Auto Insurance

Workmen’s Auto Insurance Company Does Not Credit Score

2009-03-31T04:48:00.000-07:00

LOS ANGELES - (Business Wire) In response to Florida Chief Financial Officer Alex Sink’s March 19, 2009 press conference opposing the use of credit scoring in automobile insurance, Workmen’s Auto Insurance Company is reminding its Florida policyholders and agents that it has never used an individual’s credit when considering their eligibility or determining their insurance premium.

“Your credit is your business, not ours,” stated President and CEO Nicholas J. Lannutti. “Given the current state of the economy we would like to reassure our policyholders that the price they pay for insurance with Workmen’s Auto is - and will continue to be – based on factors such as their driving record, where they live and the coverages they desire, and not on their credit score.”

Workmen’s Auto Insurance Company has written automobile insurance in Florida for the past 15 years, working closely with local Florida independent agencies to provide coverage tailored to the specific needs of each policyholder. The company writes coverage ranging from the basic minimum to full coverage for families with multiple drivers and higher value vehicles, offering a wide variety of discounts that reward safe driving, driver education, and owning vehicles equipped with certain safety equipment, without the use of credit scoring.

Workmen’s Auto has been in business since 1949 and is active in 10 states, from Washington to Florida. During these difficult economic times, having dependably priced auto insurance from a strong and secure insurance company is necessary to protect yourself and those around you. Local independent insurance agents are a great resource to help consumers find stable insurance solutions that are not dependent on your credit.

Workmen’s Auto Insurance Company
John Crispi
Phone: 213-747-6492
Fax: 213-747-4699
marketing@waic.com
http://www.waic.com

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'No-fault' benefit plan 'a disaster'

2009-03-30T04:47:00.000-07:00

The cost of insuring aches, pains and broken bones soared 23 per cent in Ontario last year, setting the stage for higher auto premiums unless coverage limits are changed soon.

"It's a disaster," says Joel Baker, president of MSA Research Inc., which will post industry results on its website today.

Baker says Ontario's no-fault accident benefits are costing 24 per cent more than premiums collected, which is worse than in 2002 when insurers' profits fell to record lows and prompted double-digit rate increases.

The new Liberal government reacted by imposing a temporary rate freeze, then it capped therapists' fees and the number of rehabilitation treatments and eliminated designated assessment centres.

Since then, premium rate increases have been modest – 5.6 per cent last year after declines from 2004 to 2006. While the average premium in January of $1,343 per vehicle was down from $1,493 in 2003, pressure for big increases is mounting.

Actuary Barb Addie of Baron Insurance Services Inc. predicts an average increase of 15 to 20 per cent if the government does not move to control costs.

"In Ontario, auto insurance already takes 5 per cent of disposable income," she says. "It is a very expensive product and I am not certain why anyone hurt in an auto accident should be treated better than someone hurt at work."

Don Forgeron, Ontario vice-president of the Insurance Bureau of Canada, says the government "can confer a benefit on the people (by addressing the rising cost of accident benefit claims) and it will cost them absolutely nothing."

Property insurers regulated by the federal government saw profits cut in half last year to $2.3 billion. Their cost of claims rose faster than premiums and investment income fell by $1 billion.

While those insurers as a group earned 5 per cent on shareholders' equity, several of the biggest auto insurers suffered losses.

Economical Mutual Insurance Co. of Waterloo led the industry with a net loss of $102.4 million. President Noel Walpole says price competition made it difficult to raise premiums as fast as costs have risen.

"We have been taking rate increases and monitoring the results," he says. "If the inflationary trends continue, we will probably be looking for additional rate increases this year."

State Farm Mutual Automobile Insurance Co., which earns most of its revenue in Ontario, lost $66 million and paid $1.69 for every dollar in premiums it collected for accident benefits.

"We need to get control of this product," says president Robert Cooke. "It is far too rich and is being used and abused. Our average cost for an accident benefit claim has risen from $22,000 in 2004 to $44,000 a case."

Cooke says regulations do not allow insurers enough time to assess the validity of claims for treatments, housekeeping and attendant care for minor injuries. Legal representatives then request 60 cents worth of assessments for every dollar spent on treatment.

Allstate Insurance Co. of Canada lost $44 million, Kingsway General Insurance Co. $35 million and York Fire and Casualty Insurance Co. $25 million.

Kathy Bardswick, president of The Co-operators Group in Guelph, and George Cooke, president of Dominion of Canada General Insurance Co., say Ontario should let motorists buy a stripped-down form of accident benefit coverage to save money.

Auto insurance is not the only problem area. Insurers, they say, are seeing more water damage claims due to sewer backups.

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Allstate Recruiters Target Texans Tagged by Downsizing

2009-03-29T04:47:00.000-07:00

Recruiting Campaign Aims to Open 150 New Texas Offices in '09

IRVING, Texas, March 24 /PRNewswire-FirstCall/ -- Downsizing decisions by companies across Texas are fueling Allstate Insurance Company's agency growth strategy in the state. Allstate has launched an aggressive recruitment campaign targeting professionals caught in the recent waves of lay offs and pay cuts. The company plans to sign-on at least 150 new agency owners across the Lone Star state by the end of 2009.

"We see a significant opportunity in the current economy to attract mid-career, mid-level managers to own and operate their own business and represent Allstate in Texas," said Phil Lawson, Allstate field vice president for Texas. "We're working with outplacement services and through our own recruiters to find professionals with financial or sales backgrounds."

Allstate says its recruiters are particularly interested in downsized professionals who received a severance package. Part of the reason--candidates need $50,000 in liquid capital to open a new Allstate agency. With some potential candidates hesitating because of the money needed to open an agency, recruiters are focusing on the stability of investing in the Allstate brand.

"These professionals have the resources and the expertise to hit the ground running - starting over as their own boss in control of their own destiny," said Lawson.

Allstate says its agency expansion plans in Texas are part of an overall growth strategy that calls for aggressively growing the provider's auto insurance presence statewide and staking a stronger claim in items like boats, recreational all-terrain-vehicles and motorcycles. Allstate is currently Texas' second largest auto insurer with almost 1.7 million covered cars and trucks in the state. The company is also beefing up the portfolio its agents have to offer with seven product launches in Texas in the last 18 months.

"More blue signs mean more touch points with more Texans," Lawson said.

Interested candidates can apply to become an Allstate agent by logging on to allstate.com or by calling 1-877-711-1006.

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate(R)" slogan, Allstate is reinventing protection and retirement to help individuals in approximately 17 million households protect what they have today and better prepare for tomorrow. Customers can access Allstate products and services such as auto insurance and homeowners insurance through approximately 14,700 exclusive Allstate agencies and financial representatives in the U.S. and Canada, or in select states at allstate.com and 1-800 Allstate(R). Encompass(R) Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at myallstatefinancial.com.

SOURCE Allstate Insurance Company

Liberty Mutual To Pay More Than $900,000 For State Law Violations

2009-03-28T04:46:00.000-07:00

By DIANE LEVICK |The Hartford Courant

4:39 PM EDT, March 24, 2009

Liberty Mutual companies are paying $928,042 in fines and restitution for overcharging customers, settling claims improperly, and other violations of state law, the Connecticut Insurance Department said Tuesday.

Fines for violations totaled $296,000. Liberty Mutual was also ordered to pay $632,042 in restitution. Most of it -- $628,875 -- was returned to 3,595 policyholders who were overcharged for premiums on auto insurance. The remaining restitution went to seven people because surcharges were wrongly levied on their policies, the department said.

In some cases, the company's mistakes resulted in undercharging customers.

"It is imperative that consumers are treated fairly," said Insurance Commissioner Thomas Sullivan. "I am pleased that my staff was able to identify these violations, work with the company to provide restitution, and make a difference for policyholders."

Glenn Greenberg, a spokesman for Boston-based Liberty Mutual, said the company regrets the errors and that "This is not systemic of any improper and irresponsible behavior, and the errors cited have been rectified."

Greenberg said the company identified many of the errors itself and reported them to the Insurance Department in 2006 and 2007.

The department's order results from a routine "market conduct" exam by the department, which checked how Liberty Mutual was treating its customers and following laws during 2006.

Regulators say Liberty Mutual discovered an error in 2006 in the way its "safe driver" discount was programmed into its computer system, informed the department, and took corrective action.

In mid-2007, the company discovered a problem with how a separate "preferred class" discount was applied, resulting in overcharges. But the company didn't inform the Insurance Department until January 2008 when the exam was under way, the agency said.

Another problem involved how Liberty Mutual figured payments on liability claims for damage to vehicles. In some cases, the company apportioned blame to both drivers when only one was at fault.

The company felt its staff relied too much on a software program to assess negligence, and should have given more consideration to police reports, witness statements and "actual facts of the loss," the department said.

The department also found violations in the company's licensing and appointment of agents, and licensing of adjusters and appraisers.

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Esurance Exploring Massachusetts Personal Auto Market

2009-03-27T04:45:00.000-07:00

Esurance, a San Francisco-based personal auto insurance direct writer, has taken preliminary steps to obtain a license to sell auto insurance in Massachusetts -- although the company says it has no immediate plans to enter the Bay State market.

According to the state Division of Insurance, Esurance has filed papers to obtain a foreign company license. However the company has not filed a rate plan, which would be the key step in setting up a sales operation in the state.

Esurance relies on its Web site as its primary tool for selling auto insurance direct to consumers.

In an e-mail to Insurance Journal, Esurance said it has no immediate plans to enter the state's personal auto market.

"We're not currently planning on selling products in (Massachusetts)," said Spokeswoman Kristin Bewe. "We regularly explore states where we're not writing business, and often take the steps to get licensed in them."

Bewe said Esurance, which writes in 30 states, also holds company licenses in other states where it does not write insurance.

Esurance is a subsidiary of Bermuda-domiciled White Mountains Insurance Group Ltd., which is also a corporate parent of Canton,. Massachusetts-headquartered OneBeacon Insurance Group.

It's unusual for an insurer to take the steps to obtain a company license in Massachusetts without submitting a rate filing. "That would be rare," said Jason Lefferts, spokesman for the Division of Insurance.

One notable exception: Geico, another Web-based direct writer, which until last week had held a company license in Massachusetts for years without making a rate filing.

Last week, Geico announced plans to enter the state's auto insurance market. It's expected the company could begin selling in Massachusetts by May.

The entry of Geico into the state's insurance market comes nearly a year to the day after the Division of Insurance launched sweeping reform of the Bay State's auto insurance system, eliminating the old structure by which the state set all insurance rates. That system has been replaced with a "managed competition" regime, under which insurers set their own rates within guidelines established by regulators.

Frank Mancini, head of Massachusetts Association of Insurance Agents, the state's trade group for agents, said he was unsurprised by the announcement of Geico's entry, but was unaware of any plans by Esurance to enter the state.

"We expected that they (Geico) would be here at some point, and we're going to have to see what the reaction is," he said.

Mancini said he was also unsurprised that the biggest entrants into the state's personal auto market -- Progressive last year, and now Geico -- are direct writers which sell primarily through Web sites.

"You push a button someplace and now what wasn't available before is now," he said. "There's very little investment in launching a Web-only operation in a state. But it brings no jobs and no investment to the state's economy. They hurt jobs in the state."

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Find the Best Car Quotes with Nevada Car Insurance

2009-03-26T04:44:00.000-07:00

24.03.2009 17:46:37 Auto insurance expenditures in the state of Nevada are affected by the strength of the economy and other factors including the insurance coverage amount, your driving record, your age, the urban population, traffic density, and per-capita income, according to the experts of nevadacarinsurancepro.com.

(live-PR.com) - Brandon, March 2009 - “According to the Insurance Information Institute (whose mission is to inform the public about what insurance is and how it works) the AVERAGE expenditure for Nevada Auto Insurance in the state of Nevada in 2005 (the last year of available data) was $983. With over 1.6 million insured cars in the state of Nevada you can
quickly see how important it is to make sure you have adequate Nevada Auto Insurance coverage!” says Mr. Joel Ohman of nevadacarinsurancepro.com

He added that, “Auto insurance in Nevada law requires minimum coverage in the amount of $15,000 for bodily injury or death of one person in an accident, $30,000 for bodily injury or death of two or more persons in an accident, and $10,000 for injury or damage to the property of others. This coverage is generally described as 15/30/10. When you have liability coverage, your Nevada Auto Insurance company will pay for the victim’s damages up to your policy limits. If you are found to be without Nevada Automobile Insurance by a law enforcement officer, the penalty will be enforced by a court of jurisdiction and is generally more severe. If you do not carry Nevada Automobile Insurance, and your motor vehicle gets into an accident, your registration and driver’s license may be revoked. You may also be required to have an insurance company certify that you have auto insurance. Most Nevada Automobile Insurance companies will charge you an additional fee for this certification (commonly referred to as a SR-22) that you will have to maintain for a three-year period.”

About nevadacarinsurancepro.com

Nevadacarinsurancepro.com is the best place to look for information about Nevada Automobile Insurance. With the help of nevadacarinsurancepro.com, you will be able to get Nevada Automobile Insurance quotes with a few mouse clicks.

For more information, visit www.nevadacarinsurancepro.com

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Cheapcarinsurance.net Survives Internet Insurance Boom in Florida

2009-03-25T04:43:00.000-07:00

ORLANDO, FL -- (Marketwire) -- 03/24/09 -- Since the dawn of the Internet many small business owners have been forced to adapt or be left behind. This is the case with independent insurance agents in Florida. Up until the early 2000s it was fairly easy to open your own car insurance office on the main street of any medium or large sized city. People were very comfortable with their hometown insurance office of choice. That all changed with the advent of the Internet.

Anthony King, owner of Cheapcarinsurance.net, knows first hand what the transition has been like. "When I was a teenager in the early 90s my mother ran an auto insurance office in South Florida. I was young but definitely involved in the local marketing of the business. My father would have me go around and put flyers on everyone's doors in the city. The business flourished with the locals until big companies like Geico and Progressive came along. Gradually my mother's business slowed until people without the Internet or people who didn't know about the big companies were the only ones coming into her office. She eventually shut down the office when profits were just not enough."

While his family had to find other ways of making up for the loss in income Anthony took this experience into adulthood, always wondering what else could have been done to save the business. He eventually started learning about internet marketing and how the big insurance companies were running their businesses. In 2007 he launched Cheap Car Insurance with the lessons learned from both offline and online business experiences.

Independent insurance agents now have a fighting chance with Anthony's new approach. "I still pass out flyers but now they're virtual flyers," Anthony says with a smile. "Also, I still work with agents but on a much larger scale now. Someone comes to the site and fills out a quote form. This data is then sent to agents in the shopper's state. At that time the shopper can choose who is giving them the better quote. It works out best for the agents and the shopper."

If the Internet hurt independent insurance agents then the recent recession has certainly not helped. "The competition among agents is definitely more fierce right now," says Anthony. "This is working out very well for the consumer. It's also working out well for the agents that are not greedy and offer the best service. It feels great to have adapted to the very thing that brought down my mother's business."

Anthony's site not only offers quotes but also many tips on how to get cheap car insurance through various discounts that many people are unaware of.

Anthony King
Cheapcarinsurance.net
(866)606-5129

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Study: More Californians lack auto insurance but could get help

2009-03-25T04:42:00.000-07:00

The Insurance Research Council found 18% of California drivers lack auto coverage and concluded the economy is behind the dismal numbers. In Ventura County, 1,400 residents inquired about the state's Low Cost Automobile Insurance Program, but only 63 signed up in 2007 and 92 in 2008, according to state Insurance Commissioner Steve Poizner's office. "We are going to ramp up this low-cost auto program and expand the number of agents and brokers selling it," Poizner said. Ventura County Star (Calif.) (free registration) (03/22)

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Delphi retirees fight proposed cuts

2009-02-28T00:49:00.000-08:00

David Shepardson / Detroit News Washington Bureau

WASHINGTON -- A group of more than 1,000 Delphi salaried retirees has hired a San Francisco law firm to try to block the Troy-based auto supplier from cancelling their health care and life insurance benefits.

The ad-hoc group, the Delphi Salaried Retiree Association, has hired the law firm of Farella, Braun & Martel LLP, and will file a formal objection to Delphi's plan later today, the deadline for objections to be filed. U.S. Bankruptcy Judge Robert Drain will hear the request by Delphi on Feb. 24.

"The retirees have accomplished an incredible amount of progress in only one week," said Den Black, a member of the Delphi Salaried Retirees Association. "It is clear that Delphi is attempting to high-jack the retirees by robbing them of benefits that were earned over decades and promised at the time of their retirement. It is also clear that Delphi is attempting to fake the court by rushing for a motion that will have a traumatic impact on a multiple of 15,000 families."

On Friday, another law firm representing Delphi retirees, Stahl, Cowen Crowley LLC, filed an objection to Delphi's plan. Those retirees point to employee benefit records that suggest the benefits were permanent. A 2001 letter to retirees from Delphi said the life insurance "will remain in effect for the rest of your life and is provided by Delphi at no cost to you."

The retirees argue that Delphi wants to deny retirees "a voice to at least defend themselves against this onslaught."

On Feb. 4, the company sought permission to cancel retiree health benefits for current and future salaried retirees, a move that it says would save the company $200 million from 2009 through 2011, or about $70 million a year.

The auto parts supplier also sought to end post-retirement basic life insurance benefits for current and future retirees.

The moves would allow Delphi to reduce its balance sheet liabilities by nearly $1.2 billion. About 15,000 salaried retirees with medical and insurance benefits would lose coverage. The company wants to end coverage "as soon as (it is able) after March 31."

The company also moved to cancel all retiree health reimbursement accounts for Medicare-eligible salaried retirees and terminate the Medicare Part B special benefit for current and future salaried retirees and their surviving spouses.

"This is a decision that was as tough for us to make as it was for employees to receive. It's a tough, hard decision," said Delphi spokesman Lindsey Williams earlier this month, noting the declining auto market and worsening economy prompted the move. "It wasn't one we wanted to do."

Delphi has about 10,000 salaried employees.

For workers hired after 1999, Delphi doesn't pay retiree health benefits, but puts 1 percent of an employee's base pay into a retirement savings plan. That contribution would be canceled if the court granted permission.

Retirees would be allowed to keep coverage if they paid for it, Delphi said.

Delphi, which has been under bankruptcy protection since 2005, has been struggling to emerge in recent months in the face of tight credit. Delphi had planned to continue the programs until it ran into difficulty raising enough funds to emerge from bankruptcy. The company noted that auto sales have declined dramatically.

Delphi's "reasonable business judgment no longer permits them to maintain discretionary benefit programs ... that would cost hundreds of millions of dollars," the company said in a court filing. "Delphi has been working and continues to work closely with its advisors and stakeholders to re-evaluate its business plan and implement cash-conservation measures wherever it can."

Delphi said in its filing that it plans to revise its bankruptcy plan and file it by the end of the month as it struggles to shore up its cash. It asked the court to approve a deal to accelerate a $100 million payment from GM into the first quarter from the second quarter. It also disclosed that the value of the company may now be less than what it owes banks and investors funding its bankruptcy case.

This is the latest benefit cut sought by Delphi. In September, Delphi won permission to freeze its pension plans.

Delphi's hourly manufacturing cost has been cut to about $27 an hour this year from $73 an hour in 2005. Delphi rocked the auto industry when it filed for Chapter 11 bankruptcy protection on Oct. 8, 2005. Since then, it has lost more than $12 billion, closed 21 of its 29 U.S. factories, and cut its hourly work force nearly 50 percent and its salaried work force almost 40 percent.

The Delphi retirees have started a website at www.delphisalariedretirees.org.

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PCI testifies against 'anti-consumer' auto insurance bills

2009-02-28T00:42:00.000-08:00

HARTFORD, Conn. – The Property Casualty Insurers Association of America (PCI) testified against several auto insurance bills it claims are "anti consumer" that are being considered by the Connecticut Insurance and Real Estate Committee. PCI also is supporting legislation that extends the state’s flex rating law.

The following is a statement by Paul Magaril, regional manager and counsel for PCI:

“The Property Casualty Insurers Association of America is urging the Connecticut Insurance and Real Estate Committee to reject HB 6444, which would prohibit the use of credit information and limit the use of territorial rating. We also oppose HB 6446, which would place additional limitations on insurers who offer guarantees on auto body repairs completed in shops recommended by insurers. These bills would have significant anti-consumer consequences and harm the state’s automobile insurance market. We are also seeking to amend HB 6450, which changes how the value of a totaled vehicle is determined. However, we strongly support HB 6280, which extends the state’s flex-rating law affecting personal lines until July 1, 2011.

“The net effect of HB 6444 would be to make insurance underwriting and rating less accurate and result in lower risk consumers subsidizing higher risk consumers. Consumers that pose higher risk should pay more for insurance. This bill turns that notion on its head. Both credit information and the use of geographic location have been proven to be highly accurate predictors of risk. By enacting legislation that eliminates or severely limits the use of these factors, the state is in the position of picking winners and losers regarding auto insurance. Based on this legislation, the majority of drivers in Connecticut would be losers. The big winners would be those who file the most claims and have the highest losses. That is not good public policy.

“Through HB 6446 some auto body repair shops are attempting to limit an insurer’s ability to offer an important and very popular benefit to consumers – a lifetime warranty on the repair work. While an auto repair shop may guarantee their work, this is of little benefit to a consumer who has moved or is traveling. The warranty offered by insurers extends beyond the particular direct repair facility used by the consumer and can be used at any such facility in the country. How can a prohibition or limitation on an insurer’s ability to reduce premiums, lower deductibles, or offer a lifetime warranty be considered to be in the best interests of the consumers? Only one group would benefit from this bill – auto repair shops that would be protected from competition. One group would be harmed – consumers who would actually be denied important cost-saving benefits for exercising their choice of repair facilities. No other state in the country has enacted a law that limits the benefits that an insurer can offer to consumers in this way”.

“On HB 6450, we could support the bill with some amendments. When determining the fair market value of a “total loss” automobile in Connecticut, insurers use an average of retail values given by the National Automobile Dealers Association (NADA) used car guide and one other source that has been approved by the commissioner. This bill would drop the requirement to use the NADA guide, instead requiring insurers to use the higher of two sources that have been approved by the commissioner. While the proposed change could allow insurers more flexibility in their choice of valuation methods, it still requires duplication of efforts and resources, making the total loss process more expensive and more time consuming. We believe this bill provides legislators an opportunity to provide more efficiency, flexibility and clarity in the claim handling process of totaled vehicles. We urge the committee to take that opportunity and to adopt amendments that would simply allow insurers to choose one of these approved methods for determining the value of a totaled vehicle.

“PCI supports HB 6280, which allows a law that is working well for consumers to continue. Connecticut’s flex-rating law went into effect on July 1, 2006 and is scheduled to sunset on July 1, 2009. Under the law, insurance companies in Connecticut are allowed to implement personal auto and homeowners’ insurance rate changes within a plus-or-minus 6 percent band without waiting for regulatory approval. Analysis of the latest information available shows that the law is achieving what lawmakers intended by moderating premium costs and contributing to a vibrant, competitive market.”

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National Bank Insurance Joins the Kanetix Auto Insurance Quote Comparison Service

2009-02-28T00:36:00.000-08:00

MONTREAL, QUEBEC - TSX:NA - National Bank Insurance is pleased to join the Kanetix® auto insurance quote comparison service, available online at www.kanetix.ca. National Bank Insurance products will be identified under the name InnovAssur.

"Kanetix is pleased to add National Bank Insurance to its insurance quote website, the company offers an excellent insurance product in the Quebec market that rewards drivers who have a good driving record," said George Small, Co-founder of Kanetix. "National Bank Insurance is a natural fit for Kanetix as it complements our commitment to help insurance consumers find competitive rates. We're excited about the opportunity to introduce our shoppers to the National Bank Insurance auto insurance offering."

"It's a win-win situation for both Kanetix and National Bank Insurance. The Kanetix auto insurance quote comparison service has become more compelling for Quebec consumers as it offers them even more choices, while National Bank Insurance will have access to the thousands of Quebec consumers who visit Kanetix on a regular basis to comparison shop for their insurance needs," said Danielle Aubin, Vice-President - Operations of National Bank Insurance.

The free Kanetix service offers Quebec drivers an opportunity to compare insurance quotes from a variety of car insurers, including National Bank Insurance. By visiting www.kanetix.ca, users can follow four simple steps and, in just a few minutes, compare multiple insurance quotes in chart format.

About Kanetix

Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $129 billion in assets and, together with its subsidiaries, employs 17,146 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX: NA). For more information, visit the Bank's website at www.nbc.ca.

The telephone numbers provided below are for the exclusive use of journalists and other media representatives.

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State Farm Lowers Georgia Rates

2009-02-27T00:48:00.000-08:00

If you’re a State Farm customer in Georgia, you’ll have some extra spending money next month. On March 9, the insurance company is lowering your auto insurance rates.

Here’s the tip of the day:

Effective March 9, State Farm Mutual Automobile Insurance Company is lowering its overall auto insurance rate level in Georgia by an average of 1.5 percent. This represents an annual savings of $16.2 million for Georgia customers. After this change is implemented, State Farm’s overall auto insurance rate level in Georgia will be 12.2 percent lower than it was five years ago, according to a release.

Using claim experience over the past several years, State Farm projects what the number and cost of future claims will be. Rates are set in accordance with that information in an effort to meet the promises made to policyholders.

According to State Farm Senior Vice President Tim McFadden, “As a mutual company owned by our policyholders, less than expected claims experience enabled State Farm to reduce rates. Given the current economic situation, we believe this announcement is especially welcome news for our policyholders.”

Premiums for collision and comprehensive coverage are decreasing for most customers. Comprehensive coverage pays for losses from such perils as theft, storm damage, fire, vandalism and glass breakage. The price of liability and medical payments coverage is not impacted by this rate change.

Overall premium changes for individual motorists will vary depending on factors such as the coverage they carry, the discounts for which they qualify, where they live, the kind of car insured, who drives it and how much it is driven.

