7/31/08

Sizable number of Texas drivers without insurance

AUSTIN (AP) - A large number of drivers on Texas highways and roads do not have auto insurance, according to a Texas insurance organization.

A 60-day pilot project testing the new TexasSure program, which allows law enforcement personnel via computer to verify coverage status when they stop a motorist, focused on Travis County. During the test which is expected to end soon, Texas Department of Public Safety troopers stopped and ticketed uninsured drivers.

So far, 25.5 percent of 5,012 drivers stopped in Travis County and small portions of nearby Williamson and Hays counties since June 2, did not have auto insurance.

"The numbers show that Texas has an even larger number of uninsured drivers than we had realized," said Mark Hanna, spokesman for the Insurance Council of Texas, in a story Tuesday in the online editions of the Houston Chronicle and the San Antonio Express-News.

The Council has been monitoring the state's new auto insurance verification program.

"Troopers tell us that some areas of the state may have more than half of their drivers uninsured, and that's scary news for everyone else on our roadways," Hanna said.

This spring, the minimum amount of liability insurance Texas drivers are required to have, increased for the first time in 22 years. Hanna said he didn't think the higher requirement was a factor in the lack of coverage because the effect on premiums was "minimal."

During the pilot project, drivers who said they were insured but weren't carrying proof of insurance weren't issued citations if troopers, using the new technology, validated their insurance coverage.

DPS plans to issue a report of its findings when the pilot is completed.

A portion of the vehicle registration fee is paying for a $7 million contract with HDI solutions Inc. The company, based in Alabama, developed the database of insurance customers and drivers' license records.

Pay-as-you-drive auto insurance coming

TRENTON, N.J. (AP) - Sure, you may think you're a good driver, but are you willing to bet your insurance premium on it?

In several states across the country, drivers are getting the chance to do just that.

Auto insurer Progressive Corp. has begun offering its drivers the chance to cut their auto insurance costs based on how they actually drive, not only on their age, credit score, number of tickets they've received or the accidents on their driving record.

The catch?

Motorists must allow a high-tech monitoring device - sort of like a black box for cars - to be installed that tells Progressive how many miles they've driven, how fast they accelerate and how often they hit the brakes.

Good drivers will get discounts; others could face surcharges.

Under Progressive's program, customers can earn a first-term discount of up to 10 percent just for signing up. Then, when they renew their policy, their rate could decrease by up to 60 percent or increase by up to 9 percent based on their driving habits.

Richard Hutchinson, a Progressive general manager, said the program is designed for drivers who are consistent and safe.

"We want people to know that the program is not right for everyone," Hutchinson said.

"It's for people who drive at low risk times of day and who keep alert for others on the road," he said. "They don't make fast lane changes or follow too closely behind other drivers so they don't have to overreact or slam on the brakes."

Progressive began the program in Alabama in late June. It's also been made available in Minnesota, Oregon and Michigan. A national rollout of the program will continue throughout 2008 and 2009.

It starts in New Jersey on Aug. 8. The company will be the first to offer such a program in the Garden State, whose motorists have the highest auto insurance rates in the nation at an average of $1,184 per vehicle.

Other companies also recently began offering similar options.

GMAC Insurance and OnStar vehicle services last year started a new program that allows motorists to earn an extra discount based on the miles they drive.

The concept has been utilized elsewhere, too.

After conducting a pilot scheme with 5,000 drivers beginning in 2004, Norwich Union launched a pay-as-you-drive insurance program in 2006 in Great Britain.

Insurers say that cars driven less often, in less risky ways and at less risky times can receive a lower premium.

As a result, Michael Barry, a vice president at the Insurance Information Institute, said many auto insurers are exploring the option.

"The consumer is really being given an opportunity to potentially reduce their auto insurance premium in exchange for giving their auto insurer access to information that currently isn't available to them," he said.

Environmentalists generally back the concept. According to the Environmental Defense Fund, the programs help reduce traffic congestion and pollution.

Progressive spokeswoman Tara Chiarell said the customer owns the data so Progressive would only use it for claims purposes with the owner's permission or if it were subpoenaed and it was required to do so by law.

She said Progressive has never been subpoenaed to submit pay-as-you-drive data.

Chiarell also said Progressive doesn't sell or share the data with any other companies or agencies.

She said the data is collected on a daily basis. Customers can access their data on a secure, password-protected Web site, which allows them to get an up-to-date view of their driving habits and how those habits are affecting their rate, she said.

But Charles Samuelson, the ACLU of Minnesota executive director, told The Star Ledger of Newark for Monday's editions that they have worries about privacy.

"We see this as kind of a creeping abduction of people's data," he said. "Basically, once they collect that data, it belongs to the insurance company. That's a big problem."

AAA-Mid-Atlantic spokesman David Weinstein said if a link between electronic monitoring and accident probability becomes clear, they would like to see all drivers' insurance premiums based on that information.

"Not just select drivers who grant their permission," he said.

On the Net:

Progressive Corp. http://www.progressive.com/

7/29/08

Many Texans lacking auto insurance

AUSTIN — One in four drivers stopped by state troopers in Austin and Travis County for traffic violations this summer has been uninsured, and the percentage may be even higher in other parts of the state, an insurance industry spokesman said Monday.

"The numbers show that Texas has an even larger number of uninsured drivers than we had realized," said Mark Hanna, spokesman for the Insurance Council of Texas, which has been monitoring Texas' new auto insurance verification program.

"Troopers tell us that some areas of the state may have more than half of their drivers uninsured, and that's scary news for everyone else on our roadways," he added.

Texas law requires every driver to carry liability insurance, and the minimum amount required was increased this spring for the first time in 22 years.

Hanna said he didn't think the higher requirement was a factor in the lack of coverage because the effect on premiums was "minimal."

But 25.5 percent of 5,012 drivers stopped by Texas Department of Public Safety officers in Travis County and small portions of nearby Williamson and Hays counties since June 2 have lacked insurance, he said.

DPS spokeswoman Tela Mange said the number of insured drivers has "always been a moving target."

"We always thought it was somewhere between 20 and 25 percent," she said, based on information provided by drivers in accidents. But this is the first verification program of its kind in Texas.

Travis County was selected for a 60-day pilot project testing the new TexasSure program, which allows police via computer to verify coverage status when they stop a motorist.

A $7 million contract with HDI solutions Inc., an Alabama company that developed the database of insurance customers and drivers' license records, is funded by a portion of the vehicle registration fee.

All uninsured drivers stopped by troopers during this testing phase, which will end in a few more days, have been ticketed. Drivers who said they were insured but weren't carrying proof of insurance weren't issued citations if troopers, using the new technology, validated their insurance coverage.

