Smart Auto Insurance Blog

Most car insurance companies, including Progressive and American Commerce, have their own calculation for determining car insurance quotes.  You may feel like the rate you end up paying is out of your control but that isn’t necessarily the case.  There are numerous factors insurers use that are within your control and knowing what they are can help you save money.

The biggest factor is often driving record, and although you cannot do anything about the past, you can control your future driving habits and wait until previous driving violations fall of your records, which they eventually do.  You can have a clean slate with a little patience and careful driving practices.  Another big one these days is credit rating.  Again, the past is the past, but derogatory marks fall off your file in about 7 years, and focusing on paying your bills on time and keeping your debt levels down will pay off in the long run.

Of course what type of car you drive is going to have a huge impact on your car insurance quotes.  In general, the more expensive the car the higher your quotes will be.  Take a serious look at how big of a car you need, and how important luxury really is considering the overall costs.  Not only will that actual car cost more money, but maintenance and insurance will be higher.  The extra money can add up to a lot over the years.

And make sure you are shopping around for the best rate.  Just because one car insurance company gives you a hefty price, doesn’t mean they all will.  Get at least 3-4 quotes, if not more, and compare any trends you may see.  You’ll also want to make sure your coverage is sufficient and meets your needs.

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.

According to their website, Progressive Auto Insurance has been named one of G.I. Jobs Magazine’s Top 100 Military Friendly Employers.  This is huge recognition for the auto insurance company that works hard to ensure their military employers are well taken care of.

Active-duty Reservists who are employed by Progressive receive 100% differential pay and their health insurance remains in effect while they are on duty.  Chris Humlicek, Progressive’s military recruitment director, says they value the experience of military veterans and recruit at military job boards, job fairs, and in military publications.  They find that veterans do very well at Progressive because they’re able to adapt to changes, understand objectives and lead teams.  It’s great to see that major, successful companies are doing the right thing to show military men and women the respect they deserve.

G.I. Jobs Magazine ranks 100 companies every year on criteria, including military hiring practices, benefits, pay policies, veteran training programs, and military recruitment programs.  They compile the list from over 5000 entrants, and only companies with over $500 million in revenue were able to compete.

Progressive Auto Insurance has been named by CIO Magazine to its 2010 CIO 100 this week according to the article on Powernewsnetwork.com by Magan Salano.  This is the second year in a row that Progressive has received this award.  The CIO Awards give this honor to 100 companies that use innovative technology to enhance their business.

Progressive currently uses Microsoft NET with their company’s systems.  This type of technology is used by Progressive to provide an infrastructure that enables easy expansion for their products and services.  Ray Voelker, Progressive’s Chief Information Officer says their goal is to provide their customers with access to a large range of products, including the ones developed by other services.

This type of recognition lends to the success of Progressive.  They were one of the first auto insurers that offered to compare auto insurance quotes for the customer, and they continue to be very successful.  They are one of the nation’s largest auto insurance groups, and they are the largest seller of motorcycle policies and are a leader in commercial auto insurance based on their policies written.

In these tough times, drivers are looking for any type of discount they can on their auto insurance rates.  Progressive Auto Insurance is happy to offer discounts whenever they can and their MyRate Discount program proves this.

Progressive’s MyRate discount offers savings based on how much, how, and when they drive their car.  With the newest version of MyRate, now offered with Minnesota auto insurance, customers can start saving in as little as 30 days, up to 30%.  Progressive now gets data for only 6 months to determine a customer’s auto insurance rate.  Once drivers sign up for the MyRate program they plug in a small device into their auto that measures their driving data.  After about 30 days they can let the customer know if they qualify for a discount.

Some examples of scenarios that will offer lower rates are business travelers who park their cars at the airport numerous days per week, families with an extra car they rarely drive, or safe drivers who rarely slam on the brakes.  Progressive may occasionally check in with MyRate customers to get another snapshot of driving habits to ensure nothing has changed, but if the safe driving habits continue so do the great discounts.

According to the press release “Progressive Launches Industry’s First Android App for Car Insurance” from Business Wire, Progressive Auto Insurance has a phone application for the Google Android (TM) operating program.  Android happens to be the fastest growing smart phone out there according to data from comScore, Inc.

Matt Lehman, Progressive’s Web experience director says they have seen a 30% increase in visits to their Mobile Website by Android owners over the last 4 months.  They have aimed to simplify the mobile app experience for the Android customers.

Progressive is the first major US auto insurance company to offer an Android app for auto insurance.  They also have an iPhone Apple application as well as their Mobile Website.  You can download the free Progressive app for your Android at the Marketplace on Android phones.

Many companies are leaning towards mobile phone users since more and more consumers want to access their financial information through their phone.  Benefits of these various applications include getting car insurance quotes and purchasing a policy, making payments and updating policy information, and reporting ad tracking claims.  In is the wave of the future, and perhaps smaller auto insurance companies, such as Dairyland Insurance, will offer some sort of similar benefit for their customers.

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.

That Motown classic was right: you better shop around, especially for Delaware auto insurance. KYW-TV’s eye-opening study shows how there can be wild swings in premiums between companies. Everything else can be exactly the same! Some examples:

A couple and teenage son in Wilmington, with one accident on their record can pay…

• $4,528 per year with Progressive Insurance
• or $2,776 per year with a Liberty Mutual quote

They would save hundreds of dollars per year by switching their insurer! What about basic coverage for a couple in Landsdale, Delaware? They could pay…

• $2,643 per year with Nationwide Insurance
• or just $1,054 per year with a Travelers Insurance quote.

As you can see, the savings could be substantial; especially important during these tough times. Unfortunately, research has found that most consumers don’t compare auto insurance before they buy a policy, and don’t often switch policies.

A new program from Progressive Insurance allows drivers to go online and pick their own auto insurance premium. The Name Your Price tool on their website will show you the most package that best fits the price you entered. Then, you can gradually change the desired level of coverage with a slider (Want lower auto insurance rates? Up your deductible or lower your coverage limit). Pretty simple, right?

The insurer plans to take the Name Your Price tool nationwide this year. It’s currently available in these states:

• California
• Ohio
• Texas
• Florida
• Connecticut
• Kansas
• Georgia
• Maryland
• Indiana
• Illinois
• Oklahoma
• Michigan
• Pennsylvania
• Missouri
• Wisconsin
• Washington

Get your own Progressive Insurance quotes.

In an effort to fight global warming, the Washington State legislature is considering a bill that would allow auto insurers to use electronic monitoring devices to charge different rates based on a person’s actual driving habits, reports the Seattle Times‘ Chantal Anderson. Individuals who have reduced their car usage (by using bikes or public transportation to commute to work, for example) could save up to 15% on their Washington auto insurance premiums.

Auto insurance companies that are offering or planning to offer pay-as-you-drive programs in other states include Progressive Insurance (through its Progressive MyRate program), Allstate auto insurance, Hartford insurance, and Unigard. Progressive wants to keep its proprietary rating information confidential, and the senate bill will be rewritten to reflect those concerns.

Chantal reports that the bill looks likely to pass the state Senate, but could face opposition in the House. Privacy advocates are worried about the “Big Brother” potential of the tracking devices, although the data allowed to be collected and the ways in which it can be used must be approved by the insurance commissioner.