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Today’s News: States Implementing High-Risk Programs, Gen Y Knows Life Insurance and Esurance Offers New iPhone App

Posted in Auto Insurance , Auto Insurance Companies , Compare Life Insurance , Health Insurance , Life Insurance

July 21st, 2010
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Many states are getting ready to implement high-risk health insurance programs, Generation Yers are showing that they know more about life insurance than one would think and Esurance is making  a new iPhone application available.

States Implementing High-Risk Programs

This summer, many new programs will be implemented to offer high-risk health insurance to individuals with pre-existing conditions who have not been able to acquire coverage to date. States like South Carolina have already begun implementing this bridge program that is set to stay in service until states are required to create health insurance exchanges that will provide affordable insurance to everyone in 2014. Since the deadline to either expand existing high-risk pools or create new ones was July 1, many states are already accepting new patients (Columbia Free Times).

Gen Y Knows Life Insurance

Many assume that individuals born between 1979 and 1994, also known as Generation Y, don’t have enough experience and wisdom to make the hard decisions in life. But they were able to prove everyone wrong via a recent survey conducted by Prudential. In the survey, 68 percent of Gen Yers said that they intend to buy or add life insurance coverage within the next three years. The survey also discovered that this generation feels that life insurers don’t target them for purchases and hope that more purchase coverage despite this fact in the near future (Market Watch).

Esurance Offers New iPhone App

Many auto insurance companies have caught up with modern technology and developed their own Android and iPhone apps to make their insurance products more widely available and their services more accessible to customers. Esurance is the latest auto insurer to unveil its iPhone application available for free in Apple’s App Store. The Esurance mobile app offers features that are available to both customers and shoppers, including ID card access, quote estimates, coverage details, the ability to make payments and even an repair monitoring feature. The app will make features available 24/7 to enhance the experience (PR Newswire).

Congress Considers Taking Action on Insurers Using Credit to Decline Coverage

Posted in Auto Insurance , Auto Insurance Companies , Auto Insurance Quotes

May 26th, 2010
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In a statement released by U.S. Representative Luis Gutierrez (D-Ill.), he noted that Congress is currently examining the use of consumer credit history by insurers to set premiums. Since companies often use credit scores and reports to exclude those who are likely to file a claim, Congress is trying to determine whether this is a fair practice.

Insurance Companies Use Credit Scores for Pricing and More

It is well known that life and auto insurance companies – and possibly health and home insurers – use credit scoring when considering new policyholders. In fact, according to the American Insurance Association, about 90 percent of individual insurers use credit information in their risk assessment and pricing as it helps to predict the likelihood of a claim being filed.

However, David Snyder, vice president and associate general counsel of the association, says that the use of credit information in this way is “heavily regulated,” and “has proven to be very important for the market.” Congressional officials are not so sure though, prompting them to take a closer look at the issue.

Hearing Held on the Issue

Gutierrez explained that the Subcommittee on Financial Institutions and Consumer Credit held a hearing on Wednesday to take a closer look at the issue. He said that as of the meeting, “We are watching very closely and will take action if and when we find their practices out of line.”

Currently, 48 states currently regulate the use of credit scores for insurance and most do not allow for credit-based insurance scores to be the sole basis for increasing rates or denying/canceling/not renewing coverage. However, those who have better scores typically receive preferred treatment when applying for coverage.

Some states like Maryland and Wisconsin have tried to veer from the credit scoring standard but haven’t had a great amount of success. Until Congress sees a problem with what insurance companies are doing, it may be difficult for individual states to stop the practice.

Allstate Adds 100 Auto Insurance Jobs with Unique Requirements

Posted in Allstate , Auto Insurance , Auto Insurance Companies

May 13th, 2010
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Allstate Insurance hopes to boost the economy and its auto insurance business by adding more than 100 agents in Florida this year. The job creation project is a part of a program that targets mid-career and mid-level managers with a financial and sales background; however, there is an interesting price to pay to be considered for one of the positions.

Candidates Need Money to Make Money?

