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.

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.
>

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.

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]

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.

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

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...

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.

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.

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?