"The program has worked the way it was supposed to," said DPS Lt. Louis Sanchez.

After the pilot project has been completed, DPS will issue an evaluation report. Eventually, the program is designed to be available for use by police statewide, although it won't be mandatory.

The new minimum requirements for auto liability insurance in Texas are $25,000 of coverage for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage.

The previous minimum requirements were $20,000/$40,000/$15,000.

The new requirements were expected to increase the cost of liability coverage by 4 percent to 6 percent, although liability insurance is only part of the auto coverage for many drivers.

Someone driving without liability insurance can be fined as much as $350 for a first offense and as much as $1,000 for subsequent offenses.

Auto insurer Progressive offers discounts to motorists who permit monitoring of driving habits

TRENTON, N.J. (AP) _ A high-tech monitoring device makes it possible to reduce insurance premiums for drivers who avoid jackrabbit starts and slam-on-the-brakes stops, an insurance company says.

The catch? Bad drivers who take a chance on the program may wind up paying a surcharge instead.

Auto insurer Progressive Corp. has begun offering its drivers the chance to cut their costs based on how they actually drive, not only on their age, credit score and number of tickets or accidents on their record.

The monitoring device — sort of like a black box for cars — tells Progressive what time people drive, how many miles they've driven, how fast they accelerate and how often they hit the brakes. It does not track where people go.

Under Progressive's program, customers can earn a first-term discount of up to 10 percent just for signing up. When they renew their policy, their rate could decrease by up to 60 percent based on their driving habits. But it could also increase by up to 9 percent.

Richard Hutchinson, a Progressive general manager, said the program is designed for drivers who are consistent and safe.

"We want people to know that the program is not right for everyone," Hutchinson said.

"It's for people who drive at low-risk times of day and who keep alert for others on the road," he said. "They don't make fast lane changes or follow too closely behind other drivers so they don't have to overreact or slam on the brakes."

Progressive began the program in Alabama in late June. It's also been made available in Minnesota, Oregon and Michigan. A national rollout of the program will continue through 2009.

It starts in New Jersey on Aug. 8. The company will be the first to offer such a program in the Garden State, whose motorists have the highest auto insurance rates in the nation at an average of $1,184 per vehicle.

Other companies also recently began offering similar options.

GMAC Insurance and OnStar vehicle services last year started a new program that allows motorists to earn an extra discount based on the miles they drive.

"The consumer is really being given an opportunity to potentially reduce their auto insurance premium in exchange for giving their auto insurer access to information that currently isn't available to them," said Michael Barry, a vice president at the Insurance Information Institute.

The concept has been utilized elsewhere, too. After conducting a pilot scheme beginning in 2004, Norwich Union launched a pay-as-you-drive insurance program in 2006 in Great Britain.

Several insurers in recent years have offered monitoring of a particularly vulnerable population of drivers — teenagers. Under American Family Insurance Co.'s program, for example, a camera records audio and video images of the road and the teen driver when motion sensors detect swerving, hard braking, sudden acceleration or a collision.

There's an extra benefit to monitored driving programs — they help cut traffic congestion and pollution, according to the Environmental Defense Fund.

But Charles Samuelson, executive director of the American Civil Liberties Union of Minnesota, told The Star Ledger of Newark for Monday's editions that the group has worries about privacy.

"We see this as kind of a creeping abduction of people's data," he said. "Basically, once they collect that data, it belongs to the insurance company. That's a big problem."

Progressive spokeswoman Tara Chiarell disagreed, saying the customer owns the data and Progressive doesn't sell it or share it. The company uses it only for claims purposes. She also said Progressive has never been subpoenaed by a court to submit pay-as-you-drive data.

Customers can access their data on a secure, password-protected Web site, which allows them to get an up-to-date view of their driving habits and how those habits are affecting their rate, she said.

AAA Mid-Atlantic spokesman David Weinstein said if a link between electronic monitoring and accident probability becomes clear, they would like to see all drivers' insurance premiums based on that information, "not just select drivers who grant their permission."

___

On the Net:

Progressive Corp. http://www.progressive.com/

7/27/08

Are Auto Insurers Readying for a War on Horsepower?

The freedom to drive fast in a powerful car is fundamental to the mystique that auto makers use to sell cars. Now, as if the auto industry didn't have enough trouble, come more signs of a looming war on horsepower and speed.

The average horsepower for new cars has risen steadily since 1985, both in absolute terms and in terms of horsepower per 100 pounds of vehicle weight. A 1981 Honda Accord had a base engine with just 75 horsepower. A base model 2008 Accord has a 177 horsepower four-cylinder engine, and you can buy a six-cylinder model with 275 horsepower. As recently as the mid-1990s, that would have made the current Accord more powerful than a Cadillac Eldorado.

More from The Wall Street Journal Online:

• Next Car Debate: Total Miles Driven

• High Fashion Hits the Highway

• SUVs in Small, Luxury Packages

Meanwhile, motorists are stepping on the gas, especially since the demise of the national 55 mile-per-hour speed limit in 1995. the average vehicle speed exceeded the posted limit on freeways in eight urban areas monitored by the Insurance Institute for Highway Safety. (The cities were Albuquerque, Atlanta, Boston, Denver, Los Angeles, Omaha, Tampa and Washington, D.C. The Institute didn't visit Detroit, evidently. No need. We Motowners tend to view speed-limit signs as reminders of the minimum speed required to justify taking up space on the freeway.)

It's not just environmentalists who are casting disapproving eyes on these trends.

"All this power on U.S. roads has translated into higher insurance losses," the Insurance Institute for Highway Safety says in its latest "Status Report, a regular newsletter that highlights issues of concern to the insurance institute research arm. The IIHS is perhaps best known to consumers as the sponsors of the crash tests that are staples of television news magazines. Over the years, the IIHS has helped push auto makers to develop and make available a number of important safety technologies such as side-curtain airbags.

The IIHS highlights a study released earlier this month by its sister organization, the Highway Loss Data Institute, that concludes insurance losses have been rising steadily since 1985, as cars have become more powerful.

The HLDI study compares the insurance losses of a 2005 Pontiac Grand Am, a midsize General Motors Corp. car that had a 140 horsepower engine, to a 2005 Nissan Altima, outfitted with a 3.5 liter 260 horsepower engine.

"Collision losses for the more powerful Altima are an estimated 20% higher than for the less powerful Grand Am for rated drivers 25-64," according to the Insurance Institute's summary of the study. That means that an Altima driver living in an urban area could expect to run up an average of $339 in collision losses on an annualized basis compared to $283 for a similar driver behind the wheel of a Grand Am.

