Smart Auto Insurance Blog

According to the article ”Games for Cheaper Auto Insurance” by AJ Glasser on Kotaku’s website, Allstate Insurance is teaming up with a San Francisco start up, Posit Science, to look into brain training video games to improve driving skills and decrease auto insurance rates.

Posit developed a program called InSight, which has five brain exercises.  Posit states that these types of games can improve visual processing, such as peripheral vision and divided attention needed for driving.  Allstate is currently experimenting with the game’s ability to improve driving skills. 

If they have positive results, Assistant Vice President in Research and Marketing, Tom Warden, states that they could end up using a high score as a way to discount auto insurance rates for their customers.  The author said he played the demo on Posit’s site and he thought it was challenging, but fun.  This could be an unique way to attract certain customers to Allstate Auto Insurance if they end up implementing such a discount.

Following up on a previous blog post announcing GEICO filing paper work to begin selling auto insurance in Massachusetts, last Monday GEICO went live, and is now actively selling Massachusetts auto insurance policies to MA residents.

GEICO’s first customer in MA was Beth Opishinski of Whitman, Mass.

Over the past year, Massachusetts has seen many of the nations leading auto insurance companies re-enter the auto insurance market providing them with more options when choosing an auto insurance policy.  Recent market entrants include Progressive Insurance Company, Esurance, GEICO, and Allstate will join the fun shortly.

About 300,000 NJ residents who have New Jersey auto insurance coverage through Allstate will soon see their rates increase by 8.9% on average.  Allstate had requested a 15.4% average increase but only a 8.9% increase was approved by the state.  The 8.9% increase was still the highest increase approved by the state in six years.

Overall New Jersey auto insurance rates increased 3.7% across from March 2009 to April 2009.  In addition, insurance.com’s monthly RateWatch report singled out New Jersey as having a large disparity in prices between auto insurance carriers for similar coverage levels, and that shopping for auto insurance in New Jersey could be particularly profitable.

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.

According to insurancejournal.com, the Colorado Division of Insurance has announced that Allstate Insurance Company is lowering their auto insurance rates in Colorado.  The rate reduction will save Colorado drivers almost $7million in premiums.

Allstate cited favorable claims loss experience over the past few years which has allowed them to profitably lower their rates for private passenger auto insurance.

Based on 2003 market share data, the top automobile insurance companies in Colorado were:  State Farm (23.3% market share), Farmers (14.4%) American Family (10.4%) and Allstate (8.1%)

More information about Colorado Auto Insurance.

Allstate Insurance Company has filed a petition with the New Jersey Department of Insurance to increase their New Jersey auto insurance rates by 15.4% on average.

Allstate sited increased claims costs and expenses as the primary reasons that the rate increase is necessary.

If the rate change is approved by the department of insurance, it will only affect policy holders whose auto insurance policies became effective before September 2006.

New Jersey Auto insurance rates were already the 3rd highest in the country in the 4Q of 2008, behind District of Columbia, and Louisiana.

The Detroit Free Press reports that mayoral candidate Freman Hendrix claims that he will file a class action lawsuit against auto insurance companies if they do not lower Detroit auto insurance rates.

Detroit auto insurance rates are the highest in the country, twice as high as the rates for Philadelphia, the second highest cost city.

According to the Michigan office of Financial and Insurance Regulation, auto insurance rates vary greatly even within Metro Detroit.

Some Michigan Auto Insurance examples from top carriers

Married couple with 2 children and a clean driving record would pay GEICO $4738 if they lived in Southwest Detroit, $3244 in Pontiac or $2482 in Warren, and $1906 in Kalamazoo for comparable auto insurance coverage before any  discounts.  Through Allstate the family would pay $13,014 in southwest Detroit, $7774 in Pontiac, $6464 in Warren and $5536 in Kalamazoo.

More information about Michigan Auto Insurance.

New York Giants football player Plaxico Burress is in some hot water due to a car crash he was involved in last May. Last week he was sued in Broward County, Florida by the woman he rear-ended, says the Associated Press.

According to her lawyer, he was driving without auto insurance on his $140,000 Mercedes-Benz. All I can say is, really?! Didn’t you just win the Super Bowl? Although Plaxico has been involved in some other stuff lately that makes letting your expensive car’s auto insurance lapse seem like a good idea in comparison.

His insurance provider, Allstate, claims that he failed to pay his premiums. His policy expired just three days before the accident! He could’ve asked for an Allstate insurance quote and avoided this whole problem in the first place.

(Photo credit: tedkerwin under CC 2.0)