Women Auto Insurance

How the premium on your car insurance is determined:

The use of the car is important when the premium is calculated. For example, if the car is used for deliveries, then it will increase the risk on the car and the premium may be higher. Trips to and from your work counts as personal use. When you visit clients during the day, it will be considered either full or partial business use, depending on your type of work and amount of visits you make to clients or suppliers every day.

Apart from the use of the car, your premium will also be influenced by, for example:
•    the value of the vehicle;
•    the colour of the vehicle (white cars and cars with bright colours like yellow are normally cheaper);
•    who drives the car (with some companies insurance on women is cheaper);
•    how old the driver is (young drivers usually pay more because they tend to be more inexperienced and/or irresponsible on the road) or how long the driver has a license;
•    where the car is parked in the day or night (how safe or risky the address is where it is parked, whether it is out in the open or locked up in a garage);
•    previous claims you had (which you have to be very honest about); and
•    the excess you choose (this is the amount that you will be responsible for if you have a claim).

Other options you have when you take out car insurance:

If you choose a higher excess, you will pay a lower premium. Just make sure if you choose a higher excess to save money, that you do have emergency funds available to pay the excess if your car was in an accident. Some companies offer you a chance not to have any excess but of course, at a higher premium.

You have the option to add “Car Hire” as an extra benefit to your policy which will increase your premium. If your car was in an accident longer than a certain period, you will be able to hire a car for a certain period at no cost to yourself.

Most of the insurance companies will only provide cover on the car if the person driving the car was specified on the policy as the regular driver. Make sure what your policy says before you let anyone else drive your car. Some companies allow you to add other drivers, like your husband or boyfriend. Some companies do not list specific names of drivers but they may charge you an extra excess if the car was driven by anyone else. In any instance, the other driver of your car must either...
•    have a valid driver’s license; or
•    or a learner’s license and be accompanied by someone with a valid driver’s license.

Additional requirements when you take out car insurance:

To limit fraudulent and dishonest claims, insurance companies will ask you to prove the existence of the car. They can do this by requesting the car’s registration number, engine number and VIN number (which you can obtain from the license details). Some insurers also ask you to take the car in to an inspection center around the country so they check that the car has not already been in an accident by the time you take out insurance and that it has the modifications or accessories like radios that you confirmed it has. Some insurance companies will request you to install an immobiliser, especially if your car does not come out with a factory fitted immobiliser.

Extra benefits of having car insurance:

Most of the insurance companies offer free access to a road assistance programme. For example, they come out once or twice a year if you’re stuck on the side of the road and they may even pay reasonable costs for towing the car to the nearest repair shop if it cannot drive. On some policies, you can also add funeral or accident life cover.

What you do if you’re in an accident

Here are 4 things to remember if you were in an accident:

1.    When you are in an accident, it is important to stay calm, don’t talk too much and only exchange personal and insurance information with the drivers of the other cars.
2.    It is also important to report the accident to the police immediately and obtain a case number that the insurance company will require when you lodge your claim.
3.    If anyone got hurt in the accident (or if you think anyone got hurt), then everybody who is part of the accident remains at the accident scene. Report it to the police and they will come out to you to give you a case number.
4.    Keep a copy of your insurance schedule with your policy number and the company’s contact details on your phone and in your car at all times. If you are in an accident, call the emergency roadside, your broker or the insurance company’s call centre for further guidance.

Always remember to contact your broker or insurance company if you change cars or if the address changes where the car is parked in the day or night like when you move or change jobs.

Variable Auto

If you have an older vehicle, then $25,000 is probably adequate or certainly no more than $50,000. If you have a very expensive new vehicle, you want to make sure the coverage is more than the cost of your vehicle. You may select $100,000, for instance. Many people who carry $100,000 property damage liability coverage carry the same limits for uninsured/underinsured motorist property damage coverage. Depending on the value of your vehicle, it is probably not necessary. Save a few bucks and only carry what you need.

This coverage, like most physical damage coverage, is subject to a deductible. Usually this deductible is $250 or $500. The lower the deductible the higher the cost. This coverage is redundant with collision coverage, but most people have a higher collision deductible. So if you are in an accident with an uninsured motorist, make sure you collect under the correct coverage.

The next coverage listed on your policy is comprehensive, or other than collision. This covers your vehicle for perils such as hail, wind, malicious mischief, total theft and hitting an animal. The price you pay for this coverage is based on the value of the vehicle and carries a deductible. The lower the deductible, the more you will pay for the coverage. Once your vehicle reaches 10 years old, you really need to consider whether it is still feasible to carry this coverage. That decision should be based on the value, condition and garaged location of the vehicle. You really need to weigh the cost of the coverage versus the value of the vehicle.

Collision coverage is pretty self explanatory. It covers damage to your vehicle as the result of an accident. If you are not at fault, you should collect from the other party's property damage coverage. If there is disputed liability or you are at fault, you will have to use your collision coverage less the deductible to repair or replace your vehicle. Even if you are not at fault, some companies may force you to use your collision coverage and subrogate against them to collect your deductible. That is becoming more common. Remember the way insurance companies make money is by holding on to insurance premiums and investing them for maximum return.

Next, we are going to tackle auto and homeowner policy pricing and what you can do to keep your insurance premiums as low as feasible. And learn where to find discounts and policy credits.

Ride share Advances

Uber and Lyft say they already require background checks and vehicle insurance. Uber says having one set of rules statewide could help the company offer services beyond the state’s metropolitan areas, and Lyft, which pulled out of the state following a lawsuit, also is backing the bill.

The measure has bipartisan support in the Missouri House, where backers argued it could mean more jobs. Ferguson Democrat Rep. Courtney Allen Curtis said it’s a “pathway to the American dream.”

“It enhances competition, which is good for business,” said Republican bill sponsor Rep. Kirk Mathews, of Pacific. He added that it could improve ride services and make prices more competitive.