It's not as if the auto insurance industry has overlooked the potential for mayhem posed by high performance cars. Just for fun, I put myself through the surprisingly intrusive process of asking the Lizard of Auto Insurance (Why do they need to know what industry I work in? When they figure it out, would they let me know?) how much it would cost to put collision coverage on a fictional 2004 Pontiac Grand Am SE, compared to my actual 2004 Subaru WRX sedan.


Daimler
Will cars like this Mercedes Benz CLK 63 AMG Black Series with a V8 engine that produces 507 horsepower get swept away in a war against speed and power?

Surprise, surprise: The Lizard would want $530.30 every six months to provide collision coverage to my 227-horsepower Japanese pocket rocket, compared to $260.30 for similar coverage on the Plain John Pontiac. (Good news: GM is making it easier to buy used Pontiacs by listing them on eBay.)

Still, the Insurance Institute/HLDI conclusion that higher horsepower correlates to increased insurance-claim losses across the board -- for younger and older drivers -- isn't a welcome development for the industry or consumers who like cars with larger power-to-weight ratios.

The same issue of the Insurance Institute newsletter contains approving reports on the use of cameras to monitor speed and issue speeding tickets. In Montgomery County, Md., outside of Washington, D.C., the installation of speed cameras in certain 35 mile-per-hour speed zones dropped the proportion of vehicles driving 10 miles per hour over the limit by 70%, the IIHS reports.

In Scottsdale, Ariz., a well publicized test of speed cameras on the Loop 101 highway also coincided with a substantial drop in speeding. The share of vehicles traveling faster than 75 miles per hour on the road fell to 1-2% from 15% before the cameras were installed, the IIHS reports. Arizona officials now are considering broader use of speed cameras.

Speed cameras are part of a bigger debate America is having over whether potential improvements in public safety are worth surrendering another increment of privacy and freedom to the state.

Opponents of speed cameras protest that such monitoring violates motorists' privacy, since where you are and who you are with in your car ought to be your business. To neutralize that argument, speed camera proponents counter that the systems can be designed to photograph the license plate, not the occupants.

Taken as a whole, the IIHS's broadside against power and speed -- launched amid the bigger debate over the automobile's role in our energy and environmental problems -- should represent a warning to car makers and automotive enthusiasts. There's a backlash building against the idea of the car as an unassailable icon of freedom and power. America has changed since the late 1960's. The car culture may have to as well.

Copyrighted, Dow Jones & Company, Inc. All rights reserved

Esurance Auto Insurance Glossary

Esurance Auto Insurance Glossary: A
Accidental Death Coverage
Accidental death coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

If someone who's covered dies from accident-related injuries, this type of auto insurance coverage may provide a payment to the insured's designated beneficiary.

Actual Cash Value
You'll see this term a lot in auto insurance policies or if you ever have to file an auto insurance claim. That's because most auto insurance coverage reimburses you only for the actual cash value of your car. Your car's actual cash value is calculated by determining its original value, minus the amount your car has depreciated since you bought it.

Adjuster
An adjuster is the person who investigates and settles auto insurance claims.

Agent/Broker
Agents and brokers both sell and manage insurance for their customers. Agents are the authorized representatives of an insurance company or companies, while brokers are the authorized representatives of people looking for insurance.

Anti-Theft Recovery System
These systems consist of an electronic device that's installed in a concealed area of your car. If your car is stolen, you can activate the device and it will emit a signal that can be used to locate your car.

Anti-theft recovery systems can be effective over a radius of several miles, depending on local geography. Ask your car dealer or nearby police department which brand of recovery systems are supported in your area. By installing an anti-theft recovery system, you may be eligible for an auto insurance discount.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: B
Benefit
A benefit is the amount paid by an auto insurance company to you or your beneficiary when you file a claim.

Bodily Injury Liability Coverage
Bodily injury liability coverage protects you if you are held responsible for injuring someone in a car accident.
This coverage helps pay for the injured party's medical expenses and lost wages. Bodily injury liability may also help pay your expenses in a related lawsuit.

The amount covered is capped at the limits you select when you buy your auto insurance policy.

Broadform Collision Coverage
This auto insurance coverage is available only in Michigan.

Broadform works like standard collision coverage, but also pays for collision damage to your insured car regardless of who's at fault.

Although this auto insurance coverage will pay up to your car's actual cash value regardless of fault in an accident, you'll be responsible for the deductible amount you select if you're found to be more than 50 percent responsible for the accident. If you're less than 50 percent responsible, you won't have to pay this deductible.

Business/Commercial Use
This classification means that you mainly use your car for business purposes (such as sales, service, and delivery calls) or work-related errands (like trips to the bank or post office), and other work-related driving. Commuting to and from work is not considered business use.

Esurance doesn't currently provide auto insurance coverage for vehicles driven primarily for business/commercial use. (Not sure if this applies to you? We show you a checklist to help you figure out if business/commercial use applies to you when you get your auto insurance quote.)


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: C
Card ID Number
When you pay for your auto insurance policy with a credit or debit card, we ask for the card's ID number. This 3-digit number is printed on the signature strip of cards with the MasterCard, Visa, and Discover logos. American Express card ID numbers are 4 digits long, and are printed on the card's front side, immediately above the actual card number.

To better safeguard your security, many businesses like ours are starting to ask for a card ID number. The card ID number helps ensure that no one is able to make a purchase without having an actual credit or debit card in their possession.

Claim
An auto insurance claim is a policyholder's request to be reimbursed for a loss that's covered by insurance.

Collision Coverage
Collision coverage helps pay for auto repair or replacement costs if your car hits another vehicle/object or if your car rolls over.
The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Collision Deductible Waiver
This auto insurance coverage pays the deductible for your collision coverage if you're involved in an accident in which an uninsured motorist is held legally responsible.

This particular auto insurance coverage isn't available in all states. If it is available, you have to buy this coverage with collision coverage when you buy your auto insurance policy.

Commuting
If you primarily use your car for commuting, this means that you mainly use the car to drive it to and from work or school.

Comprehensive Coverage
Comprehensive coverage helps pay for damage to your car resulting from fire, certain natural disasters, falling objects, and vandalism. Theft's also covered.

The maximum amount paid for repair or replacement is the car's actual cash value, minus the amount of the deductible you choose when you buy your auto insurance policy.

Continuously Insured
The length of time you've been continuously insured is the number of years you have been covered by one or more auto insurance companies without a lapse in your coverage.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: D
Deductible
For some types of auto insurance coverage, you're asked to choose a deductible. A deductible is the amount of damages you agree to pay for if you file an auto insurance claim.

