Smart Auto Insurance Blog

According to multiple company press releases through Business Wire, Progressive auto insurance is hiring in Tampa, Colorado Springs, Austin, Cleveland and Phoenix.  Florida’s unemployment rate is close to 10%, so opening up 390 jobs in Tampa is a big boost to the economy.  The positions run throughout sales, claims and service at the Riverview contact center.  Progressive is known for being a great employer partly because of their on site fitness and medical facilities as well as a casual dress code.  The St. Petersburg Times voted Progressive auto insurance one of the top places to work in Tampa.  At the Cleveland home office facility, Progressive is hiring 337 new workers.  They are also hiring 65 workers in Phoenix.

In Austin, Progressive is adding 185 of the same type of positions in their Texas facility.  Texas has an unemployment rate of almost 8%, so these service, sales and claims jobs are just what the city of Austin needs.  Progressive pays employees for all training and also offers them the benefits of medical, life, vision, and dental insurance.  At Progressive’s Colorado Springs facility, they will be hiring 129 new faces.  The company is looking for people with some background in customer service.  New employees will help with quotes on auto insurance as well as sales and claims.  Progressive has a long list of amenities and benefits to offer their employees which is a big reason they are such a popular auto insurance company.  Happy employees take good care of their customers and Progressive is looking to add 1,106 employees by July.

Allstate Insurance continued its crackdown of insurance fraud in New York state to close out 2011.  Many insurance companies have a big problem with insurance fraud because of the no-fault coverage issued in the state of New York, according to Insurance News Net’s “Allstate Files $1.1M Insurance Fraud Case in NY.”  This most recent lawsuit for $1.1 million is against sixteen people accused of falsely running companies they said were owned by a medical doctor in order to submit false claims to Allstate.  This is Allstate’s ninth insurance fraud lawsuit in New York this year and their thirty-sixth since 2007.

Unfortunately, no-fault auto insurance has been causing a fraud nightmare in the state of New York for years.  Consumers in New York pay more for their auto insurance because there is so much fraud, dubbed a ‘fraud tax’ by some.  An Allstate spokesperson urges New York lawmakers to enact and enforce regulation that will eliminate no-fault insurance or find a way to eliminate the fraud it is causing.

This most recent scheme involved multiple small companies and individuals sending medical claims and referrals in violation of the no-fault law.  Everything was under the guise of a named medical doctor who does not really exist.  Allstate’s Special Investigative Unit filed this lawsuit to recoup the more than $1 million it feels it lost.  Allstate Insurance is joined by many other insurers, like Donegal Insurance, and state leaders in New York in their battle to reform the no-fault auto insurance system.

Written by Sara Smart

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

With the economy remaining somewhat stagnant, it’s always great to hear about major promotions at big companies.  Founders Insurance has recently promoted two outstanding employees to new positions with the hope of making the insurance company stronger.

Sharon A. Poradzisz was promoted to vice president of personal lines claims.  Poradzisz has over 16 years of experience in the insurance industry and joined Founders Auto Insurance in 1997 and quickly was promoted to claims customer service manager.  She then was promoted to senior claims manager and then commercial claims manager.  She is actively pursuing the Chartered Property Casualty Underwriter (CPCU) professional designation to further her experience.

Wade D. Rankin has been promoted to commercial claims manager at the Founders Insurance Co of Des Plaines, Illinois.  Rankin has been with the company since 2010 as a senior claim analyst in the commercial division of the insurer’s claims department.  He has valuable previous experience in the legal and insurance industries.  Previously, he was a law clerk at an insurance defense law firm.  Before coming to Founders he worked in the excess casualty unit of another insurer.

This information was obtained from the Insurance Journal website, notifying the public of these newly promoted employees, recognizing all of their hard work.

Written by Sara Smart

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

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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Hurricane Irene has devastated many areas of the US and its estimated that at least 18 people have died as the storm moved from the Caribbean all the way up to New England.  The article “Hurricane Irene’s Damage, State by State” by Drew Armstrong on Bloomberg.com states that about $3 billion in damages have occurred and power was out in over 6 million homes and businesses throughout the east coast.

State Farm Mutual Automobile Insurance Company is the largest US home and auto insurance company in the nation and they’ve reported about 1600 homeowners insurance claims and about 500 auto insurance claims in just North Carolina and Virgina.  The number of claims will surely increase over the coming weeks.  State Farm received reports of siding and roofs blown off of houses and much destruction from the falling of trees.  There have even been claims for loss of food since the power outages have made food in refrigerators spoil quickly.

In the New York area, where the storm had weakened, claims are standing at about 360 homeowners’ claims and 60 auto insurance claims, but this is only after a few days.  People are still getting settled and assessing damage before calling their insurance company.  Storms such as Irene can cause slight increases in auto insurance quotes to account for all of the claims, but this generally happens over time.  Insurers across the nation are working hard to fulfill claims as efficiently as they can to ensure costs do not soar.  Sometimes, when there are heavy claims filed, insurers are quick to give out money to save time.  Hopefully insurance companies were prepared enough for this storm that it will not happen this way across the board.

Written by Sara Smart

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Auto insurance quotes can be higher on cars that are the most commonly stolen.  Knowing this can help you make a decision on what type of car you want to purchase when you start to compare auto insurance policies.  The National Insurance Crime Bureau (NICB) recently announced their findings for 2010 in the most commonly stolen vehicle types and consumers are anxious to know.