But opponents questioned whether the measure would create jobs. Democratic Rep. Deb Lavender, of Kirkwood, said new jobs with ride-hailing companies could mean taxicab drivers lose their jobs. Kansas City Democrat Rep. Jeremy LaFaver said regulation should be up to cities.

“We can do this at the city level,” LaFaver said. “It’s better done at the city level.”

The legislation also would mandate that companies provide customers with fare estimates, pay an annual permit fee of $5,000 and adopt zero-tolerance policies against drivers using drugs or alcohol while working. Convicted sex offenders and some other felons would be banned from providing rides through those companies.

The House gave initial approval to a similar regulatory plan last year. But the proposal lost momentum after Kansas City in April reached an agreement with ride-hailing companies to establish a certification system for drivers.

Lyft pulled out of St. Louis after a 2014 lawsuit from the Metropolitan Taxicab Commission and has since halted its operations in Missouri. Uber has said it is the only such company currently offering rides in Missouri, with drivers limited to St. Louis, Kansas City and Columbia.

Older Vehicle

If you have an older vehicle, then $25,000 is probably adequate or certainly no more than $50,000. If you have a very expensive new vehicle, you want to make sure the coverage is more than the cost of your vehicle. You may select $100,000, for instance. Many people who carry $100,000 property damage liability coverage carry the same limits for uninsured/under insured motorist property damage coverage. Depending on the value of your vehicle, it is probably not necessary. Save a few bucks and only carry what you need.

This coverage, like most physical damage coverage, is subject to a deductible. Usually this deductible is $250 or $500. The lower the deductible the higher the cost. This coverage is redundant with collision coverage, but most people have a higher collision deductible. So if you are in an accident with an uninsured motorist, make sure you collect under the correct coverage.

The next coverage listed on your policy is comprehensive, or other than collision. This covers your vehicle for perils such as hail, wind, malicious mischief, total theft and hitting an animal. The price you pay for this coverage is based on the value of the vehicle and carries a deductible. The lower the deductible, the more you will pay for the coverage. Once your vehicle reaches 10 years old, you really need to consider whether it is still feasible to carry this coverage. That decision should be based on the value, condition and garaged location of the vehicle. You really need to weigh the cost of the coverage versus the value of the vehicle.

Collision coverage is pretty self explanatory. It covers damage to your vehicle as the result of an accident. If you are not at fault, you should collect from the other party's property damage coverage. If there is disputed liability or you are at fault, you will have to use your collision coverage less the deductible to repair or replace your vehicle. Even if you are not at fault, some companies may force you to use your collision coverage and surrogate against them to collect your deductible. That is becoming more common. Remember the way insurance companies make money is by holding on to insurance premiums and investing them for maximum return.

Next, we are going to tackle auto and homeowner policy pricing and what you can do to keep your insurance premiums as low as feasible. And learn where to find discounts and policy credits.

Legal Coverage

How this 3 Different Policy Works?

Third party only covers the other people involved in the event of an auto accident, without covering you at all. Third party with fire and theft offers the same amount, but includes coverage for vehicles that are stolen or damaged by fire. Comprehensive coverage by far offers the most extensive protection, and it will insure you, the other parties involved, repairs, accidental damage, and even vandalism. Evaluating your current auto policy will help you gauge whether or not legal coverage is right for you by measuring how much your current policy covers. The more that your current policy covers on it’s own, the less potential excess costs you may accumulate. If your policy covers much less, then it may be more beneficial for you to purchase legal coverage since your risk of acquiring a large amount of excess costs is much higher.
Consider Your Environment and Normal Driving Routine

Did you know that your current environment and driving routine are huge contributors to a heightened accident risk? Studies have shown that those who primarily drive on rural routes versus motorways are more likely to find themselves in an auto accident. Rural roads pose more of a risk to drivers with their narrow designs, and people tend to drive much faster on them as opposed to motorways. These types of routes are also more prone to having wildlife surrounding them, which also poses an elevated accident risk. Drivers who commute during early afternoon and evening are also at a heightened risk in correlation to the higher larger traffic volumes that are present during these times. If your commute typically entails driving on rural roads or between these hours, then your risk of facing an accident is much higher than average. Due to this increase in accident risk, purchasing legal coverage could be much more advantageous in protecting you, your vehicle, and your passengers.
Factor in Your Vehicle’s Worth

Looking at the market value of your vehicle is also a good idea when you compare car insurance and look into legal coverage. Some claim that if your vehicle is under £1,000 then it would be less risky to skip out on legal coverage because of how inexpensive any repairs and replacements would be following the event of an accident. However, this theory could really go both ways. Older car models typically experience more mechanical issues, which are responsible for roughly 13% of accidents. If your car is known to experience frequent maintenance issues, then legal coverage is still a very valuable pursuit.

It’s ordinary for drivers to be drawn more to cheap car quotes regarding future car insurance, but avoiding optional coverage options such as legal coverage could potentially result in even higher costs to you. Purchasing adequate legal coverage for your current or future policies will give you the confidence and reassurance that you and your passengers are sufficiently protected from overwhelming accident-related costs in the future

Hike in Insurance

Insurance of vehicles, including cars and bikes, will become costlier from April 1 as insurance regulator Irdai has decided to increase premiums by up to 40 per cent from the next fiscal.

Third party motor insurance premium for small cars (up to 1,000 cc) will now be up 39.9 per cent to Rs 2,055 from Rs 1,468 being currently charged. The hike in mid-segment cars (1,000 - 1,500 cc) too is about 40 per cent.

Premium hike in case of bigger cars and SUVs (above 1,500 cc) is 25 per cent. It will now cost Rs 6,164 from April as against the current Rs 4,931.