Though choosing a higher deductible can substantially lower your auto insurance premium, if you file an auto insurance claim, you'll have to pay the full, pre-established amount of the deductible out of your own pocket in order to receive payment from your auto insurance company.

Declarations
The declarations page of your auto insurance policy summarizes the factual information essential to your auto insurance coverage: the policyholder's name and address, a description of the insured vehicles, the auto insurance premium, as well as the coverages, limits, and deductibles.

Defensive Driver and Driver Improvement Courses
These courses consist of defensive driving training for drivers of all ages as well as "mature driver safety courses" intended for drivers age 55 and over.

In certain states, you may qualify for an auto insurance discount if you're in the eligible age range and if you've taken one of these safety courses.

Depreciation
Depreciation is the decline in an object's value due to age, wear and tear, or obsolescence.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: E
Effective Date
The effective date is the date your auto insurance coverage begins. You are not covered by car insurance prior to an auto insurance policy's effective date.

Emergency Road Service
This optional auto insurance coverage pays a fixed amount toward vehicle towing if your car breaks down or if your car gets disabled in an accident.

Endorsements
Also known as riders, endorsements are changes to the original insurance contract. In auto insurance coverage, endorsements may include changing your deductibles or adding a new car to your auto insurance policy.

Exclusions
Exclusions are situations that are not covered by a given auto insurance policy. Specific exclusions are listed in your auto insurance policy.

Extraordinary Medical
Extraordinary medical coverage is sometimes a part of Personal Injury Protection or First Party Benefits plans.

Extraordinary medical coverage protects you in the event you suffer accident-related injuries that require serious and/or long-term medical care. Extraordinary medical coverage begins once you have exhausted the limit on your standard medical benefits coverage.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: F & G
First Party Benefits
First Party Benefits, or FPB, is a kind of optional auto insurance coverage available to Pennsylvania drivers.

Depending on the specific FPB coverages you select, if you're injured in an accident, FPB covers you and relatives residing in the same household for medical expenses, lost income, accidental death, and/or funeral costs. The amounts covered are capped at limits you select when you buy your auto insurance policy.

Full Coverage Auto Insurance
Full coverage auto insurance denotes an insurance policy containing all auto insurance coverage legally required in a given state. The term “full coverage” does not imply the policyholder will always be fully covered.

Funeral Benefits
Funeral benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans. If a covered individual dies from accident-related injuries, this auto insurance coverage pays for a portion of funeral expenses, regardless of who is at fault in an accident.

Covered costs are subject to the limits you choose when you buy your auto insurance policy.

Garaging Location
The garaging location is where your insured car is parked most of the time. This location is usually indicated by the ZIP Code of the policyholder's primary residence.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: I & J
Income Loss
Income Loss coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

Income loss coverage protects you if you're unable to work due to accident-related injuries. This auto insurance coverage helps you recover portions of your lost salary and other expenses you may incur as you try to return to work.

Indemnity
An indemnity is a pre-determined sum paid for a covered loss.

Insurance Claim Report
Insurance claim reports provide details about auto insurance claims you or other insured drivers have filed with insurance companies. These reports are provided by independent consumer reporting agencies that collect auto insurance claim information from a variety of insurance companies. One of the most common agencies issuing such reports is C.L.U.E., the Comprehensive Loss Underwriting Exchange.

Insurance Score
Insurance scores are based on analytical models that objectively measure the relative likelihood of future insurance losses based on your credit history. These scores and analyses of their significance are provided by independent consumer reporting agencies.

Insured
The insured is an individual covered by a given auto insurance policy.

Judgment
A judgment is a final decision rendered by a court of law. For example, in a lawsuit related to an auto accident, where Kate hit Eric’s fence, the court determined that Kate was wholly responsible for the accident. The judgment determined that Kate should pay for the costs of repairing Eric’s fence.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: L & M
Liability
Liability is a term that broadly means legal responsibility. If you run a stop sign and hit another car, you may be found liable for the damages to the other driver's car.

Liability Coverage
Liability coverage protects you from having to deplete your assets to pay for damages if you're held responsible for injuries or damages arising from a car accident.

The two main types of liability coverages in an auto insurance policy are bodily injury and property damage.

Limits
Limits are the maximum amount an insurance company will pay for a covered loss. Though you can choose your limits for certain coverages, some states require you to buy certain levels of auto insurance coverage. In such states, you'll have to choose limits that at least meet your state's auto insurance requirements.

Medical Benefits
Medical Benefits coverage is sometimes a part of your auto insurance policy's Personal Injury Protection or First Party Benefits plans.

Medical expenses that are the direct result of accident-related injuries are covered. Covered medical expenses are capped at the limits you choose when you buy your auto insurance policy.

Medical Payments Coverage
This auto insurance coverage pays medical bills and/or funeral expenses if a covered driver and/or accompanying passengers are injured or killed while in an insured vehicle, regardless of fault in an accident.

This may also cover policyholders and their family members when in others' vehicles, or when policyholders and their family members are on foot and hit by a car.

The amount paid by medical payments coverage is capped at the limit you choose when your buy your auto insurance policy.

Motor Vehicle Report
A Motor Vehicle Report (MVR) provides information on your driving record. This report includes accidents and moving violations. Auto insurance companies obtain MVRs from states where you or other insured drivers have been licensed to drive.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: N
National Credit File
The National Credit File provides objective consumer information regarding the financial history of an individual. Information contained in this report is often used to calculate insurance scores.

No-Fault Insurance
If a type of auto insurance coverage is described as no-fault, this generally refers to the way the insurance company settles a covered auto insurance claim.

Generally, if a certain coverage is no-fault, responsibility doesn't have to be assigned before an auto insurance claim gets settled.

No-Fault States
In some states, called no-fault states, insurance companies are legally required to pay a policyholder's covered losses, regardless of who's held responsible for an accident.

Some no-fault states also restrict the right to sue for damages. In states without no-fault regulations, the insurance company covering the person who caused an accident is forced to pay for covered losses.

Non-Passive Alarm
A non-passive alarm has to be manually activated every time you leave the car. If someone attempts to open your car, the alarm sounds, and the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may qualify for an auto insurance discount if your car is equipped with such an alarm.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: P
Passive Alarm
Passive alarms are automatically activated and emit warning sounds when someone tries to get into your car. Once the passive alarm has been triggered, the system disables the automobile's starter, ignition system, and/or fuel circuit.

You may receive an auto insurance discount if your car is fitted with such an alarm.

