Smart Auto Insurance Blog

The day after the Super Bowl is typically all about the commercials.  Today is no different.  While I didn’t notice any commercials from auto insurance companies, I sure did notice a lot of them from the auto companies themselves.  I guess it’s nice that your auto insurance company isn’t spending millions of dollars to advertise during a 30 second spot, maybe to help keep your auto insurance rates lower.

Some of the auto manufacturers who ran Super Bowl commercials succeeded with the most talked about ads.  Volkswagen had to compete with their much loved Darth Vader commercial from last year and they used a dog to fill that void.  Chrysler’s Halftime in America spot with Clint Eastwood had people crying, thinking, and hoping for America.  Toyota, Cadillac, Audi, and Hyundai ran some of the other memorable ads from auto companies.

With all of the money spent on these ads, I wonder if auto manufacturers will see a large increase in sales.  If so, that could mean big business for auto insurance companies including an influx of new quotes on auto insurance.  More demand or changing demand for auto insurance could mean more competition from insurers and better rates for consumers.  So while auto insurance companies weren’t spending big money on Super Bowl commercials, that doesn’t mean that they won’t be affected by auto companies’ commercials.

According to multiple company press releases through Business Wire, Progressive auto insurance is hiring in Tampa, Colorado Springs, Austin, Cleveland and Phoenix.  Florida’s unemployment rate is close to 10%, so opening up 390 jobs in Tampa is a big boost to the economy.  The positions run throughout sales, claims and service at the Riverview contact center.  Progressive is known for being a great employer partly because of their on site fitness and medical facilities as well as a casual dress code.  The St. Petersburg Times voted Progressive auto insurance one of the top places to work in Tampa.  At the Cleveland home office facility, Progressive is hiring 337 new workers.  They are also hiring 65 workers in Phoenix.

In Austin, Progressive is adding 185 of the same type of positions in their Texas facility.  Texas has an unemployment rate of almost 8%, so these service, sales and claims jobs are just what the city of Austin needs.  Progressive pays employees for all training and also offers them the benefits of medical, life, vision, and dental insurance.  At Progressive’s Colorado Springs facility, they will be hiring 129 new faces.  The company is looking for people with some background in customer service.  New employees will help with quotes on auto insurance as well as sales and claims.  Progressive has a long list of amenities and benefits to offer their employees which is a big reason they are such a popular auto insurance company.  Happy employees take good care of their customers and Progressive is looking to add 1,106 employees by July.

State Farm auto insurance offers pay-as-you-drive auto insurance policies in California, Ohio, Texas and Illinois.  Progressive Insurance offers it as well throughout the US.  It’s getting more and more popular.  According to the article “Low-Mileage Drivers Benefit From Insurers’ Pay-As-You-Drive Plans” by Eve Mitchell on BellinghamHerald.com, auto insurance rates are tied to part of the actual number of miles driven and many consumers are seeing big savings.

State Farm specifically calls their program the Drive Safe & Save program and drivers can self-report their mileage online or at an agent’s office before they renew their policy.  Customers who drive General Motors, Saab, and Saturn vehicles with OnStar technology and have a diagnostics account can have their actual mileage sent right to State Farm for updating.  Drivers are paying better attention to how they drive in hopes that it will ultimately save them money on their quotes on auto insurance.

The pay-as-you-drive momentum is party due to California’s Proposition 103 which was the landmark auto insurance reform bill passed by voters back in 1988.  It requires insurance companies to base rates primarily on the customer’s driving record, number of miles driven per year, and driving experience.  More recent regulations allow actual mileage to be a voluntary alternative to estimated mileage and it makes it possible for auto insurance companies to obtain mileage verification from devices inside the car.  Any savings from actual miles driven are applied once the policy is renewed.  Drivers who are not on the road that often really appreciate this initiative and are hoping to see big savings over time on their auto insurance.

According to the article “Vehicle Thieves Rarely Take a Holiday” found on CarInsurance.com, the most cars are stolen on New Year’s Day and Halloween.  In 2009, New Year’s Eve was once again the leader in car thefts based on an analysis by the National Insurance Crime Bureau.  Christmas Day continues to be the day with the fewest cars stolen.

Thieves are not respecting holidays the way most Americans are.  They do seem to have some sort of respect for Christmas Day which is interesting, but other holidays, thieves are out and about looking for targets to steal.  Of the 11 holidays looked at in 2009, a total of 22,991 cars were reported stolen while 24,676 cars were stolen total in 2008.

The good news is that car thefts have been steadily decreasing for the past six years, possibly seven with the preliminary 2010 FBI Theft Data coming out soon.  It’s important that car owners remain aware and take the necessary precautions to prevent car thefts even though the crime is down.  Quotes on auto insurance can even fluctuate based on how likely it is your car type will be stolen.

According to the press release “The Hartford Tops Ranking of Auto Insurance Web Sites” found on Business Wire, Hartford Auto Insurance has one of the most user-friendly websites.

