Smart Auto Insurance Blog

State Auto Financial is an Ohio auto insurance and property/casualty insurance company and they saw a huge influx of claims throughout Ohio and the rest of the mid-west in May due to devastating storms.  They expect a pre-tax loss of around $45 million to $50 million from the storms throughout May.  Three specific catastrophes affected 23 of the states they operate in, including the massive tornado that hit Joplin, Missouri on May 22nd.  Auto insurance claims as well as property claims from tornadoes, wind and hail poured in quickly in a very short period of time.

State Auto plans on having over 9000 claims on cars and homes filed throughout the coming months due to the storms.  They confirmed previously that $75 million to $85 million in losses were experienced from April storms.  Before 2011, State Auto’s historic 5 year average loss ratio for the 2ndQ is around $50 million of losses so they are feeling a huge impact from these storms.  Bob Restrepo, State Auto Financial president and chairman CEO said that these storms continued a deadly pattern of destruction throughout the mid-west.

The article “State Auto Financial Expects May Catastrophe Loss Up To $50m” found on claims.insurance-business-review.com points out that State Auto employees are working endlessly to respond to claims quickly and efficiently in the best effort to help out struggling victims.  Some agents who even lost their offices due to storms are working to help customers through this tough time.

According to the press release “Legislators Take Aim at Ohio Auto Insurance Verification Program” found on OnlinePRNews.com, Ohio state representative Matt Huffman re-introduced a bill that would stop an auto insurance verification program given by the state of Ohio.

The Random Selection program has sent out letters to car owners who are asked to mail in proof of auto insurance to the Bureau of Motor Vehicles since 1998.  The point of the program was to cut down on the number of uninsured drivers on the road.  If the person did not respond within 90 days their license was suspended and they had to pay a fine.  Based on a report from the Columbus Dispatch, approximately 5400 letters were sent out weekly and about 500 of those did not carry auto insurance.

The Insurance Research Council says that about 16% of Ohio drivers were uninsured in 2007 and that number is believed to have risen since unemployment has risen steadily throughout the state.  This may mean that the verification program is not effective in which case the BMV could save a lot of time and money by cutting back on the program.  Rep Huffman advised a panel that there were some unfair instances related to the mailings and this type of problem could be resolved fixing or eliminating the program.

Safe Auto, a popular Columbus-based auto insurance company, is rolling out its jingle contest for the third year in a row.  Anyone interested in competing in the contest can simply upload a video to enter.

There is a lot of leeway when it comes to submissions according to the article “Safe Auto Launching Jingle Contest” by Adrian Burns on BizJournals.com.  Safe Auto is looking for unique interpretations of the original jingle and it can even include the actual jingle in the video.  Whatever video gets the most votes by February 28th wins.  The winner receives $5,000 as well as an appearance in the Safe Auto advertising campaign.

There are additional prizes for other highly voted videos.  It’s a fun way for Safe Auto to get consumers involved in the highly competitive advertising world of auto insurance.  The winner from 2010 received 58,415 votes so people are really getting involved.  The winner was featured in an actual Safe Auto commercial so it may be a way to get your foot in the door if advertising is your interest.

The Ohio Department of Insurance (DOI) is looking out for its residents as they shop for Ohio auto insurance quotes.  They recently launched the Auto Insurance Sample Premium Calculator according to the article “Ohio Department of Insurance Launches New Online Premium Comparisons Tool” found on Insurance-Business-Review.com.

The calculator is designed to assist Ohio residents in finding affordable auto insurance that fits their personal needs.  The tool is available on the Ohio DOI weblink and can be used to compare sample premium quotes provided by various auto insurance companies throughout the state.  Residents can also receive contact information immediately if they wish to get more information or purchase a policy.

This tool will give the consumer the opportunity to see what rates they may be eligible for as they start looking for auto insurance.  The educated consumer saves more money and this tool will help them with that.  The Ohio Department of Insurance Director Mary Jo Hudson believes this interactive resource will help consumers quickly sort through their research.  This is a great tool that truly looks out for the consumer in a highly confusing industry and will prove invaluable since all drivers must carry auto insurance.

The recent earthquake in Ontario, Canada was felt throughout many states in the US, including Vermont, New York, Illinois, Indiana, and Ohio.  It was a reminder of the vulnerability of the US to this type of the disaster according to the article found on insurancenewsnet.com from a news release by The Insurance Institute.