Personal Injury Protection
Personal Injury Protection, or PIP, is a kind of auto insurance coverage available only in certain states, where it's often mandatory. PIP generally includes expanded coverage of accident-related medical costs. In some states, PIP also pays for lost wages and similar losses.

Specific protections afforded by this type of auto insurance coverage and limits on PIP payments vary widely from state to state.

Pleasure Use
If you use your car for pleasure, this means that you typically drive it for fun, with no regular commuting or business use.

Policy Expiration Date
Your auto insurance policy's expiration date is the date when auto insurance coverage ends if your auto insurance policy isn't renewed. The expiration date can be found on the declarations page of your auto insurance policy, on a proof of insurance card, or on a recent auto insurance renewal notice.

Policy Term
A policy term is the length of time an auto insurance policy is valid. Auto insurance policies from Esurance have a policy term of 6 months.

Primary Driver
The primary driver is the person who drives a car most frequently.

Primary Use
A vehicle's primary use is how the car is typically used. Auto insurance companies usually classify primary use as commuting, business/commercial, or pleasure use.

Primary Policyholder
The primary policyholder is the person who serves as the main point of contact with Esurance. Since he/she is the main point of contact, we need the primary policyholder's valid email address so that we can send account updates, auto insurance renewal notices, and other policy-related communication.

Typically, the primary policyholder is also the person billed for your auto insurance policy from Esurance. If you prefer, any other person listed on your auto insurance policy can also be billed for your auto insurance premium.

Property Damage Liability Coverage
Property damage liability coverage protects you if you are held responsible for damaging someone else's property in a car accident.

Property damage coverage helps you reimburse another person for their damaged property (such as a car, a fence, or a home). This type of auto insurance coverage also helps pay your expenses in a related lawsuit.

The amount covered by property damage liability is capped at the limit you choose when you buy your auto insurance policy.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: R, S, & T
Rental Car Reimbursement
Rental car reimbursement is an optional kind of auto insurance coverage that helps pay for your rental car expenses if an insured car is damaged or stolen and you need a rental car.

SR-22
An SR-22 is an official document that shows proof of financial responsibility. Courts may require an SR-22 or a similar form for people convicted of certain traffic violations.

Secondary Driver
A secondary driver is one of the drivers listed on your auto insurance policy who's insured for driving an insured vehicle. However, this driver is not a car's primary driver.

A secondary driver is also sometimes known as an occasional driver in auto insurance terminology.

Supplemental Spousal Liability
Supplemental spousal liability, or SSL, is an optional coverage, available only in New York State.

This type of auto insurance coverage protects you if you’re found to be at fault in an accident resulting in injury or fatality to your spouse.

The amount covered by SSL is capped at the limit you choose when you buy your auto insurance policy.

Stacking - Uninsured/Underinsured Motorist Bodily Injury Coverage
Stacking is an option available when you buy uninsured/underinsured motorist bodily injury coverage. Stacking changes the limits for this type of auto insurance coverage.

When you choose stacking, uninsured/underinsured motorist bodily injury limits increase by the number of cars you're insuring. If you buy $50,000/$100,000 limits for uninsured/underinsured motorist bodily injury coverage, choose stacking, and insure 2 cars, stacked limits for this coverage then equal $100,000/$200,000.

Steering Restraint
A steering restraint is a durable collar or shield fitted to the upper and lower casing of your car's steering column. The collar makes it harder for potential thieves to access, or "hotwire," your car's ignition system.

You may qualify for an auto insurance discount if your car is fitted with a steering restraint.

Tort
Tort is a legal term used to describe instances when someone is deemed legally responsible for injuring another person or damaging his/her property.

Some states ask you to select a tort provision. In these states, you can limit your right to sue for non-monetary damages (like pain and suffering) in exchange for a reduced auto insurance premium.

Towing Coverage
This type of auto insurance coverage is optional, and pays a fixed amount toward towing if your car breaks down or if it's disabled in an accident.


--------------------------------------------------------------------------------

Esurance Auto Insurance Glossary: U & V
Underinsured Motorist Bodily Injury Coverage
Underinsured motorist bodily injury coverage is available in some states, where it's often mandatory.

This type of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient auto insurance coverage.

This kind of auto insurance coverage typically pays the difference between the coverage limit you select and the other driver's bodily injury coverage limit.

The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Underinsured Motorist Property Damage Coverage
Underinsured motorist property damage coverage is available in some states, where it's often mandatory.

This type of auto insurance coverage protects you if your car is damaged in an accident caused by a driver who has insufficient auto insurance coverage. Other specific protection afforded by this type of auto insurance coverage varies from state to state.

This kind of auto insurance coverage pays the difference between the coverage limit you select and the other driver's property damage coverage limit.

The amount covered by underinsured motorist property damage is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Bodily Injury Coverage
Uninsured motorist bodily injury coverage is available in some states, where it's often mandatory.

This kind of auto insurance coverage pays for your medical expenses, lost wages, and other general damages when you or your passengers are injured in an accident caused by a driver who has no car insurance. Uninsured motorist coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

Uninsured Motorist Property Damage Coverage
Uninsured motorist property damage coverage is available in some states, where it's often mandatory.

This kind of auto insurance coverage protects you if your vehicle is damaged in an accident caused by a driver who has no car insurance. Other protection afforded by this type of auto insurance coverage varies from state to state.

The amount covered by uninsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy. In some states, you'll need to pay a deductible each time you file an auto insurance claim.

Uninsured/Underinsured Motorist Bodily Injury Coverage
In some states, both uninsured and underinsured motorist bodily injury are bundled into a single coverage. In the states where this type of auto insurance coverage offered, it may be mandatory.

This kind of auto insurance coverage pays for your medical expenses, lost wages, and other damages when you or your passengers are injured in an accident caused by a driver who doesn't have enough car insurance, or who completely lacks auto insurance coverage. This type of auto insurance coverage also pays for injuries sustained in hit-and-run accidents.

The amount covered by uninsured/underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy.

VIN
The VIN, short for Vehicle Identification Number, is the unique 17-digit number found on every car. The VIN contains the vehicle's serial number, as well as abbreviations for the make, model, and year.

The VIN appears on your vehicle registration card. It's also engraved in your car, near the base of the windshield on the driver's side dashboard and/or on the edge of the driver's side door.