According to recent reports, Allstate Insurance hopes to bring in new candidates to fill in one of more than 100 positions available throughout Florida. However, in order to qualify for a position, the candidate needs a minimum of $50,000 of liquid capital to invest in their new auto insurance agency.

This will help Allstate bolster its auto line and boost its coverage of boats, recreational all-terrain vehicles and motorcycles.

New Capital Equals New Business

By requiring that new job candidates bring money to invest, the Florida-area Allstate hopes to eventually become a one-stop shop insurance provider to its customers. The hope is that its new candidates can help make this dream a reality.

The benefits for the candidates would include profits coming from investing premiums that are paid by customers before the company pays out a claim. For those who are able to invest, they could end up seeing some significant profits throughout their time with the auto insurance company.

If you live in the Florida area and are interested in this employment/investment opportunity, Allstate asks that you visit its website or call toll-free 1-877-711-1006.

Why California’s Proposition 17 Matters

Posted in Auto Insurance , Auto Insurance Companies , Save on Auto Insurance

May 11th, 2010
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Coming up on next month’s ballot in California is a major auto insurance initiative that could have a huge effect on how drivers are charged for their coverage. The initiative is known as Prop 17 and has been making a lot of noise in recent months due to the continuous auto insurance discount.

Some say that the new proposition will be beneficial to customers because it offers a discount to individuals who are able to maintain their coverage continuously, even if they switch auto insurers. However, others say that those who are not able to maintain continuous coverage at no fault of their own could suffer from it immensely due to excessive surcharges.

Thanks to this bill, advocates and opponents have been fighting tirelessly for months to push their own agendas. Now, it will be up to voters to decide their fates.

The Fight Over Prop 17

If you’re not familiar with Prop 17, also known as the Continuous Coverage Auto Insurance Discount Act, then now’s the time to get up to speed. This proposition was introduced last year and heavily promoted by now troubled auto insurer Mercury Insurance. However, the proposition also received a lot of opposition, especially from Consumer Watchdog’s campaign affiliate, Campaign for Consumer Rights.

The organization believed that the proposition would unfairly punish individuals who were unable to maintain their continuous auto insurance coverage by charging them a major surcharge to re-establish their coverage. It felt that these heavily-promoted persistency discounts would only work for individuals under specific circumstances and would not help senior citizens, injured or disabled individuals and military personnel.

How Prop 17 Could Benefit Customers

Despite the fact that those who struggle to maintain their coverage could be hit with a surcharge if they want to reinstate their coverage, there are some benefits to this California persistency discount:

• Discount for continuous coverage: If you maintain your coverage continuously, you will be rewarded a discount on future auto insurance.
• Switch auto insurers without penalty: If you want to switch to a new auto insurance company, you can simply roll over your coverage credit like a 401(k) plan and still be considered a person with continuous coverage.
• 90-day grace period for insurance cancellations: If you do cancel your auto insurance for some reason, you have 90 days to reinstate it before you’re no longer eligible for the discount.
• Increased competition: With more auto insurance companies realizing that customers can switch companies and keep their discount, some predict that the industry will become more competitive in order to keep and lure in customers.
• The roads may be safer: If more people are able to take advantage of the persistency discount term simply for keeping their insurance, some think more will obtain and keep their insurance, which in turn helps keep the roads safer.

The Persistency Discount Isn’t New

While California is trying to make the persistency discount a law, the concept is actually not new for auto insurance companies. For instance, some are already able to take advantage of the AAA persistency discount and the Geico persistency discount if they are long-term customers.

However, the major difference between the discounts offered by these companies and the discount California is trying to implement is that you don’t have to stay with the same company to receive the discount.

California’s proposed insurance discount could possibly encourage other states to follow its lead if it is successful. This, in turn, could encourage more drivers to purchase auto insurance, which is something that benefits everyone.