About one in every four cars in Georgia is insured by State Farm.

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National Bank Insurance Joins the Kanetix Auto Insurance Quote Comparison Service

2009-02-27T00:41:00.000-08:00

MONTREAL, QUEBEC--(Marketwire - Feb. 19, 2009) - TSX:NA - National Bank Insurance is pleased to join the Kanetix^® auto insurance quote comparison service, available online at www.kanetix.ca. National Bank Insurance products will be identified under the name InnovAssur.

"Kanetix is pleased to add National Bank Insurance to its insurance quote website, the company offers an excellent insurance product in the Quebec market that rewards drivers who have a good driving record," said George Small, Co-founder of Kanetix. "National Bank Insurance is a natural fit for Kanetix as it complements our commitment to help insurance consumers find competitive rates. We're excited about the opportunity to introduce our shoppers to the National Bank Insurance auto insurance offering."

"It's a win-win situation for both Kanetix and National Bank Insurance. The Kanetix auto insurance quote comparison service has become more compelling for Quebec consumers as it offers them even more choices, while National Bank Insurance will have access to the thousands of Quebec consumers who visit Kanetix on a regular basis to comparison shop for their insurance needs," said Danielle Aubin, Vice-President - Operations of National Bank Insurance.

The free Kanetix service offers Quebec drivers an opportunity to compare insurance quotes from a variety of car insurers, including National Bank Insurance. By visiting www.kanetix.ca, users can follow four simple steps and, in just a few minutes, compare multiple insurance quotes in chart format.

About Kanetix

Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

About National Bank of Canada

National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $129 billion in assets and, together with its subsidiaries, employs 17,146 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA). For more information, visit the Bank's website at www.nbc.ca.

The telephone numbers provided below are for the exclusive use of journalists and other media representatives.

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Laughing your way to Cheaper Auto Insurance Rates

2009-02-27T00:33:00.000-08:00

20.02.2009 12:15:24 The online defensive driving course for Point and Insurance Reduction courses are many. However, finding an interactive and fun defensive driving course is less. The learning process of the interactive edutainment traffic school is more fun and interesting. With the effective edutainment curriculum, reducing future accidents and moving violations are possible

It sounds ludicrous at first, but so did Earth Shoes, car phones and kiwi as a garnish.

In keeping with its commitment of promoting driver safety and providing the state’s motorists with enhanced customer conveniences, New Jersey Motor Vehicle Commission (MVC) approved Improv Traffic School to offer online comedy-based defensive driving and Point and Insurance Reduction
courses for New Jersey drivers.

Improv had gained its fame in the driver training field in the early 80’s, when its founder Gary Alexander had partnered with the famous Improv Comedy Club to create an interactive and fun edutainment traffic school and defensive driving programs for Los Angeles motorists.

Based on a simple notion that when you enjoy the learning process you simply learn more, Alexander has grown Improv to one of the largest and most respected defensive driving schools in the Country. Since then more than a million students have taken Improv’s classes in both classroom and online settings for ticket dismissal, insurance discounts and court ordered defensive driving . Improv’s teaching methodology has been backed by a number of studies showing that its edutainment curriculum is effective in reducing future crashes and moving violations.

“I can’t guarantee none-stop laughs”, Gary Alexander admits, “I will shoot for less painful and simple”.

New Jersey Motorists who successfully complete Improv’s online defensive driving course are eligible to have a two-point reduction on their driver record and qualify for a mandatory, three-year insurance discount.

The Improv’ s online course is available to New Jersey motorists at www.MyImprov.com

The online course consists of 10 simple modules featuring a combination of comedic, YouTube style video clips that are supported by easy to navigate text and graphics covering a variety of driving subjects ranging from basic traffic laws to more serious issues like DUI and seat belt use. The real beauty of this course is that it’s not only fun and effective; it can also be completed at your own pace in as little as 5-minute increments. Upon completion of all modules and passing of a simple 25 question quiz covering course material you get a certificate of completion that can be submitted to your Insurance Company to qualify for the mandated insurance discount upon policy renewal.

MVC’s Chief Administrator Sharon A. Harrington went on record stating , “The MVC is constantly looking for ways to utilize the Internet to provide services to all New Jersey motorists, and these defensive driving courses are a perfect example. ” Harrington also said: “With these online courses, motorists will receive the same invaluable instruction as they would in a classroom, but will have the luxury of using their computer to log in and out of the course at their convenience.”

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Investment losses send State Auto to 4Q loss

2009-02-26T00:47:00.000-08:00

After racking up record catastrophe losses in the first nine months of the year, it was the stormy financial world that helped send State Auto Financial Corp. to a loss in the fourth quarter.

The Columbus-based insurer said it lost $600,000, or 2 cents a share, in the last three months of 2008. That compares with profit of $41.7 million, or $1.01 a share, the year before. The fourth-quarter loss includes a $29.7 million write-down on the company’s investment portfolio, State Auto (NASDAQ:STFC) said.

“(The company’s) strong fourth-quarter sales and overall profitable underwriting results were not enough to compensate for the turmoil in the world’s financial markets,” CEO Bob Restrepo said in a release.

During the quarter, net written premiums grew 16 percent to $281.2 million, but the company was hit with $32.7 million in investment losses. That helped send total revenue down 2 percent to $273.3 million from $278.3 million a year ago.

The company’s combined ratio – measuring losses and expenses as a percentage of earned premiums - in the fourth quarter increased to 96, up more than 10 points from 85.2 in last year’s fourth quarter. But new storm activity contributed little to the increase, unlike three previous quarters of consecutive record catastrophe losses. State Auto’s full-year combined ratio totaled 109.8, meaning the company logged about $11 in catastrophe losses for every $10 in premiums it earned. Hurricane Ike accounted for more than $45 million in losses during the third quarter after causing serious damage in Texas and sending strong winds into Ohio, Kentucky and Indiana in September.

State Auto’s full-year loss totaled $31.1 million, or 78 cents a share, versus profit of $119.1 million, or $2.86 a share, in 2007. Revenue for the year grew 6 percent to $1.18 billion from $1.11 billion the year before.

Restrepo told investors Tuesday the company has reason to be optimistic in 2009 despite rough economic conditions.

“Despite record catastrophe losses in the first three quarters, a prolonged soft business insurance market and a sharp decline in the financial markets, STFC produced an underwriting profit in the fourth quarter and continued to grow,” he said.

State Auto employs about 2,000. Columbus-based State Automobile Mutual Insurance Co. owns about two-thirds of its shares.

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PCI Releases Paper Highlighting Cost Shift in Auto Insurance if CT Changes Territorial Rating Law

2009-02-26T00:40:00.000-08:00

HARTFORD, Conn. – Most Connecticut drivers would pay more for auto insurance – with some locations paying up to 5.3 percent more, on top of the additional 5.6 percent that they are already paying – if the Legislature enacts a bill (HB 6444) that places new limits on the use of geographic location as an underwriting and rating factor, according to a report issued today by the Property Casualty Insurers Association of America (PCI).

The paper notes that characteristics reflecting the geographical location of a driver’s residence are among the most effective variables for predicting auto insurance losses. Some of the characteristics contributing to the varying likelihood of loss among different areas are traffic density, health care and body shop repair costs, claiming behavior, attorney involvement, level of exposure to uninsured drivers, motor vehicle theft rates and fraud. In order to have equitable insurance premiums throughout a state, dissimilarities in the driving environment must be recognized. The price paid for insurance should correspond with the risk.

House Bill 6444 would change Connecticut’s current law which requires that 75 percent of the auto insurance rate for each territory be based on the territory’s own claims experience and the remaining 25 percent be based on statewide claims experience. Connecticut is the only state in the nation that requires insurance prices be set using such an arbitrary formula. The new formula would be a 50-50 split between each territory’s own claims experience and statewide claims experience.

“The net effect of HB 6444 would be to make insurance underwriting and rating less accurate and result in consumers in lower risk areas subsidizing consumers in higher risk areas,” said Paul Magaril regional manager and counsel for PCI. “Consumers that pose higher risk should pay more for insurance. This bill turns that notion on its head. The use of geographic location has been proven to be a highly accurate predictor of risk. By enacting legislation that eliminates or severely limits the use of this factor, the state is in the position of picking winners and losers regarding auto insurance. Based on this legislation, the majority of drivers in Connecticut would be losers. The big winners would be those who file the most claims and have the highest losses. That is not good public policy.”

According to the paper on average, 61 percent of insured drivers in the entire state would pay up to 5.3 percent more for their full coverage (liability and physical damage) rates. The overall impact of a 50-50 rule would mean rates for drivers in the highest risk areas would be 22.7 percent lower than what their true level of risk indicates. Conversely, rates for drivers in the lowest risk areas would be 11.2 percent higher than what their true of risk indicates.

The paper also provides analysis of the impact of this legislation on specific locations throughout the state. Hartford provides a stark example of the cost shift. Those living in Hartford County (excluding Hartford city and its suburbs and New Britain) would have to pay about 4.9 percent more to offset the extra 12.8 percent discounts given to the larger city/suburban motorists in their county

PCI is urging the Connecticut Insurance and Real Estate Committee to reject HB 6444.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $176 billion in annual premium, 35.9 percent of the nation’s property casualty insurance. Member companies write 43.8 percent of the U.S. automobile insurance market, 29.6 percent of the homeowners market, 32.8 percent of the commercial property and liability market, and 38.4 percent of the private workers compensation market.

WisBusiness: Industry says budget could boost car insurance prices

2009-02-26T00:32:00.000-08:00

By Greg Bump
WisBusiness.com

If state insurance industry officials are right, Gov. Jim Doyle's budget bill could lead to a jump in insurance rates for individuals and businesses in Wisconsin.

One item Doyle is proposing would raise the minimum coverage requirement on auto insurance.

The president of the Wisconsin Insurance Alliance, Andy Franken, says raising caps would mean Wisconsin car insurance customers would see their rates jump by between 33 percent and 43 percent. Franken says the hardest hit ratepayers would be low- and middle-income families and individuals because they often purchase the minimum level of insurance. But he adds the change would impact all ratepayers.

In a separate proposal, Doyle proposes to alter what's called the joint and several liability language in a way Franken says would impact small and large businesses across the state. The Wisconsin Civil Justice Council, which represents Wisconsin employers in civil litigation issues facing Wisconsin, dubbed the joint and several liability provision “budget stimulus for trial lawyers.”

But Madison attorney Keith Clifford downplayed both potential changes. He says the old minimums for auto insurance have been in place for nearly 30 years.

"The burden of costs of these cases has been shifted from liability to health insurance and BadgerCare and Medicaid," Clifford said. The policy change "shifts the burden off health insurers and back onto liability insurance where it belongs."

Clifford said insurance customers shouldn't see a dramatic jump in costs due to the change. He said Wisconsin is one of two states that doesn't require drivers to carry auto insurance, yet Wisconsin is among the lowest in the nation for rates.

"The mandate on insurance has nothing to do with the cost of insurance, and coverage increases aren't going to have anything to do with it either," he said. "The fact is the minimums barely have anything to do with the rates."

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Online players faring well as auto insurance sales fall

2009-02-25T04:50:00.000-08:00

Market share of direct insurers rises to 20 percent of the pie

February 13, 2009

Auto insurance sales fell sharply last month as the economic turmoil drove less people to buy cars, according to insurers.

Online stores weathered the slowdown better than the traditional type thanks to bargain hunters, they said. The online market share grew to about 20 percent.

According to data provided by General Insurance Association of Korea and individual member insurers, 858.3 billion won ($610.8 million) worth of auto insurance was sold in January, 9.3 percent less than the 946.7 billion won sold in January 2008.

Over the April 2008-January 2009 period, auto insurance sales only rose 1.5 percent from the same period a year earlier, the data showed. This is due to a steep decline in car sales. Local carmakers sold 73,537 new vehicles last month, 23.9 percent less than a year earlier.

Many opted to buy used cars, which are also less expensive in terms of insurance, insurers said.

“Most people buying a new car subscribe to physical damage coverage, but used car buyers are doing it less,” said a spokesperson from the General Insurance Association of Korea. Physical damage coverage, which is for damage to the vehicle, is optional.

Some tried to cut costs by buying insurance through direct insurers, said the companies. Online sales amounted to 171.6 billion won last month, accounting for 19.99 percent of all auto insurance sales, at 858.3 billion won for the month. The online market share continued to rise from 18 percent in October to 18.3 percent in November and 18.9 percent in December.

Direct insurers, called online insurers in Korea as sales occur by telephone or the Internet, sell insurance for an average of 15 percent less than traditional insurers, as they save on the cost of consultants and a physical network.

There are 15 car insurance companies in Korea, and 11 of them - except Samsung Fire and Marine Insurance, Hyundai Marine and Fire Insurance, LIG and AIG - sell online.

Four of the 11 firms operating online, such as Kyobo-AXA General Insurance, only sell policies via the Internet.

The online market is expected to continue to grow, as Samsung Fire and Marine plans to enter the field next month. Samsung, the biggest car insurer in Korea with about a 28 percent market share, had stuck to offline sales as part of its premium marketing strategy.

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MonitorBankRates.com Launches Comparison Shopping for Auto Loans, Mortgage Loans and Insurance Quotes.

2009-02-25T00:46:00.000-08:00

MonitorBankRates.com releases new comparison shopping feature that allows consumers to search for the best auto loan rates, mortgage rates and obtain the best competitive Insurance Quotes.

New York (PRWEB) February 17, 2009 -- MonitorBankRates.com, a leading site for finding the best bank rates announces the release of several new consumer financial marketplaces that give consumers the ability to compare car loan rates, mortgage rates and insurance quotes from several financial institutions and insurance providers.

To obtain the best car loan rates or mortgage rates all consumers have to do is enter their zip code and they will be matched with financial institutions in their area offering loans. Once they have selected an institution they enter basic personal information and will be provided quotes.

Consumers currently can be matched with providers for home equity loans, new home purchase loans, refinance loans, mobile home loans and car loans.

To receive insurance quotes consumers are also matched with insurance providers in their area by entering their zip code. Once they have selected the type of insurance they need consumers enter their zip code and are provided a list of insurance providers in their area.

Currently the insurance marketplace includes auto insurance, health insurance, home insurance, life insurance, motorcycle insurance and small business insurance.

In addition to auto loan rates, mortgage rates and insurance quotes consumers can also find the best banking rates including CD rates, online savings account rates, checking account rates, and credit card rates.

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Court: Drive-by shooting victim's medical expenses not covered under state program

2009-02-25T00:39:00.000-08:00

A woman wounded in a drive-by shooting in Irvington can't have her medical expenses paid by the state's uninsured motorist coverage, the state Supreme Court ruled today.

Though the court ruled the woman's injuries qualified as an "accident" under state insurance law, the justices concluded the shooting was not caused by "the ownership, maintenance, operation or use of an uninsured motor vehicle."

APNew Jersey Supreme Court Chief Justice Stuart Rabner speaks as Justices Virginia Long, left, and Jaynee LaVecchia, right.

-- Full court ruling

The high court ruled 4-3, in a decision written by Justice Roberto Rivera-Soto, that the victim's "injuries from the drive-by shooting were not causally connected to the insured's use of her motor vehicle."

In a dissent, Justice John E. Wallace held that the victim's shooting could logically be related to the use of a motor vehicle

"The operation or use of the uninsured vehicle provided the 'opportunity for the assault' and would not likely have occurred 'without the use of a car.'" Justices Virginia Long and Barry T. Albin joined Wallace in the dissent.

The victim, Camie Livsey, had just made a purchase at a grocery store in Irvington when she was shot while returning to her car on February 21, 2005.

Two witnesses said they saw an older model Toyota fleeing the scene, but it was never determined who fired the shot or whether it came from the Toyota.

The victim, whose medical bills exceeded $600,000, filed a claim for uninsured motorist coverage, but her automobile insurance carrier, the Mercury Insurance Group, denied the claim. Mercury said Livsey's shooting was not caused by an accident involving an uninsured motor vehicle.

Livsey filed a lawsuit against Mercury that was dismissed by a trial court judge, but an appeals court reversed that decision, likening Livsey's case to others in which drive-by-shooting victims were covered under their automobile insurance's personal injury protection.

In reversing the appeals court ruling, the Supreme Court held that while personal - injury protection covers injuries "caused by...an object propelled by or from an automobile," no such language exists under uninsured motorist coverage.

Neither Livsey's nor Mercury's lawyers could immediately be reached for comment.

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Recession May Drive Up Number Of Uninsured Motorists In California, Study Says

2009-02-24T00:46:00.000-08:00

Feb. 14--The number of uninsured drivers may be on the rise as the recession worsens in California. With unemployment climbing above 9 percent, the uninsured motorist rate could increase above 18 percent in the Golden State, a study released last week revealed.

As residents struggle with reduced incomes because of job loss, salary cuts or lost work hours, the hard-edged economic realities of life may prompt some to consider letting their insurance premiums lapse, but continue driving unlawfully anyway.

The Insurance Research Council estimates that the economic downturn may push uninsured motorists statewide to an all-time high in 2010 of one in nearly five drivers. The study -- which didn''t address estimates county by county -- uses insurance claims data made by individuals whose cars were hit by uninsured drivers that resulted in injuries. A 1 percent increase in the unemployment rate, said IRC, corresponds with three-quarters of a percentage point increase in the uninsured motorist rate.

As the California economy continues to tumble, "We''re worried the figure could go as high as 25 percent, perhaps more in large, inner-city areas," said Pete Moraga, a spokesman for the Insurance Information Network of California. Not eager at the prospect of declining revenue from premium payers -- and possibly having to raise rates on other policyholders -- the for-profit companies are anxious to retain customers who have hit rough financial patches.

Mr. Moraga said options exist where the unemployed and low-income earners can find affordable ways to cut auto insurance premiums when wallets get thinner. On the subject of how widespread the problem is in California, Mr. Moraga said most law enforcement agencies aren''t crunching year-over-year numbers related to the number of cited drivers who are deemed uninsured.

However, the Santa Barbara Police Department issued nearly 100 more "insurance-related violations" in 2008 compared with the previous year. In 2007, SBPD issued 641 citations due to no proof of insurance; in 2008, the number was 728 citations. The city doesn''t track the final outcome, so it''s hard to guess how many drivers were essentially uninsured from the beginning.

"Most of the violations are written for failure to show current proof and some of these may be later dismissed or reduced when people can show the courts they have current proof of insurance," said Sgt. Lorenzo Duarte, a spokesman for the police department.

When stopped by the police, having the documents you''re supposed to keep in your car will save a lot of time and money in the long run, Sgt. Duarte added.

California law mandates that insurers notify the Department of Motor Vehicles when licensed drivers cancel their policies. In 2007, DMV issued 2.1 million notices of suspension for this reason; in 2008, the number was 1.8 million notices. Tracking for compliance includes vehicles being put in a person''s name for the first time (new, used and non-resident) and cancellation of insurance policies, according to Armando Botello, a spokesman for the DMV. Vehicles continue to be tracked if the state doesn''t have proof of insurance. If DMV has proof of insurance from the beginning, then vehicles are not tracked, unless somewhere along the line that policy is cancelled.

Mr. Botello said DMV hasn''t tracked the data to determine whether the decrease between 2007 and 2008 was because of a reduction in car sales, the result of insurance companies doing a better job of getting information to the state early in the process, or both. A firm determination on the reason for the difference in numbers would require an in-depth analysis, which the state cannot afford at this time, said Mr. Botello.

To protect themselves and other drivers, Mr. Moraga advises motorists to ask current insurers about available discounts; consider increasing deductibles; and look at dropping comprehensive and collision coverage on older vehicles. California also has a low-cost auto insurance program.

Providing limited coverage at a reduced premium, this program helps those earning less than 250 percent of the poverty level, yet still provides some protection. The Web site calculator showed a liability policy in Santa Barbara County at a cost of $220 per year.

"A minimal policy allows you to drive legally in California," said Mr. Moraga, adding that if a driver can''t afford the insurance even on these terms, they can''t afford the vehicle, either.

"Park the car, take the bus or walk," he advised.

More information about the low-cost, state-sponsored program can be obtained at www.iinc.org.

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Kofman highlights anniversary of auto insurance and reminds Maine citizens it's a state requirement

2009-02-24T00:37:00.000-08:00

Maine Insurance Superintendent Mila Kofman highlighted the anniversary of auto insurance being offered in the U.S. on Friday by announcing the availability of a new auto claims brochure and by reminding consumers about coverage requirements and ways to save money on auto insurance. Travelers became the first insurance company to offer automobile coverage in February 1897. Today, Maine law requires liability insurance, as well as uninsured motorist coverage and medical payment coverage. (02/19)

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Industry Questions Wisconsin Gov.'s Hike in Auto Insurance Limits

2009-02-24T00:31:00.000-08:00

A proposal in Wisconsin Gov Jim Doyle's budget would increase mandatory auto insurance limits and drive up costs for many drivers as much as 40 percent, according to the insurance industry.

The governor would raise the current liability limits of $25,000 for each person, $50,000 for each accident, and $10,000 for property damage per accident to $100,000, $300,000 and $25,000, respectively.

This change would mean Wisconsin would have the highest mandated insurance limits in the nation.

Andy Franken, president of the Wisconsin Insurance Alliance, said the result would be higher costs for many low and middle-income families.

"Responsible low and middle-income families paying the current minimum auto insurance levels would see their costs rise 33 percent to 43 percent. High income families who already choose higher coverage levels would be less affected, but would still see premium increases," said Franken.

The industry says that the largest dollar increases would fall on families in the Milwaukee area. Families in rural areas, especially in western Wisconsin, would see the highest percentage increase in their auto premiums.

Only four states require limits greater than Wisconsin's current limits.

"These auto insurance mandates have nothing to do with Wisconsin's state budget or fiscal crisis and should be debated publicly as separate legislation on its merits," Franken said.

According to the Auto Insurance Report's PAIN index, Wisconsin families pay the third lowest rates as a percentage of household income.

The industry maintains that the change would also have other implications.

Mark Johnston, Midwest state affairs manager for the National Association of Mutual Insurance Companies (NAMIC), said the governor's proposal would also undo tort reforms that protect defendants who bear little responsibility for an accident. Someone who is barely connected to an accident could end up paying the entire amount of the damage. "An example would be when an uninsured drunk driver causes a horrific accident. The plaintiff's lawyer will strain to look for someone else with insurance, such as another driver or a property owner near the scene of the accident, who somehow can be said to have contributed to the accident," Johnston said.

The proposal would also drive up costs by allowing the "stacking" of insurance policies, requiring uninsured motorist coverage when an accident is caused by a phantom car, which would result in increased fraud, and increasing the amount of paperwork required, according to Johnston.

"These are significant public policy changes, and they need to go through the proper legislative process where there is time for analysis and public comment," Johnston said. "Sticking the legislation in the budget greatly reduces the opportunity for scrutiny and usually creates legislative mistakes."

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PCI testifies against anti-consumer auto insurance bills

2009-02-23T00:44:00.000-08:00

PCI urges the Connecticut Insurance and Real Estate Committee to reject House Bill 6444, which would prohibit the use of credit information and limit the use of territorial rating. PCI also opposes House Bill 6446, which would place additional limitations on insurers who offer guarantees on auto body repairs completed in shops recommended by insurers. These bills would have significant anti-consumer consequences and harm the state's automobile insurance market. (02/18)

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Driving Distracted? It can Affect Your Insurance Rate

2009-02-23T00:37:00.000-08:00

(ARA) – The number of tasks that distract us while driving is growing. Who hasn’t spent their commute talking on the cell phone, switching songs on an mp3 player, texting or plugging an address into the GPS? While it may not seem like a big deal, distracted driving is dangerous and can even be deadly.

As much as 80 percent of car crashes involve a driver who was distracted 3 seconds before the accident, according to the California Department of Motor Vehicles. Worse, studies have shown that a driver holding a cell phone can be as dangerous as a drunk driver.

Anything that takes your hands off the wheel or your eyes and mind away from the road is a distraction. And while you might not think playing with the radio is much of a diversion, losing focus for even a few seconds is all it takes to cause an accident.

You driving record is the one factor that has the greatest impact in affecting your auto insurance rate. If you’ve been involved in a car accident and it goes on your record, your auto insurance company will see you as a risky driver to insure. Your insurance rate can jump as much as 40 percent.

The Insurance Information Institute suggests these tips to eliminate driving distractions:

* Don’t eat and drink while driving. Spills can cause accidents and you can also be burned by hot beverages.
* Do not use your car mirrors to shave, put on makeup, comb your hair or otherwise primp and preen.
* Don’t take notes while driving. If you need to jot something down, use a tape recorder or pull over to the side of the road.
* Do not talk or text while driving. If you must place a call, pull off the road to a safe location. If your phone rings, let your voice mail pick up. It’s safer and easier to retrieve your messages later.
* Be aware of other distracted drivers on the road and watch out for cars weaving in and out of lanes.
* When in doubt, ask yourself if you would feel safe on the road seeing another driver doing the same thing you are.

If you successfully avoid distractions while driving and have a clean record, you could be rewarded with a discount on your auto insurance. Check your insurance rates and compare regularly at Insweb.com to find out if you’re getting the best deal and even save money.