Though you don't need to enter your VIN when you get an auto insurance quote from Esurance, you will need to provide your car's VIN when you buy your auto insurance policy.
---------------------

7/26/08

Auto Financing & Auto Insurance

Type in “auto financing” on any search engine and the list is endless— whether you have good credit or bad credit, someone out there is willing to finance your car for a price. Similarly, if you search for auto insurance companies, you’ll find many that offer you auto insurance coverage— no matter what your driving record is like.
Car dealerships try to simplify the car buying process as much as possible to encourage people with good credit to buy from them. However, even if your credit is less than perfect, some dealerships may still work with you to get the sale.

Keep these things in mind when you’re looking for auto financing for your vehicle:
If a deal sounds too good to be true, it probably is.

Zero-financing and other offers may not apply to you unless you have excellent credit.

Some car dealerships that arrange financing mark up their rates by 2 or 3%, which can cost you thousands of dollars more to pay back. According to the Consumer Federation of America, marked-up dealer financing affects 1 out of 4 people— and it’s perfectly legal!
How can you get the best deal on auto-related costs, like financing and auto insurance?
Use the Internet to research prices, which will help you negotiate the best price. Web sites like Yahoo! Autos and The Motley Fool can help you figure out vehicle prices and financing.

Never be afraid to leave a dealership or seek another bank or credit union to handle your financing. All of these companies compete for your business— so you should never feel pressured to buy.

Obtain a copy of your credit report that includes your credit score and use it as a bargaining tool.

Apply these same principles when you shop for auto insurance. Shop around and always look for the best deal. (You can't put a price on loyalty!)
Esurance makes it easy to shop around. Find out if you save with us when you get your auto insurance quote today!

In addition to great rates and reliable coverage, Esurance has tools and information to help you understand your auto insurance coverage better. Use the Esurance FAQ for answers to your auto insurance-related questions. Get a customized report from our interactive, auto insurance planning tool, the Esurance Coverage Counselor to see which levels of coverage suit you best.

Q&A Auto Insurance

What car insurance companies DON'T use a credit score when deciding rates?

whether you're against it or not, it's a factor. and sorry, i don't know of ANY companies out there that don't use it. i know about 99% use credit scores, so good luck finding the one or two that havent jumped on that wagon... yet. I've bookmarked this site to go back to... http://www.safelinked.info/go.php?link=insurance All the best to you.

Q&A Auto Insurance

I have liability insurance. If I lend my car out to a friend, will my insurance pay in case of an accident?

Best Answer
Yes. However, does he have regular access to your car? If he borrows it more than once a month, or more than ten times a year, you should add him as an operator. Also, if he cracks it up, it's great that the other guy is covered, but . . .can you afford to buy a new car? Because you won't have any coverage for YOUR car.

7/25/08

Booming business helps patients navigate medicine

Health advocate firms are popping up across the country, helping clients pay bills, find care


NORCROSS, Ga. (AP) -- After three surgeries, Judy Sherer still had chronic pain in her left shoulder. She'd lost faith in her doctors, and in despair tried a new health benefit offered by her employer.

The service, Health Advocate, is a call-in center that helps customers find the right doctor, haggle over insurance coverage and manage other medical system headaches.

An advocate helped Sherer find a new surgeon -- one who found metal shavings left in her shoulder by a previous doctor. The advocate also negotiated the charge for her physical therapy down to $40 per visit from the $200 she was told initially.

"It saved me a ton of money," said Sherer, 63, of Norcross, Ga. "I'm very, very pleased."

Health Advocate is one of a growing number of U.S. companies offering some form of advocacy services to medical consumers. Revolution Health -- the Web-based medical consumer services company overseen by AOL co-founder Steve Case -- has been considering getting into the same business.

"It's a really interesting industry that's just taking off," said Carol Fischer, a spokeswoman for Pennsylvania-based Health Advocate, a 12 million-member organization.

Currently, the health advocacy business is an industry with about $50 million to $75 million in annual revenue but only about a half-dozen companies of any significant size, said Richard Rakowski of Intersection LLC, a Connecticut-based investment and development firm that has researched the field.

But those numbers have grown from a few years ago, and it may be on track to become a $1 billion industry based on the demand for the service, said Rakowski, the firm's principal.

The field is blossoming in the wake of cutbacks in corporate health benefits, an overhaul of Medicare and other changes that have forced medical consumers to shop more for medical care.

More than ever, people need help negotiating the medical system, said Jessica Greene, a University of Oregon health policy analyst.

"We're asking consumers to make more complicated decisions, but the numeracy and health literacy skills of many consumers are not at the level needed to handle this new responsibility," Greene said.

Though some consumers are savvy enough to beat a billing overcharge or probe doctors' litigation histories, they don't have the time for such labors, experts said.

Indeed, the largest customers of health advocacy services are companies, not individuals. "The employers are interested because it means their employees are not on the phone taking care of doctor's visits" during work hours, Fischer said.

The companies grouped into the health advocacy business range from small regional firms operating out of home offices to companies with national call centers the size of football fields. No one seems to have an exact count, but Flagship Global Health, Care Counsel and Enhanced Care Solutions are among the more visible names.

Health Advocate claims to be the largest. Founded in 2001, it now has more than 3,500 companies, unions and other organizations as clients, including Johnson & Johnson, American Express and The Home Depot Inc.

Altogether, about 2.6 million employees, or members, are signed up with Health Advocate. But the number who can use it is actually higher: Members can share the call-in number with spouses, children, parents and parents-in-law -- including elderly kin who need help picking a Medicare prescription drug plan, finding a nursing home or arranging transportation for health care. With all relatives added in, Health Advocate's membership as roughly 12 million, Fischer said.

About 180 advocates staff Health Advocate's call center in suburban Philadelphia. It's usually registered nurses who talk to the patients, and each patient gets an advocate who stays with the case and is the recurring contact. The staff also includes behind-the-scenes workers who help with insurance claims and other administrative questions.

"I'd say 80 percent of (our) people call Health Advocate because they have trouble with billing," said Andrew May, a human resources vice president for Wells Real Estate Funds, the Georgia-based company that employs Sherer.

Initially, May said, he doubted Wells employees would use Health Advocate, thinking they would instead continue to come down to human resources for help rather than turn to a 1-800 number.

But some of Wells' 400 employees started using it and having great experiences, he said. Company executives appreciated the help, calling the $5,700-a-year cost a good deal.

"We're not billing specialists. We're not registered nurses. To have that resource is much more powerful -- it gets to the bottom of things quicker," said Susanna Johnson, a Wells human resources manager.

Health Advocate in May began to sell its services straight to individuals, as a $365-a-year service.

Some other companies have always focused on individuals, especially rich ones.

One example is $10,000-a-year PinnacleCare, founded in 2002 by John Hutchins, who created a concierge-like service at the Cleveland Clinic. He later used his connections to build a national network of doctors for his private health advisory start-up.