"It is observed that the cost inflation index (CII) has increased by 5.57 per cent over the previous year, i.e. from 1024 in FY 2014-15 to 1081 in FY 2015-16," Insurance Regulatory and Development Authority of India (Irdai) said while notifying the rates of third party insurance premium from April 1, 2016.

Similarly, premiums have gone up in case of bikes and scooters. The new premium rate for two-wheelers up to 75 cc is Rs 569 as against Rs 519. Two-wheelers falling in the category of 75 cc - 150 cc is up 15 per cent to Rs 619 while there is increase of 25 per cent for bikes in the category of 150 cc - 350 cc. However, premium has been reduced in case of motor-bikes which are about 350 cc to Rs 884.

Basic third party (TP) premium for three-wheelers too has been increased. A new category 'e-rickshaw' (capacity of up to 6 passengers) has been introduced and the basic TP premium has been fixed at Rs 1,125.

The premium increase in case of public carriers is in the range of 15-30 per cent. However, there is no change in case of goods carrying vehicles having capacity up to 12 tonnes.

Motor third party insurance is mandatory for vehicles. Irdai has asked insurers to ensure that motor third party insurance is made available at their underwriting offices and through all available channels of distribution.

Earlier, the regulator had published an exposure draft which included number of policies, number of claims paid and amount of claims outstanding as on March 2015 for each underwriting year and for each class of vehicle. 

Dysfunctional Market

Ashdown found it would have cost £800 to hire the same vehicle from the same local rental company, instead of the £4,216 Claimfast is charging.

“They often hire posher cars for a longer period than necessary to maximise their income. It’s an abuse of the system,” says Rob Cummings, manager of general insurance at the Association of British Insurers (ABI).

A two-year investigation by the Competition and Markets Authority (CMA) in 2014 concluded that the hiring of courtesy cars via CHCs costs consumers an extra £84m in increased premiums and distorts the market.

The investigation began with plans to regulate how insurers set about putting drivers back on the road after accidents, addressing the role of expensive middlemen such as brokers and claims management companies and tackling the soaring costs of credit hire. However, its ambitions have since shrunk steadily. Despite identifying “significant consumer detriment”, it decided it could not provide an “effective and proportionate remedy” to address the problems and abandoned all its suggested solutions, leaving it to the insurers and CHCs to sort it out among themselves.

“We found that a fully effective solution to the problem would require a fundamental change to the law, and we questioned whether the scale of the problem justified such a fundamental change,’ says a CMA spokesman.

“The fact the insurer of the at-fault party in an accident pays for the hire car provided to the non-fault party but has no control over what is provided (so long as it is reasonable) or who provides it creates incentives which are counter-productive overall. But to get the business in the first place CHCs pay non-fault insurers huge referral fees. Most of the money therefore passes round the circle.”

The CMA admitted that its own inability to find a solution was deeply unsatisfactory, but the Credit Hire Organisation, the trade body for CHCs, hailed its inaction as a “victory for consumers”.

“We think the report was stitched up,” says CHO director general Martin Andrews. “The ABI has spent years trying to convince people that CHCs are the devil incarnate, but they exist solely because insurers would rather not have courtesy cars provided as it involves a cost they don’t want to pay.”

Non-fault drivers are allowed to claim sufficient costs to put them back in the position they were in before an accident, meaning drivers whose cars are damaged are entitled to a temporary vehicle. According to Andrews, insurers used to be reluctant to tell customers this: “There’s nothing to stop insurers providing the cars themselves. Most choose not to. We keep them honest because we tell customers what they are entitled to.”

The ABI says insurers rarely get the chance to hire cars directly since the brokers who tend to deal with their customers refer their cases on to CHCs before the insurer gets a look in.

Many insurers and CHCs subscribe to a voluntary agreement which sets out the maximum daily hire rates that can be charged for replacement vehicles including administration and late payment fees. Nonetheless, the CMA found that at-fault insurers end up paying an average of £607 extra for vehicle hire arranged through CHC’s than through direct hire, a cost ultimately passed on to policyholders through higher premiums. “We’re not a charity,” says Andrews. “We’re in this to make money, but profits are less than 5% per rental.”

In Ashdown’s case, Claimfast says that its charges include a late payment fee. “The costs do appear higher than simply finding a car online, but this is because it is not a like-for-like comparison,’ says a spokesman. “For example, the car is provided with no policy excess, which can be over £1,000 for a hire car, and with a nominal deposit of just £1. The hire charge also includes the cost of arranging delivery and collection of vehicles, and dealing with the insurer.”

The company says there is no question of Ashdown being charged legal fees or having to foot the hire bill if the court case fails: “Because the car hire documentation was in Ms Ashdown’s name she would have been named as the claimant if we were then forced to take the third party insurer to court. Unfortunately this is unavoidable, but it is very rare that an individual will be asked to attend court in such a case.”

The ABI is calling for referral fees to be banned and hire charges capped to keep costs down and avoid expensive litigation, but the CMA is in no hurry to oblige. Having declared it has no powers to do either it says it will not commit to another investigation, although if matters got worse it might take another look and “possibly reconsider some of the remedies which we have decided not to pursue”.

Commercial Insurance

On March 1, 2016, WRAL Investigates reported that North Carolina Insurance Commissioner Wayne Goodwin wants state lawmakers to tighten up regulations over commercial vehicle insurance, stating that some out-of-state trucking companies are claiming in-state residency to obtain lower insurance rates.

It is no secret that North Carolina has some of the lowest vehicle insurance rates in the country. These insurance policies, however, are available only to residents and businesses that reside in the state. According to WRAL, ten years ago, drivers from New York and New Jersey were registering their cars in North Carolina in order to get cheaper car insurance. But, the General Assembly changed the law to stop this from happening.

