“GEICO is pleased to release a new rating plan that will offer the opportunity for millions of Michigan drivers to compare and save on their auto insurance premiums,” said Mary Zarcone, regional vice president of GEICO’s Midwest operations. “As one of the largest and fastest growing auto insurance companies in the Unites States, GEICO stands ready to meet the insurance needs of the good people of Michigan.”

Zarcone continued, “In addition, we are introducing a number of new discounts with the plan that rewards good drivers. Simply go to www.geico.com to obtain a free rate quote.”

The changes will go into effect on July 3 for new policyholders and Oct. 1 for renewal policies.

Overall premium changes for individual motorists will vary based upon factors such as coverages purchased, geographic area, type of vehicle, risk characteristics, and other discounts for which they qualify.

GEICO (Government Employees Insurance Company) is the fourth-largest private passenger auto insurer in the United States. It provides auto insurance coverage for more than 8 million policyholders and insures more than 13 million vehicles. In addition to auto insurance, GEICO offers customers insurance products for their motorcycles, all-terrain vehicles (ATV’s), boats, homes, apartments and mobile homes. Personal umbrella protection and life insurance are also available. As a member of the Berkshire Hathaway group of companies, GEICO is rated A++ for financial stability by A.M. Best Company and ranks at the top of several national customer satisfaction surveys. For more information, go to http://www.geico.com.

Contact:

GEICO Communications
301-986-3271

Source: GEICO

Researchers with Allstate Insurance Co. analyzed two years of internal crash data to calculate the chance that drivers in 193 of the nation’s most populated cities would be involved in an accident.

Allstate, which claims a 12 percent market share of the nation’s auto insurance policies, found that Sioux Falls motorists average an accident once every 14.6 years — 31.6 percent better than the national rate of one every 10 years.

The city’s rate improved slightly from last year’s average of one accident every 13.7 years.

Officials in Sioux Falls again attributed the ranking to strong traffic engineering and driver education programs.

Following Sioux Falls were Fort Collins, Colo.; Chattanooga, Tenn.; Sterling Heights, Mich.; Warren, Mich.; Knoxville, Tenn.; Grand Rapids, Mich.; Cedar Rapids, Iowa; Lexington, Ky.; and Detroit.

Motorists in Washington, D.C., were most at risk, according to the study, averaging an accident once every 5.4 years.

Drivers in Detroit, ranked 11th in population, are likely to experience a crash once every 12.4 years, the best among cities with between 500,000 and 1 million people. Phoenix ranks the highest for safety among cities with more than 1 million people with a collision likely once every 9.8 years.

Massachusetts’ cities were not included as the company does not write policies in the state.

Allstate planned to give away free gas at a Sioux Falls filling station Tuesday to reward residents for their ranking.

Researchers studied about 2 million damage claims defined as any collision resulting in property damage filed between January 2005 and December 2006. A weighted average of the two-year numbers determined the annual percentages.

Allstate: http://www.allstate.com/

Apparently.

New legislation takes aim at an honor system, of sorts, that allows motorists to lowball their annual mileage and save on their car insurance premiums. Being honest, it turns out, can hurt — financially.

“I think it’s ingrained, given the structure of the current system, to lie,” said Michael Gunning of the Personal Insurance Federation of California, whose members write about half the state’s auto-insurance policies.

Assemblyman Jared Huffman, D-San Rafael, proposed the new measure, Assembly Bill 2800, to permit insurers to offer discounts to drivers who volunteer to have mileage verified.

Huffman said it makes no sense to reward dishonesty or lowballing, while offering no incentive to drive less.

“Ask yourself: What would most people do, given the opportunity to have a lower insurance rate by estimating lower miles than they actually drive?” Huffman said.

“I think most people probably do skimp a little bit,” said Derek Givens, 28, of Sacramento.

No current statistics exist, but a state study of 1998 mileage estimates found that 56 percent of motorists underestimated their travel — and nearly half of those lowballers erred by more than 6,000 miles.

The proposed new voluntary program, though seemingly narrow in scope, teams environmental groups with insurance companies as part of a much broader, long-range strategy to cut miles driven and lower greenhouse-gas emissions, a key state goal.

Ultimately, passage of the bill could set the stage for battles over whether the state should allow insurers to require high-tech devices for tracking mileage and whether to encourage pay-as-you-go policies that charge drivers for each mile traveled.

Huffman said his bill does not address such issues and that state Insurance Commissioner Steve Poizner has wide-ranging latitude to represent consumer interests. But vehicles are pivotal in the state’s fight against global warming, he said.

“We need to create incentives to drive less,” Huffman said.

Californians own 26 million cars and trucks driven more than 330 billion miles a year, according to the state Air Resources Board.

“The threat that California faces from climate change is real, and a big part of that is transportation, which is something we all have control over in our day-to-day lives,” said Lauren Navarro of the Environmental Defense Fund.

Opponents counter that the push for the bill exaggerates insurers’ woes and piggybacks onto environmental activism to achieve corporate gain.