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Budget Bill Provision Would Affect Car Insurance Bills

2009-02-23T00:30:00.000-08:00

Bill Would Create New Minimums On Medical Liability Coverage

MADISON, Wis. -- A provision in Gov. Jim Doyle's newly proposed budget could have an impact on residents' car insurance bills. It would create new minimums on medical liability coverage for residents' vehicles, although the state doesn't actually require anyone to have car insurance.VIDEO: Watch The ReportCurrent law says if you have car insurance, your medical liability coverage has to be at least $25,000 per person and $50,000 per occurrence for personal injury. The proposal would change it to $100,000 per person or $300,000 per occurrence for personal injury."It's a very important provision and it's long overdue. Those minimums haven't been changed in almost 30 years," said attorney Keith Clifford.Trial lawyers in the state called it a win for consumers and said it will actually help drive down health care costs."What's happened over the years is because liability coverage hasn't kept pace with medical expenses, health insurers are picking up much more of it and they're not getting reimbursed," Clifford said.But insurance companies said this would give Wisconsin the highest liability minimums in the country, and might only drive those who can't afford them to drop coverage altogether."Consumers in Wisconsin benefit from a competitive marketplace and these provisions will increase those rates 33 to 43 percent on average," said Andrew Franken of the Wisconsin Insurance Alliance.WISC-TV asked American Family Insurance agent Brad Bodden to give some examples of how the coverage would affect residents.A 30-year-old couple with a clean driving record and a 2003 Subaru would see rates go up from $183 per year to $236 per year.Bodden said a 55-year-old driving a 2008 Chevy Impala would see rates go from $137 a year to $177 a year.But Bodden said a 22-year-old male with some driving infractions and a 2005 Ford Focus would see rates go from $782 to $1007."This is the person that would see the biggest impact -- the person who can barely afford their insurance to begin with, has a few driving infractions and needs to bump up their limits," said Bodden.Clifford also did the same calculation on his own car through an online insurance company and saw his premium go down. Franken and Bodden said that was likely an anomaly and that for most people their premiums would go up.Wisconsin currently pays the third lowest auto insurance rates in the country, and the Wisconsin Insurance Alliance said that about 25 to 30 percent of state residents only have the minimum liability coverage.

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In consolidation, USAA to move half of Norfolk work force

2009-02-22T04:49:00.000-08:00

(Virginian-Pilot, The (Norfolk, VA) Via Acquire Media NewsEdge) Feb. 13--NORFOLK -- USAA, which has operated a large regional office in Norfolk for almost 20 years, said Thursday that it will move parts of the operation to facilities elsewhere in the country and cut its local work force of 850 by more than half.

The company, a major provider of auto and homeowners insurance to members of the military, military retirees and veterans, said it will shift 475 jobs from Norfolk to USAA offices in San Antonio, Phoenix, Colorado Springs, Colo.; and Tampa, Fla., by the end of September.

Most moves involve employees who handle auto and homeowners insurance policies, said Chris Talley, a spokesman for the San Antonio-based company.

About 400 employees who deal with insurance claims and with USAA's legal staff will remain in the Norfolk area, Tal-ley said. However, these employees will be moved to a leased facility, and the company's office building and 32-acre campus on Northampton Boulevard will be put up for sale, he said. More than 20 claims personnel who work in the field won't be affected by the consolidation.

Over the years, USAA's regional office earned a reputation for being an attractive place to work because of its benefits, including day care services. Employees interviewed outside the office Thursday evening applauded the company's offer to relocate workers to other USAA facilities.

"What company does that? The fact that they are offering that is the most wonderful thing in this economy," said Shantae Daniels, who will continue to work for USAA in the Norfolk area.

Other employees expressed concern about their co-workers. Even those who will remain in Norfolk will be deeply affected by the job cuts, said Stacy Bierma, who was picking up her daughter at USAA's day care facility.

"It's our friends, the people we work with" and have children in day care with her daughter, Bierma said. "I trust they will do everything they can for folks."

USAA said the job consolidations and sale of its Norfolk building were part of a broader effort to cut costs and reduce the amount of its unused real estate. The company also is closing its regional office in Sacramento, Calif., and cutting 625 jobs there. These moves are expected to generate $15 million in annual savings, Talley said.

The level of services provided to members won't be affected by the cutbacks, USAA insisted. The company has 6.8 million members, including tens of thousands in Hampton Roads.

Organized by a group of Army officers in 1922 to provide auto insurance for one another, USAA gradually expanded its mix of services to homeowners and life insurance, banking and investments.

USAA opened a temporary regional office in Norfolk in 1990 and moved three years later to a distinctive building on Northampton Boulevard with more than 340,000 square feet of office space and a nearby parking garage. By 2004, its local work force had grown to 1,300.

Advances in technology, however, reduced USAA's need for office space in recent years, Talley said.

USAA representatives spent Thursday afternoon explaining the company's plans to its employees in Norfolk. Those "in good standing" whose jobs are moving will be eligible for positions at four other USAA regional offices, along with relocation packages, Talley said. The relocation assistance will include helping employees sell their homes and helping employees' spouses find jobs, he said.

"We want these employees to stay with us," Talley said.

Those whose jobs are shifted but who decide not to relocate will be offered severance packages, he said.

"It's sad any time families have to move" or take a severance package, said Michael Quinones, a USAA employee for eight years. "Still, it's better than the alternative."

Also on Thursday, Ronald Racinowski, vice president and general manager of the Norfolk office, informed Norfolk's mayor and area business organizations of the company's plans, Talley said.

"They have been nothing short of an outstanding corporate citizen," said Jack Hornbeck, president and CEO of the Hampton Roads Chamber of Commerce.

Tom Shean, (757) 446-2379, tom.shean@pilotonline.com

To see more of the The Virginian-Pilot, or to subscribe to the newspaper, go to http://www.pilotonline.com.

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Confronting the state's insurance crisis

2009-02-22T01:29:00.000-08:00

Now that the state has given State Farm Florida conditional approval to leave Florida's property insurance market, Gov. Charlie Crist and legislative leaders can drop their populist rhetoric and start working on how to make hurricane coverage viable.

The pending departure of State Farm, Florida's largest private insurer of property, makes that task all the more difficult. As pointed out in news reports, Florida lacks adequate capital, in the event of a major hurricane, to cover either the 1.3 million homeowners insured by state-run Citizens Property Insurance Corp. or the many private insurers that depend on the Florida Hurricane Catastrophe Fund for windstorm coverage.

The Cat Fund is facing an $18 billion shortfall in its ability to pay potential windstorm claims. Two key fund-rating agencies have said that unless the shortfall is closed, they will downgrade the ratings of the private insurers. If that happens, the homeowner policies of millions of Floridians would be worthless, and banks could invalidate mortgages that require qualified insurance.

A state task force has recommended that Citizens lift a three-year freeze on rate increases and boost rates by at least 10 percent a year for three years. Experts say Citizens' current rates are not actuarially sound.

State Farm Florida, which has about 1.2 million homeowner policies, said last month that it intended to phase out those policies by the end of 2011. That announcement followed the state's rejection of the insurer's request for rate increases that would average about 47 percent statewide.

After State Farm's announcement, Crist and some lawmakers said, in effect, good riddance.

"They probably charge the highest rates in the state anyway," Crist told reporters. "Floridians will be much better off without them."

Crist is now supporting legislation that would prevent State Farm from selling auto insurance in Florida if it leaves the property market. Sen. Mike Fasano, R-New Port Richey, who said he was "outraged" by the insurer's threatened pullout, is sponsoring the auto policy measure.

Crist and Fasano had reason to be upset. State Farm's rate increase request was rejected not only by Crist's insurance commissioner, Kevin McCarty, but by an administrative law judge. The judge said the insurer failed to show that the request was not "excessive."

The request followed a 2006 State Farm rate increase that averaged 52 percent and decisions last year to drop 50,000 coastal homeowners' policies and stop writing property policies. Nevertheless, more than a million customers have so far been willing to pay the well-capitalized company's higher rates. That alone should make the governor and Legislature temper their remarks and actions.

However unfair State Farm might have been, it's hard to see how Florida will be "better off without them."

While McCarty's conditional approval of the insurer's departure stipulates that it place its policyholders with private insurers and not "dump" them into Citizens, the difference might be negligible because private insurers rely on the state's Cat Fund for windstorm coverage. As noted previously, both Citizens and the Cat Fund are severely undercapitalized.

Rather than seek revenge on State Farm's auto policies - and the 2.8 million Floridians who hold them - it would be wiser for Crist and legislative leaders to confer with private insurers that still offer homeowner policies and determine how to adequately and economically provide hurricane protection for Floridians.

One possible solution would be through the creation of a national catastrophe fund that would pool the risk for disasters such as hurricanes, floods, tornadoes and earthquakes. Last week in Fort Myers, Crist personally lobbied President Obama for support of such a fund. Crist's voice might be amplified if it was backed by Allstate, Liberty Mutual and other major insurers.

What is clear is that Florida can't afford to make enemies of the insurance companies that, like itself, are in the risky business of providing coverage to homeowners and businesses in a hurricane-prone state.

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Switching Auto Insurance Could Save You Hundreds

2009-02-22T00:28:00.000-08:00

When was the last time you shopped around for auto insurance? Switching auto insurance companies could save you hundreds of dollars a year, CBS station KYW-TV reported.

"It's really amazing and disappointing that most people don't shop around for auto insurance," said Robert Krughoff with Delaware Valley Consumers' Checkbook. "Because most people will probably save hundreds of dollars and many people will save a thousand dollars or more by switching auto insurance companies.

Consumers' Checkbook recently compared insurance companies in terms of rates for a variety of policies.

"We found dramatic differences in price and real opportunities for people to save," Krughoff said.

For example, a Lansdale couple looking for basic coverage could pay as little as $1,054 with Travelers but as much as $2,643 for the same type of policy with Nationwide.

The price range for a policy on a Wilmington couple with one accident and a teenage son was $2,776 with Liberty Mutual and $4,528 with Progressive.

No matter which carrier you choose, you can lower you rates by raising your deductible on your collision and comprehensive to $1,000 dollars.

"That will save you a lot of money each year on average. It will save you a lot more money than you're ever going to collect from the company," said Krughoff.

Discounts are offered for a variety of reasons. Some include:

Insuring multiple cars.
Insure your car and home with the same carrier.
Have student drivers with good grades.
low mileage.

Along with prices, Checkbook also researched complaints filed with state insurance departments.

"And a third thing was that we actually surveyed body shop owners and asked them which companies would you want to be insured by because they know whether policy holders run into trouble getting coverage for certain types of repairs," said Krughoff.

Most often body shop owners gave Chubb, Erie and USAA the highest marks.

If you'd like to see how your insurance company stacked up against others and to see the rates that drivers like you are paying, you can look at the entire Consumers' Checkbook survey for free for one week.

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Dallas auto insurer by the mile, MileMeter

2009-02-18T04:48:00.000-08:00

More people are driving their cars fewer miles to cut dollar and environment costs while reaping rewards on fuel costs and the ecological environment. Now those drivers can earn another reward so to save on auto insurance as MileMeter in Dallas, Texas has created the biz model of auto insurance by the mile. This resonates greatest with public transportation commuters, seniors and students, the likeliest demographic of folks most likely to drive fewer miles and are focused on controlling cost. Rates can be up to 40% lower than standard insurance.

It truly is a great deal for those who can use it, like my son, the college student, who after stern warnings he would be removed from the family auto policy if he got another ticket, was indeed removed when he did. So he paid a heavy price to Nationwide, switched to Geico to save a few bucks, then found MileMeter and saved 60%+. So I checked them out myself for the family needs, that is, 4 cars, 4 drivers, but we drive too many miles to enjoy any savings. In fact, a couple of my vehicles did not meet their conditions for Physical Damage Coverage in that they are over 10 years old, but I want that coverage, so that condition is a negative one for my needs as well. There are other limitations that are fair and make sense, but one must go beyond miles to make a decision for MileMeter.

Getting a quote is very simple, better-faster-cheaper than calling an agent and answering all their questions or being on hold. The web site is easy to follow and very fast, even non-invasive, in that if you don’t commit they don’t hound you with follow up marketing offers. They’ve been in business to long enough to demonstrate their bona-fides, but are not yet permitted to sell policies into every state yet.

The question that should emerge is when will all the other auto insurers stop operating on an “all-you-can-eat” model which benefits the long-haul driver, and is content to simply average all drivers. The other side of that actuarial coin is the multitude of drivers who do not drive 12K miles/yr. The easy prediction is that the other insurance carriers will need a response when they discover market share disappearing and decide they should do something about it.

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AIG May Sell Auto Unit to Zurich

2009-02-15T04:51:00.000-08:00

American International Group Inc. (AIG) is actively engaged in talks to sell its U.S. auto insurance unit to Swiss insurer Zurich Financial Services, CNBC reports on its Web site. A source familiar with the matter said the auto insurance business is expected to fetch around $2 billion.

Part of AIG's U.S. personal lines unit, the auto insurance business includes selling products to high net-worth individuals through its AIG Private Client division. AIG CEO Edward Liddy previously said the private client division is not being sold.

The auto unit includes the 21st Century Insurance Group business, which AIG took over in 2007 when it bought out the minority stakeholders for $811 million, the report says. Zurich said it was looking for deals to bolster its North American personal lines and global life insurance businesses.

On Oct. 3, 2008, INN reported the insurer would sell its life insurance operations in the United States, Europe, Latin America, South Asia and Japan, as well as some of its personal lines property/casualty businesses.

At the time, Liddy said he preferred to sell "large slices" of AIG to "brand-name" companies because that strategy will hasten divestitures and benefit customers and employees.

Since then, AIG has sold HSB Group to German reinsurer Munich Re for $742 million, and its Canadian life insurance unit to Bank of Montreal for about C$375 million.

For more information on related topics, visit the following channels:

Insurance Network

5 Michigan Auto Insurers Pledge to Freeze Rates

2009-02-15T04:50:00.001-08:00

One week after Michigan Gov. Jennifer Granholm called on auto insurance companies to freeze their rates, five insurers have said they will comply.

In a Feb. 3 order, Granholm asked each automobile insurance company doing business in Michigan to pledge to freeze automobile insurance rates in Michigan for a 12-month period effective immediately, but no later than March 1, 2009, while the Michigan Legislature works to enact automobile insurance reform.

As of Feb.10, according to the Michigan Office of Financial and Insurance Regulation, the following insurance companies had pledged to freeze rates for a 12-month period: American International South Insurance Co., Electric Insurance Co., IDS Property Casualty Insurance Co., Merchants Mutual Insurance Co. and Wolverine Mutual Insurance Co.

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American Insurance Association calls defeat of Wyoming insurance bill a victory for insureds

2009-02-15T04:47:00.000-08:00

WASHINGTON, D.C. – The American Insurance Association (AIA) commended the Wyoming House of Representatives for rejecting H.B. 168, Motor Vehicle Financial Responsibility, a bill that would likely have increased costs and led to more uninsured motorists in Wyoming. HB 168 proposed to increase the financial minimum limits on personal auto liability coverage from 25/50/20 to 50/100/25 for bodily injury or death, and injury to or destruction of property. In addition, HB 168 would have mandated UM/UIM coverage (at the level of the proposed financial minimums) and no longer allowed it to be an optional coverage.

“The defeat of this legislation is a victory for Wyoming insurance consumers during this most difficult economy,” says John Marlow, AIA assistant vice president of state affairs. “It’s unnecessary to mandate higher minimums as long as people may purchase higher limits on their policies if they wish, rather than being forced to do so.”

According to AIA, existing limits are more than satisfactory to cover typical liability exposures. ISO Fast Track Data for 2007 shows that private passenger auto liability paid claim severity averages in Wyoming were $14,851 for bodily injury liability and $2,877 for property damage liability — well below the current financial minimum coverage required by law.

“This bill would have negatively impacted the most economically vulnerable drivers who are trying to meet the state’s current legal requirements for auto insurance coverage,” says Marlow. “Consequently, this legislation would have inadvertently pushed more drivers into the ranks of the uninsured.”

For more information visit www.aiadc.org.

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Drive less, pay less with insurance innovation

2009-02-15T04:46:00.000-08:00

DALLAS — Do you buy more auto insurance then you actually need? It's estimated that millions of Texans do.

A new company says it can save you hundreds by selling insurance by the mile.

"Yeah, we sell insurance," said MileMeter founder Chris Gay, "but we sincerely believe we are making the world a better place in the long run."

The concept is based on a simple question: Why should a driver who puts 15,000 miles a year on his car pay the same rate as someone who drives 4,000 miles?

"Insurance costs a lot of money because the insurance industry — gosh what's a nice way to put it?" Gay asked.

The short answer is: because it can.

But after six years of work and miles of plowing through government red tape, Gay's company just began offering insurance-by-the-mile, and it's only happening in Texas.

Mileage-based insurance can be a real deal for people who drive less, and are therefore less likely to get in a costly accident. Drivers like Tyler Pharr in Dallas.

"Time spent in your car is just wasted time," he said. "It will take years off your life."

Pharr is a new MileMeter customer who often works from home and shares rides with friends and neighbors. "I'll probably end up saving 2 or 300 bucks this year," he said.

Pharr is (or was) the most profitable kind of customer for a big insurance company.

"The quickest way to make someone change is to take away what they thought they were entitled to," Gay said. He hopes, in the process of making a profit, that MileMeter will force the big insurance companies to change.

That's exactly what Patrick Butler envisioned more than 25 years ago. He's been lobbying state governments around the country to help low-mileage drivers. Texas acted first, hoping to provide more affordable coverage for uninsured drivers.

Until now, Butler says drivers in low-income neighborhoods have paid the highest rates."The insurers look at those zip codes and they raise the prices," he said.

But Chris Gay says insurance-by-the-mile is an idea that's good for both poor and rich — anyone who owns a car they rarely drive.

"Sitting in the garage, barring an act of God, a meteor falling from the sky, you're probably not going to get in an accident and file a claim against your insurer," Butler said.

As a new company in a mature industry, the odds are against MileMeter going the distance. But then again, insurance is a $165 billion industry, so a little success can go a long way.

The trade group for large insurance companies in Texas says MileMeter is a novel idea and it welcomes the competition.

"I think it's unstoppable now," Butler said.

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Discount Diva: Make time to write down a budget

2009-01-31T08:32:00.000-08:00

Whether you’re giving your finances a complete overhaul or just a tune-up, creating a budget is key. But it ain’t easy.

Your pulse races. Your head pounds. You want to whack your smirky husband in the head with his little bottle of orange Gatorade because he keeps pawing the calculator. But that hour of frustration is worth the months of smoother sailing and financial stability it will bring.

And fortunately, the Internet is filled with free budgeting tools to help you get the job done. I like BankRate. com’s Home Budget Calculator. It breaks everything down so all you have to do is gather your bank statements, pay stubs and bills and take a deep breath. Once you’ve got a handle on where everything is being spent, you can take stock and tweak areas that might be out of whack. To be sure you’re living within your means, financial-planning Web site Crown.org suggests how areas of spending should measure up:

•Housing: Housing should make up no more than 30 percent of your net spendable income (money left after taxes and charitable giving). This category includes mortgage or rent, home insurance, maintenance (such as new furnace filters or weather stripping) and utilities.

• Food: Things like groceries — not dining out — should comprise about 11 percent of your budget.

• Automotive: The family car makes up 14 percent. Take a close look at this one. Lots of folks overspend in this category for the sake of driving something flashy. This includes your car payment, auto insurance, maintenance (think oil changes) and replacements (such as brake pads).

• Personal insurance: Coverage such as life, health and disability insurance, covers 5 percent.

• Repayment of debt: Getting in the black gets 5 percent. However, this category can vary greatly. Paying off debt should be a priority, so it’s worth shaving off expenses in other areas to devote more money to repayment efforts.

• Entertainment: Dining out, vacation and recreational activity and movies get a suggested 7 percent.

• Clothing: Your wardrobe covers 6 percent. Crown.org suggests allotting $10 per month per family member, even if it goes into a piggy bank. That way, you won’t get caught short when it’s time for back-to-school clothes or new winter boots.

• Savings: Crown.org favors socking away 5 percent, but there are a lot of variables here. You’ll want to make savings a top priority. Once you’ve got a healthy cushion in liquid savings — enough to cover at least three to six months of expenses — concentrate on debt repayment. Money has less power sitting in a low-yield savings account than it does blasting away at high-interest debt.

• Medical and dental: Costs such as physician payments get 4 percent.

• Investments: Money for stocks, bonds and mutual funds tallies 5 percent.

• Miscellaneous: Only 8 percent of your budget is left for all those expenses that don’t seem to fit anywhere else.

• Child care: If you’ve got child care expenses, they should comprise about 5 percent of your budget. But since it’s not figured into the standard formula, it’s up to you to decide which categories you want to steal from to make up that percentage.

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BCAA Insurance rewards customers for commuting car-free

2009-01-30T08:32:00.000-08:00

BURNABY, BC, Jan. 12 /CNW/ - Using alternative forms of transportation is
not only good for the environment, it's also good for your pocketbook, thanks
to a new initiative from BCAA Insurance. The company's "Evenings and Weekends"
Auto Insurance plan - the first in B.C. - rewards those who leave their car
behind when commuting during the week by offering a 15 per cent discount on
collision premiums. The "Evenings and Weekends" discount is available only on
BCAA's Advantage Auto, member-exclusive optional auto insurance.
   "Evenings and Weekends" Auto Insurance is designed for customers who
either work from home, or commute to work or school using an alternative form
of transportation, such as walking, cycling or public transit. Some other
insurance companies offer a discount for hybrid vehicles, but this coverage
applies regardless of the type of vehicle an insured drives.
   "At BCAA Insurance, we're listening to customers who want
environmentally-friendly products and want to be rewarded for 'green'
behaviour," says BCAA Auto Insurance Product Manager, Heather Prizeman. "With
BCAA's discount, saving the environment and saving money can go hand in hand."
   Insurance is based on the doctrine of "Utmost Good Faith", and any
"Evenings and Weekends" customers who risk driving between 6 a.m. and 6 p.m.,
Monday to Friday, will be subject to a higher deductible if they are in an
at-fault collision during that time.
   To celebrate the launch of BCAA's "Evenings and Weekends" Auto Insurance
and a range of eco-conscious home insurance options, BCAA is giving away a
fuel-efficient 2009 Toyota Prius hybrid. Visit www.bcaa.com/green for details
on how to win.

   BCAA Insurance is one of the largest providers of home, auto, travel
medical and life insurance in B.C. BCAA insures over 115,000 homes and 195,000
vehicles in the province. Each year, BCAA sells more travel insurance than any
other provider in B.C. To learn more about the products and services offered
by BCAA Insurance, visit www.bcaa.com.

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Drivers Dropping Car Insurance Cite Poor Economy

2009-01-29T08:31:00.000-08:00

It's a dangerous new trend that could end up costing you thousands of dollars, even when you're not at fault.

Insurance agents say more and more customers are dropping their car insurance because they can't afford it.

Agents encourage anyone thinking of canceling their policy to call their agents first to try to come up with another solution.

You can often save money by signing up for the minimum coverage.

Agents at Bob Shropshire Sons Downtown say they've seen more and more customers fall behind on their auto insurance payments.

"It could be anything from loss of job and loss of income. A lot of people that are used to getting the overtime, a lot of these companies are scaling back now and they may not have that. A family member or themselves might be hospitalized, medical bills and things like that come up," explained Christopher Shropshire of Bob Shropshire Sons.

AAA says the Insurance Research Council found it's a trend that's happening across the nation, but cutting the average $60 monthly insurance bill from your budget could be your costliest mistake.

"Driving without insurance is really a big gamble. Uninsured motorists face legal fees, fines, penalties including a suspended license. They're often required to pay a 25 to 50 percent surcharge to secure a new auto policy," said Elaine Zeinner, AAA Public Affairs Manager.

It's against the law in Ohio, Indiana, and Kentucky to drive without auto insurance.

If you're caught without it, you could go to jail.

Get in an accident without insurance and you could lose much more if you're sued by the victim.

"Their job, income, garnishing wages and they might be forced to sell their home," Shropshire explained.

AAA says research all of your options before allowing your policy to lapse.

"Some easy safe ways for people to save on their auto insurance include combining their auto and home insurance. You can get discounts of up to 30 percent. You can increase deductibles," Zeinner explained.

Insurance agents say this is a good time to check your own policy.

You want to make sure that your policy includes uninsured or underinsured coverage and that it's equal to what you have on your own policy.

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The Cost Of Insurance Ignorance

2009-01-28T08:29:00.000-08:00

Most insurance agents are paid to sell product, not to help clients manage risk. Knowledge can correct this problem.

Today everyone wants to increase cash flow. All kinds of cost-saving ideas are shared and written about by professionals around the country, but no one is discussing the number one area that can dramatically reduce your cash expenditures. That area is insurance.

In my 30 years of financial planning, I have learned one undeniable truth. If people would manage risk rather than "buy insurance," they can save real money in the long run.

Article Controls

First, let us define risk management. Risk management is the process of analyzing the financial impact of an event (such as a death, disability, property loss, etc) and determining the most cost-effective way to minimize the potential of it causing economic hardship. It does not mean limiting your out of pocket expenses to zero when an event occurs, but merely preventing economic hardship.

Most people buy insurance so that it covers every dollar of medical bills or pays for all repairs of an auto or home loss, with a small deductible. This type of mentality causes too many dollars to go toward nominal risks and too few dollars to go toward the true risk.

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Second, economic rewards cause insurance to be sold rather than for advisers to do prudent risk management. For example, there is nominal economic incentive for insurance agents to help people do prudent risk management in the case of life insurance. How many times have you heard an insurance agent tell you that you needed less coverage?

Auto and home insurance rates vary widely from company to company and agents (even independent ones) can only represent a few firms which may or may not be the best deal in your locale.

Lastly, the marketing of insurance policies plays on individual fears and greed to lure customers into worthless gambling-like policies. An example of this would be accidental death insurance, which would shock most purchasers if they actually read the policy description of "an accident" to collect a claim.

Comment On This Story

Why do people (especially those who are younger) think they are most likely to die accidentally when statistically they are at least 10 times more likely to die due to sickness? Other types of insurance marketing that have little risk management benefit are cancer insurance and hospital income insurance. The costs are usually low and you may actually collect, but consider it gambling and not managing risk. Who wants to win one of these kinds of gambles?

Based on my decades of experience in insurance and risk management, I believe that four out of five people will likely save on the cost of their risk management plan by keeping in mind several key points.

1. Most families purchase life insurance to provide funds to surviving family members. Therefore, if you are single and buying insurance you probably have little need for a life policy. If you are married and don't have children, only buy insurance if the surviving spouse would struggle economically; for example, if you have a very large mortgage that cannot be paid on one salary. If you're married with children and you need insurance consider a 15-year term life insurance policy and get rid of any whole life or adjustable life that an agent sold you.