The Hartford Financial Services Group, INC, announced recent research put forth by Change Sciences Group, which gives their website top marks for consumer use.  The study looked at ease-of-use, content quality, the use of social media, and persuasiveness compared with the top 17 auto insurance companies.  Based on this information, this would be an easy site to use to get quotes on auto insurance as well as purchase a policy. 

Pam Pavliscak, a partner at Change Sciences Group says The Hartford scored the best in the research because the site requires lower user effort and simultaneously providing valuable information.  They practice hyper usability, which is working to ease the burden of entering data and navigating the site.  They provide the appropriate information at the right time, making it easier for consumers to get through the site with ease.  Hartford Auto Insurance prioritizes the improvement of their online presence because they realize how important it is to an overall successful insurer.

As America becomes more and more environmentally aware, the sales of hybrid cars increase.  According to the press release “Top 10 Most Popular Hybrids Quoted for Auto Insurance in 2009″ found on PRWeb.com, quotes on auto insurance for hybrid cars is the information used in obtaining this list.

The top five most popular hybrid cars based on auto insurance quotes are the following:

1. Toyota Prius
2. Toyota Camry Hybrid
3. Honda Civic Hybrid
4. Ford Escape Hybrid
5. Lexus RX400h

Owning a hybrid may earn you discounts on your auto insurance in addition to saving you on gas costs and helping the environment.  Shop around when you are looking to cover your new hybrid car and ensure you are getting the best deal.

According to the article “Senate Approves Bill to Increase Auto Insurance Liability Coverage” by Michael Dresser on baltimoresun.com, quotes on auto insurance in Maryland are due to change because of the new law.  The Senate voted to raise the minimum liability limits for auto insurance policyholders for the first time in about 38 years.

The final vote for this landmark decision was 27-20, sending the bill to Governor Martin O’Malley for his approval.  The law was approved after a tough fight led by the Senate Republicans as well as some Democrats.  The measure put state’s lawyers and some of their clients against auto insurance companies and advocates for the poor which was a point constantly made by GOP senators.

The new bill is expected to affect over 200,000 Maryland residents who have the minimum amount of auto insurance coverage.  Most of the approximate 2 million policyholders who carry more comprehensive protection will not be as affected.  It’s still to be determined exactly how Maryland auto insurance quotes will be affected.

Identity fraud is a growing problem with the rise in popularity of Internet quotes on auto insurance and online banking.  Although victims can end up not being liable for lost money, it can be very pricey for the victim to prove their innocence.  Their credit rating can also be destroyed which may take years to repair.

Many insurance companies are offering protection to their policy holders to help them avoid this disaster.  Encompass Car Insurance is one of those companies and on their website they outline what their Identity Fraud Protection covers.  They will pay up to $20,000 for expenses incurred as a result of identity theft.  They will also cover lost wages up to $500 per week for up to 4 weeks for time away from work because of the fraud.

Some other benefits of the products are covered loan fees if you are denied a loan due to incorrect information caused by the fraud and any new application fees incurred.  With prior approval from Encompass Car Insurance they will also pay for reasonable lawyer fees.  If a lawyer is used to defend you against any lawsuits are filed against you by any merchants or collection agencies, Encompass will help you.  This is an extremely valuable benefit to have through your insurance company, and not all companies offer it.  Be sure to look into what kind of protection you may have.  It could save you a lot of time and money.

According to the article “Five Auto Insurers Must Recalculate Customer Bills” by Johnny Diaz on boston.com, the Massachusetts Attorney General settled with 5 Massachusetts auto insurance companies that might have charged higher rates to policy holders because of driving record information that was inaccurate.

The state of Massachusetts says the auto insurance companies failed to update at-fault information reported to The Comprehensive Loss Underwriting Exchange.  This is a private database which is used to determine driving histories.  The error may have resulted in higher premiums for some of the customers with these 5 companies.

The auto insurance companies will need to pay the state over $100,000 within 10 days as part of the settlement.  They also must identify affected customers within 120 days and recalculate their rates.  If this problem was not caught as soon as it was, quotes on auto insurance may have been inflated for these certain customers for years to come.

California Auto Insurance quotes are lower if you qualify for a special program that can get you affordable auto insurance.  According to the article “State Program Helps Connect Drivers With Low-Cost Auto Insurance” by Steve E. Swenson found on bakersfield.com says that the program offered in Kern County since 2006 is saving eligible drivers money.

The program is called The California Low Cost Auto Program and it offers coverage limits of $10,000 per person, $20,000 per accident, and $3,000 for property damage for as little as $254/year.  Quotes on auto insurance in California can be pricey and tickets for not carrying auto insurance can be extremely expensive, up to $786 according to court officials.

To qualify for the program applicants must be 19 years old or older, have a license for 3 years continuously, and have no more than 1 at-fault accidents, or 1 point for a moving violation in the last 3 years.  California Insurance Commissioner Steve Poizner believes the program needs to be supported, especially during the tough economy and high rate of unemployed drivers.