“I think there’s always sort of a credibility gap between the industry’s claims and its actual performance,” said Richard Holober of the Consumer Federation of California.

California regulations specifically ban insurers from requiring use of technological devices to record mileage. But insurance firms have the right to require odometer readings when a policy is issued, and when it’s renewed every six months or year, said Darrel Ng of the Department of Insurance.

Gunning disagreed that the regulations give firms clear authority.

“In fact, several times we asked for mileage-verification tools, and the (insurance department) refused because it would be too ‘burdensome’ on the customer,” Gunning’s group said in a letter supporting the bill.

Besides confusion over legal limits, insurers say verification is not always practical because many policies are sold online, not every firm has ample staffing to handle a data crush, and stiff competition discourages imposition of cumbersome policies that might upset customers.

State Farm, AAA and Allstate insurance companies said they depend on policyholders, not odometers, when calculating mileage.

“We accept the customers’ estimate,” said Cynthia Harris of AAA. “So the bottom line is the customer has the final say.”

Huffman’s bill awaits action in the Senate after passing the Assembly, 72-2. Gov. Arnold Schwarzenegger has taken no position.

Opponents contend the legislation is a thinly veiled push toward allowing insurance companies to require use of satellite technology — known as GPS — that can track not only how far you drive, but where and how aggressively.

“That’s a huge invasion of privacy,” Holober said. “It’s nobody’s business.”

Huffman called such claims a “phantom issue.”

“The notion that this will require installation of ’spyware’ on your car is nonsensical,” he said, adding that the bill proposes a voluntary program in which the state, not insurers, would determine verification methods.

(E-mail Jim Sanders at jsanders(at)sacbee.com.)

Jun. 16–Three-wheel electric cars will soon be legal on Ohio roads, as Gov. Ted Strickland is expected to sign a bill recognizing them as motorcycles.

The cars currently don’t fit any of the state’s definitions of motor vehicles, said Julie Ehrhart, spokeswoman for the Ohio Bureau of Motor Vehicles. “They’re not qualified as a motorcycle because they don’t have a saddle, but they’re not qualified as motor vehicles either because they don’t meet federal safety guidelines.

“The lawmakers need to change the motorcycle outline from having a saddle to having a saddle or a seat.”

That’s what an amendment to the state construction budget bill did. The legislature passed the bill this week, and it will take effect 90 days after Strickland signs it, which he is expected to do next week.

“The governor has supported it and plans to sign it,” said spokesman Keith Dailey.

One version of the three-wheel vehicles is the NmG-1 (for “no more gas”), which carries one person and is sold by Myers Motors in Tallmadge, just east of Akron.

It comes in vibrant colors, including aqua and lilac. The vehicle goes up to 76 mph and gets 35 to 45 miles per charge; a completely depleted battery can be charged in six to eight hours, according to the company’s Web site.

Myers says its car costs 1 to 2 cents per mile to operate compared with 8 cents per mile for a gas hybrid that gets 50 miles to the gallon at $3.99 a gallon. It’s priced at about $35,000, says Myers’ Web site.

So far, one person, in Clinton County, has attempted to obtain title and registration for a three-wheel vehicle, and manufacturers who want to sell them have sent letters asking the bureau how they could be made street legal, Ehrhart said.

Under the proposed law, people driving the three-wheel vehicles would be expected to follow motorcycle laws, including wearing a helmet for the first year, even though they would be enclosed in the vehicle.

Drivers would have to take the motorcycle skills test instead of the motor vehicle maneuverability test and get a motorcycle endorsement on their license, Ehrhart said.

The motorcycle designation might be temporary, she said. “We’ve sat down and gathered everyone who is involved to patch it quickly by categorizing it as a motorcycle, and then maybe later (legislation) can draft it into a different categorization.”

It’s unclear whether the vehicles will be insured as a motorcycle or a car.

“It’s up to the insurance companies on what kind of policy they want to write,” said Jarrett Dunbar, spokesman for the Ohio Department of Insurance.

Mike Jucha, finance manager at Ohio Motorcycle in Hilliard, said the company is unfamiliar with the three-wheel vehicles but has been looking for alternatives for its customers.

“We have discussed selling some versions of electric scooters,” he said. “We have considered other options because of the economy.”

adolasinski@dispatch.com

It may sound like a fantasy - but as summer kicks off with all-time-high gas prices - the race to build 100 mile per gallon or energy equivalent (MPGe) vehicles is on! And the result will be money in drivers’ pockets, not gas pumps.

The goal of the Progressive Insurance Automotive X PRIZE is to inspire a new generation of viable, super-fuel-efficient vehicles that get 100 MPGe - four times more than the current average of 25 miles per gallon. Based on today’s average mileage, a 100 MPGe car would save drivers about $1,300 a year - or the equivalent of a monthly mortgage payment for many people.

So how would you spend the money? A recent survey by Progressive finds that the majority of respondents would pay off their credit card or other debt (35 percent). Thirty-one percent say they would save the money, and 11 percent say they would make home improvements or take a vacation.