A 40-year old non-smoker should be able to buy $1,000,000 of 15-year term insurance for $450 to $900/year depending on health. The length of term life insurance (10 year, 15 year) purchased should line up with when your major financial commitments will have diminished (college costs, mortgage, other debt). Shorter terms reduce the cost of the insurance dramatically.

2. Group life insurance is often viewed as extremely cost effective, but unless the company subsidizes the premium, group life insurance is often 25% to 100% more costly than a simple 15-year term policy. Specifically the Federal Employee Government Life Insurance (FEGLI) is one of the least cost-effective policies.

3. Homeowners insurance should carry no less than a $1,000 deductible or substantially more if you can afford the first $1,000 to $5,000.

4. Auto insurance cost is mainly dependent on the company, your driving record, the type of car and your credit score. That's right--credit score. Insurance companies have found a high correlation between credit worthiness and driving safety.

So buy a boring, inexpensive car, drive safely, improve your credit score and then shop for insurance. People think that if you have been with an insurance carrier for many years they will treat you better if an accident occurs. This is only true if a company has a forgiveness program and it still may be beneficial to switch.

If an accident were to occur, then the rate increase would likely not be more than 40%. If you are saving 20% per year or more, then it may still make the switch worthwhile. Some cost-effective companies to consider are Amica Mutual, Geico, Progressive (nyse: PGR - news - people ), Erie (mid-Atlantic only) and USAA (military only). There are numerous no-agent online programs and Progressive specifically has a very good search engine for their rates and cost comparison to other companies.

5. Long-term care insurance is sold on fear and most people pay for much more coverage than they need. Long-term care insurance should not be purchased to pay every dollar of care, but to pay the portion that your own income and assets could not afford over an extended period of time, perhaps six months or more.

Typically I find that people with less than $250,000 of assets or more than $2,000,000 of assets are unlikely candidates for long-term care insurance. People in the middle can normally self insure between 25% and 50% of the risk with their own income and assets.

6. There is no guarantee that insurance purchased via membership in an association will be cost effective. The American Institute of Certified Public Accountants has a great disability and life plan for members that are tremendous cost savers.

The Association of Retired Persons, AARP, on the other hand is costly to any members who are moderately healthy. AARP members should shop around and never assume the association has your best interests at heart.

7. Medical insurance is an economic mess in the U.S., but we are not going to fix that in this article. The best thing you can do today is get a high deductible medical insurance plan with a health savings account (HSA). The HSA allows you to keep your money in lieu of paying insurance premiums accumulated until (hopefully never) the need arises. This can easily allow a moderately healthy family to accumulate $1,000 to $2,000/year in insurance premium savings. The HSA also can be used tax-free for expenditures not typically paid for with tax-free dollars--over the counter drugs, dental bills, eyeglasses.

All insurance has numerous factors that can make one person's situation very different from another's. The key is to learn true risk management practices and only insure to prevent economic hardships. Never do your risk management with an insurance agent unless you are certain you understand the coverage and spectrum of opportunities to manage the risk.

Lastly, the best advice may be to find a comprehensive, fee-only adviser who can analyze your risk management plan and make savings recommendations.

Times like these help us realize how the conflicts of interest of the financial services industry have helped companies and their sales agents, but have been an outright failure in providing truly professional advice to the American public.

Arroyo Insurance Services Sees Increase New Business

2009-01-27T08:29:00.000-08:00

Whether it's reducing business expenses, getting coverage after bankruptcy, business auto insurance, professional liability insurance or worker's compensation, Tim Pine with Arroyo Insurance Services is an established California business insurance broker with excellent personalized customer service.

Orange County, CA (PRWEB) January 13, 2009 -- California Businesses are facing a lot of challenges in the current economic environment, and one of the biggest challenges is maintaining their various insurance policies while still staying in the black. The first days of 2009 have shown that many businesses are actively shopping to make sure they are receiving the best possible value. Arroyo Insurance Services offers California businesses access to over 50 A+ rated insurance carriers for a wide range of insurance policies including worker's compensation, business auto insurance, and general liability. Arroyo Insurance Services has $120 million in written premium and can help businesses that are looking to save on insurance costs while still getting the best coverage.

"These are tough times and while we never suggest dropping existing coverage, if you sit down with a client and spend some time evaluating areas where they are over insured or perhaps would be better off with another carrier we can usually save them a significant percentage," says Timothy Pine, a commercial insurance broker with Arroyo Insurance Services.

Reducing business expense is top of mind with businesses these days, and Arroyo Insurance Services works individually with each client to find a solution that is most cost effective while maintaining the integrity of the coverage. Business auto insurance is one area where companies are looking for savings.

"For a January renewal, I sat down with a prospective new client to review their existing policy and determine where we could save money. This particular client was on the brink of going out of business so every dollar in premium we could save them improved their position. My goal as their broker was to understand their business risks and build a program that covered their risks and if possible saved them money. They had a fleet of 12 vehicles but only 5-7 were being used on a daily basis since early September. We looked at the next year and determined that by placing a little more than half of the fleet in non-operational status we cut their business auto insurance by half, saving more than $30,000 in premium," says Pine.

Bankruptcy reorganization is another issue that businesses face in these tough economic times and often their insurance carriers will drop a business that has gone through a bankruptcy. Arroyo Insurance Services can work with a business that has gone through a bankruptcy and is restructuring and can find a carrier that will take them on. Arroyo Insurance Services knows the market and knows the issues that can arise after a bankruptcy, including mergers, which require specialized insurance knowledge.

Arroyo Insurance Services offers a full range of commercial insurance services to businesses, with big agency options and excellent and personalized service tailored to the particular need of a business.

For additional information, visit http://www.socalinsurancebroker.com or call (800) 401-6764.

About Arroyo Insurance Services - Arroyo Insurance Services is one of the top 20 largest insurance brokerages in Southern California that offers a wide range of commercial insurance services. They have access to over 50 top rated insurance carriers and provide general liability, worker's compensation, business auto insurance, business owner's policies and claims management services with excellent, personalized customer service and a dedication to saving their clients money on insurance premiums.

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A Strong Market for Insurance ... for Automobile Drivers

2009-01-26T08:28:00.000-08:00

When you go to buy auto insurance in Georgia, you have almost 90 companies to choose from, says the Georgia Public Policy Foundation.Yet for most people, their choice of health insurance comes down to the two or three companies offered by their employer.The difference? The tax code doesn't warp the market for auto insurance the way that it does for health insurance.

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6 things to know about insurance credit scores

2009-01-25T08:27:00.000-08:00

By Andrew Housser

Most likely, you know that you have a credit score that affects your chances of being approved for credit and the rates you pay for loans. But you might not know that you also have a separate, credit-based "insurance credit score" that affects the rates you pay for auto insurance.

Three major credit reporting agencies -- Equifax, Experian and TransUnion -- each report consumer credit scores, generally based on a formula designed by the Fair Isaac Corporation. Credit scores, which range between 300 and 850, are calculated using mathematical methods that incorporate credit history, amount of credit used and available, number of late and on-time payments, whether any payments due are in default and other variables.

Insurance companies use a variant of credit scoring, developed specifically for their industry, to help predict an individual's likelihood of filing an insurance claim.

In underwriting auto insurance, driving history remains the key factor, but insurance credit scores play an important role as well. Several studies have shown that credit information can indicate how a person manages financial risk. People who manage their finances responsibly also tend to have fewer accidents, which translates into lower costs for insurers. Those people, in turn, can receive lower rates on insurance premiums because they are less likely to incur costs for insurers.

With credit scores figuring heavily into insurance credit scoring, the insurance industry states that insurance scoring benefits a majority of consumers, because most people have good credit scores. The median credit score is 723, according to Fair Isaac. About 45 percent of consumers have a score between 700 and 799, and another 13 percent score above 800.

What does that mean for your insurance rates? Here are a few things to know about insurance scores -- and how you can improve your score.

Insurance scores take debt, payments into consideration. Insurance scores examine debts, payments, credit history, bankruptcies and new applications for credit. If you have a number of new credit cards or carry high balances, those behaviors might count against you, even if your income is high. Solution: Use credit cards judiciously, make sure to pay off balances in full monthly and think twice before opening new accounts.
Insurance credit scores are based on credit information. Insurance credit scores operate under federal laws that prohibit discrimination against consumers for reasons of ethnicity, religion, gender, marital status and birthplace. Therefore, insurance credit scoring is based solely on credit information, not on any personal information.
Nearly all states permit insurance scoring. Only Hawaii prohibits insurance scoring to rate auto insurance policies. Several states do have restrictions on the books that limit how insurance scores can be used.
4. Insurance scoring is research-based. The industry has used credit information in making rating decisions since 1970. Several studies have affirmed that there is a connection between credit history and the likelihood of a person filing an insurance claim.
5. Negative issues diminish from the score as time passes. More recent credit activities have a greater impact on the insurance score than older behaviors. Solution: Work to pay bills on time and keep credit usage manageable to improve a less-than-perfect score.
6. You will be notified of score-based rates. If your insurance rates increase because of your insurance score, most companies are required to notify you. The notification -- called an adverse-action letter -- will include information on how to learn more about your score. Solution: Check your credit report regularly. If you see any inaccurate information, take steps immediately to correct the information. Also tell your insurance underwriter about any inaccuracies so that the insurer can choose to evaluate your rates differently.

Overall, the insurance industry maintains that insurance scores help most people pay less for their insurance. The scores also are said to help assign costs of coverage fairly to consumers, based on their risk profiles, and to provide fair tools for insurers to make decisions.

One thing is for sure: Insurance scores are here to stay, and so they create another reason to be smart about managing your money and credit.

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Fiscal Fitness '09: Trim $240 From Your Home Insurance Tab

2009-01-24T08:25:00.000-08:00

Today's tip is part of our Fiscal Fitness '09 series. Every weekday this month, you'll get help getting fiscally fit as we work toward our goal of saving $2,000 to invest in three stocks!

On Monday, we went over simple ways to save $400 on your car insurance premiums. If you were paying attention, today's money-saving task should be a breeze.

Many of the same strategies for slashing auto insurance premiums -- such as increasing your deductible and making safety improvements -- can be used to cut the cost of covering your home, too.

The payoff is similar as well: Just a few simple tweaks could instantly trim your premium by $240 or more without sacrificing your level of coverage. With the average homeowner paying about $800 for coverage, according to a J.D. Power and Associates study, we're talking a 30% break on one of your biggest bills.

Three moves to $240-plus back in your pocket
Again, the following tips will sound familiar if you've already tackled our car insurance cost-cutting drill.

1. Raise your deductible and save up to 25%: According to the Insurance Information Institute, raising your deductible to $1,000 (from $250) can lower your annual premium by as much as 25%. (One note on homeowners insurance deductibles: If you live in a disaster-prone area, your policy may require separate deductibles for windstorm, hail, and earthquake damage.)

2. Purchase all your insurance from the same company and save 5% to 15%: Combining all your insurance business with one company can earn you a volume discount. Travelers (NYSE: TRV), Allstate (NYSE: ALL), and Mercury General (NYSE: MCY) all offer discounts when you buy two or more types of insurance. If you insure your car with a different company or have an umbrella liability policy elsewhere, ask what kind of deal you can strike by giving your home insurer all your business.

3. Cover small claims on your own and save 5% to 35%: Obviously you can't control the whims of Mother Nature. However, if damage is done to your abode -- whether it’s from weather or from man-made annoyances, like letting the bathtub overflow -- footing the bill on your own instead of filing a claim can be the prudent way to go for several reasons. Since claims go on your insurance record (similar to your credit report), the size and type of the claim can affect your future premiums and even put your insurability at risk. On a more tangible level, a claim-free record can earn you dollars off your premiums. Making no claims over a three- or five-year period can qualify you for a 5% discount for each year thereafter, typically maxing out at 25% to 35%. That's $40 to $280 off on an $800-a-year premium.

Every percentage savings counts
For extra credit -- and extra cash -- here are other tactics to trim your homeowners insurance premiums:

Reinforce your Fort Knox: Things like deadbolts, smoke alarms, fire extinguishers, and burglar alarm systems offered by companies like ADT and Brink's Home Security (NYSE: CFL) don't just help you keep your home safe. They can also net you discounts of 5% (for standard fare) and as much as 20% (for a sprinkler system and alarm that automatically calls the police).

Upgrade your infrastructure: Improvements to your plumbing or electrical systems may qualify for discounts. When you make improvements, be sure to inform your insurer and see if they'll give you a break. This is also helpful if insurability is an issue. So ask if making a few fixes (e.g. installing a new roof or replacing an old boiler) will help.

Weather-proof your home: Punch your zip code into the search engine at disastersafety.org for suggestions on how to shore up your home against the elements in your locale. Adding things like storm shutters and shatterproof glass and reinforcing your roof may earn you breaks on your premiums. Moreover, home-improvement companies like Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) make it easier, with guides to installation and even instructor-led classes.

Kick butts: Quitting smoking is good for you in many ways, one of which is that some insurance companies will trim the cost of premiums for customers insuring a home where no one smokes.

Check to see if you're really still insuring that: If it’s been a while since you reviewed your coverage, you may be paying top dollar to insure no-longer-priceless stuff. Your once-new computer equipment is probably worth a lot less years later. Also, if you've gotten divorced or sent your kids off to college, there's less stuff to cover. Let your insurer know that.

Warning: Don't dump your insurer on a whim
It might be tempting to jump ship to save a few bucks. Think twice -- thrice, even -- before doing so.

Loyalty has its rewards -- and moving your business may mean sacrificing good-customer discounts you've earned over the years. Plus, insurers looking to trim their portfolios will often start with newer, more uncertain customers.

More ways to save ...

Don't get shortchanged if disaster strikes: Surveys show that more than half of U.S. homes are underinsured by an average of 22%. Coverage based on generic formulas ($65 to $150 per square foot) won't cut it if you've renovated or failed to account for rising building costs. For $7.95, accucoverage.com will calculate your home's replacement costs. Also missing from many policies are flood insurance (assess risk and find providers at floodsmart.gov), sewage backup coverage, and adequate liability coverage, which run as little as $250, $50, and $25 a year, respectively, according to Kimberly Lankford's The Insurance Maze.

Check your risk reputation: If you've made all the right improvements but still feel like you're paying too much for insurance, there may be something in your claims history that's spooking insurers. Premiums and eligibility are based on the five-year claims history in your home and auto insurance files. Your personal claims history and your property's history will be on file if you have one. In some states, your credit history plays a factor in setting rates. ChoicePoint (an Equifax (NYSE: EFX) spinoff) is the dominant insurance records bureau. If you have a personal or property claims file (not everyone does), choicetrust.com allows you one free look a year at your C.L.U.E. (Comprehensive Loss Underwriting Exchange) report. So does ISO Insurance's A-PLUS (Automobile-Property Loss Underwriting Service), which shows your car and property claims history through the eyes of an insurance underwriter. (Call 800-709-8842 to see yours for free.) If you really need your insurance score (similar to a FICO score), ChoiceTrust offers home and auto insurance scores for $12.95 each, including an Equifax credit report.

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BLAKE: Check insurance bill closely

2009-01-23T08:23:00.000-08:00

The semi-annual packet from Little Green Lizard Inc. told me that my auto insurance premium for the next six months was going up by almost 20 percent.

That seemed unreasonable. There'd been no accidents, no claims, no tickets. But buried deep in the pile of paperwork was a "Dear Policyholder" letter that explained most of the hike: Under a new Colorado law, I must buy at least $5,000 in "medical payments" coverage "unless you, the named insured, reject the coverage in writing."

Ah! The ever popular negative-option purchase. If a company tried such a ploy on its own, the attorney general's office would go after it hammer and tong, just as it did in the bad old days when record companies and book clubs would send you unsolicited products and bill you if you didn't return them.

But what's a legislature for if not to mandate scams that would otherwise be illegal?

If you haven't recently received a similar letter from your car insurer, you will, just before your next premium comes due. The law became effective Jan. 1.

Medical payments coverage provides extra money for you and your passengers in the event of an accident, even if it's not your fault. It is already an option, in amounts from $1,000 to $100,000, from most companies. But you have to select it.

Only an estimated 32 percent of Colorado policyholders choose to purchase it. Why? Because if you are a senior on Medicare, or already have health insurance, it's a redundant cost. You've already got such coverage.

The annual rate for $5,000 in medical payments coverage varies from company to company, but it is about $60 per car per year, said Carole Walker, director of the Rocky Mountain Insurance Information Association. My company is asking a little more than that.

The medical payments bill, which received virtually no media coverage, was promoted by something called the Trauma Care Preservation Coalition, made up of ambulance providers, first responders, hospitals and emergency room doctors. They argued that they weren't getting paid as quickly as they did under the no-fault insurance law, which Colorado had from 1974 to 2003.

But no-fault is expensive. A study commissioned by Gov. Bill Ritter last year found that premiums dropped 35 percent in the five years since the tort system was readopted.

But no-fault keeps crawling up out of the swamp because lawyers, ambulances, first responders and the various tangential health providers (remember the aroma therapists?) profited from it. They have lobbyists and the average health consumer doesn't. The legislature responds more quickly to lobbyists.

Auto insurance companies were opposed to the medical payments bill, which was an amalgam of three separate measures. But Walker said the industry finally agreed to the final version on grounds that it was the "least onerous" alternative.

To be sure, there is another negative option in insurance law: Uninsured (and underinsured) motorists coverage. But more than 90 percent of our policyholders are happy to have it. They know what's out there on the road.

The medical payments bill included one more peculiar provision: For the first time in Colorado (or any state's) history, it prioritizes payments by the insurers. The first specified payee is the ambulance company, followed by the ER docs, then the various levels of trauma centers.

Prioritization means delay. If the ambulance company is slow to bill, everybody else has to wait longer than usual.

Read your next auto insurance packet closely and discuss medical payments with your agent, if you have one. Don't pay again for coverage you might already have, or don't want.

I signed the opt-out page and then presumptuously subtracted the $100 for medical payments from the total bill. But then I forgot to put the opt-out page in the same envelope as the check. I sent it along later. I expect the little green lizard himself to show up on my doorstep demanding an explanation for my confusion.

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Parents of Teen Drivers in South Carolina Can Save up to 25 Percent on Auto Insurance

2009-01-22T06:12:00.000-08:00

Nationwide Chooses South Carolina to Launch National Pilot Discount Insurance Campaign

COLUMBIA, S.C., Nov 06, 2008 (BUSINESS WIRE) -- Nationwide Mutual Insurance Company announced today the introduction of the Nationwide Insurance Family PlanSM, a program available exclusively to the company's customers in South Carolina. The pilot program will allow parents of teen drivers to save up to 25 percent on auto insurance for their children.

With the Nationwide Insurance Family PlanSM, parents who have multi-line discounts with Nationwide can apply the same discount insurance to their teen driver's auto insurance policy. If the young driver maintains a good driving record, they can keep available discounts when they are ready to separate from their parents' car insurance policy.

"In the current economic conditions, we know that people are looking for any way they can to save money," said Terrance Williams regional vice president of southern states for Nationwide. "It can be very expensive when teenage children begin to drive. We hope that the Nationwide Insurance Family PlanSM will provide some relief to already tight family budgets."

A recently released report from the National Association of Insurance Commissioners showed that the average auto insurance expenditure in South Carolina increased by $2.27 in 2006. It is likely that auto insurance expenses in South Carolina have increased even more since then. Legislation passed by the South Carolina General Assembly, which took effect January 1, 2007, has increased minimum liability requirements for South Carolina drivers. It is likely that this will be reflected in next year's NAIC report, which will include numbers from 2007.

Nationwide will pilot the Nationwide Insurance Family PlanSM for South Carolina car insurance customers for the rest of the year. Based on the program's success, the company will evaluate the possibility of making it available for customers across the country.

"South Carolina is an important state for Nationwide," said Williams. "We have a strong customer base here that we'd like to maintain and grow. The Family plan allows us to deliver even more value for our customers, particularly those with families and multiple insurance needs."

Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $161 billion in assets. Nationwide ranks #108 on the Fortune 500 list. The company provides a full range of insurance and financial services, including auto insurance, and motorcycle, boat, homeowners, life, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.

Nationwide, the Nationwide framemark and On Your Side are federally registered service marks and Nationwide Insurance Family Plan is a service mark of Nationwide Mutual Insurance Company.

SOURCE: Nationwide

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Alberta Sees 8.8 Per Cent Increase in Auto Insurance Rate Quotes in Year-End Study

2009-01-21T08:21:00.000-08:00

2009-01-15 10:51:03 - The study, designed to spot and highlight the pricing trends of car insurance in Alberta, identified an 8.8 per cent increase in the average lowest rates quoted for auto insurance in Q4 2008 compared to the same time period in 2007.

Toronto, ON, January 15, 2009 -- Today, Kanetix® (www.kanetix.ca), Canada's shopping marketplace for insurance quotes, released the results of their quarterly Alberta auto insurance premium study.

This ‘end of year' increase comes as no surprise. While past studies suggested Albertans shopped for newer vehicles resulting in higher premiums because they typically include more coverages, this is not the reason for the increase this time around. Instead, it is due to higher car insurance rates

In the summer of 2008, the Alberta Auto Insurance Rate Board announced a 5 per cent increase in the mandatory auto insurance premiums. This increase came into effect on November 1st. If you also consider that rate increases by several insurers to the additional Alberta car insurance coverages (like collision and comprehensive premiums) were implemented, the year-over-year comparison was sure to be higher.

'No one wants to hear about car insurance premiums going up, especially given all the negative news regarding the economy,' suggests George Small, Co-founder of Kanetix.ca. 'That's why now is the time to make sure you are getting the best rate for your car insurance coverage. Simply put, why pay more than you need to for your car insurance? Too often people overpay because they assume all insurers rate their policies the same, but a simple visit to Kanetix.ca to get quotes will show how the rates insurers offer can vary wildly.'

As an online auto insurance shopping service that provides real-time quotes from many well-known competing insurers, Kanetix is in a unique position to empower insurance consumers with the tools needed to not only anticipate car insurance trends, but also to compare auto insurance quotes to find the best rate for the car insurance coverage they need.

About the study
Intended as a tool to spot and highlight the pricing trends of car insurance, the Kanetix Alberta car insurance rate study is released quarterly. Kanetix believes this study to be an accurate reflection of what Alberta auto insurance consumers are seeing when they get their renewal notice from their current insurer, as well as when they shop around for coverage. The study includes all drivers, regardless of their driving or insurance history, and includes the lowest car insurance rate quoted, no matter which company provided it (e.g. direct writing companies or broker-based insurers).

The results of the study are determined by comparing the average of the lowest auto insurance premiums quoted online for Alberta shoppers through Kanetix in Q4 2008 (i.e. October, November, and December) with the average from the same period in 2007. The results, and resulting interpretations, are based on the profile information as it is entered by the shopper and may not represent their accurate driving profile or vehicle data. As such, Kanetix can make no representation or warranty, either expressed or implied, as to the accuracy of this information.

About Kanetix
Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix insurance information and shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

In addition to the insurance marketplace, Kanetix is a leading provider of online insurance quotation technology and develops online quotation systems and websites for some of Canada's leading insurance providers.

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Media Advisory - Issues raised about court decision upholding auto insurance cap: Insurance Bureau of Canada available to respond

2009-01-20T08:21:00.000-08:00

HALIFAX, Jan. 15 /CNW/ - There was a press conference this morning in
response to the recent court decision regarding the $2,500 cap on pain and
suffering awards for minor injuries.
   Insurance Bureau of Canada representatives are available to respond.
Please call James Geuzebroek to arrange an interview.

   Insurance Bureau of Canada is the national industry association
representing Canada's private home, car and business insurers. Its member
companies represent nearly 95% of the property and casualty (P&C) insurance
market in Canada. The P&C insurance industry employs over 110,000 Canadians,
pays more than $6 billion in taxes to the federal, provincial and municipal
governments, and has a total premium base of $38 billion.
   To view news releases and information, visit the media section of IBC's
website at www.ibc.ca.

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AAA Michigan says it will lay off 146 workers

2009-01-19T08:20:00.000-08:00

AAA will announce layoffs of 200 employees today in a six-state region that includes Michigan, primarily because more members are conducting their business through the Internet and avoiding the trip into branch offices, said an AAA Michigan official.

Some 146 of those layoffs will be in Michigan, including 75 in Southeast Michigan, said Nancy Cain, AAA Michigan public relations director.

The layoffs will be effective over the next month.

“More people are using the 1-800 number and going online to purchase auto insurance, make claims and contact us for travel information,” Cain said. “We are seeing less traffic coming through our branches.”

Over the past seven years, branch visits have declined 5 percent each year, Cain said.

AAA also will close 14 branch offices in Michigan, including three full-service centers and 11 insurance sales offices, Cain said.

In Southeast Michigan, two full-service centers will close in Royal Oak and Roseville, and two sales offices will close in Detroit and Warren.

Still, 35 full-service branches will be open in Michigan, including 18 in Southeast Michigan.

The layoffs and office closures will save AAA $25 million this year, Cain said. In 2008, AAA Michigan reported total revenue of $1.2 billion, down some $50 million from 2007, she said.

A four-year decline in auto insurance premiums also contributed to the downsizing, she said. AAA also sells home owner and life insurance policies.

“Since 2004 the average premium for car and home insurance has declined by $100 in Michigan,” she said. “Financially, we are strong. (The industry) is much more competitive on rates.”

Cain said while AAA has sold more auto policies, prices have gone down because of competition with other insurers.

“Revenue is down because of a lot of claims’ losses because of the weather, wind and snow storms,” Cain said. “AAA travel is also down because fewer people have money to travel.”

In addition, while still profitable, AAA has seen investment income decline because of the stock market, she said.

The six-state region of AAA, called the Auto Club Group, is composed of clubs in Michigan, Chicago, Minnesota-Iowa, Nebraska, North Dakota and Wisconsin.

