Smart Auto Insurance Blog

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.

Allstate auto insurance announced earlier this week that they are purchasing Esurance and Answer Financial from White Mountains Insurance Group according to the article found on USAToday.com.  Allstate is purchasing the companies for about $1 billion and they said the deal will help them obtain customers who prefer certain brands and value choices.

White Mountains Insurance is based in Hanover, New Hampshire and they expect to see an increase in their book value by $80 per share.  Esurance sells auto insurance directly to drivers through the internet as well as through extensive call centers.  Answer Financial is the independent insurance agency.

This is a big deal and both parties will be affected.  Allstate has agreed to pay $700 million plus the net value of the companies.  The price altogether will be around $1 billion.  Spokeswoman Maryellen Thielen says Allstate expects the deal to reduce earnings the first year or so after the deal closes, but after the first year earning should not drop.  Allstate’s first quarter profit more than quadrupled because it paid out less money for claims.  This profit was way above Wall Street’s expectations.  All in all this is a good step for Allstate who expects to see this acquisition benefit the company in the long term.

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.

Allstate Auto Insurance, which is a very well respected insurance company, has created an innovative policy for their customers.  The policy is called Your Choice Auto and it provides high quality auto insurance.  Their website provides more details, but here are the highlights:

• Accident forgiveness helps to keep rates low even after one accident
• Safe driving bonus earns you cash for safe driving
• Deductible rewards gives you up to $500 off your deductible for safe driving
• New car replacement gives you a new car if yours is totaled within the 1st three model years

There are numerous different packages offered through the Your Choice Auto program.  According to their website, those who switched to Allstate from another carrier saved on average $480 per year.  Getting auto insurance quotes from a few different companies is the best way to ensure you are getting the most competitive auto insurance rate.

According to the article “7 Desirable Auto Car Insurance Companies” by Matthew Keegan on saycampuslife.com, the insurance commissioner in any given state authorizes who can write auto insurance policies.  The article discusses 7 auto insurance companies that have a national presence with excellent reputations and competitive prices.

The companies discussed in the article include State Farm, Allstate, Government Employees Insurance Company, Progressive, USAA, Liberty Mutual and Nationwide Insurance.  All of these companies are well known and provide an array of benefits.  Having auto insurance is required in most states and important to have in case you are in an accident.

When you do decide to shop around with these or other companies, be sure you are obtaining quotes based on comparable coverage to ensure your comparison is fair.  Most auto insurance companies review your credit as part of determining your rate, so it’s a good idea to pull your credit report and have a good understanding of where you stand.

According to the article “Allstate: More Customers Buying Auto Insurance Online” by Lavonne Kuykendall found on money.cnn.com, auto insurance companies who have relied on agents to bring in new customers are now adapting quickly to Internet sales.

Thomas J. Wilson, the chief executive of Allstate Corp, says their goal is to have fewer, larger agencies that offer a more consistent experience for policyholders.  He also said that half of its new auto insurance policyholders first make contact through the Allstate website.  Allstate is quickly adjusting to meet customer Internet demands.

The article points out that Allstate’s plan calls for fewer agents with an enhanced local presence.  About 87% of web site shoppers end up closing the deal with an agent so agencies continue to be an important part of their plan.  This is particularly true for homeowners with more than one car who often prefer using an agent because the policy can get complicated.

Allstate Auto Insurance recently gathered data that showed an increase in Texas auto insurance claims for hit pedestrians during the week of Halloween.  This is according to the article “Texas Pedestrian Accidents Jump 23% During Halloween” by Kristen Beaman for Allstate found on reuters.com. 

Allstate looked at claims in Texas over the last 5 years and found a large jump in accidents around trick or treating.  Last year, Allstate claims more than doubled over the Halloween week compared with the rest of 2008.  Their data matches up with a report from the Insurance Institute for Highway Safety which showed that October 31 is the 2nd highest day of the year for pedestrian deaths.  The first is Fourth of July.  With Halloween falling on a weekend this year, there may be more people out than normal so it’s crucial that drivers are extra careful. 

The article offers some important tips to follow while out on the road, especially at night when pedestrians are out.  Never drink and drive.  A designated driver should always be assigned before heading out for the evening.  Texting while driving can be very dangerous so keep your phone in your pocket until you can pull over to text or make a call.  As a pedestrian, it’s a good idea to avoid texting while walking.  Anything that takes your eyes off the road can be very dangerous.  Not only will following these steps make you a safer driver but it may eventually lower your car insurance quotes.

According to the article “Collision City” by Jeff Gelles from the Philadelphia Inquirer, Allstate Auto Insurance examined which cities have the best and worst driving record in their 5th annul Best Drivers Study.

The study shows that on average, Allstate’s Philadelphia policyholders have collisions once every 6.4 years. New Yorkers have eight years between accidents, Clevelander drivers 10.7 years, and  Sioux Falls, S.D., 13.5 years.  Philadephia was ranked worst among largest cities.  This does affect Pennsylvania auto insurance rates and if you live in Phillie you understand the high costs.

Pennsylvania state officials and traffic-safety experts aren’t convinced by the findings.  Spokeswoman for PA Department of Transportation, Jenny Robinson, stated that 2008 was Philadephia’s best year in a decade according to PennDot’s count of “reportable crashes” which include accidents that result in death or injury, or require a vehicle to be towed.  Martin T. Pietrucha is a civil engineer who studies the “human factors” in car crashes, and he thinks Allstate’s claims data may be skewed if Philadelphia drivers are more likely to report small accidents to their auto insurance companies.

Whether or not Allstate’s study is completely reliable, one thing remains sure.  Their findings ultimately translate to the cost of their customer’s auto insurance rates.

Auto insurance companies are supporting the US Olympics.  According to an article on Allstate Insurance’s website, Allstate is sponsoring the 2010 Olympic games which are being held in Vancouver.  Allstate has been sponsoring Olympic games since 2002.  They were the official Home and Auto Insurance sponsor of the Salt Lake Olympic Winter Games. 

Allstate is also sponsoring the US Olympic Hall of Fame Induction Ceremony being held in Chicago, Illinois.  The nominees were announced in April according to TeamUSA.org, which included 15 individuals, 5 teams and 5 Paralympians.  Voting by fans will be going on through June 16th.  The inducted group will include 5 individuals, 1 team, 1 Paralympian, a coach, a veteran and a special contributor.  The reveal of the inductees will be in July and they will be honored on August 12th at Chicago’s McCormick Place.   This is the only national sports Hall of Fame that has fans vote for the inductees. 

Nominees for this 2009 induction class were selected by a nominating committee with 10 people which included athletes, current members of the US Olympic Hall of Fame, historians and USOC representatives.  Allstate states they are proud to be supporting the dedicated athletes and look forward to supporting the US Olympics in the future.

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.