Smart Auto Insurance Blog

Around 1% of those with auto insurance are using usage-based programs to try for discounts on their auto insurance premiums.  But according to NASDAQ’s “The rise of usage-based auto insurance,” that number is rising.  In the next five years, some estimate that as many as 20% of drivers could be using usage-based programs.  They even predict that 30% of drivers will be using them by 2020.  Usage-based insurance, or UBI, allows your auto insurance company to place a device in your car to monitor your driving habits.  They can determine when you drive, how often, how far, how fast you are accelerating, as well as your braking habits.  Companies advertise discounts of up to 30% when you use their UBI, if you are found to have safe driving habits.

When asked, drivers said that they are happy to give up some privacy in exchange for a discount on auto insurance rates.  Between smart phones and Facebook, people are used to giving up some of their privacy, so they willingly participate in UBI services.  In fact, companies who are not currently using this technology, or at least in the development process, are pretty far behind and risk losing some customers.  At some point in the future, drivers may end up paying higher premiums if they don’t allow their insurer to track their driving habits.  It’s unlikely that insurers will force drivers to share UBI information, but collecting this data will likely become the norm in the future.

Here is a summary of some of the companies offering usage-based insurance.  First of all, you do have to have a car that is newer than a 1996 model.  Drive Wise is offered in three states by Allstate, but they plan to expand the program later this year.  American Family Insurance has tested their product and is currently developing a plan to implement it.  Esurance has teamed up with Sprint to collect UBI data, but it is only available now in Texas.  GMAC collects data through OnStar.  The Hartford insurance works with Octo USA to collect data for their TrueLane program, currently available in five states.  Progressive’s Snapshot is available in most states and even non-customers can try it out.  Travelers has started using IntelliDrive in four states.  Safeco offers the Rewind program to some customers who are trying to avoid rising premiums after violations.  State Farm’s Drive Safe & Save program also works with OnStar and is available in 14 states.  Have you taken advantage of UBI yet?

Progressive Auto Insurance has been in a bit of a firestorm lately after a battle with the family of an individual who previously held their auto insurance.  Matt Fisher’s sister died in a 2010 car accident.  She held a policy for $100,000 in case she were injured or killed in a car accident and the other driver did not have adequate auto accident insurance.  In the case of her death, the other driver had a $25,000 policy, significantly less than the $100,000 held by Fisher’s sister.  Last week, Matt Fisher was on CBS This Morning talking about the battle that his family has had with Progressive since the 2010 car crash that took his sister’s life.

Since eyewitness accounts did not make it 100% clear who was at fault in the accident, the claim had to go to trial.  Fisher’s family sued the other driver so that they could establish fault in the accident.  The Fisher family believes that Progressive defended the other driver in court so that they could avoid paying out his sister’s policy. But Progressive says that their defense in court was for their own company and that the other car’s driver was defended by Nationwide, that driver’s insurance company.  Matt Fisher’s Tumblr blog, “My Sister Paid Progressive Insurance to Defend Her Killer In Court,” has garnered a huge amount of attention recently.  He has been discussed on nearly all of the major news programs and Progressive has been inundated with criticism from those who’ve taken to defending Fisher’s story.

According to Alex Alvarez of MediaITE in the article, “Matt Fisher describes how Progressive Insurance defended his sister’s killer,” the Fisher family won their lawsuit showing that the other driver was at fault.  The courts awarded the Fisher’s with $760,000 in damages.  Progressive Insurance has expressed their sympathies to the Fisher family and plans to settle this matter with them as soon as legally possible.  Matt Fisher’s blog and Twitter presence certainly made this story well know across the United States.  This has been quite a negative story for Progressive Insurance and may have hurt their reputation.  Social media has a strong power over opinions, whether related to auto insurance companies or politics.

If you’re looking to save money on your auto insurance, look for an insurance company using DriveFactor.  That is only if you are a good driver of course!  DriveFactor, which used to be known as Crimson Informatics, is a sytem that tracks your driving habits and could save you big money on your auto insurance rates.  According to a company press release, DriveFactor is expanding as more auto insurance companies decide to offer this discount system to their customers.

Mobile technology combines with informatics to monitor your safe driving habits and DriveFactor says that you can save up to 50% off of your auto insurance rates.  Usage-based insurance (UBI) programs are already being used by Progressive, State Farm, Allstate auto insurance and others.  A diagnostic device is placed in the vehicle to monitor everything from speed to distance between other vehicles.  After a specific time period of monitoring, drivers are given a DriveFactor Score.  Those with the highest scores get the highest discounts on their auto insurance.

DriveFactor benefits both drivers and auto insurance companies.  It is very cost-effective for auto insurance companies and allows them to offer discounts to drivers they know are less likely to drive dangerously and take risks.  Use of DriveFactor can give auto insurers quite an advantage in their industry and it also saves drivers money, which makes them happy.  The information gathered is really the best way to accurately price car insurance for customers.  DriveFactor is available in the United States and Europe right now, but will likely expand even farther in the future.

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.