It’s no surprise that for the third straight year in a row the 1994 Honda Accord is the most stolen car for 2010.  Over 50,000 Accords were stolen in 2010 according to the article “The Most Commonly Stolen Vehicles In The United States” on US Insurance Online.  It’s suggested that weak security systems and a continuously high demand for parts are the two main reasons that the ‘94 Accord continues to be stolen the most.

The spokesperson for NICB, Frank Scafidi, says there is a black market for important parts and sometimes cars are worth more for their parts than they are when they are still in tact.  Between 2002 and 2009 there were many more foreign cars on the top 10 list when compared with domestic models.  In 2010, there were actually six American models on the list which is a turn in the trend.  The Honda Accord, Honda Civic and Toyota Camry were the three top most stolen cars in 2010, so consider this when purchasing your car considering your auto insurance rates many be higher due to the high theft.

Written by Sara Smart

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

Many auto insurance companies have comprehensive coverage packages with great deals, but you have to do your homework to ensure you are getting want you really want.  One overlooked benefit that doesn’t come with all auto insurance policies is towing coverage.  Whether your car gets stuck in the snow, has a flat tire, the battery dies or it randomly will not start, towing coverage is invaluable and many policies offer it at no extra charge.  Unfortunately, many consumers do not realize this.

Specifically speaking, what you should look for when comparing auto insurance quotes is Towing and Labor Coverage according to the article “Does Your Auto Insurance Cover Towing” by Marcia Passos Duffy on FoxBusiness.com.  This type of coverage will often take care of the towing as well as labor to help get the car started again.  Labor generally covers small fixes and not parts so be careful when a mechanic offers to fix everything.  This coverage can also be called roadside assistance and some companies extend other benefits that mimic an auto club membership.

If you are a member of an auto club and paying an annual fee, double check with your auto insurance company to make sure you don’t already have the coverage you’re looking for.  If you have quality roadside assistance through your insurer, you may be able to cancel your auto club membership and save some money.  With this said, auto clubs such as AAA offer unique benefits that can be hard to find with insurers so you will want to be sure and compare the perks side by side and see what is the best fit for your budget and your personal needs.

Written by Sara Smart

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

One Beacon Auto Insurance is one of 14 companies marked as high dividend growth stocks for earnings this month by Seeking Alpha.  On their website they included details with interactive charts and price indexes to help readers see the impact these companies are having overall.  The Kapitall interactive charts are truly fascinating as you press a “play” button to compare changes in analyst ratings over the past two years.

Specifically speaking One Beacon reported earnings for their surety and title insurance industry.  The market cap was $1.26B while official earnings are to be released at the end of July.  Dividend yield is at 6.27%, a payout ratio at 11.91%, and a current year dividend per share estimated at $1.53 vs TTM dividend per share at $.84.  This has been an impressive stock over the course of 2011, gaining 24.91% over the past year.

Another insurance group, Selective Insurance Group Inc for the Property and Casualty insurance industry also reported numbers to discuss.  They reported a dividend yield at 3.2%, payout ratio of 33.77% and a current year dividend per share estimate at $.62 vs TMM dividend per share at $.52.  The stock as overall gained 14.18% in 2011.  The article goes on to detail the other 12 companies with dividend and stock information in a very smooth, and easy to read format.

Written by Sara Smart

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Car sales continue to be less than desirable for many car makers across the nation in 2011, but GM is looking to change that.  To stay competitive and offer something different, GM is looking to offer free auto insurance coverage to new car buyers according to the article on USA Today by Chris Woodyard.

Uninsured drivers is a problem across the nation, including states like California and Oregon.  These two states are the location of this free auto insurance test where people who buy a new GM car will receive a year long policy from MetLife Auto Insurance completely free of charge.  This will not only save a customer money, but will save them time searching for auto insurance quotes.  It’s a quality policy, including both liability and physical damage coverage and exceeds the auto insurance requirements for both states.  The offer is only good until September 6th and applies to 2010, 2011, and 2012 Chevrolet, Buick, GMC and Cadillac cars, crossovers and trucks.

GM hopes to bring in more buyers with this unique offer.  The policy will cover the car and anyone who drives it with the owner’s permission for the entire year from the date of purchase.  GM is still in the testing phase of this offer to determine if it will appeal to a wide group of buyers.  The owner does not have to renew the policy at the end of the year, but this could be a great opportunity for MetLife Auto to reel in more customers as well.  Very interesting concept and curious to see how it all pans out.

Many insurance companies across the nation felt the harsh effects of the spring storms throughout April and May including Donegal Insurance.  Donegal Group, INC, expects to feel a $13 million to $15 million hit in the 2nd quarter from all of the recent claims brought upon by the devastating storms the swept the mid-west and affecting many areas of the US.

The article “Donegal Sees $13M-$15M Effect From Claims” by Tim Stuhldreher on CentralPennBusiness.com points out that claims of about $7 million to $8 million will be paid due to mid-Atlantic hail and storm damages and another $4 million to $5 million paid to the South due to the tornadoes that hit this area.  Another $2 million is going to the mid-west for wind and hail.

Donegal plans on covering additional losses through their reinsurance programs.  This is to help the blow of the loss be less painful.  Their subsidiaries will give about $3 million to keep their reinsurance coverage throughout the rest of 2011.  Many companies have felt the impact of all of these home and auto insurance claims, but Donegal remains positive that they are handling the situation and their preparation for such events has paid off.

Written by Sara Smart
Follow me on Twitter: http://twitter.com/#!/SaraSmart55