Mercury Insurance Accused of Overcharging Thousands of Californians

Posted in Auto Insurance , Auto Insurance Companies

April 19th, 2010
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Auto insurer Mercury Insurance is under fire by the state insurance commissioner for allegedly overcharging thousands of California policyholders. This is not the first time the auto insurance company has come under fire. Over recent months, consumer advocate agencies have fought the company because it supports controversial legislation that reached California’s June ballot.

Mercury Violated California Insurance Laws

Steve Poizner, commissioner for the California Department of Insurance (CDI), says that they have found proof that Mercury Insurance indeed disregarded California’s consumer protection statutes and overcharged consumers.

The commissioner alleged that the company may have violated the law in February, but after conducting what is called a “Market Conduct Exam” the CDI determined that during March 1 and May 31, 2007, the company did violate insurance code.

Mercury Insurance denies the commissioner’s claims and asserts that they did not overcharge consumers. However, the auto insurance company said that it may have changed insurance law and regulations in the eyes of the CDI; however, the company doesn’t see things that way.

Just Another Controversy for the Auto Insurer

Mercury Insurance has successfully become one of the most controversial car insurance companies in the nation thanks to these allegations and its diligent work in getting Proposition 17 on California’s June ballot. Campaign for Consumer Rights, a campaign affiliate of Consumer Watchdog, has been fighting the legislation because it could result in a significant insurance in auto insurance rates for California residents.

As for the legislation, residents will have to vote in June to determine their fate. However, the fate of the auto insurer may very well fall into the hands of the CDI.

Auto Insurance Discount: Get Pay-by-the-Mile with MileMeter

Posted in Auto Insurance , Auto Insurance Companies

April 2nd, 2010
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If you live in Texas, you may be able to take advantage of pay-by-the-mile auto insurance from MileMeter Auto Insurance. This company is one of several car insurance companies that offer auto insurance coverage that is paid by the number of miles driven versus other factors most companies consider.

About MileMeter

MileMeter takes a similar approach to Progressives MyRate Program in that it allows you to pay based on how you drive now rather than how you have driven in the past. But what is unique about the MileMeter program is that while it bases its rates on the number of miles you’ve driven, it doesn’t require that you install a vehicle-tracking device in your car.

Instead, the miles are purchased in advanced and tacked onto the odometer. And if the customer runs out of pre-purchased miles, they can simply purchase more as needed online.

Better than Traditional Insurance?

Some think that MileMeter insurance is better than what is offered through traditional car insurance companies because fewer factors are considered to determine the premium. Instead of having to worry about marital status, credit score, gender and more, MileMeter only looks at the zip code, driver age and vehicle type. And because the vehicle-tracking device isn’t added, customers don’t have to feel that their privacy is being compromised.

Estimates of the cost of MileMeter auto insurance is $200 – $300 annually. This means customers could benefit from savings of anywhere from 25 – 75 percent on coverage. However, if you don’t live in Texas and are looking for discounts, shopping around for coverage could work wonders.

Esurance Named Model Insurer in New Report

Posted in Auto Insurance , Auto Insurance Companies

February 10th, 2010
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A new report has revealed that Esurance was recently named a “Model Insurer.” The honor was announced by Innovation Group, a global provider of enterprise software and business process outsourcing solutions to companies in the Property & Casualty industry, and the report was released by Celent, a financial services technology research and advisory firm.

Why Esurance Won the Honor

According to Celent’s new report, Esurance, the widely-known auto insurance company, was chosen as a winner based on 27 insurance technology initiatives that the financial services firm recognizes as “Model Insurer Components.”

The practices span key areas of the product and policyholder life cycle and include product definition, policy administration, underwriting, claims, services and infrastructure. Among these and other categories, Esurance was viewed as the company utilizing the best practices.

Choosing an Auto Insurer to Work With

What’s great about reports like this is that they help you narrow down auto insurance companies that are great to work with. However, there are other factors to consider when choosing an insurer, including:

• Its reputation with claims: When choosing an insurer you want to know that they’re not just collecting your money. So as you choose, it’s good to make sure it has a good reputation for following up with claims filed.
• Prices: Of course, the auto insurance rate you pay is a big deal and should be considered. However, before making a final decision, you still want to make sure that the reputation is a good one.