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Homeowners Are Wising-Up to the Benefits of Home Insurance Discounts

2009-01-18T08:19:00.000-08:00

WILMINGTON, N.C., Jan. 16 /PRNewswire/ -- With the current state of the economy, more home insurance customers are turning to insurance companies who offer bundling, home security and home safety discounts to outweigh the rising cost of homeowners insurance.

Home Insurance rates have steadily increased over the past five years with 42 percent of U.S. homeowners reporting a premium increase in 2008. Catastrophic storms making landfall in the U.S. are mostly to blame and have caused many insurance providers to increase rates or decline coverage in coastal/storm-prone regions.

With the unemployment rate at a 40-year high and the mortgage crisis among us, homeowners under strain from the current economic slump are feeling the affects of insurance rate hikes now more than ever.

A 2008 study by J.D. Power and Associates shows that satisfaction levels among home insurance customers have flat-lined over the past five years in a direct correlation with rising home insurance rates. Further, data from a 2008 poll on HomeInsurance.com reported that 91 percent of respondents were unaware of what discounts they were taking advantage of on their homeowners policy -- if any at all.

However, as homeowners grow more aware of the benefits of home insurance discounts, experts expect satisfaction levels to increase. For example, in the same 2008 J.D. Power and Associates study, customers who bundled their policies reported being more satisfied with their homeowners insurance.

"Bundling home and auto insurance policies with one company often allows homeowners to save 10-30 percent on their homeowners policy," said Carlos Lagomarsino, CEO of HomeInsurance.com. "It's really a no-brainer."

In addition, homeowners are now asking for home security and home safety discounts. Additional savings of 10-15 percent are often awarded to homeowners who have deadbolts, home security systems, fire alarms and/or fire extinguishers.

"In order to take advantage of all available discounts, we recommend that our customers speak with a live consultant who can offer expert advice and qualify them for discounts in their area before purchasing a policy," said Jana Bell, Senior Managing Partner of HomeInsurance.com. "Between October and December 2008 alone, we were able to save our customers $556 on average by bundling their home and auto insurance with one company."

For a list of some common home insurance discounts visit: http://homeinsurance.com/articles/home-insurance-discounts.php .

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Auto electrification needs government aid: Ford exec chair

2009-01-17T08:38:00.001-08:00

DETROIT (Reuters) - The electrification of the car industry will need assistance from government energy policy to spur demand, though the method remains an open question, Ford Motor Co Executive Chairman Bill Ford said on Sunday.

Speaking to reporters at an event in conjunction with the North American International Auto Show, Ford also said the demand for vehicles such as an electric small car Ford Motor has plans to produce in a partnership with Magna International, is also uncertain.

"I do think we are going to need some help in the marketplace with the new administration in terms of an energy policy that would drive demand for these vehicles," Ford said of U.S. President-elect Barack Obama's administration.

Energy policy could take the form of a gas tax, purchase incentives, a program for scrapping older vehicles to spur demand for replacement cars, or some combination, he said.

"With gasoline still below $2 per gallon in some parts of the country, I think we are going to need some help."

Ford burned through $7.7 billion of cash during the third quarter and has told lawmakers that it would like access to a line of credit of $9 billion as insurance against a worsening in the economy. It does not want to tap the line.

The automaker has been in a turnaround plan for several years that includes white and blue collar job cuts, plant closings and asset sales including brands Aston Martin, Jaguar and Land Rover from its former premier auto group.

"Despite some of the economic issues we have gone through the last two years, we have kept our R&D spending alive and we have kept it in a myriad of alternate technologies," he said.

The development of lighter and more powerful batteries has been a key stumbling block for developing electric vehicles, plug-in hybrids and other vehicles, something on which Ford has seen progress in recent years.

"We don't know what the volumes are going to be, we have no idea what the demand is going to be, but it is a road that makes a lot of sense," he said of the electrification program.

One risk to Ford's electrification strategy is the threat that gas prices stay low and sap consumer demand for electric vehicles. U.S. gas prices peaked at a national average above $4 per gallon in the summer, but are half that now.

"We are betting long-term that fuel becomes dear and that energy independence becomes important not only to Americans, but people around the world," Ford said. "The bigger risk is to do nothing."

Ford Motor on Sunday announced plans to deliver electrified vehicles to the market by 2012, including a small full battery electric car in 2011 that will use the Focus compact car platform and a drivetrain from Magna.

The automaker also plans to have a full battery electric commercial van in 2010 and next generation hybrid vehicles, including a plug-in version, by 2012.

"If we go ahead and launch these vehicles and there is no infrastructure to charge them, the utilities aren't on board and there isn't incentive for the customers ... we could launch these vehicles into dead space," Ford said.

"But I don't believe that is going to happen, because I believe that the new administration and the new Congress are going to make this a high priority," he added.

(Editing by Lincoln Feast)

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Rash of car tire and rim thefts hits eastern Nassau

2009-01-17T08:36:00.000-08:00

Talk about hot wheels.

Cops say they are combating a rash of tire and rim thefts - with dozens of reports to Nassau police since the beginning of last month - on late-model vehicles parked in South Shore communities along the Nassau-Suffolk border.

Bandits making their way primarily through Massapequa, North Massapequa and Massapequa Park have in many cases stolen all the tires from a car, authorities said.

The authorities have taken note of the brazenness of the thieves, who usually work overnight, leaving owners to wake up to find their vehicles propped up on concrete blocks.

"Look at NASCAR. They do it in eight seconds," said Det. Sgt. Lucy Graziano of the Nassau County police crimes-against-property squad, explaining that a coordinated team of thieves can remove four wheels pretty quickly.

Police say targeted cars have included Hondas, Infinitis and Nissans. The stolen wheels, which can cost $5,000 or more to replace, aren't particularly high-end or specialized.

In Suffolk, Police Det. Lt. Peter Cilentro said yesterday that his vehicle theft section said the wheel-theft problem seems to be particularly acute in southwest Suffolk, near the county border, in places like Babylon and Lindenhurst, and with vehicles made by such manufacturers as Infiniti, Mercedes and Nissan.

Detectives face a challenge zeroing in on where the stolen goods are being fenced, because very few have distinctive numbers or markings that help investigators track the true owners, Graziano said.

"They can bring them to a legitimate place and probably get decent money," she said of the thieves, although they might get only a few hundred dollars.

By contrast, replacement rims for many late-model cars can cost more than $900 each, plus $200 or so for each tire, and more than $100 for a tire-pressure monitor on each wheel, one dealership said.

A spokesman for the Insurance Information Institute said that wheel thefts would generally be covered, less a deductible, for auto insurance policyholders with comprehensive protection.

Nassau police are stepping up patrols in the affected areas, Graziano said.

Jody Calabrese, a service consultant at Infiniti of Massapequa, said the dealership has repaired the vehicles of victims of tire thefts seven or eight times since late November. He said the vehicles were mostly late-model cars.

Even the dealership hasn't been immune. On the Thanksgiving weekend, he said, "we had a set of wheels actually stolen from our lot" off an Infiniti coupe.

And on New Year's, thieves trying to steal tires at its used car dealership were scared off by a passerby but never caught.

Thieves often place paving stones behind the tires and let the air out of each, he said, "which will lower the car enough that they can take the wheel off, thus avoiding having to jack the car up," Calabrese said, showing the stone found at the dealership after the aborted New Year's heist.

The thieves' victims are not impressed.

Shelly Dougherty and her husband, Daniel, of North Massapequa woke up to an unhappy surprise early last Monday when Daniel walked out of their home to drive to the gym: All four wheels of their new 2009 Nissan Maxima were gone. Tires, rims, everything, replaced with concrete blocks, she said.

Insurance should pay most of the cost of the replacement wheels, which, in their case, will run in the thousands, she said.

Although they have another car, the theft means that husband, wife and their youngest, who is 1, must wake up early so Shelly can drive Daniel to the train station every morning.

"It's hard when you have a baby," she said.

Staff writer Andrew Strickler contributed to this story.

A thief determined to steal a set of wheels can always find a way, no matter how well the owner tries to protect the vehicle. But simple steps can make a thief's work much harder - which makes it more likely he will give up. Remember: Thieves doing their handiwork want to make as little noise, spend the least amount of time and do the smallest amount of work as possible. Some tips:

GARAGE IT. You should leave your car in a garage or parked in a well-lighted place.

GET WHEEL LOCKS. They cost about $50 for a set of four at the dealer. Each of the locks supplements a factory lug nut and can be opened only with a special key given to the owner.

"It has an odd shape in the face of it that requires a matching key in order to install or remove the lug nut," said Jody Calabrese, a service consultant at Infiniti of Massapequa in the southeast part of Nassau, which has been affected by a spate of thefts.

Without the key, a thief - no matter how good - will probably need to make a lot of noise and spend a considerable amount of time stealing your wheels.

And that would make it more likely a neighbor would hear a racket or a police officer driving by would notice something suspicious.

STASH KEY WELL. Owners need to be careful where they leave the wheel-lock key, too. "Unfortunately, the large problem is, most people leave the key in the car, which the thieves know and they'll break into the car and search for the key," Calabrese said.

- MATTHEW CHAYES

It can cost you

Replacement wheels for many new top-end cars don’t come cheap.

$900 Each rim

$200 Each tire

$100 Each tire for air-pressure monitors

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Electronic stability control: Life-saving auto technology

2009-01-17T08:34:00.000-08:00

Simply put, electronic stability control is the most important auto safety innovation since seat belts.

That's the consensus from Consumer Reports, the federal government, the Insurance Institute for Highway Safety and many other auto industry experts.

"Our recommendation to consumers is that you want to buy a vehicle with electronic stability control," said David Zuby, a vice president of the Insurance Institute. "It's a very effective way of reducing the risk of fatal crashes."

The good news is that the high-tech system that helps prevent rollovers and other accidents caused when a car skids out of control is found on more and more of today's new cars and trucks.

The Insurance Institute says 73 percent of 2009 models will have stability control as standard fare, and it's available as an option on an additional 14 percent of vehicles.

The better news is that the full implementation of stability control — 100 percent of vehicles must have it by 2012, the federal government says — might prevent thousands of fatalities a year. Statistics show that half of fatalities occur in single-vehicle crashes, and fully half of those are preventable using ESC, according to Insurance Institute research.

Yet unlike air bags and anti-lock brakes, which most consumers have become familiar with, electronic stability control remains a mystery to most motorists. That's partly because it's a complex and relatively new technology.

And it doesn't help that automakers insist on calling it by many different names.

South Korean automaker Hyundai sees ESC as both a lifesaving technology and a competitive business advantage. That's why it puts a sticker on every new vehicle it sells (except the budget-price Accent) touting the ESC on board.

"We are definitely not a brand that embraces a technology that has not been proven effective," said John Krafcik, the acting president and chief executive of Hyundai Motor America, based in Fountain Valley. "We can't afford to do that. Electronic stability control is definitely helping to avoid fatalities."

When Hyundai introduced the redesigned Sonata in 2005, it was the only mid-size sedan with ESC as a standard feature, Krafcik said. Rivals such as Honda and Mazda have since added it to their Accord and Mazda6 models, while it remains an option on the best-selling Toyota Camry.

Research showed that stability control was the No. 1 deciding factor for buyers who picked the Sonata over the Camry, he said.

Starting in 2008, Consumer Reports magazine required that its top car picks — choices closely watched by many buyers — have ESC, either as a standard feature or as a readily available option.

"We strongly recommend buying an ESC-equipped vehicle," said Doug Love, a Consumer Reports spokesman.

The Insurance Institute for Highway Safety agrees, saying since 2007 that its Top Safety Picks must offer ESC. Its just-released top small-car picks include three vehicles with stability control as a standard feature (Scion xB, Subaru Impreza, VW Rabbit 4-door) and three with optional ESC (Honda Civic 4-door, Mitsubishi Lancer, Toyota Corolla).

The Insurance Institute's Joe Nolan noted cars aren't involved in rollovers as much as SUVs and pickup trucks, but "when they do roll, the consequences can be deadly."

The U.S. Department of Transportation, as well as the Insurance Institute, a nonprofit researcher funded by insurers, has done much of the research related to stability control. ESC will reduce single-vehicle fatal crash risk by 51 percent, and multiple-vehicle fatal crash risk by 20 percent for cars and SUVs, the institute says.

The technology is particularly useful on sport-utility vehicles, which tend to be top-heavy and more prone to rolling over. ESC reduces the risk of a fatal single-vehicle rollover in an SUV by 72 percent, according to the institute. About 10,000 Americans die each year in rollover accidents.

How many vehicles offer ESC? More all the time. It was an optional feature on the 2008 Mini Cooper, but was made a standard feature for 2009. Other vehicles, such as the Chevy Colorado pickup, Ford Escape hybrid SUV, Ford F-150 pickup and Honda Fit subcompact added ESC for the first time in 2009. A Web site, www.iihs.org/ratings/esc/esc.aspx, offers a gadget where consumers can search vehicles by year, make and model to see if it has ESC.

While standard on more new vehicles, it's affordable as an option. On a 2009 Toyota Corolla, for instance, stability control is offered for $250. Also, some insurance companies offer discounts on vehicles with ESC. Los Angeles-based Farmer's Insurance offers a 5 percent discount on collision coverage in 38 states, including California, spokesman Jerry Davies said.

While 99 percent of the 2009 model-year sport-utility vehicles provide ESC as a standard feature, just 37 percent of pickups do. It's standard on 74 percent of 2009 model-year passenger cars, up from 64 percent in 2008.

Consumer Reports and the Insurance Institute acknowledge that electronic stability control systems, which come from several auto suppliers, aren't identical.

"We test the systems as part of the vehicle's overall performance. And we do see differences in the performance of ESC systems from one vehicle to the next," said Love of Consumer Reports. "They all use slightly different algorithms, which determine when the system is triggered and how the vehicle responds."

That's not necessarily a bad thing. Someone driving a Corvette is likely to drive it more aggressively than someone behind the wheel of a minivan, and probably would want a stability control system to intervene less often. Some vehicles offer on/off switches for the feature.

Systems differ by type of car and even within a brand, said Kay Stepper, a marketing manager at Robert Bosch, which provides ESC systems to Mercedes-Benz, BMW, Toyota and others.

Still, Stepper said, "at a minimum, all are designed to provide the same level of safety."

While the number of U.S. auto fatalities per miles driven has decreased in recent years, the number of deaths has remained steady at 37,000 to 39,000 a year since 1995. Safety technologies such as electronic stability control, as well as newer innovations such as lane-departure prevention systems and predictive collision systems, are expected to lessen that number.

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South African Insurance Site Now Offers Car Insurance

2009-01-17T08:16:00.000-08:00

Mendham, New Jersey, USA (January 2009)—A web site dedicated to offering competitive insurance rates in South Africa has launched a section on car insurance.

Car Insurance123 (http://car.insurance123.co.za) allows users to fill out a simple, online form and obtain an instant online auto insurance quote. Rates are competitive, and there is no obligation to purchase. The insurance premium is based on a number of factors including the model, age and mileage of the car, the driver’s age, driving history and a host of other factors. A quick, hassle free quote is then delivered to the customer’s email address.

The section is part of the comprehensive Insurance123 website, which offers quotes on household insurance, life insurance, commercial insurance, medical insurance and travel insurance. The site also contains tips on how to purchase insurance, how to save money on insurance, as well as a blog on insurance where customers can post comments.

The information on Car Insurance123 and all Insurance123 websites is to be used as a guide only. Customers are urged to double check the fine print when purchasing a car insurance policy, or any insurance policy.

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Ohio auto insurance rates continue decline

2009-01-15T06:10:00.000-08:00

COLUMBUS — Ohio auto insurance rates have declined for the second consecutive year, according to the 2005/2006 Auto Insurance Database Report released today by the National Association of Insurance Commissioners (NAIC).

In 2006, Ohio had the 13th lowest auto insurance rates in the nation, holding its ranking from 2005. In 2004, Ohio was ranked 14th in the United States.

“Ohio has an extremely strong and competitive auto insurance marketplace, and Ohioans are benefiting from this competition,” said Ohio Department of Insurance Director Mary Jo Hudson. “Healthy competition drives prices lower, and we want to promote robust competition here in Ohio.”

In 2006, Ohioans paid an average $654.33 in auto insurance premiums, far below the national average of $817.11. In 2005, Ohioans paid an average of $669.87 in auto insurance premiums.

Department analysts expect that rates for automobile insurance, overall, will slightly rise in 2008. Changes in automobile insurance rates can be attributed to repair costs, medical costs, weather-related claims, and the number of cars on Ohio roads.

Ohioans with questions about insurance can call the Department's consumer hotline at 1-800-686-1526.

Source: Ohio Department of Insurance

Insurance can be a surprise to Baby Boomers

2009-01-08T06:06:00.000-08:00

Insurance is designed to bring at least a modicum of protection in the event of the unexpected.

But over the last decade, we've met the unexpected in connection with insurance policies. I suspect Baby Boomers may have some of the same surprises.

Insurers warn us to read policies carefully. I try, but both length and lingo tend to be deterrents.

I was unaware of a common home insurance clause until my parents went into an assisted living facility, leaving their modest Michigan house unoccupied from April of that year until it sold in September a year later.

Most insurers limit coverage for vacant houses to a few months and generally won't renew a policy for a vacant house. I called a company that insures unoccupied houses. I don't remember the premium, but it came as a shock.

The agent for my parents had retired, but his replacement finally came to our rescue. Noting that they had carried both auto and home insurance with his company for half a century, and told the house likely would sell quickly, he extended the policy.

That, of course, calls to question all the advice about switching insurers for lower rates. Companies generally give breaks for multiple policies and years.

More recently I sought information about health insurance reimbursement for my annual physical. Somehow my husband was listed as the patient on the benefits statement. He certainly doesn't get the exams I do, but the insurer could not release the information to me. We have since signed a form permitting each of us to inquire about payments for the other. We also added our son's name.

Years ago we celebrated when he and his sister were no longer young drivers on our auto insurance. But we didn't celebrate when we learned that just as premiums are higher for younger drivers, they also go up at the other end of the age scale.

I'm listed as the primary driver on our policy, but because my roughly 100 miles a week driving for a part-time job brings a higher premium, I suggested listing him as the primary driver. He isn't employed.

Wrong idea. He's five years older.

Hawaii Compares Auto Insurance Rates, Carriers' Complaint Ratios

2009-01-02T06:47:00.000-08:00

The Hawaii Department of Commerce and Consumer Affairs Insurance Division has published motor vehicle insurance premium comparisons for all islands, as well as published customer complaint ratios for carriers in the state.

The premium comparison is based on rates for 2007 Honda Accord four-door sedan. To see the comparison, visit http://hawaii.gov/dcca/areas/ins/consumer/consumer_information/mv_prem_comp_sheet/Web_2008_Statewide.pdf.

The customer complaint ratios are listed by island. On Oahu, GEICO Insurance Co. had the highest number of complaints, with 106. The company was followed by American INternational Co., which received 54 complaints during the specified time frame. However, Liberty Mutual Insurance had the highest ratio of complaints per 1,000 autos, with a score of 0.667. GEICO's ratio per 1,000 autos was the second-highest, at .0578.

According to the Division, the comparison information on licensed insurance companies transacting private passenger motor vehicle insurance in Hawaii is published as part of a continuing effort to assist and educate consumers. These complaint ratios are based on the number of written complaints received by the Division from Jan. 1, 2007 to Dec. 31, 2007 for the 11 insurance companies that write more than 95 percent of the private passenger automobile insurance market. The numbers do not reflect any determination on the part
of the Insurance Division as to whether a particular complaint may have been justified or not and include no-fault hearing requests.

For more information, visit http://hawaii.gov/dcca/areas/ins/main/whats_new/.

Source: DCCA

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Even if a driver who hits your car is insured, you could be stuck with the bill

2009-01-01T06:05:00.000-08:00

Common sense dictates that the insurance company of the driver who causes an accident should pay for the damage.

In Texas, if the driver who caused the accident disappears without a trace, the company can refuse to pay. Then guess who picks up the tab? The unlucky person who got hit — or his or her own insurance company.

Philip Stonecipher was driving in Grapevine in August when his car was struck from behind. The other driver asked whether he was hurt, then shared her insurance information. Stonecipher didn’t get her address and phone number, figuring her insurance company would have that.

But when Stonecipher tried to make a claim with her company, United Automobile Insurance Services, the company turned him away.

The reason given was that the person listed on the insurance policy, Itzi Saray Bernal, 33, never told United Auto about the accident. She didn’t respond to letters or phone calls. A company investigator reported being unable to find her at her apartment complex.

United Auto claims supervisor Keith Reindl, who denied payment to Stonecipher, explained: "We can’t make a determination of liability until we speak to all parties. Every Texas driver has a duty to call their insurance agent when there’s a loss. . . . We exhausted a reasonable effort."

Can an insured driver disappear and leave the other driver out on a limb? Apparently so. The state has a new database system — TexasSure — that allows law enforcement officers to check personal auto insurance records of drivers to verify they carry insurance, as the law requires.

But no database tracks information such as when people go AWOL on their insurance company or don’t report accidents.

The insurance industry does share a database that shows claims opened by drivers and any payments made, says Mark Hanna of the Insurance Council of Texas. But in this instance, there’s no claim, so no information would be available.

Stonecipher, whose car requires $900 worth of repairs, worked almost 20 years in the insurance business. Based on his experience, he says the other driver’s carrier should have paid his claim.

When United Auto refused, he filed a complaint with the Texas Department of Insurance.

Department officials said they are investigating United Automobile Insurance Services and its related company, Old American County Mutual, for "a pattern of problems." That’s all they would say.

The department’s Web site shows that Old American County Mutual, which is the insurance company for whom United Auto writes policies, has received more complaints than any other automobile insurer in Texas.

About one-fifth of all complaints the department receives about auto policies concern Old American, even though other companies write many more policies.

United Auto officials say that only part of the complaints related to Old American are about United Auto. Old American County works with other managing agencies in the state, too.

Nevertheless, in recent days, United Auto apparently had a change of heart. Reindl alerted state regulators and Stonecipher that "in a spirit of compromise, and to show good faith in settling this matter," United Auto officials would reopen the case and assign a private investigator to search for the policyholder.

If they don’t settle with him, the next step for Stonecipher would be to file an uninsured-motorist claim with his company and let it investigate. If his company can find the driver, it can toss it back to United Auto to seek payment.

Otherwise, his company pays.

Stonecipher could also get a refund if state investigators find that United Auto acted improperly.

Or he could seek a lawyer to help him in the courts, but with such a low claim amount, that doesn’t make sense.

Stonecipher hesitates to file a claim on his policy. Generally, drivers are not penalized on their own policies if they have no more than one uninsured-motorist claim a year, state officials say. (If a carrier does raise rates because of that, the insurance department says it wants to know about it.)

But Stonecipher doesn’t want to file a claim because he has an insurance plan that refunds him money at the end of the year if he goes accident-free. Under his plan, he says, he may also have to pay higher premiums if he turns in any claims.

Stonecipher might have been able to avoid this if he had copied information from the other driver’s license and insurance card, noted the license plate and filed a police report.

All information is helpful. In this instance, United Auto listed Stonecipher’s lack of witnesses or a police report as part of its reasons for rejection.

Stonecipher says he didn’t file a police report because it was a minor accident with no injuries. Remember, though, that drivers can call police departments after an accident and give a report over the phone and get an incident report number. That adds credibility, because filing a false police report is illegal.

Stonecipher says no witnesses could be identified because other drivers didn’t stop. Drivers involved in accidents can ask onlookers for contact information, and eyewitnesses can offer their names and numbers for contact, too.

But the best bet is a camera. The Watchdog was in an accident 20 years ago in which the other driver accepted blame at the scene but later told his insurance company otherwise.

Because of that, I carry a disposable digital camera in my glove compartment. Point and click, especially in situations such as this.

News researcher Cathy Belcher contributed to this report.

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Auto insurance rates to dip slightly in Manitoba next year

2008-12-31T07:09:00.000-08:00

WINNIPEG — Automobile insurance rates in Manitoba will dip slightly next year.

Manitoba Public Insurance has received approval from the Public Utilities Board to cut the average premium by one per cent.

The board has also ruled that there will be no premium rebate in 2009.

Rebates worth dozens of dollars to the average car owner have been issued in recent years, but the board says the depressed investment markets make such rebates unfeasible.

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When buying a car, it's best to look beyond initial cost

2008-12-30T06:46:00.000-08:00

Have you been to a car dealer's showroom lately looking for a vehicle, or scanned the classifieds for a previously owned vehicle?

You might even be looking for a car being sold by the owner.

While cost has a great deal to do with your decision, so should safety ratings, miles per gallon in town and highway, the type of fuel the vehicle uses and how much the vehicle will affect your auto insurance payments.

In tight economic times, vehicle operating costs and safety factors should be as important as how clean the car looks or how fast it will go.

Here is a brief look at how you can help yourself make a better decision and how interconnected these items really are:

When you add a vehicle to your insurance policy, your new Vehicle Identification Number is one item you will provide to your insurer. While the VIN let's the insurer know about the year, make, model, it also allows the insurer to consider the safety rating of the vehicle, since protection against risk is what insurance is about.

The Insurance Institute for Highway Safety (www.iihs.org) crashes vehicles and rates them to evaluate the risk to both the passengers and the vehicle itself. That information is just one factor in developing the cost of auto insurance for the vehicle.

IIHS has just released the top safety pick awards for 2009 vehicles for all categories from large cars, minivans and SUVs to the minicar category.

The VIN also provides information you can use even before you purchase a used vehicle. In many metro areas, a company called Car Checkers will provide an inspection to let you know the general condition of the vehicle.

Similarly, an on-line service called Car Facts (www.carfacts.

com) uses information from insurance companies and other sources will give you a history of the VIN as to accidents in which it was involved and other useful data.

Another method for understanding the current value for used vehicles is to view the Web sites of the National Automobile Dealers Association (www.nada.com) and/or Edmunds (www.edmunds.com), which gives a good comparison to the NADA information.

