source: www.chicagotribune.com

By Becky Yerak | Tribune reporter
January 30, 2009

To some extent, auto insurance is recession-resistant because drivers have to have coverage. But Allstate Corp. officials confirmed Thursday that the recession is causing its auto insurance policyholders to look for ways to reduce premiums.

"They are dropping collision [coverage], going to higher deductibles, going to lower limits," George Ruebenson, president of Allstate Protection, said during a conference call to discuss the company's fourth-quarter financial results.

A premium is the price an insurer charges for coverage. Collision coverage pays for the damage to a policyholder's car in an accident, while a deductible is the amount of the loss that's paid by the policyholder. A limit is the maximum amount of coverage paid for a particular loss.

"We're seeing a change from a lot of platinum sales at Your Choice Auto to more of value, where people take a lower-premium policy," Ruebenson said.

Allstate's Your Choice Auto program offers options for motorists depending on whether they care about cheap or comprehensive coverage. Platinum is the most comprehensive coverage.

The Northbrook-based company said that it is "disappointed" by efforts in 2008 to improve customer loyalty and disclosed that it has started to tie part of the company's 401(k) contributions to how effectively employees retain policyholders.

"Acquiring and retaining customers is vital to our success," Allstate Chief Executive Tom Wilson said during the conference call.

"I'm disappointed by the lack of significant improvement in 2008 on customer loyalty, and we're highly focused on improving that result in 2009."

Later in the call, Wilson explained that Allstate's 401(k) savings plan "is part incentive and part retirement" for Allstate workers.

Employees and agency owners "who don't treat our customers well and don't deliver customer loyalty will no longer be a part of the Allstate family," he said.

Allstate stock closed Thursday at $23.50, down 20.7 percent, a day its report that investment write-downs contributed to a $1.13 billion fourth-quarter loss.
auto insurance auto insurance auto insurance

source: www.yesinsurance.co.uk

29 January 2009

Ford's new Ka is grouped in some of the lowest car insurance groups and could therefore minimise expenditure for owners.

The manufacturer announced this week that the Studio model falls into category 1E and others in the range are 2E or 3E.

As the lowest band, 1E could help motorists to obtain the most economical car insurance prices.

Ford said these groupings reflected various safety features included in the Ka, such as reinforced steel door beams and integrated airbags and seating technology.

Martin Ward is a spokesperson for Cap, which calculates residual values of vehicles.

He said the Ka was "brilliant" and potentially ideal for consumers looking for economical measures in the current financial climate.

Mr Ward added: "It's a superb drive for such a small car."

Other options in Ford's range currently include the Fiesta Econetic, Mondeo, Galaxy, S-MAX, Kuga and Focus.

A new Focus RS is due to be launched this year.

Looking for a cheap car insurance quote? Why not try yesinsurance.co.ukADNFCR-682-ID-18998632-ADNFCR
Auto Insurance

source: www.portclintonnewsherald.com
January 29, 2009

In these tough economic times, many people may be tempted to reduce the amount of auto insurance coverage they have or drop their auto insurance altogether in order to save money.

Ohio Department of Insurance Director Mary Jo Hudson is urging Ohioans to carefully consider the risks of doing so before making a decision.

“If a person drives without auto insurance, they will be breaking the law,” said Director Hudson. “Also, many Ohioans think they can save money by purchasing only the bare minimum requirements. While minimum coverage does cost less, Ohioans need to realize that auto insurance minimum requirements don’t always provide adequate coverage in the event of an accident.”
Ohio law requires drivers who purchase automobile insurance to demonstrate Financial Responsibility to have at least $12,500 of Bodily Injury or Death Liability Coverage per person ($25,000 for two or more persons), as well as $7,500 of Property Damage Liability Coverage for any one accident. However, many times accidents result in damages that exceed those minimum coverage limits.

If the at-fault driver’s insurance policy limits are exceeded, then the at-fault driver may be personally responsible to pay the difference not covered by the automobile insurance policy.

