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Allstate Offers a 'Free Accident'
May 3, 2005
A Rewards Plan for Auto Insurance Allstate Hopes Discounts Will Attract New Customers As Premium Increases Slow By JENNIFER SARANOW Staff Reporter of THE WALL STREET JOURNAL Taking a cue from the credit-card industry, Allstate Corp. unveiled auto-insurance plans that give such perks as "free accidents" and discounts on deductibles or premiums to customers who pay 7% to 15% more in premiums or pay electronically. Allstate's rewards are divvied up much like the different levels of cards offered by American Express Co., and other credit-card issuers at one time, with gold, platinum and value plans. For customers willing to pay an additional 15% in premiums, the platinum protection plan, for instance, offers a 5% credit toward the next six-month policy for every six months of accident-free driving. Both the platinum and gold protection plans also allow customers a certain number of accidents before their premiums rise and include an immediate $100 reduction on a collision-coverage deductible. Previously, Allstate automatically gave accident waivers just to customers in some states who had been accident-free for five years, similar to what other insurers do. The new policies, marketed as "Your Choice Auto," are available in Oregon, Utah and Tennessee. This month, Allstate plans to start offering the policies in Texas and Arizona, and in 75% of the country by year's end. The company plans to roll out similar products for its homeowners business. Like most auto policies, the plans offer basic liability coverage and allow customers to buy additional coverage, such as collision, based on their needs, with safe-driving and other discounts sometimes automatically offered. And as with traditional policies, the coverage and the deductible amount, along with other variables such as car type, determine customers' premiums, and whether they qualify for special rates or discounts. But with Allstate's tiered plans, drivers can pay for discounts or rewards that they, not the insurer, picked out for themselves. Customers also can pick packages of protection beyond a standard package. Allstate's new take on auto insurance comes as attracting customers is becoming more difficult. Increases in auto-insurance premiums have slowed amid a host of factors during the past couple of years, including a declining number of accidents and a crackdown on insurance fraud. According to the Insurance Information Institute, auto-insurance premiums will increase 1.5% this year, down from 2.8% last year. As a result, customers are less likely to switch providers in search of lower premiums, forcing the companies to look for ways other than price to differentiate themselves. Allstate hopes to lure customers by encouraging them to consider more than just price and deductibles. The idea of the rewards plans is to give policyholders not just a choice of coverage options, but also a choice of discounts. The company expects the plans to boost its policy-renewal rate, which currently is about 90.7%. Consumer advocates, however, warn that along with increasing customer choice, Allstate may be increasing customer confusion. "The more confusing it gets, the more likely it is people will be thrown into plans that are more expensive without knowing they have other options," says J. Robert Hunter, director of insurance at the Consumer Federation of America. Each new protection plan comes with the coverage choices of Allstate's standard insurance policy, including liability. The company's average six-month auto premium is about $450. Customers of the gold plan, which is available for an extra 7% in premiums, or $31.50 on average, get one free accident over three years. (Allstate's accident surcharges to premiums typically last three years and are imposed when customers are at fault.) Platinum customers, who would pay an additional 15% or $67.50 on average, would receive perks such as unlimited accidents, among others. Both platinum and gold customers can pay an additional 2%, or $9 on average, for coverage that would replace a new car that was totaled. The value plan adds nothing to a premium but requires customers to have their premiums automatically deducted from a checking or savings account in order to get 5% off their premiums. There are caveats to the perks. Certain types of accidents, such as those that occur when the policyholder is drunk, wouldn't be waived. Tom Wischmeyer, who has had a couple of "fender benders" in the past 15 years, signed up for the gold protection plan earlier this year because he felt it was more comprehensive and cost-effective. "The way I look at it, if there's an accident, your rates don't go up and if there's not an accident, your costs come down," says the 60-year-old retiree in West Linn, Ore. Anita Sally, an Allstate agent in Bartlett, Tenn., says her sales of the Your Choice products are up 20% to 30% over sales of Allstate's standard product. She says those that buy into it tend to be younger drivers ages 18 to 20, single people and individuals who have caused accidents in the past five years. "Those particular individuals buy into it really quick," she says. When deciding whether to opt for the new policies, consumers might want to look at their likelihood of being in an accident. Drivers age 24 and under tend to be involved in the most accidents, according to the National Safety Council. Allstate says the average driver has an accident every 10 years. |
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#2
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OK I misread this. I thought they tell you
