in a very short period of time.

State Auto plans on having over 9000 claims on cars and homes filed throughout the coming months due to the storms.  They confirmed previously that $75 million to $85 million in losses were experienced from April storms.  Before 2011, State Auto’s historic 5 year average loss ratio for the 2ndQ is around $50 million of losses so they are feeling a huge impact from these storms.  Bob Restrepo, State Auto Financial president and chairman CEO said that these storms continued a deadly pattern of destruction throughout the mid-west.

The article “State Auto Financial Expects May Catastrophe Loss Up To $50m” found on claims.insurance-business-review.com points out that State Auto employees are working endlessly to respond to claims quickly and efficiently in the best effort to help out struggling victims.  Some agents who even lost their offices due to storms are working to help customers through this tough time.

Many people wonder if using an agent is the best way to purchase auto insurance.  It’s true that using an agent can save you some time and possibly save you some money.  If you aren’t internet savvy, then using an agent may be the way to go.  Many companies offer agents to help customers with their needs.  One of these companies is Founders Insurance.

Founders auto insurance is offered in Illinois, Indiana, Ohio and Wisconsin with limits up to $100,000/300,000/50,000.  They offer quick, electronic SR22 filing and take international and out-of-state drivers license.  According to their website, Founders Insurance is a preferred choice of agents for higher risk policies.  Whether you have a poor driving record, poor credit rating, or coverage lapses, Founders will work with you to try to get you the best coverage possible.  This is where an agent can come in especially handy.  High-risk drivers often have a harder time finding quality auto insurance online or on their own.  An agent knows where to look to get deals for non-preferred customers.

Founders Insurance also has complete online capabilities including quoting, binding, and policy issuance, payments, endorsements, document reprinting, renewals, claim reporting and form downloads.  You can even chat online or over the phone with an underwriter with any questions you may have about your policy and quote.  Founders works hard to have state-of-the-art imaging systems for underwriting and claim handling and are constantly working to improve their business.  Speak with an agent to see if this might be the right option for you.

You may have seen some recent commercials on TV or ads in the paper from Nationwide Auto Insurance discussing their Vanishing Deductible program.  A vanishing deductible sounds appealing but how does it exactly work and is it a good deal?

Basically this benefit will apply to good drivers only.  If you’ve never filed a claim with your auto insurance company you may feel that it’s unfair to pay the same deductible as someone who has filed claims in the past.  Nationwide believes you shouldn’t pay the same deductible if you have a clean record.  That is what motivated them to create this unique plan for good drivers where the deductible “vanishes” with good behavior.

The Vanishing Deductible program drops your deductible by $100 for each year you are a safe driver.  They even offer a $100 discount for signing up.  This optional feature does seem appealing and doesn’t have much of a downside.  According to their website, annual credits are subject to eligibility requirements with a maximum credit of $500.  It’s important to understand that details and availability of the plan vary from state to state so check with a local agent to see if this is an option for you.  Having an insurance company that offers little perks like this can make all the difference since the market is so competitive.

If you happen to find yourself in need of a quick SR22 insurance filing many companies can do it for you immediately including Eastwood Insurance headquartered in California.  This is particularly important if you need this information filed by a certain date to get your license or to ensure you have the proper auto insurance coverage in place by a certain time.

An SR22 is a certificate of insurance filed by an auto insurance company or insurance agent directly to the state in either an operator’s certificate or an owner’s certificate.  There is also an operators-owners certificate option.  SR22 isn’t exactly a type of insurance which often confuses consumers.  It is the name of a certain form insurance companies need to file for certain policyholders.  Not all states require SR22 but it is often required if your license has been suspended or revoked.  This makes the SR22 associated with high risk drivers who have somehow broken the law or had an exorbitant amount of violations.

It’s very important to get the SR22 form filed correctly if you are required to do so.  The SR22 insurance certificate is to certify coverage to the Division of Motor Vehicles in a particular state.  The insurance company is then required to notify the Division of Motor Vehicles in the case of the policy being cancelled, terminated, or if there are any lapses in coverage.  If you find yourself needing this type of form filed, check with your insurance company to see if this is something they offer.  Not all auto insurers file this paperwork so you will have to confirm yours does.

Understanding your auto insurance company’s financial strength is important to protect your lifestyle and future financial well being.  Insurance agents, brokers, financial advisors, and other insurance professionals have long used AM Best’s Financial Strength Ratings to help support their insurance selection and investment choices.  It’s now recommended consumers also utilize Best’s ratings to understand their insurance company’s strengths.

Companies such as Founders Auto Insurance are found on the AM Best ratings list.  Founders Insurance received an A- as of July 2010 which is considered excellent.  This excellent rating is very important to the well being of the company.  Best’s Financial Strength ratings offer an independent evaluation from a third party to assist in determining the ability of an insurance company to fulfill its obligations with regard to a variety of insurance products, including auto insurance coverage.

The AM Best rating process gives all insurance companies the same rigorous review which provides an extremely valuable benchmark for comparing insurance companies against each other.  Companies can receive ratings from an A++ all the way down to an F which usually means the company is in liquidation.  A B or below is considered a vulnerable rating whereas a B+ or above indicates secure financial strength.

Many companies that offer auto insurance have brokers such as Bristol West Insurance.  When trying to decide if you are going to go through an auto insurance agent or broker it’s important to understand the differences.  There are a few differences between the two and it can make a difference in your overall experience.

Bristol West takes pride that both their agents and brokers are quality and can be trusted.  This may be true but not all companies may have this benefit.  The differences between brokers and agents differs from state to state, but in general, an auto insurance agent will write a policy for a customer on behalf of a broker or company and the broker will simply write the policy on behalf of the customer.

A broker is allowed to have agents under them and often times they own their own auto insurance company.  Brokers tend to be more heavily regulated since they carry more responsibility to this can be to your advantage.  They typically have a strong history of experience and are very knowledgeable in the field.  This can help you make the best decision as you shop around for auto insurance, but be sure you are comparison shopping.  Rates can vary greatly from broker to broker and insurance company to insurance company.  Some brokers will shop around for you, but it doesn’t hurt to do some additional work to ensure you are getting the very best deal you can.