Smart Auto Insurance Blog

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.

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.

An article by Kenneth J. St. Onge in the Insurance Journal says that Esurance auto insurance has filed to obtain a foreign company license, the first step in being able to sell Massachusetts auto insurance. The insurer is following Geico and Progressive who have also decided to enter the state’s market, a year after deregulation of the industry. Like those companies, Esurance sells auto insurance policies directly to the consumer through the Internet.

Despite this indicator, Kenneth stresses that the auto insurance company states that they have no plans to enter the Massachusetts market any time soon. For one thing, they have not yet filed a rate plan; such an outline of the auto insurance rates they plan to charge is mandatory to sell insurance in the state.

In a recent press release, Esurance, has indicated that they will begin selling private passenger auto insurance in Oklahoma.  Earlier this month, we reported here that Esurance had begun offering auto insurance in Utah.  Now with the addition of Oklahoma to their footprint, Esurance offers affordable auto insurance coverage in 30 states which comprise nearly 90% of the US population.

Oklahoma drivers who get auto insurance quotes online or purchase a policy online are eligible for a 5% discount off of their first policy term.  In addition, customers who switch from their exisiting auto insurer to Esurance can get a 5% discount as well.  Additional discounts are available as well.

According to a recent press release, Esurance has now begun offering auto insurance coverage in Utah.  With the addition to Utah to its coverage footprint, Esurance now offers auto insurance in twenty-nine states, accounting for roughly 85% of US drivers.

Utah residents who purchase an auto insurance policy online from Esurance will receive a 5% discount on their first policy term.

Any time competition increases in an insurance marketplace such as Utah, it is good for customers, as more opportunities to shop for the best Utah auto insurance rates will result.  Anybody who is knowledgable about the auto insurance marketplace will tell you that there is tremendous price variance between companies even for similar coverage levels, and you can save a substantial amount of money by first shopping before you buy.