On March 3rd, the same issue is occurring in the $670 million-a-year commercial vehicle insurance market. Reportedly, North Carolina Insurance Commissioner Wayne Goodwin is seeking to have a similar statutory enactment passed. In recent years, the North Carolina Reinsurance Facility raised its commercial rates because of significant claim losses. Goodwin attributes this increase in commercial rates to out-of-state trucking companies claiming in-state residency to obtain lower insurance rates. Goodwin has been quoted as saying: "They have accidents in other states and the like. It impacts insurance rates for the legitimate businesses that are here, and it's becoming a growing problem."

WRAL Investigates confirmed North Carolina freight insurance coverage for Senn Freight Lines in Newberry, S.C. A spokesman for Senn stated that the company has no North Carolina operations, although an internal insurance memo indicated that Senn claims one truck registered and one driver licensed in the state. According to the Secretary of State's Office, another trucking company, Fast Transport, Inc., is listed as a North Carolina registered corporation. However, the address listed for Fast Transport is in a remote residential neighborhood in Wake Forest, and a spokesman for Fast Transport stated that the Wake Forest house is the trucker's accounting headquarters. According to WRAL's investigation, Fast Transport claims dozens of trucks in Florida, Georgia, and Texas but only one truck in North Carolina.

The Insurance Commissioner's position seems to be that only North Carolina companies should be able to take advantage of the state's lower insurance rates. He wants "to protect and help the legitimate companies that are doing business in North Carolina from being taken advantage of by businesses...that are misleading the state and misleading insurance companies as to their presence in the state.

As a result, Goodwin's office is drafting legislation to present to the General Assembly when lawmakers reconvene in April that would better differentiate between North Carolina companies and posers exploiting the law to get cheaper rates.

Insurance on the High

East Greenwich resident Tempie Thompson has been named executive director of the R.I. chapter of the American Red Cross.

Thompson's association with the Red Cross began 20 years ago as a volunteer. A few years later, she accepted a full-time staff position in Massachusetts. Most recently, she served as the volunteer partner to regional leadership where she worked side-by-side with Rhode Island leadership and advised on high-level strategy for the overall operations of the local chapter.

She is actively involved in the planning and celebration of the R.I. Red Cross Chapter Centennial and will also focus on continuing the development of the Red Cross Home Fire Campaign within the region.

Amica Mutual Insurance Co.

Tara S. Costello, of Woonsocket, has been promoted to assistant vice president in the claims executive department and will oversee the claims departments and initiatives in her region.

She began her career at Amica as an associate adjuster in 2004 and has worked in several positions within the claims department, including in the Dallas, Michigan and Baltimore offices.

A 2003 graduate of Vassar College, Costello has also earned five insurance-related designations and two business-related designations.

John L. Strain III, of West Warwick, has been promoted to assistant vice president/director of corporate services in the corporate services department. He will oversee the day-to-day operations of facilities, real estate, distribution, purchasing, mail/scanning operations, print services, security operations and workplace violence.

He joined Amica as an associate adjuster in 1991 and has worked in various positions within the claims, service center operations and human resources departments, including in the Cincinnati and Wellesley offices.

Strain earned a bachelor’s degree in English from Hobart College in 1990.

The Nature Conservancy

Madelyne Cuddeback, of Providence, joined The Nature Conservancy in July as director of philanthropy. She is responsible for managing the philanthropic, corporate relations and communications programs.

Cuddeback’s career has included managing and directing corporate and individual fundraising programs at Brown University, the Boston Symphony Orchestra, the Boston Ballet, the Isabella Stewart Gardner Museum and, most recently, as associate vice president of advancement at Suffolk University. She is a graduate of Brown University.

Philanthropic Educational Organization

Betsy Dake, of East Providence, was elected secretary of the Northeast District Chapter of the P.E.O. Sisterhood during its 24th annual convention in Portland, Maine.

Founded at Iowa Wesleyan College in 1869, the goal of P.E.O. is to provide financial assistance to women in various phases of their educational pursuits.

An environmental planner for the Rhode Island Department of Environmental Management, Dake joined the organization in 2006. She graduated from the University of Mary Washington in Fredericksburg, Va., with a bachelor of science degree in biology and earned a master’s degree in environmental science and policy from Johns Hopkins University.

All State customer claims transperancy

On March 1, 2016, the U.S. Supreme Court held in Gobeille v. Liberty Mutual Insurance Co. that a Vermont law requiring comprehensive claims information to be conveyed to the state’s all-payer claims database was preempted by the federal ERISA statute and could not be applied to self-insured employers or their third-party administrators. Almost immediately, commentators on both sides of the political aisle objected to the ruling, which makes it seem as if nobody won the case. To my way of looking at it, a better conclusion is that nobody lost.

It is important to understand that the vote in Gobeille wasn’t close. Justice Kennedy (writing for the Court) and five other justices found the Vermont law preempted because data collection and reporting are core ERISA functions, and Justice Scalia would have agreed with them had he lived to see the opinion released. Only Justices Ginsburg and Sotomayor dissented, somewhat uncharacteristically defending states’ rights and resisting federal uniformity.

Taking into account both ERISA’s purposes and prior judicial interpretations of the statute, there were good reasons for the Court to resolve Gobeille as it did. My earlier post on the case, written shortly after the oral arguments last fall, explained the legal and political underpinnings and accurately predicted the outcome. It also noted that Congress very rarely opens the can of worms that is ERISA, so that Supreme Court rulings tend to be dispositive albeit incremental. Rather than repeat that analysis here, let me comment on the decision’s implications for transparency.

Several of these objectives are relevant to all-payer claims databases, which have been enacted in nearly 20 states but are uneven in their scope, accessibility, and purpose. Some states with databases are primarily interested in backstopping their regulators and in monitoring public expenditures, particularly Medicaid. With respect to private competition, information about claims and payments based on billing codes tends to be more understandable to corporate payers than to individual consumers, must contain prices actually paid to be useful, and if too current and too easily accessible to providers can facilitate collusion and stabilize prices rather than boost competition. Database laws that don’t include prices, or that grant data access only to government entities or researchers, have little likelihood of furthering competitive goals.