Earthquakes are not covered under standard US homeowners insurance policies nor auto insurance policies.  Cars and other vehicles may be covered under an optional comprehensive portion of an auto insurance policy.  Ohio auto insurance and companies such as Eastwood Insurance may have various options for you to look into.

Earthquake insurance policies usually carry a deductible in the form of a percent rather than a dollar amount.  The deductible range can vary anywhere from 2% to 20% of the building’s replacement value.  Earthquake insurance rates differ greatly from state to state and company to company.  Several factors are considered such as location, construction materials, and how close a structure is to a fault line.  If you think you may be at risk look into what options are available with your insurance provider.

According to the article “Auto Premiums In Ohio Decline for Third Consecutive Year” found on insurancejournal.com, Ohio has the 11th lowest auto insurance rates in the US in 2007.  This is an improvement from its ranking the year before at 13th.  This is great news for Ohio drivers as they shop for Ohio auto insurance quotes.

The Ohio Department of Insurance recently reported that rates in the state have been on the decline for the past 3 years based on the 2006/2007 Auto Insurance Database information.  This was released by the National Association of Insurance Commissioners.  The Ohio Department of Insurance Director, Mary Jo Hudson, believes that Ohio has a healthy and competitive auto insurance market which drives costs down and benefits consumers.

Analysts from the Department of Insurance expect auto insurance rates to slightly increase in 2010 across the country according to the article.  Changes in the costs of auto insurance are due to higher repair costs, soaring medical expense costs, claims related to weather, and the number of drivers who are out on Ohio roads.

According to the article “Premiums in Ohio are Very Low” by Dan Kelso on toledoblade.com, Ohio has some of the lowest insurance rates in the US. 

On average, homeowners insurance is tied for the 5th lowest at $530, compared to the US average of $804.  Ohio’s auto insurance is 13th lowest, which is well below the average.  This is great news for those shopping around for Ohio auto insurance quotes.  The Ohio Department of Insurance regulates insurance rates, so it’s important to keep that in mind as other industries may try to cause concern among consumers. 

Much of the US is envious of Ohio’s affordable insurance premiums.  They are very competitive which helps to keep costs down.  The use of insurance scores has caused concern for some, but they are very misunderstood.  With the use of insurance scores most people pay lower insurance premiums overall.  Insurance companies need to use some method of determining which type of customer is more likely to file an insurance claim.  This helps to keep insurance premiums costs down in general.

Auto theft is down in Ohio for 2008 according to The National Insurance Crime Bureau’s recent report.  The article “Ohio’s most-stolen vehicle: 2000 Dodge Caravan” from the Chicago Tribune gives some details.  The 2000 Dodge Caravan minivan is the most often stolen car in Ohio for 2008.  This could end up affecting your Ohio auto insurance quotes if you have this car.

Ohio’s second most popular stolen car is the 1995 Oldsmobile Cutlass.  The third is the 1996 Jeep Cherokee and Grand Cherokee.  This ranking is based on car theft data gathered in 2008.  According to The National Insurance Crime Bureau many older models of trucks and cars are being targeted because these cars carry valuable parts.  Parts stripped out from a chop shop can often sell for 2 times as much as the car itself would on the market.

Throughout the country, 2008’s most stolen car was the 1994 Honda Accord.  Auto insurance theft is down across the nation as well.

According to the article “Hurricane Ike raises Ohio home, auto insurance rates” on Cantonrep.com from the Associated Press, Ohio auto insurance and homeowners insurance is on the rise.  The Ohio Department of Insurance show that rates are up 6.9% for homeowners and up .8% for auto insurance most likely due to Hurricane Ike from last fall.

The storm crushed much of Ohio in the fall of 2008 and caused a very large number of claims which in turn affect everyone’s insurance rates.  Officials say this is a common reason for premiums to increase.  The Insurance Department’s analysts predict homeowner and auto insurance rates will continue to increase throughout 2009.  The director, Mary Jo Hudson states that Ohio still has some of the lowest insurance rates in the U.S.  As an example Ohioans pay an average of $542 a year for homeowners insurance, but the national average is $801.  So, Ohio policyholders shouldn’t be too discouraged.  It is definitely worth shopping around for quotes if you feel you do not have affordable auto insurance.