Smart Auto Insurance Blog

Hurricane Irene has devastated many areas of the US and its estimated that at least 18 people have died as the storm moved from the Caribbean all the way up to New England.  The article “Hurricane Irene’s Damage, State by State” by Drew Armstrong on Bloomberg.com states that about $3 billion in damages have occurred and power was out in over 6 million homes and businesses throughout the east coast.

State Farm Mutual Automobile Insurance Company is the largest US home and auto insurance company in the nation and they’ve reported about 1600 homeowners insurance claims and about 500 auto insurance claims in just North Carolina and Virgina.  The number of claims will surely increase over the coming weeks.  State Farm received reports of siding and roofs blown off of houses and much destruction from the falling of trees.  There have even been claims for loss of food since the power outages have made food in refrigerators spoil quickly.

In the New York area, where the storm had weakened, claims are standing at about 360 homeowners’ claims and 60 auto insurance claims, but this is only after a few days.  People are still getting settled and assessing damage before calling their insurance company.  Storms such as Irene can cause slight increases in auto insurance quotes to account for all of the claims, but this generally happens over time.  Insurers across the nation are working hard to fulfill claims as efficiently as they can to ensure costs do not soar.  Sometimes, when there are heavy claims filed, insurers are quick to give out money to save time.  Hopefully insurance companies were prepared enough for this storm that it will not happen this way across the board.

Written by Sara Smart

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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.

We haven’t been hearing too much about the successes of a variety of industries during this economic downtown, but good news out there for some auto insurance companies.  According to the article “State Farm Profit Double” found on KansasCity.com, State Farm seems to be doing pretty well.

State Farm Auto Insurance Co., the largest US home and car insurance company, reported full-year profit more than doubled as underwriting losses were narrowed.  Net income for the year 2010 increased to $1.8 billion from $777 million the previous year.  The insurance company is owned by policyholders and reports results every year.

Chief Executive Officer Ed Rust leads State Farm which was helped by some debt relief and equity markets as well as a relatively mild hurricane season.  A rebound policy sales overall in addition to an increase in personal auto and home coverage rose revenue at US property-casualty insurers.  As we start 2011, State Farm expects to continue doing well and is working hard to ensure this is the case.  In today’s economic environment, this is great to hear.

According to the article “State Farm Changes Auto Insurance Rates” by Rapid City Journal.com, State Farm Auto Insurance has increased their insurance rates in South Dakota an average of about .1% as of July 12.

Once this rate change goes into effect, State Farm’s overall average auto insurance rate will be 14.2% lower than they were 13 years ago.  This is fantastic news during this tough times for those struggling with South Dakota auto insurance quotes.

Currently, premiums for comprehensive and collision coverages are increasing.  Comprehensive coverage takes care of losses from theft, fire, damages from weather, vandalism, and broken glass.  The cost of liability as well as medical payments will decrease for many customers.  Rate changes will vary from customer to customer, depending on what type of coverage they choose, where they reside, the type of car they drive, and how often it is driven.

State Farm auto insurance is a proud supporter of Mothers Against Drunk Driving (MADD), whose primary mission is to put an end to drunk driving and support victims of such crimes.  They also fight to put an end to underage drinking.  State Farm is a national sponsor and they share very similar values in educating youth about the dangers of drinking.

“Protecting You/Protecting Me” is a comprehensive program offered through MADD which uses an approach to stop underage drinking through effective, educational efforts to stop the access of alcohol to our youth.  This excellent program is a research-based plan which is nationally recognized nationally.  The Substance Abuse and Mental Health Services Administration, Center for Substance Abuse Prevention named it a “Model Program”.

State Farm and Meharry Medical College also came together to research why seat belt and child safety is lower among African Americans.  They plan on using the findings to influence legislation to further support cultural public awareness programs.

Driver safety continues to be a priority of State Farm.  If you choose to disregard any safety provisions put forth by the law, then not only are you putting yourself and other drivers lives at risk but you are increasing your chances of paying higher auto insurance rates or having to carry SR-22 insurance.  There are no benefits to breaking the law when it comes to driving.

