Smart Auto Insurance Blog

Two companies are raising their Pennsylvania auto insurance rates, according to Matthew Morisset of Online Auto Insurance News.  In “Nationwide, Erie raising rates for some Pennsylvanians,” we learn that customers with certain good ratings will not see increases.  The Pennsylvania Insurance Department made the rate filings public for Nationwide and Erie’s projected increases.

Nationwide auto insurance operates three companies within Pennsylvania, but only one of them is currently writing new business.  Nationwide Affinity will be raising rates 7.9% for 202,000 new and existing customers.  Just last September, their customers saw average rate increases of 5%.  Customers renewing their policies with Nationwide Insurance Company of America will see an average increase of 6%, while Nationwide Mutual customers will see their rates increase 1.9%.  While the three companies will increase their money coming in by $18.04 million, $7.98 million, and $5.88 million respectively, their costs and payouts have skyrocketed as well.

Erie Insurance Company will be increasing rates 2.9% for their new and existing customers.  This will effect 16,900 people starting April 1.  Erie Insurance Exchange customers will actually see a small decrease of .1% in their rates.  This gives 823,000 drivers something to smile about and will decrease cash inflows to the company by $528,000.  If your auto insurance company is changing your rates, make sure you know the details and shop around for different coverage if you don’t agree with an increase.

You may have seen some recent commercials on TV or ads in the paper from Nationwide Auto Insurance discussing their Vanishing Deductible program.  A vanishing deductible sounds appealing but how does it exactly work and is it a good deal?

Basically this benefit will apply to good drivers only.  If you’ve never filed a claim with your auto insurance company you may feel that it’s unfair to pay the same deductible as someone who has filed claims in the past.  Nationwide believes you shouldn’t pay the same deductible if you have a clean record.  That is what motivated them to create this unique plan for good drivers where the deductible “vanishes” with good behavior.

The Vanishing Deductible program drops your deductible by $100 for each year you are a safe driver.  They even offer a $100 discount for signing up.  This optional feature does seem appealing and doesn’t have much of a downside.  According to their website, annual credits are subject to eligibility requirements with a maximum credit of $500.  It’s important to understand that details and availability of the plan vary from state to state so check with a local agent to see if this is an option for you.  Having an insurance company that offers little perks like this can make all the difference since the market is so competitive.

Nationwide Auto Insurance ranked well in JD Power’s recent report ranking various auto insurance companies across the nation.  The 2009 National Auto Insurance Study awarded Amica Mutual as the highest ranked, but it’s important to know how well your specific carrier ranked.

Nationwide received an average ranking in all categories except pricing where it ranked slightly below average.  Pricing is very customer specific though so getting a quote is still very much worth your time.  In the other categories of overall satisfaction, contacting the insurer, policy offerings, and billing & payment they are considered average.

View more detailed reporting on JD Power’s website, but note that JD Power Consumer Center Ratings may not include all of the information used to figure JD Power and Associates Awards. Using this type of report can be extremely helpful as you get various quotes from auto insurance companies.

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 “Nationwide Debuts Second iPhone App” by Dianna Dilworth on DMNews.com, Nationwide has two applications that you can download onto your iPhone to make your life easier.

The first application, called Nationwide Mobile, launched back in April of 2009.  It lets Nationwide customers obtain information about their auto insurance policies and file claims by using the iPhone camera.  That application has been downloaded about 82,000 times and over 200 claims have been started through this process.

The second application just launched this week, called Cartopia.  This application has the purpose of helping consumers shop for new and used cars easily through their phone.  Both of these unique iPhone applications were created by the interactive agency Rosetta.

If these types of conveniences appeal to you, you can get Nationwide auto insurance quotes online.