what corner to be at, and then they come along with an old pickup truck and hit you (FOR FREE). There is lots of money to be made in the fakeroo auto accident industry. (SO I AM TOLD!) Next we will try dental insurance fraud I suppose??? Joel "MrPepper11" > wrote in message oups.com... > May 3, 2005 > A Rewards Plan for Auto Insurance > Allstate Hopes Discounts Will Attract New Customers As Premium > Increases Slow > By JENNIFER SARANOW > Staff Reporter of THE WALL STREET JOURNAL > > Taking a cue from the credit-card industry, Allstate Corp. unveiled > auto-insurance plans that give such perks as "free accidents" and > discounts on deductibles or premiums to customers who pay 7% to 15% > more in premiums or pay electronically. > > Allstate's rewards are divvied up much like the different levels of > cards offered by American Express Co., and other credit-card issuers at > one time, with gold, platinum and value plans. For customers willing to > pay an additional 15% in premiums, the platinum protection plan, for > instance, offers a 5% credit toward the next six-month policy for every > six months of accident-free driving. > > Both the platinum and gold protection plans also allow customers a > certain number of accidents before their premiums rise and include an > immediate $100 reduction on a collision-coverage deductible. > > Previously, Allstate automatically gave accident waivers just to > customers in some states who had been accident-free for five years, > similar to what other insurers do. > > The new policies, marketed as "Your Choice Auto," are available in > Oregon, Utah and Tennessee. This month, Allstate plans to start > offering the policies in Texas and Arizona, and in 75% of the country > by year's end. The company plans to roll out similar products for its > homeowners business. > > Like most auto policies, the plans offer basic liability coverage and > allow customers to buy additional coverage, such as collision, based on > their needs, with safe-driving and other discounts sometimes > automatically offered. And as with traditional policies, the coverage > and the deductible amount, along with other variables such as car type, > determine customers' premiums, and whether they qualify for special > rates or discounts. > > But with Allstate's tiered plans, drivers can pay for discounts or > rewards that they, not the insurer, picked out for themselves. > Customers also can pick packages of protection beyond a standard > package. > > Allstate's new take on auto insurance comes as attracting customers is > becoming more difficult. Increases in auto-insurance premiums have > slowed amid a host of factors during the past couple of years, > including a declining number of accidents and a crackdown on insurance > fraud. According to the Insurance Information Institute, auto-insurance > premiums will increase 1.5% this year, down from 2.8% last year. As a > result, customers are less likely to switch providers in search of > lower premiums, forcing the companies to look for ways other than price > to differentiate themselves. > > Allstate hopes to lure customers by encouraging them to consider more > than just price and deductibles. The idea of the rewards plans is to > give policyholders not just a choice of coverage options, but also a > choice of discounts. The company expects the plans to boost its > policy-renewal rate, which currently is about 90.7%. > > Consumer advocates, however, warn that along with increasing customer > choice, Allstate may be increasing customer confusion. "The more > confusing it gets, the more likely it is people will be thrown into > plans that are more expensive without knowing they have other options," > says J. Robert Hunter, director of insurance at the Consumer Federation > of America. > > Each new protection plan comes with the coverage choices of Allstate's > standard insurance policy, including liability. The company's average > six-month auto premium is about $450. Customers of the gold plan, which > is available for an extra 7% in premiums, or $31.50 on average, get one > free accident over three years. (Allstate's accident surcharges to > premiums typically last three years and are imposed when customers are > at fault.) Platinum customers, who would pay an additional 15% or > $67.50 on average, would receive perks such as unlimited accidents, > among others. > > Both platinum and gold customers can pay an additional 2%, or $9 on > average, for coverage that would replace a new car that was totaled. > The value plan adds nothing to a premium but requires customers to have > their premiums automatically deducted from a checking or savings > account in order to get 5% off their premiums. > > There are caveats to the perks. Certain types of accidents, such as > those that occur when the policyholder is drunk, wouldn't be waived. > > Tom Wischmeyer, who has had a couple of "fender benders" in the past 15 > years, signed up for the gold protection plan earlier this year because > he felt it was more comprehensive and cost-effective. "The way I look > at it, if there's an accident, your rates don't go up and if there's > not an accident, your costs come down," says the 60-year-old retiree in > West Linn, Ore. > > Anita Sally, an Allstate agent in Bartlett, Tenn., says her sales of > the Your Choice products are up 20% to 30% over sales of Allstate's > standard product. She says those that buy into it tend to be younger > drivers ages 18 to 20, single people and individuals who have caused > accidents in the past five years. "Those particular individuals buy > into it really quick," she says. > > When deciding whether to opt for the new policies, consumers might want > to look at their likelihood of being in an accident. Drivers age 24 and > under tend to be involved in the most accidents, according to the > National Safety Council. Allstate says the average driver has an > accident every 10 years. > |
#3
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We had allstate and changed to Geiko recently. We have been impressed with
them compared to allstate. Especially in the way they handle claims and their road side assist service which is much much better. |
#4
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No need for "free accidents", just hand out more cell phones.