The Baltimore-based company is essentially a club for millionaires and billionaires that puts nurses and social workers in touch with members. Not only will they help members find top-level care, they will get them moved to the head of the line. PinnacleCare advisers will even meet the patient at a doctor's office or hospital.

PinnacleCare has about 1,700 member-families. One satisfied customer is Kirk Posmantur, 45, the founder and chairman of Axcess Luxury & Lifestyle. His Atlanta-based company markets handmade watches, private jets and other luxury items to the affluent.

"It's a no-brainer for those who've got net worth of $5 million or more," he said. "You've got people who advise you on your taxes. You've got people who advise you on how to manage your money. But what's more important than your health?"

Not every health advocacy group is a for-profit business.

The Patient Advocate Foundation provides free help to people with chronic, debilitating and life-threatening conditions. Founded in 1996, the Virginia-based organization has 113 employees and an annual budget of about $8.5 million. It handled nearly 45,000 cases in 2007 -- most of them cancer patients.

The organization's founders initially expected many clients to be uninsured. As it turns out, about 80 percent have at least some health insurance but are dealing with pre-approval authorizations, medical debt from incomplete coverage or other problems, said Nancy Davenport-Ennis, the group's chief executive and co-founder.

Companies like PinnacleCare are a blessing "for those consumers that can afford to have a boutique service," she said.

She wishes, however, that companies would provide more pro bono service. "The concern is those that need help and can't afford something like that," Davenport-Ennis said.

Health Advocate: http://www.healthadvocate.com

PinnacleCare: http://www.pinnaclecare.com

Patient Advocate Foundation: http://www.patientadvocate.org

(This version CORRECTS to number of companies to "half-dozen," rather than "dozen" in the seventh paragraph.)

Oil rises as eyes back on Iran-Israel row

SINGAPORE (Reuters) - Oil rose on Tuesday after slipping from a record above $143 a day ago, as tension surrounding Iran's nuclear program returned to focus and outweighed concerns over eroding U.S. demand.

U.S. crude rose 39 cents to $140.39 a barrel by 0201 GMT, while London Brent crude rose 76 cents to $140.59.

Fears of oil supply and flow disruption in the Middle East, as the Iran-Israel row over Tehran's nuclear developments escalates, had helped pushed oil to a $143.67 peak on Monday.

"The market has been worried about the tensions involving Iran and that remains a supportive factor for the oil price," said David Moore, a commodities analyst at the Commonwealth Bank of Australia in Sydney.

In a war of words between the Iranian and U.S. military, Iran's Revolutionary Guard said Tehran would impose controls on shipping in the Middle East Gulf and Strait of Hormuz if it were attacked.

The U.S. Navy's Fifth Fleet said the United States and its allies would not allow Iran to hamper shipping in the Gulf.

Roughly 40 percent of the world's traded oil moves through the narrow waterway separating Iran from the Arabian Peninsula.

The ongoing dispute in the Middle East countered concerns over falling demand in the world's top oil consumer, the United States, as the impact of soaring fuel costs sets in.

The U.S. Energy Information Administration revised downward U.S. April oil demand by 863,000 barrels per day (bpd) to 19.77 million bpd -- 3.9 percent below year-ago levels.

The revision, which showed April demand was the lowest for the month since April 2002, came even before gasoline prices surged to new records in June.

Oil prices have jumped around seven-fold since 2002 as part of a broader commodities rally sparked by surging demand from emerging economies like China and India, but have also driven inflation higher around the world.

On Monday, official data showed that euro zone inflation leapt to a record 4.0 percent in June, cementing expectations that the European Central Bank will raise interest rates when it meets on Thursday.

Analysts said the move would drive the U.S. dollar lower and trigger more cash injections into crude from investors seeking to hedge against the slumping U.S. currency.

Speculative hedge fund inflows have already helped lift oil prices more than 40 percent higher this year.

Saudi Oil Minister Ali al-Naimi reiterated his country's position that oil prices were being driven mostly by speculation and said the OPEC kingpin was prepared to supply all the oil its customers needed.

But the heads of some of the biggest oil companies said at an oil conference in Madrid that fundamentals, not investor flows, were the main driver of prices.

On Wednesday, traders will be eyeing weekly U.S. oil inventory data, which was expected to show a drop in crude stocks and a build in distillates and gasoline for the week ending June 27.

(Reporting by Chua Baizhen, Editing by Michael Urquhart)

Oil rises as eyes back on Iran-Israel row

SINGAPORE (Reuters) - Oil rose on Tuesday after slipping from a record above $143 a day ago, as tension surrounding Iran's nuclear program returned to focus and outweighed concerns over eroding U.S. demand.

U.S. crude rose 39 cents to $140.39 a barrel by 0201 GMT, while London Brent crude rose 76 cents to $140.59.

Fears of oil supply and flow disruption in the Middle East, as the Iran-Israel row over Tehran's nuclear developments escalates, had helped pushed oil to a $143.67 peak on Monday.

"The market has been worried about the tensions involving Iran and that remains a supportive factor for the oil price," said David Moore, a commodities analyst at the Commonwealth Bank of Australia in Sydney.

In a war of words between the Iranian and U.S. military, Iran's Revolutionary Guard said Tehran would impose controls on shipping in the Middle East Gulf and Strait of Hormuz if it were attacked.

The U.S. Navy's Fifth Fleet said the United States and its allies would not allow Iran to hamper shipping in the Gulf.

Roughly 40 percent of the world's traded oil moves through the narrow waterway separating Iran from the Arabian Peninsula.

The ongoing dispute in the Middle East countered concerns over falling demand in the world's top oil consumer, the United States, as the impact of soaring fuel costs sets in.

The U.S. Energy Information Administration revised downward U.S. April oil demand by 863,000 barrels per day (bpd) to 19.77 million bpd -- 3.9 percent below year-ago levels.

The revision, which showed April demand was the lowest for the month since April 2002, came even before gasoline prices surged to new records in June.

Oil prices have jumped around seven-fold since 2002 as part of a broader commodities rally sparked by surging demand from emerging economies like China and India, but have also driven inflation higher around the world.

On Monday, official data showed that euro zone inflation leapt to a record 4.0 percent in June, cementing expectations that the European Central Bank will raise interest rates when it meets on Thursday.

Analysts said the move would drive the U.S. dollar lower and trigger more cash injections into crude from investors seeking to hedge against the slumping U.S. currency.

Speculative hedge fund inflows have already helped lift oil prices more than 40 percent higher this year.