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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Progressive Auto Insurance has been named in Diversity MBA Magazine in its “50 Out Front Diversity Leadership: Best Places for Diverse Managers to Work” list.  The magazine lists the top companies for women and minorities to pursue positions of leadership each year.  Progressive is known for embracing diversity and it shows in this honor.

Neil Lenane, Progressive’s director of employee experience says people with different backgrounds and experiences are crucial to the growth of the business.  He believes it’s the diversity that makes Progressive Auto Insurance Company such a great place to work.  Progressive was named in part because of their consistent commitment to diversity throughout their entire company.  Progressive recruiters advertise with ethnically diverse organizations and job boards to encourage the growth of their diverse community.

Diversity MBA Magazine looks at over 400 employers on the Fortune 500 list and consider a variety of factors including employee retention, recruitment efforts, and the company’s accountability.  The magazine says that it’s a very competitive list with a 30% increase in participation by companies this year.

In many states teenagers can receive their drivers license at age 16 once they have passed a written test as well as a driving test.  At this point you will need to look into auto insurance for your new driver.  Many auto insurers such as Progressive and Acceptance Insurance offer policies to these young drivers, but rates may be higher and if you add the driver onto your existing policy you can expect to see your premium increase, in some cases relatively drastically.

You can see your auto insurance rates come down over the years with your teen on your policy by encouraging good grades which can earn discounts and demanding safe driving habits.  The Department of Motor Vehicles in various states offer teen driving education from everything like passing the written test to the importance of never drinking and driving.  There are online tools for your Internet savvy teen to browse articles and online quizzes to help educate your child on safety guidelines on the road.

Many auto insurance companies also offer online programs for teens.  USAA Auto Insurance explains to your student how to buy a car as well as how to handle distractions while driving.  State Farm has launched a unique campaign called “Not Now, I’m Driving” (NNID) which has teen-friendly YouTube videos and messages from famous actors sending the message about the importance of never texting while driving.  Allstate and Geico also have programs geared towards making your teen a safer driver which will hopefully save lives and as a nice perk, hopefully facilitate lower auto insurance rates for you over time.

Finding an auto insurance policy that is perfect for you is possible, you just have to ensure you are getting the education you need.  Once you understand your state laws, and have determined your personal needs you can put together the different pieces of an individualized auto insurance policy.

The first part of the policy tends to be liability insurance since that is the most important part.  If you only have minimum liability you may be taking a risk in case you hurt someone so understand the financial implications of upgrading to better liability insurance.  Based on the type of car you drive you may want collision coverage and depending on how many drivers you have in your household you may want to combine policies.

Shopping around is definitely important not only for price but for various benefits such as paying online, accessing information through your phone, superior customer service or efficient claim processing.  Companies ranging from First Acceptance Insurance to big companies such as Progressive Auto Insurance offer a wide array of benefits to suit their customers’ needs.  You can find a helpful agent to walk you through the variety of benefits made available and the differences in cost.  With the right research you really can find the most perfect policy suited just for you.

Surprisingly, over half of respondents to a recent survey from LexisNexis Risk Solutions, believe that auto insurance rates should be driven by actual driving data obtained through ob-board devices monitoring how someone drives.  According to the article “Survey Shows Mixed Views of Data-Driven Auto Insurance Rates” by Ben Zitney on onlineautoinsurance.com, privacy concerns are holding back consumers from accepting auto insurance companies’ desire to collect information directly from the vehicle to set rates.

The monitoring device placed in the car can detect a variety of information such as speed, mileage, and braking data.  Most auto insurance companies already use personal information like ticket history and credit history when determining rates, but this might take the privacy issue over the edge.  The use of these devices is getting more and more common and could eventually be the norm.

GMAC has been collecting data from OnStar devices for some time now and having great success with their information gathered.  Since 2008 Progressive has been offering discounts to policyholders who agree to have the devices placed in their car for monitoring.  They measure information such as speed, braking, times of day driven, and distance traveled.  Allstate announced that they have launched a similar program called Drive Wise to use data when calculating auto insurance policies.  Compare auto insurance options to see if this might be something that could save you money in the long run.  If you’re a good driver but haven’t proven through your driving record, this could be a plan for you.

According to their website, Progressive Auto Insurance has been named one of G.I. Jobs Magazine’s Top 100 Military Friendly Employers.  This is huge recognition for the auto insurance company that works hard to ensure their military employers are well taken care of.

Active-duty Reservists who are employed by Progressive receive 100% differential pay and their health insurance remains in effect while they are on duty.  Chris Humlicek, Progressive’s military recruitment director, says they value the experience of military veterans and recruit at military job boards, job fairs, and in military publications.  They find that veterans do very well at Progressive because they’re able to adapt to changes, understand objectives and lead teams.  It’s great to see that major, successful companies are doing the right thing to show military men and women the respect they deserve.

G.I. Jobs Magazine ranks 100 companies every year on criteria, including military hiring practices, benefits, pay policies, veteran training programs, and military recruitment programs.  They compile the list from over 5000 entrants, and only companies with over $500 million in revenue were able to compete.