With respect to enhancing provider performance and creating a “learning health care system,” existing databases are far from perfect. Since the 1960s, U.S. health care providers have mainly collected the information they needed to collect in order to get paid. Unfortunately, such claims data presents a skewed version of reality. One can make a strong argument that the critical information for a “learning system” is clinical data, particularly the subset that can be used by providers to deliver care more cheaply, quickly, and reliably. This information may be more accurate and more useable if providers themselves, rather than the payers and employers who challenged Vermont’s law, are responsible for collecting and reporting it. Similar observations can be made about information that bears on the social determinants of health, very little of which is reflected in paid insurance claims.

What does this have to do with the Gobeille decision? Our patchwork system of health insurance has always involved a variety of overseers: HHS/CMS for Medicare and some of Medicaid; the U.S. Department of Labor (DOL) for employee benefit plans; and states for Medicaid and non-ERISA insurance coverage. Self-insured employee benefit plans became widespread in large part because ERISA prevented states from regulating them, and the Department of Labor was not a strong presence in health coverage before the ACA.  Therefore, a court decision holding a state law preempted by ERISA meant that nothing replaced it. That was the so-called “ERISA vacuum,” and if Gobeille had been decided in such an environment the result would indeed have been to chill important data experimentation at the state level.

Things have changed. The ACA made a real effort to link the previous silos of insurance oversight into a more coordinated whole, and the Gobeille decision reinforces that commitment. Today, one can expect the now more engaged U.S. Department of Labor and the newly insurance-savvy HHS to work together, and with states, to systematize the collection of claims data (and hopefully clinical and population health data) and to learn from it. Because of the Supreme Court’s ERISA ruling, Vermont and other states can’t go it alone, with the risks and costs that such variability might create. But they can expect to work collaboratively with the feds on approaches that will serve both regional and national goals. Out of many, perhaps we are becoming one.

GEICO policy upgrades

Nels Johnson called GEICO and saved a lot more than 15 percent on his car insurance.

Unfortunately for the Ozaukee County man, he didn't notice the savings were because his Mercedes convertible was only covered for damage it might sustain while in winter storage --- until he crashed months later and GEICO rejected his claims for some pretty big bills.

Johnson tried to argue that an agent's remark, "We can take care of that," amounted to a contract to add liablity and collision coverage for his sports car when he started driving it again in April, but the Court of Appeals on Wednesday found no basis for that conclusion.

According to the opinion:

In February 2012, Johnson called GEICO after notification from his prior insurer that his auto rates would be going up. He wanted to insure his 2003 Cadillac Escalade and his 2005 Mercedes Benz SL55 AMG convertible, which he said he only drove in the summer.  The agent said, "We can take of that."

But Johnson never called to specify upgrading the coverage, and later said he didn't understand the four declarations he got that showed only comprehensive coverage, and a bill of only $86.50, for the Mercedes, as meaning it only had comprehensive coverage. When Spring came, he put the Mercedes back on the road.

In October 2012, he was involved in a crash. The other driver suffered some injuries and Johnson's car sustained  significant damage.  He filed a claim with GEICO was surprised to learn he wasn't covered.  In January 2103, he sued Geico for breach of contract, negligence, reformation and bad faith.

But Circuit Judge Paul V. Malloy granted summary judgment to GEICO, finding the agent's statement, "We can take care of that," ambiguous, and hardly a clear promise to automatically upgrade coverage for the car in April.

"At most, the evidence shows that GEICO would be willing to accommodate Johnson," the Court of Appeals found.

Further, Malloy and the appeals court noted GEICO's several written notices to Johnson, prior to the crash, clearly showed the Mercedes had only comprehensive coverage, with dashes in the spots where the declarations showed various dollar amounts for the full coverage on the Escalade.

Johnson owns Dreamscape Transport, a trucking company in Saukville.

In short, the court found Johnson didn't show enough to suggest that a prior oral agreement, "a meeting of the minds," that should have been incorporated into the final policy, and so summary judgment for GEICO was appropriate because no reasonable jury could conclude there was an agreement to automatically increase the coverage.

Insurance choice or need

Today, virtually every industry is ripe for disruption. The $3.7 trillion insurance industry is no exception. In many ways a perceptually commoditized business, those companies that win – like the famously customer centric USAA – are those that create differentiation through the experiences they deliver, and the ways their customers feel as a result.

Yet USAA and a handful of others like it are the exception. As most established companies tend to move slowly to use their current size, information and resource advantage to better serve their customers, smart entrepreneurs and the start-ups they run are attacking the insurance business with innovative customer experiences that drive value and solve problems.

The fact is, the insurance industry hasn’t much evolved since the concept was first introduced in the late 1700s. Here are five ways that innovations in customer experience are changing business and challenging the status quo for insurers and their customers.

• Pay-as-you-drive, usage-based auto insurance policies reduce insured costs, and insurer risk. Most car insurance policies charge you based on age and history. Now, the distance you drive – and how you drive – can result in lower premiums. Zubie is working with Progressive Insurance to put recording devices in your car, while Censio uses an app to collect much of the same data. A bonus? Some of these can tell you when your car needs attention as well.