Additionally, the classified section of the newspaper, in print or on-line, provides another way to check on the value of the type of vehicle you are considering for purchase.

There's one more area of concern you should consider. The National Insurance Crime Bureau (www.nicb.org) allows you to check the VIN of a vehicle to determine whether it has been declared an unrecovered stolen or a total-loss vehicle.

Flooded vehicles became an issue of concern after recent hurricanes and other severe weather. If a vehicle has been declared a total loss from a traffic crash, fire or flood, some of these vehicles can find their way back into circulation through less than honorable means. It's very important to find out if the vehicle you are considering has been rebuilt and retitled.

The NICB provides one more data report that can influence your purchasing decision. It's the Hot Wheels report that lists the most stolen vehicles on an annual state-by-state basis. If you purchase a new or used car, knowing how popular the vehicle is with car thieves can save both time and money.

Keep in mind that services such as Car Checkers and CarFacts charge a fee whereas the NADA, Edmunds, the IIHS and the NICB do not.

And don't forget another excellent source for background information -- your insurance agent. With the day-to-day experience agents have, they can provide insight into particular makes and models of vehicles from a claims perspective.

Take the time to do the research before purchasing a new or used vehicle. The importance of an informed decision cannot be overstated when it comes to the hundreds or thousands of dollars involved in such a transaction. Neither can the safety factor be overlooked, since the vehicle is supposed to not only provide transportation but passenger safety in case of a traffic accident.

To know as much as possible about maintenance and repair costs for a specific vehicle as well as the mileage you should expect is also important since the initial cost is only the start. Overall costs for fuel, regular maintenance, the cost of auto insurance, the annual cost of tags and taxes all add up.

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Painless ways to cut costs to pay for holiday spending

2008-12-29T06:35:00.000-08:00

Worried about how you're going to pay for the holidays? Here's a plan: Find painless ways to save on things you pay for all year. There are plenty of opportunities, if you know where to look.

"If you treat a few big things as discretionary purchases and shop around, you can save hundreds of dollars," said Steve Krenzer, president of Experian's interactive media group, which operates LowerMyBills.com.

Here are five money-saving ideas. Few people will be able to take advantage of them all, but even one or two could help recoup the $431 Americans expect to spend for gifts on average this holiday season.

Refinance your home: Interest rates on home loans have remained naggingly high -- between 6% and 7% -- for most of the last two years. But in the last week rates dropped significantly, said Jeff Lazerson, president of MortgageGrader, a Web-based loan company. That spells opportunity for anyone who bought or refinanced a home in the last two years -- or anyone with an adjustable-rate mortgage.

Fixed-rate, 30-year mortgages with no upfront fees were going for 5.75% early this week, Lazerson said. For someone paying 6.25% now on a loan balance of $500,000, refinancing into this loan would save $161 a month, or about $1,930 a year.

Of course, if you have little or no equity in your property because of tumbling home prices, you won't qualify for a new mortgage. You'll also have to document your income.

It's worth noting that you can get an even lower rate -- 5.25% -- if you are willing to pay upfront fees, called points, and closing costs. But those fees can easily run thousands of dollars. And it would take 18 months of reduced payments just to recover that cost, Lazerson said.

Unless you're certain you won't refinance again or sell your home in that time, the no-cost loan is the better deal.

Appeal your property tax: Although the slide in housing prices might prevent you from refinancing, the downturn can be a benefit when it comes to your tax bill.

Property taxes are usually tied to a home's assessed value. If you bought your home when prices were in the stratosphere, then chances are your home's assessed value is significantly higher than its current market value. This would also be the case if your assessment was raised during the housing boom -- if you live in a state where assessment increases are allowed. (They're not in California.)

The difference can be huge: Real estate website Zillow.com, for example, estimates that one Southern California home that sold in late 2007 for $2.5 million is now worth $1.9 million. If this property owner can convince the county assessor's office that Zillow's new value is accurate, he can save more than $6,000 annually in property taxes.

Every county assessor's office offers a process to appeal property assessments that homeowners believe are too high. To find your assessor's office, go to the "links" page of the website of the Federation of Tax Administrators.

Shop for car insurance: Auto insurance rates can vary from insurer to insurer by hundreds of dollars a year. And shopping one year doesn't preclude finding an even better deal the next, Experian's Krenzer said.

State insurance regulators often help with the shopping by providing cost comparisons on their websites. California’s Insurance Department offers an easy-to-use online price comparison service for auto and other types of insurance. The examples are generic but can help you identify the lower-cost providers.

How much can you save? I shopped for myself, and as a result I'll be switching insurers, saving $823 a year. (I have been paying $2,477 a year for high-limit coverage on two cars, one driven by my teenage daughter.)

A caveat: Be sure to select "standard" coverage, not "basic -- liability only," in the first drop-down menu if your policy covers damage to your car in the event of an accident.

Review your cellphone plan: Most people secure their cellphone service and then forget about it unless they need more minutes or change plans, Krenzer said. But that's a mistake in today's market.

The reason: Cost per minute has been trending down. If you haven't checked rates in a few years, you may be paying too much, he said. Better yet, you don't necessarily need to switch carriers or plans to save money.

With a single phone call, Krenzer said, he was able to cut the cost of his own cellphone bill by $50 a month, without switching carriers, changing his phone number, losing minutes or giving up any bells and whistles. Your cellphone company won't give you its best rate unless you call and ask for it.

Krenzer saved even more money -- an additional $100 a month -- when he realized that he was paying for unlimited international dialing even though he now has a BlackBerry and is more likely to e-mail when overseas than call.

Bottom line: He cut his monthly bill in half, to $150 from $300. Annual savings: $1,800.

"A lot of us make these choices when we first get a phone and then we put the decision in a box and never reevaluate it," Krenzer said. "But the cost of these services has been coming down. If you do your comparison shopping and treat it like a discretionary purchase, you can save a lot of money."

Troll for waste: Even the most financially savvy among us have some niggling expense that could be cut without much pain. For Krenzer it was his second gym membership. He sheepishly noted that, in better times, he joined two -- one close to work and one close to home. Upon further review, he figured one membership was enough, saving him about $20 a month, or $240 a year.

If you think about it, you may have unnecessary regular expenses, such as unused Netflix memberships, premium cable channels that are rarely watched or subscriptions to magazines that go unread.

Maybe you pay bank fees for services you could get for free. You may even want to review your land-line telephone service if you already make most of your calls by cell. If you want to keep a land-line phone in case of emergency, make sure you're on a bare-bones plan.

The savings from any one of these cost-cutting measures may seem small, but they can quickly add up over time into a sum you'll be happy to spend on something else.

Kristof is a freelance writer.

kathy.kristof@latimes.com

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Judge dismisses auto fraud indictments against Lawrence lawyer and Haverhill chiropractor

2008-12-28T06:45:00.000-08:00

Judge drops case against lawyer, chiropractor By Mark E. Vogler and jim patten
mvogler@eagletribune.com and jpatten@eagletribune.com

SALEM - Lawyers for popular Lawrence attorney Socrates De La Cruz and Haverhill chiropractor Troy Wheelwright proclaimed they had been exonerated of auto insurance fraud allegations yesterday after a judge dismissed their April indictments.

Superior Court Judge Howard Whitehead threw out the indictments after finding that prosecutors had failed to show probable cause that a crime had been committed.

De La Cruz, 34, of Methuen and Wheelwright, 40, of Amesbury were among eight area people indicted by an Essex County Grand Jury that determined they were part of a conspiracy to stage phony accidents to defraud insurance companies.

The indictments stem from an investigation initiated more than two years ago by the state attorney general's office, working with detectives of Lawrence's auto insurance fraud task force and investigators of the Insurance Fraud Bureau of Massachusetts. That probe focused on four separate staged crashes that occurred between October 2002 and February 2003.

Harry Pierre, a spokesman for Attorney General Martha Coakley said the AG's office was "reviewing our options,'' in the wake of the dismissal.

"The court's decision reflects there was an absence of probable cause, and absence of evidence to charge Mr. De La Cruz with any of the indictments," said his defense attorney Hank Brennan.

"And in consequence, the court through its ruling dismissed all the indictments against Mr. De La Cruz," Brennan said.

Paul Cirel, lawyer for Wheelwright, also welcomed the decision. Wheelright is the owner of Haverhill Family Chiropractic at 606 Broadway, Haverhill.

"We told you he would be vindicated from day one," Cirel said.

Cirel noted that Whitehead had allowed the motions to dismiss because there was never any evidence his client and De La Cruz had committed a crime.

Similar motions filed on behalf of Michael Kaplan, 46, of Hampstead, N.H., operator of Kaplan Chiropractice, 200 Sutton St., North Andover, and Omar Castillo, 35, of Methuen, a runner and former van driver for Kaplan, were denied, Cirel said.

The dismissed indictments could raise defense attorney challenges for others being prosecuted by the attorney general's office. Among those indicted was Andover Attorney James C. Hyde, 56, of Boxford. He is a partner of the Andover law firm of Berger and Hyde.

This week's development represents the biggest setback in the area's five-year crackdown on auto insurance fraud which has led to 345 individuals charged so far.

"I haven't been officially notified, so I really don't have any knowledge," Lawrence Police Chief John Romero said last night.

It was Romero who assembled a fraud task force after the September 2003 death of a 65-year-old great grandmother from Lawrence who was killed in a staged crash that investigators said she helped plan to scam insurance companies.

Brennan, the defense attorney, said it was clear the judge's ruling showed the state attorney general failed to prove allegations against De La Cruz - allegations that the Essex County District Attorney had previously decided not to prosecute.

"Attorney De La Cruz would like to thank all the people throughout the community who have supported him, his friends, his family who believed in him and he would like to thank God for providing him with the guidance and faith that he has had throughout the entire course of this ordeal," Brennan said in an interview last night.

De La Cruz has been held up as a role model ever since he rose from a hard life on the streets of Lawrence to be honored as the 1991 National Youth of the Year by the Boys & Girls Clubs of America. He later worked as a prosecutor in the Essex County District Attorney's Office before going into private practice.

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Battle for insurance market’s top spot

2008-12-27T07:04:00.000-08:00

After the financial results for January-September 2008 were made public, the local insurance market leader is still uncertain, with Q3 of the year likely to cast light on the matter.

The 2009 RCA campaign (third-party liability auto insurance) could bring about a change in insurance market leader in the last quarter of this year, a position held since 2002 by the Allianz-Tiriac insurer. After announcing its results for January-September 2008, Allianz-Tiriac is once again at the top, with a volume of gross subscribed premiums of over 285 million euro.
The Vienna Insurance Group-owned Omniasig is second, with gross subscribed premiums in the first three quarters worth 252.4 million euro.

According to Business Standard daily, Omniasig announced a 48.74% rise in gross subscribed premiums [Ed. n. growth was calculated on the lei-denominated value] compared to year-on-year, which constitutes an advance of almost double compared to the general evolution of the insurance market estimated for the first three quarters.
The growth reported by Omniasig was sustained by a surprising evolution on the property insurance segment, which rose 98.51% compared to September 2007, according to company figures.

The property-type insurance (against flooding and natural calamities) brought 118.88 million lei. Moreover, the farm insurance segment went up to 430%, up to 6.38 million lei.
“The significant growth of the property segment over January-September 2008 is the result of Omniasig’s policy to diversify the portfolio with a view to diminishing the share of car insurance.
This policy will also be applied by the company in the future,” company representatives told Business Standard.

No-fault insurance also registered significant growth, of 82.87%, while RCA insurance rose 20.89%. The battle for third-party auto insurance takes place at the end of the year, and this insurance could change the positions held by Allianz-Tiriac and Omniasig. While the current market leader presently has a more reserved policy in terms of auto insurance, Omniasig has been aggressive in its strategy in the past few years for auto insurance, aiming to raise its market share.

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OnStar, GM offer car insurance discount

2008-12-26T06:44:00.000-08:00

How would you like to cut your car insurance in half? OnStar and GM are teaming up to reward customers for driving less.

Anyone who owns an OnStar-equipped GM vehicle and drives fewer than 15,000 miles a year can save up to 54 percent on their auto insurance.

The program tracks the mileage and forwards it to the customer's insurance provider by e-mail.

Get more information on ways to save on auto insurance

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Foreign drivers get Kansas car insurance

2008-12-25T06:04:00.000-08:00

At least two insurance companies in Kansas are insuring motorists who hold foreign driver's licenses.

State law doesn't prohibit the companies from doing so, and supporters of the practice say it ensures that all drivers are protected in accidents.

But critics have raised concerns about road safety and national security.

Farmer's Insurance Group office manager Claudia Villatoro said she has been insuring motorists with foreign licenses, regardless of their legal status, for about a year.

"It's helping people," Villatoro said. "Every time they have an accident, they're covered."

State Farm also insures drivers who present valid foreign licenses, but gives policyholders 12 months to obtain a United States or Canadian driver's license, according to Tamara O'Connor, a public affairs supervisor for the company.

Those who do not show a valid U.S. license after that time risk not having their policies renewed, she said.

Under state law, all cars registered in Kansas must carry auto insurance. Drivers must show proof of insurance when filing for or renewing a vehicle's registration.

Critics, supporters

Members of the Minuteman Civil Defense Corps, which has chapters in Kansas, are among critics who said such insurance policies threaten national security.

Chris Simcox, the group's president, said he wonders how deeply insurance companies are probing motorists' backgrounds for criminal activity in other countries.

"How can they ensure the public safety?" he asked.

But Luis Figueroa, a legislative staff attorney for the Mexican American Legal Defense and Education Fund, said insurance companies who offer such policies are in the best position to analyze the risk.

"We think this is definitely a positive sign, although we do think the Legislature needs to encourage people getting state driver's licenses," he said.

Figueroa said the driver's license application process requires people to be regularly tested on their driving skills and road knowledge, which encourages safe driving.

Figueroa has assisted local immigrant advocate groups who have lobbied in Topeka and in Wichita on such matters.

State Rep. Brenda Landwehr, R-Wichita, introduced legislation last session that would have cracked down on illegal immigrants by revoking business licenses and imposing civil penalties on any Kansas business found to have employed an illegal immigrant, among other proposals. The legislation was defeated.

She questions whether insurance companies are considering legal versus illegal status when deciding to insure such motorists. She wonders what qualifications insurance companies use to accept or reject motorists using a foreign driver's license.

"If they're in the country legally, then temporary insurance is not a bad idea," she said. "Having anyone uninsured on the road is wrong."

State requirements

Neither the Kansas Insurance Department nor the Kansas Department of Revenue, which oversees vehicle tags and registration, has policies that would prevent motorists with foreign driver's licenses from obtaining insurance in Kansas, spokespeople for both organizations said.

Immigrant advocate groups have routinely lobbied for illegal immigrants to have access to U.S. driver's licenses or a form of a license so they could insure their vehicles.

But a 2007 state law says driver's license applicants must have a Social Security number that is verified by the federal government, or another verifiable government ID, such as a visa or birth certificate.

Companies who issue insurance using a foreign-driver's license offer a reasonable solution, said Villatoro, of Farmers Insurance, because it's making sure all drivers are safe.

"I think it's better for them to be insured" than not, said Villatoro, who advertises the service in area bilingual and Spanish-language media. "It affects other people."

State Farm, which also sells the policies, said in an e-mailed response, "Although we recognize the immigration and national security concerns surrounding this issue, we do not believe it is appropriate that we take positions on issues that are outside our areas of expertise."

Being responsible

It's unclear how many vehicles in Kansas that are insured with a foreign driver's license have been registered with the state Department of Revenue's Division of Vehicles.

The division processed about 2.56 million vehicle registrations in 2006, according to the department's most recent report. In 2005, it processed about 2.53 million vehicle registrations.

Critics have said that issuing driver's licenses to illegal immigrants appears to reward them for breaking the law.

Larry Magill, executive vice president for the Kansas Association of Insurance Agents, is concerned about whether insurance companies are being responsible by offering such policies.

"Looking the other way on the immigration law violation in order to prevent somebody from driving without insurance, that doesn't seem to be a responsible way to address the issue in my opinion," Magill said.

The association hasn't dealt with the matter, Magill said, because it hasn't been brought up.

Magill said he wonders whether motorists insured using a foreign driver's license are familiar with U.S. traffic laws, such as which side of the street to drive on.

Simcox, with the Minuteman group, said his organization could consider lobbying lawmakers to pressure insurance companies to stop issuing such policies.

"This is another opportunity to close one of those loopholes," Simcox said.

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Drivers without insurance will have their vehicles towed after Jan. 1

2008-12-24T07:07:00.000-08:00

Dallas City Hall just sent out a press release to remind drivers that after Jan. 1, those who do not have insurance will have their vehicles towed when stopped for a traffic violation.

DALLAS - Drivers with no proof of insurance will have their vehicles towed under a new policy that goes into effect Jan. 1. On that date, the Dallas Police Department will enforce the Uninsured Motorist Ordinance approved by the Dallas City Council on May 28.

Under this ordinance drivers stopped for a traffic violation who cannot show proof of auto insurance meeting state requirements will be issued a citation and will have his or her vehicle towed at the owner's expense to the Dallas Auto Pound. The City already tows the vehicles of uninsured drivers involved in traffic accidents.

"The Dallas Police Department currently issues about 75,000 citations a year to motorists with no auto insurance," said Dallas Police Chief David Kunkle. "In addition, officers towed over 3000 vehicles from accident scenes in 2007 where the driver did not have insurance. Motorists are urged to obtain the proper state required auto insurance to avoid having their vehicles towed."

The new ordinance is in response to the large number of people driving in the City of Dallas without the proper state required auto insurance. These uninsured drivers place an unfair burden on those who comply with state law and maintain auto insurance. With the new ordinance, the city anticipates fewer of these citations as more drivers comply with the law to avoid having their vehicles towed.

More information on the Uninsured Motorist Ordinance is at www.dallascityhall.com. Persons with questions about the policy can call (214) 670-5111.]

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Auto Insurance Fraud on the Rise

2008-12-23T06:42:00.000-08:00

Need more evidence of consumer distress? Auto insurance fraud is up, with consumers resorting to extreme means -- torching, drowning or dumping SUVs, pickups and cars -- in hopes of getting quick cash from insurance policies.

Once rare, suspect car demolition cases are commandeering investigators, dominating their working hours at state agencies and insurance companies. Nationwide, auto fire insurance claims have jumped by 6% in the past 12 months after years of little change. Indiana, Michigan and New York are hot spots, with burned car claims spiking 13% to 18%, says Dennis Shulkins with State Farm Insurance's special investigations unit.

The fraud spike is a bellwether of consumers' economic woes. "Increasingly, people are turning to insurance fraud as a quick bailout for their financial misery, to get out of auto leases they no longer can afford, and to pay off credit card or mortgage debt," says James Quiggle, a spokesman for the Coalition Against Auto Fraud, a trade group.

High anxiety is driving consumers to rash acts that raise immediate suspicion. Dozens of expensive vehicles were left at water’s edge in Gulfport, Miss., just hours before Hurricane Gustav hit. Scores of cars reported stolen are turning up ditched in Lake Erie and in western deserts. Crime rings are making hay, burning cars for hire in California and smashing cars to smithereens outside the Las Vegas city limits. A New Jersey school principal pleaded guilty to charges he torched a leased auto that had $9,000 in excess mileage fees.

States and insurance companies are wising up to paper-thin ploys. The surge in suspicious automobile destruction claims has prompted New York to put additional resources into this sort of crime. Through October, the state had won 110 court decisions requiring consumers to give up insurance money and ownership of vehicles determined to have been intentionally torched, stolen or sent to chop shops for disposal. That's up nearly 50% from a year earlier. A helicopter-borne Nevada police task force now prowls the skies to check out suspicious vehicles that are careered into the desert at night to be burned or smashed. Utah, which typically investigates an average of two questionable auto destruction claims a year, already had 30 cases pending by summer’s end.

Bogus car destruction and theft claims eventually sock it to all motorists. "Honest policyholders should be outraged at paying additional premiums as a result of people attempting to commit fraud," says Shulkins. There are no national statistics on the total value of auto insurance fraud. However, the average policyholder shells out up to $300 a year in higher premiums to help pay for all types of property and casualty fraud.

For weekly updates on topics to improve your business decisionmaking, click here.

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Video: You Can Save Money on Auto Insurance!!

2008-12-22T07:13:00.000-08:00

Tips from the Insurance Information Institute on how to cut auto insurance costs by hundreds of dollars a year

NEW YORK, Dec. 3 /PRNewswire/ -- The Insurance Information Institute says there are five things consumers can do to cut auto insurance costs. But it is important to evaluate each one to be sure it will work for you.

To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/iii/36231/

Insurance Basics

Motorists are required to carry liability protection which will pay for damages you cause to another person or their property. But other coverages are optional, such as collision: which will repair or replace your car if you are in an accident; and comprehensive coverage, which will reimburse you if your car is stolen. Both collision and comprehensive coverage are sold with a deductible -- the amount of money you pay out-of-pocket, before your insurance kicks in.

5 Tips on How to Save

Consider raising your deductible (going from $250 to $1000 could save you between 15 percent and 20 percent). Because you will need your own cash on hand if you have a car accident, this tip only works if you have enough money available to cover the deductible;
If you have an older car, consider dropping optional coverages like collision and comprehensive. It's not cost effective to have too much coverage on an older car and that action could save you anywhere from 10 percent to 40 percent on your annual premium depending on the make and model of the car.
Drivers with good driving records often get the best premiums, so be a safe driver.
Your credit rating may affect what you pay for insurance so maintain good credit. Data shows that drivers with long, stable credit records have fewer accidents than drivers who have poor credit.
Ask your insurance company about discounts. Many companies offer discounts for those who are safe drivers, good students, retired, in college, etc.

You can also save hundreds of dollars by shopping around. Compare prices but also look into the financial health of the company and find out if it is customer friendly.

About the Insurance Information Institute

I.I.I. is an educational, fact finding and communications organization funded by the property/casualty insurance industry to explain what insurance is and how it works. Each year, the I.I.I. works on more than 3,700 news stories, handles more than 6,000 requests for information and answers nearly 50,000 questions from consumers. www.iii.org

SOURCE Insurance Information Institute

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Auto agents accuse Mass. insurance commissioner Nonnie Burnes of giving preference to new companies

2008-12-21T06:41:00.000-08:00

A state insurance agents association, which is already involved in a lawsuit against insurance commissioner Nonnie S. Burnes, is alleging Burnes is again giving preferential treatment to companies new to the state's auto insurance market.

The Massachusetts Association of Insurance Agents contends that companies who this year became part of the state's new insurance system, most notably Progressive Direct Insurance Co., must assume some of the pooled losses caused by high-risk drivers that is shared by established companies. In recent years, the losses have totaled about $100 million.

Insurance companies divide that loss based on their market share in Massachusetts.

Nonnie S. Burnes

"It's not chump change," said Francis A. Mancini, president and chief executive officer of the association. "We're not talking about a couple of dollars. We're talking about millions and millions of dollars."

Burnes, however, has taken a position contrary to a state rule, according to the Commonwealth Automobile Reinsurers, which provides access to insurance to high-risk drivers, including young and poor drivers.

"It's outrageous," Mancini said. "That's what it is."

On Wednesday, Daniel R. Judson, a Boston lawyer representing the reinsurers governing committee, wrote to Burnes that despite the state rule he understood the Division of Insurance to take the position that new companies are exposed only to an assessment for the reinsurers' administrative costs and not an assessment for any pool losses or profits. Judson further wrote that the governing committee failed "to see where ... the language exists which exempts (any new company) from its share of the profits and losses."

In a letter to association members, Mancini wrote that if Burnes intends to spare new companies from sharing in pool losses, she should state that in an emergency rule to the reinsurers and then "allow for a public hearing and have the DOI explain why such a rule is a fair and equitable way to share the deficit."

B. Catherine Wilton-Bransch, Massachusetts product manager for Progressive, said the company is "a little surprised that this is all blowing up now."

Wilton-Bransch said Progressive believes it should not be part of the pool, that it has taken drivers who would typically be assigned to the pool and written their policies and assumed the risk.

"Fundamentally, we look at it and we say, 'We are not putting anything into the pool,'" Wilton-Bransch said.

Robert R. Wilcox, president of Wilcox Insurance Agency in Westfield, said every company writing policies in the state should help cover pool losses.

"She's got different rules for different carriers," Wilcox said of Burnes.

Earlier this year the association and Arbella Insurance sued Burnes in Suffolk Superior Court, contending companies new to the state have received an unfair competitive advantage as a result of receiving a two-year moratorium on having to write any policies on bad drivers.

"There really isn't any need for an incentive to come to Massachusetts," said Mancini, noting that private passenger auto insurance is a $4 billion industry in the state.

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Is it wrong to increase insurance based on age?

2008-12-20T07:03:00.000-08:00

Sandy K. of Freeport, who turned 75 in February, celebrated that milestone with her children and grandchildren. She and they were "quite glad" she had attained that age, she wrote. But she added, "Too bad the insurance companies do not feel the same way."

Here's why. In August, Sandy, a retired computer troubleshooter, received a bill for the renewal of her optional umbrella liability insurance policy from Allstate and was shocked. Her insurance premium - for the same coverage as the previous year - had increased by 55 percent, from $280.17 to $433.72. And when she called Allstate to find out why, she said she was "told it was increased simply because of my age."

Sandy K. said, "This increase was based not on poor driving accidents or anything negative other than I have the good fortune to age." And in a letter to New York Attorney General Andrew Cuomo, she asked if the higher premiums constituted age discrimination.

Beth Frank, of Cuomo's office, replied that while Sandy may consider the increase improper, no antidiscrimination laws were broken.

Allstate case worker Betty Bentivegna in Northbrook, Ill., confirmed in a letter to Sandy that her age was the reason for the premium increase. The policy premium was based on the same information as last year, Bentivegna wrote, "with the exception of a 75-or-over driver." She added, "Allstate files its rules and rates within each state, and these filings have been approved."

