Smart Auto Insurance Blog

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.

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.

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.

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)