JD Power recently released Auto Insurance Provider Ratings report in the 2009 National Auto Insurance Study.  They ranked various auto insurance companies and State Farm Auto Insurance ranked very well.

In the category of overall satisfaction State Farm received the score of “better than most”.  This is based on how customers rate all aspects of their service experience with the insurer.  In the category of contacting the insurance company State Farm received the ranking of “among the best”.  This is great to know when shopping around since you need your insurance company the most during stressful times and you do not want to worry about not being able to get in touch with them.

In the category of policy offerings State Farm ranked “better than most” and they received the same ranking in billing and payment.  Billing and payment scoring is based on how customers rate the clarity, timeliness, and accuracy of their bills as well as the overall payment process.  Using this type of report when you compare auto insurance quotes can be extremely useful to see who is coming out on top.  It can save you a lot of time to have all the information on one useful chart.  Visit JD Power’s site for more detailed information on the rankings.

The JD Power 2009 National Auto Insurance Study rankings are out and Amica Mutual stays strong as the award recipient.  The detailed rankings can be viewed on JD Power’s website.  USAA and the New Jersey Manufacturers Insurance Co. both ranked very high as well but are not included in the rankings since they are exclusive auto insurance groups.

Amica Mutual ranked among the best for all the categories which include overall satisfaction, contacting the insurer, policy offerings, billing and payment, and pricing.  Contacting the insurer is a score based on how customers rate their experience dealing with the auto insurance company in terms of an agent, call center representative, website, or an automated phone system.  This may include getting car insurance quotes.

Policy offerings is based on how customers rate the type and variety of coverage options offered by the insurer.  It also factors in the extent in which the company meets their needs.  Billing and payment is based on timeliness, accuracy, and the clarity of billing statements, and the overall payment process whether through regular mail or the internet.  Pricing factors in the actual cost as well as the type of coverage at that price.  Shelter Insurance and State Farm also ranked well in the study.

State Farm, a leader in life, homeowners, and auto insurance, continues to have a successful marketing relationship with basketball superstar, LeBron James.  According to State Farm’s website, in their newsroom article, State Farm is part of an integrated campaign supporting the company’s sponsorship of LeBron’s new documentary “More Than a Game”. 

This Lionsgate documentary tells the true story of five gifted basketball players, one of which is LeBron James who plays for the Cleveland Cavaliers and won 2009 NBA MVP.  It documents their true and unique story growing up in Akron, Ohio.  It opens in select cities October 2. 

There is going to be a commercial airing on TV, the Internet and in theaters called “Memories” to promote the film.  There is also a link set up on State Farm’s page where fans can view behind the scene footage as well as scenes never seen before.  State Farm is very excited about this movie and they believe that James’ inspirational story transcends sport.

State Farm Insurance, which carries many different types of insurance including auto insurance and health insurance, is giving the nation a challenge.  It’s a challenge to lose 50 million pounds across the country according to the article “Insurance agency challenges Americans to lose weight” on wqow.com. 

State Farm agent Bob Johnson states that the healthier you are the less you see the doctor which will ultimately affect your insurance rates.  Not to mention if you are healthier and take good care of yourself you will live a longer, more quality life. 

Registration is online and participants can track their progress as well as get tips on how to lead a healthier life.  State Farm is offering a kit as well which includes a pedometer and an information booklet.  This is a great example of insurance companies supporting a greater cause.  pivemrg678

According to an article on coosavalleynews.com by Tony Potts, State Farm auto insurance is reminding everyone that the Federal Government’s Car Allowance Rebate System (CARS program or “Cash for Clunkers”) has an auto insurance requirement.

Last week the US Senate agreed to extend the CARS program until Labor Day which is a great opportunity for more car owners to take advantage of the tax benefit.  By trading in an older car for a new one, tax credits will be given.  But there are stipulations, one of which includes auto insurance.  Trade-in cars must  be registered and insured for the full year before trading in.  This is an important reminder of how crucial it is for all autos to be covered by insurance.  Uninsured drivers pose a risk to everyone on the road, not to mention it’s the law in most states.