• Digital insurance manager’s help you manage all your policies (and will sell you insurance as well, if you want…). How many insurance policies do you have? While I can’t make an accurate guess, I’ll venture 10 or more. Between life, auto, health, umbrellas, property and more… it’s a lot. And I’m not alone. Now, startups like Knip and FunctionFox make it easy to manage all your policies, from you smartphone. And if you need more? Hey, they’re brokers too…
• Video-enabled doorbells discourage burglars and lower homeowner premiums. A motion detector records who comes to your porch – and immediately saves it to the cloud. American Family Insurance customers who use the Ring system get a 5% premium savings, and a deductible refund if a burglary occurs. Vivent lets homeowners know if a window is broken, for example – and gives Liberty Mutual customers discounts when the install it.
• “On-demand” insurance provides mobile-powered, micro-insurance coverage only when consumers need it. Do you need all your insurance policies to be active all the time? Of course not. For years, we’ve been able to buy travel insurance as needed, covering airfare or hotel fees if something went awry. Now, Companies like Metromile offer “revolutionary pay-per-mile car insurance for the modern driver.” In other words, customers are going to be able to pay for insurance as they need it, and only when they need it.
• Property and auto-insurance claims made easier and more enjoyable (and virtual).Let’s face it. For most of us, when we deal with an insuarnce adjuster it’s after something bad has happened. That’s why companies like SnapSheet see an opportunity to for a true mobile claims solution, enabling customers to settle the claim virtually. Results? Exceptional customer experience – while faster and easier for adjusters as well.

Every one of these companies, services and products exist for a single reason: they have been designed to eliminate an existing customer pain point. At heart, that’s what customer experience improvement is all about: finding and removing those areas where friction adds up to wasted time or frustration – like in the examples above.

This article is the first in a series I plan to publish irregularly over the next year or so, building on the ideas published in the 2012 book Smart Customers, Stupid Companies. They’re also built around the knowledge we’ve gained working with companies around the world to improve customer experience.

So stay tuned as we look at experience innovation across the banking, retail, B2B and healthcare sectors among others in the months to come. Thinking up ways to change “how things are done” is a blast. In that spirit, I hope you enjoy thinking about ways these kinds of things could apply to your business – and to your customers.

State Farm Law Suits

The owner of a downtown Belleville building that burned to the ground in May 2010 is arguing at trial that he should be paid an additional $1.6 million for property loss and $1.64 in punitive damages from State Farm Insurance Co.

Represented by Penni Livingston of Fairview Heights, Ronnie Phillips sued in 2012 claiming he was unable to rebuild at 205 East Main St. because payment of his policy was insufficient, and since he was not able to rebuild, he lost rental income.

He further claims that total square footage of the insured property at 205-207 East Main had been miscalculated, an error that later resulted in the "reformation" of his policy.

Phillips, who testified on Wednesday, has been paid a total of $823,000 for the loss, which includes $87,000 for lost income, according to testimony. He was originally paid $436,000, until the square footage error was detected.

In an amended complaint filed less than two weeks before trial began, Livingston wrote that a reformed policy should reflect replacement costs as high as $2.7 million, and no lower than $2.414 million.

"Plaintiff asks this Court to enter a judgment against Defendant consistent with the verdict of 12 jurors speaking in one voice in the amount proven at trial and expected to be at $2.414 million minus payments made for building losses, exclusive of other losses paid...," she wrote.

St. Clair County Associate Judge Christopher Kolker is presiding over the trial which got underway on Monday. 

State Farm, represented by Michael Bedesky and Martin Morrissey of Belleville, argues that Phillips' consumer fraud and common law fraud claims are not actionable.

Bedesky wrote that after the measuring error was discovered, the loss was ultimately re-calculated and additional monies were paid.

"Although Plaintiff attempts to claim his alleged criticisms of State Farm constitute 'misrepresentation' they do not set forth a factual basis for an ICFA (Illinois Consumer Fraud Act) claim," he wrote.

He further argues that consumer fraud requires "much more than merely promising to do something and failing to follow up on that promise...[T]he Illinois Supreme Court has held that the ICFA does not apply in cases where a defendant has made an 'honest mistake.'"

Bedesky also states that Phillips' common law fraud claim lacks specificity and particularity.

"What the complaint does allege is that Plaintiff received the full policy limits which he purchased for 205/207," he wrote. "Later, after the underwriting mistake was discovered Plaintiff received additional monies on the reformed policy. Although Plaintiff characterizes State Farm's activity as 'fraud' the actual facts contained in the complaint do not allege an intentional misrepresentation of any kind."

He also wrote that Phillips' claim for punitive damages fails to rise to the level of "gross" fraud or other circumstances of malice or willfulness.

On Wednesday, State Farm field underwriter Stephanie Stover also testified until 4:45 p.m. when Kolker adjourned for the day. Another six witnesses are expected to testify before the sides rest.

Closing arguments could take place as early as Friday, or into next week.

Travellers Companion

In an uncertain world, Travelers is an insurance leader, committed to keeping pace with the ever-changing needs of our customers, and anticipating their needs for the future. There is no stronger testament to our dedication to protecting customers from loss than our continued innovation and ability to transform our industry.

In fact, from the first ever auto and space travel policies and hybrid car discount, to the 2009 founding of The Travelers Institute for public policy, our history of advancements has propelled our company—and our industry—towards ever higher standards for customers.

Travelers is a company that works hard at the science of what we do: we analyze information, process perspectives and measure results to create the best combination of products and services. We work equally hard at customer service and how we interact with the people whom we do business. Over the years, we've strived to earn our customer's loyalty by continually improving our abilities to listen and respond to their needs.

Today, more than 160 years after our founding, Travelers is one of the nation's largest property casualty companies. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees, 13,000 independent agents and multiple market segments across the personal, business, financial and international insurance groups. Travelers has operations in the United States, United Kingdom, Canada, Lloyd's of London, and the Republic of Ireland. In Brazil, the company also has a joint venture partnership with JMalucelli, Brazil's market leader in surety.

Minimizing risk, preventing loss and helping our customers prepare for the unknown, Travelers' comprehensive products, services and support give individuals and businesses the confidence they need to feel secure.

The company has field offices in every U.S. state, plus operations in the United Kingdom, Ireland, Singapore, China, Canada, and Brazil. In 2014, the company reported revenues of US $27 billion and total assets of US $103 billion.