-- ~+--~+--~+--~+--~+-- Stephen Mancuso, D.D.S. Troy, Michigan, USA .................................................. ... This posting is intended for informational or conversational purposes only. Always seek the opinion of a licensed dental professional before acting on the advice or opinion expressed here. Only a dentist who has examined you in person can diagnose your problems and make decisions which will affect your health. ....................... "Joel M. Eichen" > wrote in message ... > OK I misread this. I thought they tell you > what corner to be at, and then they come > along with an old pickup truck and hit you > (FOR FREE). > > There is lots of money to be made in the > fakeroo auto accident industry. > > (SO I AM TOLD!) > > Next we will try dental insurance > fraud I suppose??? > > > Joel > > > > "MrPepper11" > wrote in message > oups.com... >> May 3, 2005 >> A Rewards Plan for Auto Insurance >> Allstate Hopes Discounts Will Attract New Customers As Premium >> Increases Slow >> By JENNIFER SARANOW >> Staff Reporter of THE WALL STREET JOURNAL >> >> [snip] |
#5
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ben wrote:
> We had allstate and changed to Geiko recently. We have been impressed > with them compared to allstate. Especially in the way they handle claims > and their road side assist service which is much much better. Geico trumps Allstate with better service? If I were Allstate that would worry me very much. I thought Geico was a cut-rate insurer with unfriendly policies. |
#6
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MrPepper11 wrote: > May 3, 2005 > A Rewards Plan for Auto Insurance > Allstate Hopes Discounts Will Attract New Customers As Premium > Increases Slow > By JENNIFER SARANOW > Staff Reporter of THE WALL STREET JOURNAL > > Taking a cue from the credit-card industry, Allstate Corp. unveiled > auto-insurance plans that give such perks as "free accidents" and > discounts on deductibles or premiums to customers who pay 7% to 15% > more in premiums or pay electronically. > > Allstate's rewards are divvied up much like the different levels of > cards offered by American Express Co., and other credit-card issuers at > one time, with gold, platinum and value plans. For customers willing to > pay an additional 15% in premiums, the platinum protection plan, for > instance, offers a 5% credit toward the next six-month policy for every > six months of accident-free driving. > > Both the platinum and gold protection plans also allow customers a > certain number of accidents before their premiums rise and include an > immediate $100 reduction on a collision-coverage deductible. Great. Insurance that caters to people who plan to wreck. nate |
#7
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ben wrote:
> We had allstate and changed to Geiko recently. We have been impressed > with them compared to allstate. Especially in the way they handle claims > and their road side assist service which is much much better. You seem to be one of the few people who use Geiko and impressed in the same sentence... |
#8
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George wrote:
> ben wrote: > >> We had allstate and changed to Geiko recently. We have been impressed >> with them compared to allstate. Especially in the way they handle >> claims and their road side assist service which is much much better. > > > You seem to be one of the few people who use Geiko and impressed in the > same sentence... With allstate, if we broke down we would have to have a tow truck number handy and handle everything ourselves and then send in receipts. With Geiko they have an 800 number and they handle everything and all you do is sign when the tow truck arrives. We had 1 potential claim with Geiko where I had backed out of our parking spot on our street (cars are parked vertically opposite each other) another car that was backing in and we hit. Geiko investigated everything very well. My wife was in a similar incident with allstate and they assumed it was her fault eventhough there was no indication has to whose fault it was (both cars backing out in that case). We have no reason to view Allstate as better than Geiko, though in time we might decide we don't like GEiko at this point we have only praise. |
#9
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On Tue, 3 May 2005 10:25:29 -0400, "Joel M. Eichen"
> wrote: >Next we will try dental insurance >fraud I suppose??? Let's start by having Aunt Judy kick every top-poster in the teeth. |
#10
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Who that Aunt Judy .....
I mean ....... "Scott en Aztlán" > wrote in message ... > On Tue, 3 May 2005 10:25:29 -0400, "Joel M. Eichen" > > wrote: > > >Next we will try dental insurance > >fraud I suppose??? > > Let's start by having Aunt Judy kick every top-poster in the teeth. > REPLY Who dat Aunt Judy? |
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