It’s good to know that there are auto insurance companies doing something right out there. Hopefully, as you search for auto insurance quotes, you’ll be able to link up with one that will do the right thing for you.

CURE Auto Insurance History

Posted in Auto Insurance , Auto Insurance Companies

February 6th, 2010
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CURE Auto Insurance is a company based out of New Jersey. Because the state had the highest car insurance premiums among all other states in the country, CURE became the solution for drivers searching for an affordable alternative. CURE auto insurance rates were more affordable than competitors, and their service was also excellent.

NJ CURE Insurance History

The company was founded by former New Jersey Insurance Commissioner James J. Sheeran and insurance professional Dr. Lena Chang. They started the company under the NJ CURE name, but would later change that to CURE auto insurance as the company prepared for expansion outside the state of New Jersey. What makes the company so unique was that they were willing to work with difficult insurance regulations and underwrite despite generally low profits for most insurance companies that operated in the state. CURE auto insurance has the mission to become a non-profit solution for many drivers facing outrageous auto insurance premiums.

To search for the best auto insurance rates from companies comparable to CURE, fill out our online form. Within seconds we’ll match you with top notch insurance companies all willing to help you save. Best of all, it’s free!

Safeway Auto Insurance Company

Posted in Auto Insurance , Auto Insurance Companies

January 26th, 2010
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Safeway Insurance, is an insurance provider specializing in auto insurance coverages. Since the company’s beginnings in suburban Chicago in 1959, millions have opted to choose Safeway auto insurance. The company has since expanded its auto insurance offerings to include nine states. Throughout Alabama, Arizona, California, Georgia, Illinois, Louisiana, Mississippi, New Mexico and Texas, over 250,000 members currently have policies with the organization. As the company continues to grow, they’ll continue their motto of “keeping promises.”

Safeway Insurance Ratings

Safeway Insurance group has earned an “A = Excellent” rating from the A.M. Best Company and is the largest privately-held, family-owned auto insurance group in the nation. Their hands-on approach for auto insurance is still conducted under the watchful eye of President William J. Parrillo who has held a leadership role with the organization since the company’s earliest days. Robert M. Bordeman is the Chief Executive Officer, who heads the overall management of the corporation.

Safeway Customer Service

Over 450 insurance professionals work diligently towards the organization’s daily goal to “…exceed the expectations of all our stakeholders: policyholders, producers, business partners, regulators, shareholders, the communities we serve and our valued employees.” To meet this end, Safeway Auto Insurance promises fast and friendly customer service backed by low auto insurance rates.

If you are fortunate enough to live in one of the nine states served by Safeway Insurance, securing a competitive auto insurance quote would be a smart move. Studies have indicated that consumers who switched their auto insurance coverage saved $539 (on average).

Auto Insurance Companies Refurbish Vehicles for Needy Families

Posted in Auto Insurance , Auto Insurance Companies

December 7th, 2009
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Sixty-eight families nationwide were given free vehicles on Monday, Nov. 23 as a part of a program called Recycled Rides. The program, which was created by the National Auto Body Council and other community members of various areas around the country, recently received funding from AAA Insurance and Esurance to help two families in need in the El Monte and Pasadena, Calif. areas.

About Recycled Rides

The Recycled Rides program recruits auto body shops, insurance companies, paint suppliers and parts vendors to help refurbish vehicles them pass them on to families in need. The programs typically assist families that have extraordinary circumstances that result in a sudden need for a vehicle.

For instance, the De Los Santos family, which originally consisted of a wife and husband, suddenly expanded when their six grandchildren who had been sent to foster care were adopted by the couple. Overnight they need a reliable vehicle but no money to purchase one. It was then that Recycled Rides stepped in to help.

Insurance Companies Making a Difference

With word that insurance companies often increase rates or simply price unfairly to begin with, it’s refreshing to learn that companies are helping families get on their feet. Both Esurance and AAA donated a car to the two families in California.

The families were also given complimentary insurance for six months, free of charge.