Travelers, through its subsidiaries and approximately 14,000 independent agents and brokers, provides commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals. The company offers insurance through three segments:

Personal Insurance, which includes home, auto and other insurance products for individuals
Business Insurance, which includes a broad array of property and casualty insurance and insurance-related services in the United States
Bond and Specialty Insurance, which includes surety, crime, and financial liability businesses which primarily use credit-based underwriting processes, as well as property and casualty products that are predominantly marketed on an international basis.

State Farm Insurance

The State Farm Story began with Mecherle's original vision for State Farm: operate fairly and do the right thing for our customers. While his vision still guides us today, our continued mission is to be the first and best choice in the products and services we provide.

Originally a single line auto insurance company, State Farm now offers nearly 100 products and services, in five different lines of business, to help customers manage today and prepare for tomorrow. We show our commitment to our policyholders by handling nearly 35,000 claims per day. The history of State Farm not only demonstrates we do the right thing for our customers; we do the right thing for communities. We are heavily involved in and support communities through sponsorships, safety programs, education leadership, and service-learning.

Known as a public leader in auto safety efforts, State Farm helped pass a number of seat belt laws and continues to fight for seat belt and teen driver safety.

We work to build safer, stronger, and better educated communities across the United States. We are committed to the future through our green efforts and by helping raise the levels of achievement of our nation's teachers and students.

We help build strong communities by supporting programs that enable home ownership, create safe neighborhoods, and making our homes and highways safe through activities aimed at preventing and reducing injury and loss.

In our schools and communities, online and offline, through statefarm.com® or one of more than 18,000 agent offices, State Farm is there.

Summary:
State Farm is a group of insurance and financial services companies in the United States. In 2014, the company sold its operations in Canada to Desjardins Group, which is continuing to use the State Farm name.

The group's main business is State Farm Mutual Automobile Insurance Company, a mutual insurance firm that also owns the other State Farm companies. The corporate headquarters are in Bloomington, Illinois.

State Farm is ranked 44th in the 2013 Fortune 500, which lists American companies by revenue.

Overview:
As of December 2013 State Farm had 65,000 employees and 18,000 agents. February 2014 figures show the group servicing 80 million policies in the United States and Canada, of which over 44,000,000 are for automobiles, 27,000,000 are for fire, 7,000,000 for life, and more than 2 million bank accounts.

Edward B. Rust, Jr. is the chairman and CEO of State Farm Mutual Automobile Insurance Company, and president and chief executive officer of State Farm Fire and Casualty Company, State Farm Life Insurance Company, and other principal State Farm affiliates.

In 2014, the company sold its operations in Canada to Desjardins Group. Canadian policies were transferred to be underwritten by Desjardins Group on January 1, 2015. The State Farm brand continues to be used for agents and marketing.

Services:

State Farm Safety Patrol – State Farm, in partnership with several U.S. highway authorities, operates a service called the State Farm Safety Patrol which provides free roadside assistance to stranded motorists on participating highways, when you call the designated telephone number for the Safety Patrol they will respond and provide the following services: fuel refills; radiator refills; engine oil refills. Most Safety Patrol personnel are also CPR and Automated External Defibrillator certified. They work to reduce accident rates, minimize the duration time of incidents, assist disabled drivers and remove road debris. Turnpikes which currently participate include, Florida's Turnpike in the State of Florida and the Pennsylvania Turnpike in the Commonwealth of Pennsylvania. In Ohio, State Farm–branded safety patrol vans service major highways in the Cincinnati, Toledo, Cleveland, Columbus, Dayton, Akron, and Canton areas on weekdays

Progressive

The Progressive Group of Insurance Companies has always lived up to its name by being one step ahead of the insurance industry, and finding new and affordable insurance solutions. We began in 1937 with the first drive-in claims office, became the first to introduce reduced rates for low-risk drivers, and then changed the insurance shopping experience by offering comparison rates on the Web.
Progressive continues to find better ways to serve you with our new and personalized Snapshot® program and our Name Your Price® car insurance shopping option.

The Progressive Corporation is one of the largest providers of car insurance in the United States. The company also insures motorcycles, boats, RVs and commercial vehicles, and provides home insurance through select companies. Progressive has expanded internationally as well, offering car insurance in Australia. The company was co-founded in 1937 by Jack Green and Joseph M. Lewis, and is headquartered in Mayfield Village, Ohio.

Progressive is one of the largest auto insurers in the United States, with over 13 million policies in force, along with State Farm, Allstate, GEICO, Nationwide Insurance, Farmers Insurance Group, and USAA. Progressive primarily offers its services through the Internet or by phone and through independent insurance agents. Progressive's Agency business sells insurance through more than 30,000 independent insurance agencies and progressiveagent.com where customers can quote their own policies and then contact an agent to complete the sale.

In December 2009, Progressive announced it was selling car insurance in Australia. Initially called Progressive Direct, it rebranded as Progressive in 2011.

Drivers plug a device the size of a garage door opener into the on-board diagnostic (OBD) port of their car. The device records and sends the driving data to Progressive, and Progressive uses that information to calculate the rate. After 30 days, customers find out if they’re eligible for a discount based on that 30-day “snapshot” of their driving habits. At the end of a six-month policy period, Progressive calculates the customer’s renewal discount and customers return the device to Progressive. The company doesn’t take into account how fast the car goes although it does take into account how fast and frequently the vehicle operator brakes. Snapshot is voluntary and customers can opt out at any time. The customer is charged up to $50.00 if they do not return the snapshot device to Progressive should they decide not to engage in the program after receiving it. 

Snapshot is currently available in 45 states plus the District of Columbia. Because insurance is regulated at the state level, Snapshot is currently not available in Alaska, California, Hawaii, and North Carolina. Most recently, Snapshot became available in Indiana in May 2015.