Saudi Oil Minister Ali al-Naimi reiterated his country's position that oil prices were being driven mostly by speculation and said the OPEC kingpin was prepared to supply all the oil its customers needed.

But the heads of some of the biggest oil companies said at an oil conference in Madrid that fundamentals, not investor flows, were the main driver of prices.

On Wednesday, traders will be eyeing weekly U.S. oil inventory data, which was expected to show a drop in crude stocks and a build in distillates and gasoline for the week ending June 27.

(Reporting by Chua Baizhen, Editing by Michael Urquhart)

Auto Insurance?

I recently bought a car and I have no idea what auto insurance is good and has great deals. Can anyone help me? Keep in mind I'm on a budget. Does anyone know what is a good company for me?

You can try:

Freeway Insurance
Esurance
Progressive
The General
Dashers

These are all cheaper insurance brokers. In the end it will mostly depend on the coverage you need, where you live, you're driving record, etc.

Some of the better but more expensive companies are:

AllState
AAA
Farmers
State Farm

Auto insurers benefit as people drive less - Fewer fender benders take place as surging gas prices keep cars parked

SAN FRANCISCO (MarketWatch) -- Surging gas prices have been cruel to most financial-services firms this year, with investors fretting that borrowers have less money to repay debt.
But auto insurance, dominated by companies including Allstate Corp. (ALL:The Allstate Corporation
News, chart, profile, more
Last: 45.34-0.83-1.80%

4:05pm 07/24/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
ALL 45.34, -0.83, -1.8%) and Progressive Corp. (PGR:The Progressive Corporation
News, chart, profile, more
Last: 19.59-0.43-2.15%

4:01pm 07/24/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
PGR 19.59, -0.43, -2.1%) , may be one of the few financial-services sectors to benefit.
Americans drove 1.4 billion fewer miles on the highway in April compared with a year ago, according to the U.S. Transportation Department. In March, people drove roughly 4.3% fewer miles than they did a year before. That was the biggest yearly drop since the department's Federal Highway Administration started keeping records in 1942.
As Americans drive less, the number of car accidents may be falling, limiting the frequency of auto-insurance claims.
Allstate, one of the largest auto insurers in the United States, said late Wednesday that the frequency of claims involving damage to cars and other property fell 4.2% in the second quarter. The frequency of claims involving injuries dropped 7.6% in the period compared with a year earlier.
If such a trend becomes strong enough, auto-insurance premiums may be pressured.
"If gas prices remain high and economic activity slows further, we believe that improved auto-loss trends will continue in the future, leading to stronger underwriting profitability, and therefore multiple expansion for auto-insurance stocks," Bijan Moazami, an analyst at Friedman, Billings, Ramsey, wrote in a note Thursday.
Allstate shares have dropped roughly 12% so far this year, partly because the company has large investment exposures to mortgage-related securities that have slumped in value as the housing crisis deepens. See story on Allstate's quarterly results.
However, that's much better than the 27% slump in the S&P Insurance index in 2008.
Progressive shares are up more than 4% this year. Shares of Mercury General Corp. (MCY:mercury genl corp new com
News, chart, profile, more
Last: 48.87-0.50-1.01%

4:01pm 07/24/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
MCY 48.87, -0.50, -1.0%) , another auto insurer, are down less than 1% so far in 2008, while rival State Auto Financial Corp. (STFC:State Auto Financial Corp
News, chart, profile, more
Last: 27.05+2.21+8.90%

4:00pm 07/24/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
STFC 27.05, +2.21, +8.9%) is up 0.4%.
Travelers Group (TRV:travelers companies inc com
News, chart, profile, more
Last: 42.88-2.72-5.96%

4:02pm 07/24/2008

Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
TRV 42.88, -2.72, -6.0%) reported modestly favorable frequency trends in its auto-insurance business when it reported solid second-quarter profit on Wednesday.
State Auto hasn't seen any improvement in the frequency of auto claims yet, but Kyle Anderson, a spokesman for the company, said it would not be surprising to see such a trend take hold.
If such a trend becomes strong enough, auto-insurance premiums may be pressured, he added.
However, Anderson also noted that there are a lot of other factors that go into setting auto-insurance rates, such as the cost of repairing crashed vehicles and buying new parts.
Indeed, if rising oil prices end up fueling broader inflation, the cost of settling auto claims could rise, analysts say.
In the second half of this year, high steel and plastics prices will increase the cost or severity of auto-insurance claims involving physical damage, said Brian Meredith, an analyst at UBS, on Thursday.
Alistair Barr is a reporter for MarketWatch in San Francisco.

Vehicle insurance solution to benefit Vehicle and Asset Finance

As auto sales across South Africa continue in a spiral decline, the ripple effect is being keenly felt across all auto-related and support industries. The South African motor and insurance industries report they have seen a remarkable increase in insurance policy cancellations as consumers cut back on fixed expenses to keep up with the necessities of everyday life.

While insurance is obligatory and therefore instituted at the time of vehicle financing, it is often cancelled after a few installments, increasing the risk to the credit provider. In the incidence of financed vehicles, the spill-over impact for the vehicle and asset finance sector could potentially run into millions of rands worth of losses.

In an effort to mitigate this risk, TransUnion, working with the vehicle and asset finance and insurance industries, developed a solution that compares vehicle finance data with insurance information. Using integrated data files, TransUnion’s Asset Monitoring Solution, compares and monitors changes to insurance policies, helping the industry effectively manage changes to existing policies and track cancelled ones. Now, vehicle and asset finance houses will have the advantage of knowing when a policy has been cancelled, upgraded from third-party to comprehensive insurance or reduced from comprehensive to third-party insurance.

“This is a powerful solution that will help to streamline alerts on vehicle insurance defaulting in an increasingly dynamic environment. Vehicle and asset finance houses will be afforded more control over the process, faster responses and reduced losses over the long-term,” says Chris van Rensburg (pictured above right), TransUnion Executive: Insurance and Direct to Consumer.

Policy information on the Insurance Data System* facilitates the monitoring of financed vehicles. If there is a match found between the financed vehicle and the policy information, participants are alerted to the change, enabling them to take the appropriate corrective action. These alerts can be issued on a monthly basis, allowing participants to react quicker and more efficiently when a finance contract has been breached.

* The Insurance Data System, developed under the auspices of the South African Insurance Association, is a database of all personal lines claims, policy and vehicle information, pooled by participating members of the short-term insurance industry. Managed by TransUnion, in collaboration with the insurance industry, the Insurance Data System holds information on over 4,9 million claim records and 1,4 million policies.

7/1/08

auto insurance

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? find the solution now.....