If the driver didn’t have the funds to pay for the damages, they could face legal action and long-term debts. If the driver’s child was driving a car that was underinsured and was in an accident, they too would be held responsible for any damages and could face significant debt. The driver and the driver’s family could end up paying for one accident for the rest of their life.
The department strongly encourages consumers to talk with their insurance agent to discuss the risks of only getting the bare minimum levels of insurance.

The Department’s Auto Insurance On-Line Toolkit, available at www.ohioinsurance.gov, provides guidance on auto insurance needs for different life stages, information on state minimum requirements and a list of frequently asked questions about auto insurance.
There are also links to the Bureau of Motor Vehicles and National Association of Insurance Commissioners’ web site.

Ohio drivers with questions concerning Financial Responsibility requirements are encouraged to call the Bureau of Motor Vehicles at 614-752-7500 or visit the Bureau’s web site at www.bmv.ohio.gov.

Ohio insurance consumers with questions and concerns about their insurance can call the Department’s consumer hotline at 800-686-1526. Free information can also be obtained at www.ohioinsurance.gov.
Auto Insurance

source: www.claimsjournal.com

January 29, 2009

A man authorities say participated in a series of staged auto accidents in Lawrence in an effort to defraud insurers has been sentenced to nine months in prison.

Leo Lopez was also also ordered Monday to pay nearly $56,000 in restitution after pleading guilty to 36 charges stemming from six staged accidents between January 2002 and March 2003.

Since a staged crash in 2003 in Lawrence killed a 65-year-old woman, the state has cracked down on auto insurance fraud, particularly in Lawrence, the epicenter of the problem.

Police Chief John Romero says prison time is an appropriate punishment.

He tells the Eagle-Tribune the success the city has had prosecuting auto insurance fraud cases since 2003 has resulted in an average decrease of $600 per car in insurance premiums.
___

Information from: Eagle Tribune
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Auto Insurance

source: www.insurancejournal.com

By Dale Wetzel
January 29, 2009

North Dakota drivers' minimum required insurance coverage for accidents hasn't changed in 24 years and should be raised, the state House narrowly decided after debating whether motorists could afford the increase.

"We talk about wanting people to have higher and better insurance, higher coverage, and I agree,'' said Rep. Dan Ruby, R-Minot. "The reality is, though, do you want people to have the best, or none? Or do you want them to have some?''

Representatives voted 51-43 to approve legislation to double the minimum insurance coverages for injuries and property damage that North Dakota motorists must carry to drive legally.

The vote came despite a recommendation from the House Transportation Committee, of which Ruby is chairman, that the measure be defeated. The bill now goes to the North Dakota Senate.

North Dakota law now requires drivers to have $25,000 worth of insurance coverage for a person who's injured in an accident and $50,000 to cover everyone injured in a single accident. Drivers also need at least $25,000 worth of coverage for property damage from an accident.

The legislation raises the injury limits to $50,000 for an individual and $100,000 for everyone injured in a single accident. The property damage limit would increase from $25,000 to $50,000.

The existing limits were set in 1985. An inflation calculator operated by the federal Bureau of Labor Statistics shows $25,000 in 1985 had the purchasing power of $49,355 in today's dollars.

The increased coverage "is not a burden on any driver. If you're going to drive a car, then you should have the proper protection,'' said Rep. Frank Wald, R-Dickinson. "The difference in cost for a 19-year-old is probably a couple of cases of beer every six months. If he or she can't afford that, they probably shouldn't have a driver's license.''

Rep. Chris Griffin, D-Larimore, said he also did not believe the increase would price coverage out of the reach of drivers. Uninsured drivers often are driving with suspended licenses, which has nothing to do with the cost of coverage, he said.

"If you're required to carry insurance under law, which you are, you should have to have somewhat adequate insurance,'' Griffin said. "I don't think these limits are excessive at all.''

Rep. Arlo Schmidt, D-Maddock, said the higher coverage would make insurance pricier for young people, who normally pay higher rates in any case.

"One of the biggest problems in North Dakota, is people without
insurance,'' Schmidt said. "When we analyze this, who are those
folks that aren't carrying any insurance? They were 19-year-olds
and young people that are poor. But if we raise the rates, are we
going to encourage those people to buy insurance, or are we going
to discourage them?''
___

The bill is HB1068.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Auto Insurance