Nationwide Insurance

Nationwide Mutual Insurance Company & Affiliated Companies is a group of large U.S. insurance and financial services companies based in Columbus, OH. The company also operates regional headquarters in Des Moines, IA; San Antonio, TX; Gainesville, FL; Lynchburg, VA; Raleigh, NC; and Westerville, OH.

Nationwide Financial Services (NFS), a component of the group, was partially floated on the New York Stock Exchange prior to being repurchased by Nationwide Mutual in 2009. It had owned the majority of NFS common stock since it had gone public in 1997.

Also in 1934, Farm Bureau Mutual began offering fire insurance. This product grew the following year with the purchase of a struggling fire insurance company. With growth came a need for expansion of office space. In 1936, the company moved to the famous 246 Building at 246 N. High Street in Columbus. By 1943, Farm Bureau Mutual operated in 12 states and the District of Columbia. Even with the tripling of space in the 246 Building (which was finally dedicated on the 25th anniversary of the company), Farm Bureau Mutual still had insufficient office space, and began opening regional offices in 1951.

In 1955, Farm Bureau Mutual changed its name to Nationwide Insurance, a name by which it is commonly known today. In the 10 years that followed, Nationwide expanded into Oregon, making the company truly "nationwide". It also expanded into 19 other states, bringing the total by 1965 to 32 states and the District of Columbia.

Nationwide outgrew the 246 Building by the 1970s and work began on a new skyscraper headquarters for the company. In 1978, One Nationwide Plaza was completed at the southwest corner of N. High Street and Nationwide Blvd. on the northern edge of downtown Columbus, Ohio. Since 1988, Nationwide has added the following to its presence in Downtown Columbus: Plaza Two (on the northeast corner of High Street and Chestnut), Plaza Three (just west of High Street and Chestnut), Plaza Four (Front Street), 275 Marconi (behind Plazas One and Three on Marconi Blvd), and 10 West Nationwide, which together with Plaza One form the primary downtown complex. In addition to downtown Columbus, Nationwide also has a significant presence in the Columbus, Ohio metropolitan suburbs of Dublin and Grove City.

Nationwide currently has approximately 31,000 employees, and is ranked #91 in the most recent Fortune 500. Nationwide is currently ranked #85 in Fortune's "100 Best Companies to Work For".

Since 2004, Nationwide has continuously received a 100% rating each year on the Corporate Equality Index, which is released by the gay rights activist group Human Rights Campaign. Nationwide includes "sexual orientation" and "gender identity" in its equal employment opportunity policy, and provides diversity training to its employees on sexual orientation.

In 2008 Nationwide entered into an exclusive partnership with Tavis Smiley, including sponsorship of Smiley’s PBS television program as a provider of property and casualty insurance products. The sponsorship of the television program ended in 2011, but the partnership continues for other events and initiatives.

Nationwide was also a national sponsor of the 2009 State of the Black Union event.

Liberty Mutual Insurance

Liberty Mutual Group, more commonly known by the name of its primary line of business, Liberty Mutual Insurance, is an American diversified global insurer, and the second-largest property and casualty insurer in the United States. It ranks 76th on the Fortune 100 list of largest corporations in the United States based on 2013 revenue. Based in Boston, Massachusetts, it employs over 50,000 people in more than 900 locations throughout the world. As of December 31, 2013, Liberty Mutual Insurance had $121.2 billion in consolidated assets, $102.2 billion in consolidated liabilities, and $38.5 billion in annual consolidated revenue. The company, founded in 1912, offers a wide range of insurance products and services, including personal automobile, homeowners, workers' compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, fire and surety.

Liberty Mutual Group owns, wholly or in part, local insurance companies in Argentina, Brazil, Chile, China (including Hong Kong), Colombia, Ecuador, India, Ireland, Poland, Portugal, Russia, Singapore, Spain, Thailand, Turkey, the United Kingdom, Venezuela and Vietnam.

In the United States, Liberty Mutual remains a mutual company where policyholders holding contracts for insurance are considered shareholders in the company. However, Liberty Mutual Group's brand usually operates as a separate entity outside the United States. In other countries, subsidiaries are often created in countries where legally recognized mutual company benefits cannot be enjoyed.

Not all car insurance is the same. Sure, there is a minimum level of coverage that all auto insurance companies offer – liability coverage for example - but there are also additional types of coverage that you can include on your policy to add an extra level of protection. Let's cut through the jargon and walk through some of the more popular coverage options.

Superior Protection 
Liberty Mutual goes above and beyond to make sure you're protected. From coverage like New Car Replacement, which is included on all car insurance policies, to Unlimited3 Rental Coverage, which you can choose to add to your policy whenever you'd like, we want to make sure you're confident in the coverage you choose.

New Car Replacement
It's said that a car starts depreciating the minute you drive off the lot. But with New Car Replacement, if your new car is totaled in the first year and within the first 15,000 miles, you'll get the money for a brand new car – not just the depreciated value.1 Learn more about New Car Replacement.

Better Car Replacement
Even if your car is no longer new, you can still treat it like it is. With this optional coverage, if your car is totaled we'll give you the money to replace it with a car that is one model year newer and has 15,000 fewer miles on it.2 Learn more about Better Car Replacement.

Unlimited Rental Coverage
If you are ever in an accident, you can rely on our optional Unlimited Rental Coverage to pay your rental costs for as long as it takes to fix your car, when you choose to have your car repaired at a Liberty Mutual-approved repair facility.3

Deductible Fund
This optional policy add-on can help lower your collision deductible and reduce the money you pay out-of-pocket in the event of a claim. When you add the Deductible Fund to your policy, Liberty Mutual will immediately put $100 into the fund to get it started.

Teachers Auto Insurance
If you're a teacher, you can get additional coverage to protect your vehicle and any teaching tools inside the car whether they're personally owned or were bought by your school – as long as they're in the car for school-related business.1 Learn more about Teachers Auto Insurance.