Curiously, Sandy's auto insurance premium did not increase - indeed it was reduced, because her driving record was clean, said a spokeswoman in Allstate's Long Island office. Only the optional umbrella liability policy premium was raised. Why? Because she drives and she turned 75, the spokeswoman told me. I asked what an umbrella policy has to do with a driver's age.

Auto and umbrella policies "are separate policies with different rating classifications," she explained.

I asked the state Insurance Department, the agency that approves increases, if Sandy K. is a victim of age discrimination. Spokesman Andrew Mais wrote that New York law "prohibits age discrimination in underwriting practices," which refers to "accepting, rejecting or terminating policyholders based upon the advanced age of the insured." But, he added, insurance companies may use age as a reason to raise rates, and that would affect both older and younger individuals.

What if raising the price is a way of forcing a person of age out of a policy? "We follow the law," Mais insisted. Sandy K. told me, "Just because he thinks it's legal doesn't make the situation right."

George Nager, 85, and his wife Pauline, of Levittown, did more than complain when they were outraged that their Long Term Care Insurance carrier had raised their premiums by 12 percent. The Nagers are lawyers and, with other policyholders, they filed a freedom of information suit last month in State Supreme Court in Mineola to force the state Insurance Department to open its files and explain why it granted the increase. The state had declined their repeated requests, claiming that much of the information is proprietary.

The Nagers purchased their long-term care insurance policies in 1998 from GE Capital, whose policies were taken over in 2006 by Genworth Life Insurance Co. of New York, based in Lynchburg, Va. In June, Genworth notified Nager and his wife that the premiums for their policies, which were several thousand dollars a year, would increase by 12 percent. The state Insurance Department had granted the increase in May, its records show, without notifying or hearing from policyholders on the merits of Genworth's request.

In a letter to state Insurance Superintendent Eric Dinallo, Nager said such an increase would be a hardship on older people who were counting on long-term care insurance policies to protect them if they needed nursing care. Pauline Nager pointed out that many such policies were sold under the state's Partnership for Long-Term Care insurance, which is designed to provide affordable insurance and keep the elderly from using Medicaid as a first resort. The premium increase undermines the program, she said.

George Nager acknowledged that when he bought the policy, he was told that premiums could be increased. But he was assured by the sales representative that GE had not raised its premiums since 1974, that his policy contained a guarantee against cancellation as long as he paid the premiums and that they could not be raised for an individual, but for a "class." There was the rub that many policyholders may not understand.

If you are part of a group of policyholders from New York, for example, that bought their policies in June 1998, at a certain premium, you could be considered part of a "class" and the premiums of people in that "class" may be increased. It's not surprising that Nager was unclear about this possibility. Even Jesse Slome, director of the American Association for Long Term Care Insurance, was unfamiliar with the definition of class until he consulted with insurers at my request.

"Some companies define class in their policies," he said. "A class could be viewed as anything by which premiums vary ... age, state, sex, benefit options." Nager and others who have joined in the suit insisted in their complaint to Dinallo that their class had not changed and that their policies were "guaranteed renewable." But Earl S. Klayman, supervising actuary of the state Insurance Department's Health Bureau, explained that "guaranteed renewable" simply means the policy cannot be canceled as long as the premiums are paid. "However," he added, "the insurer has the right to raise the premiums as long as this is done on an entire class of policies and not because an individual has a claim."

The Nagers' suit seeks the details behind the decision to grant the increase, especially the financial information to justify the company's request for the raise. Klayman said such raises are designed to make sure insurers have sufficient reserves to pay claims. And he said his department has denied most of the raises requested by insurers. But the department's Web site shows only the 29 increases that have been approved in the past four years, ranging from 8 to 20 percent.

Mais, the state Insurance Department spokesman, declined to comment on the suit, which is to be heard next month. Stay tuned. And let me hear about your insurance frustrations.

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Auto insurers begin to add pet policies

2008-12-19T06:39:00.000-08:00

Good news, Fido. Tough break, turkey: Some auto insurance companies have quietly begun offering free coverage to four-legged friends, paying medical bills for pets injured in car crashes.

But just as dogs and cats rule the roost at home, they also top the insurance pecking order. The handful of insurers that offer the coverage with comprehensive collision policies are drawing the line at cows, pigs, sheep, goats, chickens, turkeys and other animals kept for profit or food -- although Farmers Insurance Group will cover ferrets, rodents and reptiles.

The coverage reflects what pet owners have known for years and some corporations are just now realizing: The bonds run deep with fluffy friends. Even if they do soil the carpet now and again.

"People love their pets and regard them as part of the family," said Lori Conarton, communications director for the Insurance Institute of Michigan, which represents 38 companies writing 74 percent of auto insurance policies in Michigan.

"Given that the insurance industry is pretty competitive and market driven, if this coverage is well received, I'm sure other companies will add it as well."

With little fanfare, AAA-Michigan began offering the coverage -- at no charge in March to all customers with comprehensive collision. The coverage pays $500 per incident for medical bills or $500 for so-called replacement animals if they die in crashes.

"This was an opportunity to provide a new coverage that we believe was right for the market. We believe it's a good benefit for our policy holders and we're happy to provide it," said Anthony Ptasznik, vice president for membership and insurance produce management at AAA-Michigan, the state's second-largest provider of auto insurance.

Insurers say although there are few claims, the new pet policies are a low-cost way to try to attract customers.

The market is huge: Michiganians keep 2.18 million dogs and 2.47 million cats, according to the American Veterinary Medical Association.

Pet auto insurance coverage was pioneered nationally by Progressive Corp. in September 2007. The insurer, based in suburban Cleveland, sells policies in all 50 states.

"We know how much our customers love their cats and dogs and many of us have pets, too," said Miriam Deitcher, director of targeted marketing at Progressive. She has a beagle puppy who loves to tag along on car rides.

"This coverage provides a comfort, and we're really thrilled we led the way in offering it," said Deitcher, who declined to say how many claims have been made.Jerry Davies, a spokesman for Los Angeles-based Farmers, said the verbal feedback he's heard has been positive since it began offering the insurance in June.

Dog owner Lynda Broughman says she doesn't have the coverage, but likes the idea.

She said $500 might not go far given that the medical bill for an animal involved in an automobile accident could easily reach several thousand dollars. And she notes that replacing her English bull dog would cost $1,800 or more.

"It still would be nice to have that coverage, $500 is a lot better than nothing," said Broughman, who works in the student accounting office at Jackson Public Schools.

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Auto Insurance Rate Quotes – Does Your Zip Code Affect Your Auto Insurance Premiums?

2008-12-18T07:33:00.000-08:00

Ricky Lee

October 29, 2008

In most cases, people know the reasons why their home insurance is affected by the zip code they have. But, they usually don´t understant what impacts their rate when it comes to auto insurance.

If you do understand this, you will be able to save money when buying a home, as you will understand how saving a few hundred bucks on your house can end up costing you a few thousand dollars in auto insurance in the next few years.

Below you can find out how:

1. The place where you buy your house determines in most cases what mileage you make every year. If you don´t live near the places you usually go to (and you have to drive there) your mileage will go up because of this.

Your job is the best example: if your job is 10 miles from your home and you do that trip five times each week, you will drive twice as much as someone who has their work place only 5 miles away.

Also, the area you choose to live in will determine if you have a mass transit access in the vicinity. Using it as often as possible will help get your rate down.

2. What´s the crime rate in the area where you reside? Low or high? The auto insurance rates are also partially influenced by this factor. If you live in a dangerous area, the risk of vandalism and theft is higher, and the rate increases accordingly.

So, when you´re in the market for buying a house, take into consideration these issues, as they can increase your expenses in auto insurance premiums if you ignore them.

You should also compare all the information you have on the insurers that are disposed more favorably to the zip code you live in. Their rates can vary.

So, if you´re looking for a house, a good tip would be to compare the auto insurance quotes for a number of zip codes and see what the differences are. If your zip code adds an extra $250 to your annual premiums of the auto insurance, in 20 years you will be paying a total of $5,000.

Discover the best car insurance rate quotes online. Visit my auto insurance rate and learn where to get instant car insurance quotes.

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La. residents can compare rates for auto, home insurance online

2008-12-17T07:06:00.000-08:00

Louisiana automobile and home owners can now get quotes on insurance from their computer.

Insurance commissioner Jim Donelon announced Monday that auto and homeowners rate comparison guides are available at the Department of Insurance Website, www.ldi.state.la.us.

The rate guide provides quotes from top carriers of auto and homeowners insurance in the state, Donelon said.

The auto quotes reflect various rating situations, such as driver and vehicle age, location and driving record. The homeowners quotes reflect situations such as the location, age and price of the home.

To access the guides, visit www.ldi.state.la.us and click on publications, guides and forms near the top of the screen. The guide includes links to each company.

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District of Columbia Pays Highest Insurance Rates to Drive

2008-12-16T08:18:00.000-08:00

Drivers in the District of Columbia pay the highest combined average automobile insurance premiums in the United States, taking the top spot from New Jersey.

The National Association of Insurance Commissioners has released its 2005/2006 Auto Insurance Database Report, which indicates the District of Columbia leads the auto insurance pack with a combined average insurance premium per vehicle of $1,315.55 in 2006, down from $1,345.58 the year prior.

The state combined average premium is calculated by summing the average premiums for liability, comprehensive and collision coverages. The result is the average price for a policy that contains all three, the NAIC said.

The drop in premiums in D.C. wasn''t enough to keep New Jersey in the top spot among the most expensive auto insurance regions. The Garden State had a combined average insurance premium of $1,284.43 in 2006, down from $1336.80 in 2005.

According to the NAIC report, the rest of the top five regions in most expensive auto premiums for 2006 were: Louisiana, with $1,254.66; New York with $1213.14 and Rhode Island, with $1197.81.

Throughout the United States, rates have continued to fall, according to the report. The combined average premium nationally was $936.60, down from $954.02 in 2005 and $967.28 in 2004.

According to the report, Iowa had the lowest combined average auto premium in 2006 at $644.49, followed by North Dakota with $688.58.

The NAIC cautions against state-to-state comparisons because many factors affect a state''s average premiums, such as underwriting costs, accident rates, traffic density, auto theft and state regulation.

In 2007, the top five writers of private-passenger auto in the United States, according to A.M. Best Co state/line product information based on direct premiums written, were: State Farm Group with a 17.5% market share; Allstate Insurance Group, with 11.3%; Progressive Insurance Group, with 7.3%; Berkshire Hathaway Insurance Group, with 7.2%; and Farmers Insurance Group, with 5.5%.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

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Auto Insurance Industry Overlooked $16 Billion in Premium Losses

2008-12-15T07:12:00.000-08:00

Auto Insurance Industry Overlooked $16 Billion in Premium Losses

Premium Rating Error Report by Quality Planning Concludes Auto Insurers Could Boost Profits by Paying More Attention to Miles Driven by Customers

Last update: 9:00 a.m. EST Dec. 4, 2008

SAN FRANCISCO, CA, Dec 04, 2008 (MARKET WIRE via COMTEX) -- Quality Planning ( www.qualityplanning.com), the ISO company that validates policyholder information for auto insurers, today released its annual premium rating error report. Quality Planning estimates that these errors resulted in the loss of $16.1 billion of auto insurance premium revenues in 2007, slightly down from the 2006 figure of $16.6 billion -- but still almost 10 percent of the total $162 billion in personal auto premium written. Two primary reasons are identified for rating error: consumer fraud and the inability of insurers to keep track of key lifestyle and driving habits of their customers.

The report, titled "Auto Insurance Industry Continues to Hemorrhage Cash," can be found online here: http://tinyurl.com/6mtf3c.

"The year 2007 saw the first decrease in auto premium leakage since Quality Planning began issuing this industry report five years ago," said Dr. Raj Bhat, president of Quality Planning. "We believe this is likely the cumulative effect of several large insurers eliminating the mileage component from their rating plans."

"Seldom is there debate over whether or not people who drive more miles should pay higher premiums, yet over the past several years some companies have elected to forgo the use of annual mileage as a critical rating factor -- simply because it was difficult to validate," added Bhat. "Their decision may prove costly."

The report aggregates and summarizes audit results of more than 4 million policies from 16 major carriers. The sample includes substandard to preferred books of business, all distribution channels, and national and regional carriers.(1) Sample results were weighted to reflect the total national private passenger auto line.

In this year's report, Quality Planning noted a small upward trend in the misreporting of garaging addresses and of youthful drivers. The trend was most striking in large urban areas where vehicle garaging location can dramatically affect premium. Nationwide, 1 to 2 percent of all policies written include an unrated operator, who is most often a high-premium younger driver. Policies that contain such rating errors account for more than $2 billion of annual premium leakage.

"The insurance industry can combat premium leakage by applying appropriate analytic tools," said Bhat. "Some policyholders misrepresent facts, and others don't report lifestyle changes. Others boldly commit fraud. Underwriting doesn't have to accept those trends as a cost of doing business or, worse, as justification to counterbalance leakage by inflating premiums for all policyholders."

The 2007 report includes a detailed analysis that shows how different categories of rating error contribute to overall premium rating error and distinguishes between vehicle rating errors (mileage, usage, type of vehicle, and location) and driver rating errors (driving experience and driving record). Quality Planning recommends auto insurers better analyze policyholder rating data to identify and correct flawed information -- steps which could have a positive effect on profitability.

Rating integrity and competitive advantage

Quality Planning helps auto insurers minimize rating error. The San Francisco-based company processes auto insurance companies' books of policyholders through a battery of more than 150 proprietary tests, cross-reference checking, and pattern-matching algorithms to identify errors and discrepancies that might suggest customer fraud. Quality Planning also provides insurers with additional services, such as policyholder phone interviews to discover missing drivers, verify garaging addresses, determine annual mileage, and other key rating information. Over time, insurance companies with accurate rating information are better able to compete and are more financially stable.

About ISO

A leading source of information about risk, ISO provides data, analytics, and decision-support services to professionals in many fields, including insurance, finance, real estate, health services, government, human resources, and risk management. Using advanced technologies to collect, analyze, develop, and deliver information, ISO helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, ISO employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, ISO helps customers protect people, property, and financial assets. For more information, visit www.iso.com.

About Quality Planning Corporation

An ISO business, Quality Planning is focused exclusively on providing rating integrity solutions to auto insurers. Quality Planning works with insurance companies to identify areas of significant rating errors using sophisticated database management, statistical analysis and modeling, customized survey design, and highly targeted customer interaction. Quality Planning helps clients work within their existing rating plans and charge fair prices to policyholders based on a true representation of risk. The company was founded in 1985 and is headquartered in San Francisco. For more information, visit www.qualityplanning.com.

(1) The sample was limited to audits for which Quality Planning retained contractual rights to aggregate data for industry analysis.

Contact:
Tim Cox
Zing Public Relations
650-369-7784
Email Contact

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SOURCE: Quality Planning Corp.

 http://www2.marketwire.com/mw/emailprcntct?id=E26664B2C07A2253

Rating errors plague auto insurers

2008-12-14T06:38:00.000-08:00

NEW YORK, Dec. 5 (UPI) --

Rating errors for auto insurance policies resulted in the loss of $16.1 billion in premium revenues in 2007, an industry research group said Friday.

Quality Planning Corp., which tracks information for the insurance industry, said the auto premium leakage declined from the $16.6 billion lost in 2006. However, insurers' revenue losses still came to almost 10 percent of the $162 billion in auto premium revenues for the year, the Insurance Journal reported Friday.

The year 2007 saw the first decrease in auto premium leakage since Quality Planning began issuing this industry report five years ago, said Raj Bhat, president of Quality Planning.

The decline came from the elimination of the mileage component from the ratings systems at several large companies, he said.

The Quality Planning report is an evaluation of more than 4 million policies written by 16 large insurers, the Journal said.

Some policyholders misrepresent facts and others don't report lifestyle changes. Others boldly commit fraud, Bhat said.

Underwriting doesn't have to accept those trends as a cost of doing business or, worse, as justification to counterbalance leakage by inflating premiums for all policyholders.

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NIC sees dip in auto insurance business

2008-12-13T07:02:00.000-08:00

KOLKATA: The recession-hit automobile industry is impacting the business of insurance companies especially the ones for whom auto insurance constitutes a bulk of the business portfolio. However, there may be a rush by corporates to take terrorist coverage in the wake of India’s worst terrorist attack. Personal insurance coverage for such attacks are covered under the personal accident policy.

The Chairman-cum-Managing Director of National Insurance Company (NIC), V. Ramasaamy, said that his company did not have any exposure to either the Taj Mahal Hotel or the Oberoi Trident.

He said that the financial meltdown had not affected his company although auto insurance premium, which constitutes 51 per cent of NIC’s business portfolio might take a hit. “There has been growth till October but new vehicle insurance may be lower. We are therefore concentrating on renewals,” he said. Between April and October, NIC clocked a growth of 10.9 per cent with business touching Rs. 2,510 crore. The public sector insurer is confident of touching its target of Rs. 4,500 crore this fiscal which will represent a 11 per cent growth over 2007-08 when business stood at Rs. 4,024 crore. He said segments such as health had contributed handsomely to the business with a growth of 30 per cent and an income of Rs. 900 crore. Medical insurance had a 17 per cent share in NIC’s business.

Mr. Ramasaamy said that the 82,000 agents had been revitalised with an incentive scheme over and above their commission. The back assurance scheme which had generated Rs. 240 crore worth of business in 2007-08 through 26 tie-ups with leading banks, is set to see a jump by Rs. 50 crore. “There may be one or two more such tie-ups by march 2009,” he said.

Earlier, Mr. Ramasaamy launched a group mediclaim policy for Tower Infotech which will cover their 51,000 business associates to provide financial assistance during hospitalisation.

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IFA Insurance Company Now Accepting PayPal for Car Insurance Payments

2008-12-12T06:49:00.000-08:00

IFA Insurance Company, a leading Car Insurance company, has added PayPal as an available payment method for IFA low cost New Jersey and Pennsylvania Auto Insurance. The integration of PayPal provides IFA customers an additional convenient and secure method to pay for their Auto Insurance coverage.

Clark, NJ (PRWEB) December 10, 2008 -- IFA Insurance Company, a leading Auto Insurance company, has added PayPal as an available payment method for IFA low cost New Jersey and Pennsylvania Auto Insurance. The addition of PayPal allows IFA to offer new and existing customers an additional convenient and secure method to pay for their auto insurance coverage.

IFA Insurance Company continues their leadership role in modernizing the process of evaluating, purchasing, and managing auto insurance. Providing an array of payment options is one of many new initiatives from IFA designed to make Car Insurance simple. PayPal has become increasingly popular with savvy online shoppers since their inception in 2001. PayPal now boasts over 160 million accounts worldwide. IFA was compelled to build the technology link to PayPal to allow customers an additional secure payment method.

David Walsh, President of IFA Insurance Company, knows that providing flexible payment terms and a number of different payment methods is what car insurance shopper's demand, "Beyond offering low Auto Insurance rates in New Jersey and Pennsylvania, IFA believes that the entire process of buying and managing a car insurance policy must be easy, flexible, and secure. Partnering with a great company like PayPal helps us to offer our customers the flexibility of choice and the simplicity of click to pay. Knowing that PayPal transactions are guaranteed secure makes them a perfect partner for IFA."

IFA Insurance Company is an independent, property-casualty insurer located in Clark, New Jersey. IFA specializes in writing private passenger auto insurance in New Jersey and Pennsylvania. IFA has been an auto insurance specialist since 1972. Setting up a low rate NJ Auto Insurance or PA Auto Insurance policy can be completed on the web, Auto Insurance Quote, or can be completed by phone with an IFA specialist at 877-432-0292.

For additional information about IFA Insurance Company contact Ken Conklin by phone at 877-432-2277.

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House GOP proposes auto-industry-funded insurance program

2008-12-12T06:48:00.000-08:00

THe House GOP leadership Wednesday released an alternative plan to the Democrats' proposed $15 billion in loans to the auto makers. The plan is reminiscent of an loan-insurance-themed proposal that House Republicans pushed hard during the financial bailout debate. The plan would be industry funded.

During the financial debate, critics argued that the banks didn't have the capital to fund the insurance plan. It's likely that automakers would also claim they don't have the cash to fund the insurance program. Indeed, GM has said it might not have enough cash to continue operating for more than a few weeks.

"Rather than a taxpayer-funded government bailout that replaces private investment,," explains a leadership memo, "the House GOP plan proposes that the government provide insurance, funded by the participants with a modest FDIC-like fee, which would cover up to 50 percent of the losses of new investment in the case of default, helping to unlock immediate private investment."

The outline of the plan, and a statement from Minority Leader John Boehner (R-Ohio), after the jump...

» Continue reading House GOP proposes auto-industry-funded insurance program

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New Online Car Insurance Shoppers Now Have More Choices for Car Insurance Quotes

2008-12-12T06:36:00.000-08:00

Delaware, Idaho, Nebraska, and Vermont Can Now Compare Car Insurance Quotes at CarInsurance.com

Last update: 4:10 p.m. EST Dec. 5, 2008

ALTAMONTE SPRINGS, Fla., Dec 05, 2008 (BUSINESS WIRE) -- This week CarInsurance.com expanded its online car insurance platform into Delaware, Idaho, Nebraska, and Vermont. CarInsurance.com provides a simple platform so visitors can get a car insurance quote and purchase online car insurance. CarInsurance.com offers a lineup of auto insurance companies including Direct General, Progressive, Esurance, Unitrin Direct, Travelers, Safeco Insurance, The Hartford, QBE, Meritplan Insurance, and Newport Insurance. CarInsurance.com offers its Online Insurance Marketplace(TM) in all 50 states and the District of Columbia, along with services in Canada and the United Kingdom. In 43 states and the District of Columbia, they offer products through their independent agency system. As a leading online independent insurance agency, they can offer you the ability to purchase online car insurance or purchase insurance over the phone. You can compare rates and purchase a policy immediately through their website so you get a single-site car insurance shopping experience.

Delaware, Idaho, Nebraska, and Vermont drivers can now experience the best place to shop, compare, and buy online car insurance. CarInsurance.com offers choice, accuracy, and convenience for online shoppers. With auto insurance, each insurance company is targeting a different kind of driver or situation. It is CarInsurance.com's job to match you with the company that is the best suited for you and your situation. Auto insurance companies' rates change regularly, so you have to get a car insurance quote and compare rates to save with online auto insurance.

CarInsurance.com's goal is to make shopping and comparing easy. After you fill out the simple online insurance quote form at http://www.CarInsurance.com, you see a sampling of company choices and you can easily choose the best company. Accuracy is important; CarInsurance.com marries their technology with simplicity. The car insurance quotes you see come directly from the insurance company rating systems, so you save your time by going to a single site. You can choose the best company and buy online or purchase your policy over the phone to save your money. When you buy insurance online at CarInsurance.com, your final rate, and underwriting comes directly from the insurance companies' systems.

"We have worked to make sure visitors can do everything themselves online, and we have licensed agents available to assist shoppers in choosing and purchasing the best car insurance for their needs," said Executive Vice President and CIO, David Fitzgerald. "More and more shoppers are going online to get a car insurance quote; with our site we can help consumers find the best rates, the best protection, and save their time by using a single site to compare insurance products."

CarInsurance.com has completed its 2008 growth strategy. On January 28, 2009, they expect to complete their national footprint and expand into Alaska, Hawaii, Montana, North Dakota, South Dakota, and Wyoming. In addition, they will increase the number of online car insurance carriers throughout 2009, so visitors can shop and compare more auto insurance companies online.

About CarInsurance.com, Inc.

Based in Altamonte Springs, Florida, CarInsurance.com gives consumers the ability to instantly compare and buy competitive auto insurance rates directly from multiple insurance companies. Not only do consumers have an easy interface to review the rates of multiple insurance companies, but also when ready to purchase, consumers have the option of completing the transaction online or by talking directly to a licensed agent. The same insurance team has owned and operated the CarInsurance.com domain since 1995, making it one of the first online car insurance websites. CarInsurance.com helps consumers and insurance companies by providing companies new customers through real-time quoting and underwriting. Save your time. Save your money.(R)

SOURCE: CarInsurance.com

CarInsurance.com, Altamonte Springs
Erick Pace, 407-260-2220 extension 222
PressServices@carinsurance.com
http://www.CarInsurance.com

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Free Auto Insurance Quotes Search Can Save Shoppers Hundreds Of Dollars A Year

2008-12-11T07:32:00.000-08:00

(live-PR.com) - North Hollywood, CA ( Live-pr ) October 7, 2008 — InsuranceBureau.com has introduced an easier way to save money and find cheap auto insurance quotes. (www.InsuranceBureau.com) InsuranceBureau.com, an informative site featuring insurance tips and information, now provides a free service to all website visitors; searching for affordable auto insurance quotes. An exhaustive search for car insurance quotes can be completed with just as much thoroughness as traditional methods by using the auto insurance quotes finder on the website.

The impact of this quick and easy car insurance quotes service is making a splash among consumers looking for ways to save money in a troubled economy. Shoppers receive unbiased and competitive auto insurance quotes using just one single car insurance quotes form, not several different applications.

InsuranceBureau.com finds (www.InsuranceBureau.com) auto insurance quotes for consumers to compare at their leisure with no sales pressure to purchase a policy. Also, comparing car insurance quotes in this way ensures the consumer is getting the absolute most competitive auto insurance quotes possible. To learn more about how to receive free car insurance quotes with ease, visit (www.InsuranceBureau.com) InsuranceBureau.com.

www.InsuranceBureau.com
6400 Laurel Canyon Blvd, Ste 460
North Hollywood, CA 91606
Phone: 800.647.2164
Fax: 800.647.2142

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John Alsop Insurance Agency Announces New Enhancements To Their Auto Insurance Product

2008-12-10T07:05:00.000-08:00

Modesto, CA (1888PressRelease) November 30, 2008 - John Alsop Insurance Agency has 25 years of experience in the insurance industry. The company offers many different types of insurance products including auto, home, commercial, health and life insurance. They also offer financial products for investment purposes. John Alsop Insurance Agency offers free client welcome kits & 24/7 customer service to all its customers. They also offer free policy reviews to understand what people need in their emergencies.

John Alsop Insurance Agency has recently announced addition of new features to its “Your Choice Auto” insurance product. The new features include deductible rewards, a safe driving bonus, ticket mitigation and accident forgiveness to the drivers.

People can save up to 37% by combining all their insurance policies with the John Alsop Insurance Agency. Free quotes can be obtained for any insurance product in 5 minutes or less with no extra broker fees. For payment facilitation, John Alsop Insurance Agency accepts Cash, Check, Visa, MasterCard and AMEX.

An automobile liability insurance policy in California with John Alsop Insurance Agency typically has all or a combination of these coverages:

- Bodily Injury Liability (BI or AA)
- Property Damage Liability (PD or BB)
- Medical Payments (CC)
- Coordinated Medical (CX)
- Uninsured or Underinsured Motorist (UM, UIM or SS)
- Collision (DD)
- Comprehensive (HH)
- Rental Reimbursement (UU)
- Towing and Labor (JJ)
- Replacement Cost Coverage (RC)
- Loan or Lease Gap
- Sound System Coverage (ZA)
- Tape Coverage (ZZ)

According to the Agency Owner, John Alsop, “The Your Choice Auto product gives drivers the opportunity of choosing a package that’s right for them. The Platinum Package includes Accident Forgiveness, Deductible Rewards and Ticket Mitigation also. It’s quality insurance at an affordable price.”

About John Alsop Insurance Agency -
John Alsop Insurance Agency, founded in 1991, is an insurance firm with six locations in the cities of Montclair, Rancho Cucamonga, Chino, Ontario and Montebello. They serve more than 20,000 customers and offer all types of insurance products including, but not limited to, auto, home, renters, commercial, health and life insurance. They also offer financial products for investment purposes.

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New Colorado Car Insurance Law Drives Consumer Education

2008-12-09T08:17:00.000-08:00

Starting this month, the mail and inboxes of Colorado drivers will begin filling up with notices from their car insurance companies informing customers of a new "opt-out" requirement due to a new Colorado Law that takes effect January 1, 2009. Because many car insurance policy renewal notices are sent 60 days in advance, drivers whose coverage renews in January will start receiving revised premium notices — along with an optional rejection form, according to the Rocky Mountain Insurance Information Association. However, it's important for all Colorado insurance consumers to understand how the legislation affects their insurance, the association advised.

Colorado Senate Bill 08-11 creates a mandatory opt-out of $5,000 in medical payments coverage (MPC). Medical payments coverage is currently optional auto insurance coverage that is offered in many different amounts — ranging from $1,000 to $100,000. This is extra coverage on the auto policy that pays for the driver and passenger(s)'s medical bills regardless of who causes the accident. If Coloradoans buy this coverage it is in addition to health insurance and settlement money from an at-fault driver.

During the 2008 Legislative Session, Colorado lawmakers passed a bill that will require car insurance companies to add $5,000 of medical payments coverage to every car insurance policy, unless the customer rejects the amount in writing or in the same way it was sold to them (i.e. telephone, Internet).

For policies that go into effect after January 1, 2009, the additional $5,000 in med pay coverage will be automatically rolled on. For customers who don't already carry med pay this will mean a new premium. If drivers purchased less than $5,000 previously, the company is still required to offer a $5,000 limit, since the lower limit amounts will no longer be offered. Bottom line: Drivers will need to buy $5,000, choose a higher limit, or reject all medical coverage by sending back the rejection form, RMIIA explained.

It's estimated that about 32 percent of Coloradans currently choose to purchase some amount of medical payments coverage on their car insurance policy. "So the implementation of this new law will require the majority of Colorado drivers to again carefully weigh their decision to buy extra medical coverage and take action to reject the coverage if they determine they don't want or need it," saidCarole Walker, RMIIA executive director. That's why it's important for agents or company representatives to talk aboutinsurance choices and make sure their clients have the protection that's right for them, she advised.

Colorado insurance companies are taking steps to make sure their customers understand their options and the new opt out legal requirements. Companies are implementing education campaigns that will start this month to inform their customers, agents and employees of the law changes. RMIIA also has new educational guides, "Colorado Car Insurance GPS," that help steer drivers though their coverage choices. For information, visit http://www.rmiia.org/downloads/RMIIA_CO_auto_insurance.pdf.

Source: RMIIA

New Auto Insurance Law Includes 'Opt-Out' Requirement

2008-12-08T07:11:00.000-08:00

DENVER -- If you are about to renew your automobile insurance you may want to look closely at your next bill.A new law goes into effect Jan. 1, that will require you to opt-out if you do not want extra coverage for medical care."It was in response to the huge crisis in trauma care and funding," said Sen. Betty Boyd, D-Jefferson County.

The bill's main sponsor, Sen. John Morse, D-El Paso County, told 7NEWS, "That after Colorado switched from 'no fault' insurance to 'tort', many medical providers were finding that they weren't getting paid.”“If they were,” he said, “sometimes it was years later."Right now, motorists have the option of purchasing extra medical coverage on their auto insurance.Next month, that option turns 180 degrees."If they do nothing, $5,000 worth of extra medical coverage will be automatically added to their coverage." said Carole Walker, of the Rocky Mountain Insurance Information Association.Walker said customers still have a choice, but they need to take action to decline it, if they don’t want it.She said the change was made to force motorists to assess what their needs are."If they don't have health insurance, they strongly need to consider the extra medical coverage," Walker said. "Even if they have health insurance, they should consider the extra medical coverage it if they have high co-pays or deductibles."Walker said the good part about the extra coverage is that you don't have to wait for a final settlement, from somebody who caused the accident, to pay your medical bills.Many motorists are not aware of the new law."I didn't learn about it until you told me," said Jamaica Shirley outside a supermarket in south central Denver.Like many people, Shirley said she doesn't pay that much attention to her insurance bill."I just open it and pay it to be honest," she said. "I couldn't tell you what it covers or anything, which is not good."Walker said anyone who drives should pay close attention to everything in their policy."I always tell people that the time to think about what kind of insurance they need is before an accident, not after," she said.Walker added that about 32 percent of Coloradans currently buy medical payments coverage.

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State Web site updates insurance comparisons

2008-12-05T07:10:00.001-08:00

BATON ROUGE -- An electronic guide that allows consumers to compare homeowners and auto insurance rates has been posted on the state Department of Insurance's Web site, the first time in two years the data has been revised.

Insurance Commissioner Jim Donelon said the site includes basic information from a wide range of companies, based on 2008 rates, and from a spread of large and small cities across the state, from the town of Batchelor northwest of Baton Rouge, to New Orleans, Slidell and Shreveport.

Twenty-two companies' premiums are featured in the homeowners guide and 30 in the auto guide.

"This is as accurate as we can make it," Donelon said.

The guides feature premiums quoted by "top carriers of auto and homeowners insurance in the state," and links to the individual company's sites, he said.

Donelon said he expects the agency will continue to publish the information every other year.

The automobile insurance guide reflects different scenarios, based on locations, driver age, type of vehicle and driving record of the individual.

The homeowners premium guide reflects rates based on location and age and price of the home.

Donelon noted, however, that the guides may not fit an individual's exact circumstance. "These rates are for comparison purposes," he said.

Donelon said that an individual who shops around may find a company not listed in the guide that can offer better rates, coverage and service.

More information about the guides and the data is available by calling the department at 1.800.259.5300.

The department can provide information on the companies' national rating and the number of complaints -- if any -- filed against each one, Donelon said.

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State warns about auto insurance phone scam

2008-12-05T07:08:00.000-08:00

COLUMBUS: The Ohio Department of Insurance is warning about a telephone scam targeting auto insurance customers.

Department Director Mary Jo Hudson said today that victims are receiving calls saying their insurance payment can't be processed and that they'll need to provide their bank account number as well as other personal information to resolve the problem.

Hudson said in today's economy, phone scams are becoming more prevalent, and consumers need to be on guard or risk falling prey to identity thieves.

She said to be very careful when anyone other than your insurance agent contacts you about your policy. Also, if you're suspicious about a caller, insist on getting a name and telephone number and don't give the person your financial or other personal information.

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Tips for new drivers

2008-12-05T07:01:00.000-08:00

and even their parents -- a driver's license is a ticket to freedom. However, even while they explore their new freedom, new drivers must keep safety and responsibility top of mind. This includes investing in an affordable insurance policy that offers drivers full protection.

There are some immediate actions new drivers can take to help lower the cost of insurance. For example, drivers who have completed an approved drivers training course in the last three years may pay lower premiums.

"Choosing a hybrid as your first car not only helps green the environment, it also helps keep the green in your pocket," says Henry Blumenthal, vice president, TD Insurance Home and Auto. "Drivers who own or lease hybrid vehicles can save up to 10 per cent on auto insurance premiums through the TD Insurance Green Wheel Program."

Some additional tips for new drivers setting out this season include:

* Think pink:Keep your pink insurance card with you in the car and know what your insurance policy covers. You will need to show it if requested by the police or when you renew your license.

* Go slow:Watch out for children and pedestrians as well as changing road conditions. Accidents and tickets will increase your insurance rates and stay on your record for at least six years.

* Be equipped:Store an emergency kit in your car stocked with jumper cables, a flashlight, first aid kit and a disposable camera to take photos of any accident that may occur. Ensure that the spare tire is fully inflated and your cell phone is fully charged.

* Know your limits:Before heading out for a long trip, become familiar with the route. Keep distractions like loud music to a minimum and stay alert and observant to your surroundings.

Practice makes perfect, so keep driving and gaining experience on the road. To see which insurance policy best equips new drivers for the road ahead, visit

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Auto Insurance Firms Record First Surplus in 7 Years

2008-12-04T07:31:00.000-08:00

By Yoon Ja-young
Staff Reporter

Auto insurance companies recorded a surplus thanks partly to high oil prices in the first half of the year for the first time in seven years. While other financial businesses such as banks, asset management firms, and brokerage houses are suffering because of the global financial crisis, auto insurance companies are enjoying a surplus on top of high investment returns from bonds.

According to the Financial Supervisory Service (FSS), auto insurances recorded 5.5 trillion won in total sales for the first half ending in September, up 4.7 percent from a year ago.

They turned to surplus for the first time since 2001, with operating profits recording 10.7 billion won. Last year, they sustained operating losses.

They recorded a surplus thanks to the falling loss ratio, or the ratio of insurance money paid to subscribers compared with the insurance premium income of insurers.

The loss ratio stood at 68.3 percent, plunging 5.1 percentage points from 73.4 percent.

High oil prices were a boon for insurers in some ways, as an increasing number of drivers left their cars at home to use public transportation, and thus decreasing the number of accidents. The regulator also cited good weather as a factor that curbed loss ratio. Damage from typhoons or heavy rainfall was also small this year.

The report showed online direct auto insurers taking a bigger portion of the pie. They took 17.8 percent of the auto insurance market, up 2.3 percentage points from the previous year. The online auto insurance products saw a 20.1 percent sales growth.

Seeing the growth potential there, Samsung Fire & Marine Insurance recently announced it would advance into the online auto insurance market from next year. Kyobo AXA is the leader in this market with over a 40 percent market share, followed by ERGO Daum Direct.

The regulator, however, said the loss ratio could turn upward in the future following the recent plunge of global oil prices and insurance premium cuts. Dubai crude fell to below $60 per barrel from over $140 in July, while insurance companies cut insurance premiums by between two to three percentage points this summer.

chizpizza@koreatimes.co.kr

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AIG's auto-insurance business will drop the name 'AIG' to improve its prospects

2008-12-03T06:31:00.000-08:00

American International Group Inc., the insurer bailed out by the U.S., will remove AIG from the name of an auto insurance unit to improve its sale prospects.

AIG will start calling its aigdirect.com business 21st Century Insurance in January, reverting to the brand of a California-based car insurer acquired last year, said Nicholas Ashooh, a spokesman for AIG.

AIG is selling businesses including auto insurance, U.S. life coverage, and a plane-leasing unit to repay the government loan that saved it from bankruptcy in September. The insurer was nearly overwhelmed by bad bets on U.S. housing and has posted about $43 billion in four straight quarterly net losses.

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Hassle free and Cheap auto and home Insurance quotes online

2008-12-02T08:17:00.000-08:00

Released on: November 6, 2008, 8:03 am

Press Release Author: http://cheap-insurance-rates.com/

Industry: Financial

Press Release Summary: With all the auto insurance ads on TV and the internet, people are bombarded by information from carriers claiming to offer the lowest rates.

Press Release Body: With all the auto insurance ads on TV and the internet, people are bombarded by information from carriers claiming to offer the lowest rates. But most consumers don’t want to take the time to shop around. They want quick, easy answers and Cheap Insurance. They don’t want to have to call multiple different agents, fill out countless long forms or spend a lot of time thinking about and comparing rates. That’s where we come in. We’re Cheap-Insurance-Rates.com and our goal is to help you find the right insurance carrier to meet your needs, and we make it easy for you. Visit our site, fill out one simple form and compare quotes for Cheap auto insurance from local, license agents. We take care of keeping your information safe thanks to state of the art security, and we only share it with licensed, prescreened professionals we match you with. Instead of shopping around for the best rates, spending your valuable time and effort, these agents compete for your business. You can save up to 70% on coverage for your car, truck or SUV. That’s what we do.

We’re ready to help you with all of your insurance shopping, from auto insurance to Home owners insurance, life insurance and even health and pet coverage. It’s simple and easy, for each type of insurance, you fill out a simple online form with your information and we do the rest for you, shopping different carriers, getting you the best quotes possible and bringing the agents to you, saving you time and money. On our website, you’ll find options for home owners insurance, renter’s insurance, family and individual health insurance coverage, auto insurance, term life insurance and even pet insurance that can help take care of your beloved pet in case of an emergency, and can even help with regular vet bills.

Web Site: http://cheap-insurance-rates.com

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Car insurance stands to rise

2008-12-02T06:29:00.000-08:00

Thousands of Georgia drivers could see substantial increases in their auto insurance rates -- as much as 81 percent, for some -- as insurance companies begin setting their own rates under a law that took effect Oct.1

WHO'S GOING UP?

Nineteen insurance companies have set new rates that renewing or new customers will encounter, with 14 enacting average increases between 2 percent and 11 percent, according to the state Insurance Commissioner's Office.

The increases are much higher for certain drivers. A 28-year-old man with a DUI conviction, an accident or other violations who is insured through Central Mutual Insurance Co. can expect his rate to climb 81 percent.

Drivers insured through 21st Century Insurance Co. will see their rates climb at least 9 percent, on top of a 7.5 percent increase the insurer received in August, when the state still had authority to review and approve insurance rates beforehand.

"We're seeing a lot of companies coming in with very significant swings," Insurance Commissioner John Oxendine said.

The largest increases, between 24.5 percent and 81 percent, would affect about 60,000 drivers.

Six of the companies raising rates, including 21st Century, are owned by underwriting giant American International Group, or AIG, which is in line for a multibillion-dollar government bailout. AIG officials did not respond to a request for comment.

WHO'S NOT GOING UP?

Four companies will reduce their rates by a fraction of a percentage, including State Farm Mutual Automobile Insurance Co., the state's largest insurer with 1.4 million policies. Lincoln General Insurance Co. will cut rates the most, by 10 percent.

WHY DID THE LAW CHANGE?

When state lawmakers debated the law, supporters said allowing insurers to set their own rates would spur competition and improve prices for consumers. It passed the House and Senate with only 13 votes against it.

Mr. Oxendine fought the change, which was added to a bill allowing drivers to bolster their coverage against uninsured motorists.

Mr. Oxendine said Friday that he doubted the law would ever increase competition.

"These companies can come back every couple of months and raise rates if they want to," Mr. Oxendine said. "I think the key is going to be what happens over the next year."

Sen. Jeff Chapman, R-Brunswick, voted against the bill. He said he hoped rates would eventually be driven down.

"You obviously don't want to see anybody get taken advantage of," Mr. Chapman said.

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Ways to reduce your auto insurance premium

2008-12-01T06:29:00.000-08:00

(Nov. 27, 2008) — If you’re like me, you’re always looking for a smart way to save money. Sometimes, saving money can come in the most unlikely place — such as your insurance.

There are several ways you may be able to cut your auto insurance costs. Higher deductibles can lower your premium, as will selecting only the coverages you feel you need. Many insurance companies offer different discounts. Here are a few. When shopping for auto insurance, be sure to ask about the availability of these discounts and whether the insurer offers them.

• New business discount: May offer you a discount as a new policyholder if you have been accident-free for a specific period of time.

• Accident-free: Policyholders who have been accident-free while being insured with the same insurance company for several years may be eligible for reduced premiums.

• Discounts for other insurance lines: Premiums may be reduced if you insure your home, life or health with the same company that covers your car.

• Multiple cars: Premiums may be reduced if there are two or more private passenger cars in the household insured by the same company.

• Air bag/passive restraint: Cars that are 1993 or older and are equipped with air bags or automatic seat belts may receive this discount. Certain makes and models of newer vehicles may receive the Vehicle Safety Discount because of the lower medical payments associated with them. The Vehicle Safety Discount is for autos 1994 or newer. Certain makes and models may have a decrease in their premiums because of lower medical payments associated with those specific makes/models.

• Antitheft devices: Some insurance companies offer discounts on comprehensive coverage premiums when certain antitheft devices are installed or built into a vehicle.

• Defensive driving course: Premium discounts sometimes are offered for the voluntary completion of specified driver improvement courses.

• Good student: Full-time students (high school or higher level) maintaining at least a “B” average may qualify for reduced premiums with many companies.

These are just a few of the common discounts offered by insurance companies. For more details, contact your insurance company or agent. Above all, drive safely.

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Massachusetts challenges auto insurance rate structure

2008-11-30T06:28:00.000-08:00

Massachusetts Attorney General Martha Coakley has asked that the state Division of Insurance review the new auto insurance rates of Premier Insurance Co. Massachusetts laws keep auto insurers from basing rates on income, homeownership and other surrogates for income, such as education, occupation or marital status. ConsumerAffairs.com (11/24)

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FTC Blocks Merger of Insurance Loss Vendors CCC Information, Mitchell

2008-11-29T06:27:00.000-08:00

The Federal Trade Commission has filed suit to block the merger of CCC Information Services Inc. and Mitchell International Inc., charging that the merger would hinder competition in the market for electronic systems used to estimate the cost of collision repairs, known as "estimatics," and the market for software systems used to value passenger vehicles that have been totaled, known as total loss valuation (TLV) systems.

The FTC's administrative complaint alleges that the merger, which is valued at $1.4 billion, would harm insurers, repair shops and, ultimately, U.S. car owners by reducing from three to two the number of competitors in the two related businesses.

"These estimating and valuation solutions are key tools in the auto insurance and collision repair industries," said Acting Bureau of Competition Director David P. Wales. "There is no doubt that this merger would reduce competition that benefits auto insurers and auto body shops and ultimately would lead to higher prices and less innovation for consumers."

According to the FTC, the merger of CCC and Mitchell would eliminate head-to-head competition between the two companies and leave the combined company with a market share of far more than half of the sales of estimatics, and a market share of far more than half of the sales in the market for TLV systems, creating a likelihood of adverse unilateral effects.

The merger also would facilitate coordination among the remaining two competitors, CCC/Mitchell and Audatex, the FTC states in its complaint.

Chicago-based CCC Information Services Inc., a subsidiary of CCC Holdings Inc., was founded in 1980 and has approximately 1,300 employees. The company sells its services to insurance companies, collision repair shops, and independent appraisers.

Mitchell International Inc., primarily owned by Aurora Equity Fund III L.P., itself part of the Aurora Capital Group, was founded in 1946 in San Diego and has about 650 employees.

The companies announced their planned merger on April 11, 2008. Each of the companies provides both estimatics and TLV systems.

Estimatics consists of a database of parts, parts prices, and repair times, along with software that accesses the database and calculates repair costs based on input information about vehicle damage. These systems allow insurance adjusters and collision repair shops to estimate repair costs faster and more accurately than previously had been possible decades ago when estimates were written manually.

A TLV system also consists of a database and software. But rather than parts and repair cost information, the database contains vehicle information on recent, actual vehicle sales in every locality in the United States. TLV systems allow insurers to quickly obtain valuations for cars totaled in collisions based on recent, actual, local market sales. These valuations allow insurers to present car owners with settlement offers that are accurate and comply with all states' insurance regulations.

The markets for estimatics and TLV systems are already highly concentrated, according to the complaint filed by the FTC. A California-based company called Audatex is the only other significant competitor in both lines of business, the complaint states. CCC, Mitchell, and Audatex have long provided the estimatics market with solutions. Mitchell recently entered the TLV systems market with a new solution that has increased competition in that market, according to the complaint.

The FTC vote to issue the administrative complaint was 3-0, with Commissioner J. Thomas Rosch recused. The Commission also has authorized the staff to file a complaint in federal district court seeking a temporary restraining order and preliminary injunction to preserve the competitive status quo, pending an administrative trial on the merits.

Source: FTC
www.ftc.gov

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AIG renaming auto insurance division, cutting jobs

2008-11-28T06:26:00.002-08:00

American International Group Inc. plans to rename its auto insurance division and cut 6.6% of jobs in that unit of the company to improve the chances of finding a buyer for the operation.

According to Bloomberg, the aigdirect. com unit will be renamed 21st Century Insurance in January, complete with a new logo, Web site and television commercials. In 2007, AIG acquired Woodland Hills, Calif.-based 21st Century to form aigdirect. com, currently insuring more than 3.5 million vehicles nationwide.

A spokesman for AIG also confirmed that aigdirect. com will cut 6.6% of its workforce, closing offices in 12 cities, as detailed in an Oct. letter to workers.

Rebranding the auto unit will make the business more attractive to a prospective buyer, Tony DeSantis, head of AIG's personal auto group, said in a Nov. 17 letter, according to the report.

In November, AIG received a restructured federal bailout of over $150 billion, including $40 billion from the U.S. Treasury’s Troubled Assets Relief Program in return for preferred stock investment in the insurer.

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Canadian auto insurance rate regulators establish CARR Association

2008-11-28T06:26:00.001-08:00

Auto insurance rate regulators across the country have established the Canadian Auto Insurance Rate Regulators (CARR) Association.
"Our vision is to be a recognized inter-jurisdictional Canadian association for automobile insurance rate regulators working together to improve rate regulation processes,” said association chairman Harry Gough, currently the vice chair of the Alberta Auto Insurance Rate Board.
The CARR Association was formally established at the 2008 Canadian Automobile Insurance Rate Regulators (CARR) Conference, held late this year in Banff, Alberta.
"The conference had been the product of a common desire among automobile insurance rate regulators to have a forum where they could discuss topics of concern and share expertise exclusive to automobile insurance rate regulators," according to a release issued by the CARR Conference.
At the inaugural 2007 conference, a desire was expressed to form an insurance rate regulators association, which later evolved into the CARR Association.
Apart from naming Gough as chairman, the CARR Association named Paul D’Astous as its vice chair. D'Astous is currently chairman and CEO of the New Brunswick Insurance Board.
Six other representatives from across Canada were given positions on the CARR Association's board.

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AIG to rebrand US auto insurance unit to 21st Century Insurance, and cut jobs

2008-11-28T06:25:00.000-08:00

Nov 27, 2008 (Datamonitor via COMTEX) -- American International Group, which has been bailed out by the US government, plans to remove AIG from the name of its US auto insurance unit, aigdirect.com, and rebrand it as 21st Century Insurance in January 2009. The auto unit also plans to cut 6.6% of its workforce.

According to media reports, Nicholas Ashooh, a spokesman for American International Group (AIG), said that the name change is a reversal for AIG, which acquired 21st Century in 2007. The company is expected to launch the new logo and website on January 5, 2009.

Bloomberg reported that the auto insurance unit employed around 5,500 workers by the end of September 2007. Earlier, in a statement to its workers, AIG said that it plans to close offices in 12 cities.

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New law lets auto insurance rates increase

2008-11-28T06:21:00.000-08:00

ATLANTA - Thousands of Georgia drivers may see substantial increases in their auto insurance rates - as much as 81 percent, for certain motorists - as insurance companies begin setting their own rates under a new law that took effect Oct. 1.

Nineteen insurance companies have set new rates that renewing or new customers will encounter, with 14 enacting average increases between 2 percent and 11 percent, according to the state Insurance Commissioner's Office.

But the increases are much higher for certain drivers. A 28-year-old male with a DUI conviction, an accident or other violations who is insured through Central Mutual Insurance Co. can expect his rate to climb 81 percent.

Drivers insured through 21st Century Insurance Co. will see their rates climb at least 9 percent, on top of a 7.5 percent increase the insurer received in August, when the state still had authority to review and approve insurance rates beforehand.

"We're seeing a lot of companies coming in with very significant swings," Insurance Commissioner John Oxendine said.

The largest increases, between 24.5 percent and 81 percent, would affect about 60,000 drivers.

Six of the companies raising rates, including 21st Century, are owned by American International Group, or AIG, which is in line for a multibillion-dollar government bailout. AIG officials did not respond to a request for comment.

Four companies will reduce their rates by a fraction of a percentage, including State Farm Mutual Automobile Insurance Co., the state's largest insurer with 1.4 million policies. Lincoln General Insurance Co. will decrease rates the most, by 10 percent.

When state lawmakers debated the law, supporters said allowing insurers to set their own rates would spur competition and improve prices for consumers. It passed the House and Senate with only 13 votes against it.

Insurance Commissioner John Oxendine fought the change, which was added to a bill allowing drivers to bolster their coverage against uninsured motorists.

Oxendine said Friday he doubted the law would ever increase competition.

"These companies can come back every couple of months and raise rates if they want to," Oxendine said. "I think the key is going to be what happens over the next year."

Sen. Jeff Chapman, R-Brunswick, voted against the bill. He said he hoped rates would eventually be driven down.

"You obviously don't want to see anybody get taken advantage of," Chapman said.

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