One respondent was clear on how the money would not be spent, saying the savings would go towards “anything BUT gas.” And at least one respondent sounds ready for a new generation of super-fuel-efficient vehicles saying it would be spent on a “plug-in car.”

“It’s critical that we find a way to make the vehicles on our roads more fuel efficient,” said Brian Silva of Progressive. “That’s why we partnered with the X PRIZE Foundation to sponsor the Progressive Automotive X PRIZE. This competition isn’t about fantasies or science experiments. It’s about developing 100 MPGe vehicles that people want to buy and can afford.”

Until the era of the 100 MPGe car arrives, 60 percent of drivers surveyed plan to alter their summer driving habits. Sixty-five percent say they would take fewer trips, 36 percent say they would take shorter trips, and 21 percent say they would not take any trips at all this summer.

Of those drivers most likely to alter their summer driving habits due to rising gas prices, Midwesterners lead the pack (67 percent), followed by Southerners (60 percent). Drivers in the Northeast come in a close third (58 percent), with West Coast drivers (54 percent) least willing to alter driving habits.

About the Progressive Automotive X PRIZE Competition:

The goal of the Progressive Automotive X PRIZE, a product of the X PRIZE Foundation, is to inspire a new generation of viable, super-fuel-efficient vehicles that offer more consumer choices. Ten million dollars in prizes will be awarded to the teams that win a stage race for clean, production-capable vehicles that exceed 100 MPGe.

The Progressive Automotive X PRIZE will place a major focus on affordability, safety, and the environment. It is about developing real, production-capable cars that consumers want to buy, not science projects or concept cars. This progress is needed because today’s oil consumption is unsustainable and because automotive emissions significantly contribute to global warming and climate change.

For more information about the Progressive Automotive X PRIZE, please visit www.progressiveautoxprize.org or e-mail progressiveautopress@xprize.org.

About Progressive

The Progressive Group of Insurance Companies, in business since 1937, is one of the country’s largest auto insurance groups, the largest seller of motorcycle and personal watercraft policies, and a market leader in commercial auto insurance based on premiums written.

Progressive is committed to becoming consumers’ #1 choice for auto insurance by providing competitive rates and products that meet drivers’ needs throughout their lifetimes, superior online and in-person customer service, and best-in-class, 24-hour claims service, including its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States.

Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its products, including personal and commercial auto, motorcycle, boat and recreational vehicle insurance, through more than 30,000 independent insurance agencies throughout the U.S. and online and by phone directly from the Company. Private passenger auto products and prices are different when purchased directly from Progressive or through independent agencies. To find an agent or to get a quote, go to www.progressive.com.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at (NYSE: PGR).

Source: Progressive

The Board of Directors of The Progressive Corporation yesterday elected Roger N. Farah, 55, to fill a vacancy on the Company’s Board for a term ending on the date of the Annual Meeting of Shareholders in April 2009.

Mr. Farah is the President and Chief Operating Officer and a Director for Polo Ralph Lauren Corporation, positions he has held since April 2000. Prior to that, he served as Chairman of the Board of Venator Group, Inc., from December 1994 until April 2000, and as its Chief Executive Officer from December 1994 until August 1999. Mr. Farah was the President and Chief Operating Officer of R.H. Macy & Co. from July 1994 to October 1994. He also served as Chairman and Chief Executive Officer of Federated Merchandising Services, the central buying and product development arm of Federated Department Stores, Inc., from June 1991 to July 1994. From 1988 to 1991, Mr. Farah served as Chairman and Chief Executive Officer of Rich’s/Goldsmith’s Department Stores and as President of Rich’s/Goldsmith’s Department Stores from 1987 to 1988. From 1975 to 1987, he held a number of positions of increasing responsibility at Saks Fifth Avenue, Inc. Mr. Farah is currently a member of the Board of Directors of Aetna Inc.

About Progressive

The Progressive Group of Insurance Companies, in business since 1937, is one of the country’s largest auto insurance groups, the largest seller of motorcycle and personal watercraft policies and a market leader in commercial auto insurance based on premiums written.

Progressive is committed to becoming consumers’ #1 choice for auto insurance by providing competitive rates and products that meet drivers’ needs throughout their lifetimes, superior online and in-person customer service, and best-in-class, 24-hour claims service, including its concierge level of claims service available at service centers located in major metropolitan areas throughout the United States.

Progressive companies offer consumers choices in how to shop for, buy and manage their auto insurance policies. Progressive offers its products, including personal and commercial auto, motorcycle, boat and recreational vehicle insurance, through more than 30,000 independent insurance agencies throughout the U.S. and online and by phone directly from the Company. To find an agent or to get a quote, go to www.progressive.com.

The Common Shares of The Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at (NYSE: PGR).

Source: The Progressive Corporation

Government Employees Insurance Company’s (GEICO’s) national team of claims counselors across the country will now use Guidewire’s web-based claims solution to help provide a smoother and shorter loss reporting process for GEICO’s policyholders. The software is also designed to integrate service/repair scheduling into the loss reporting process, and increase claim handling efficiency.

In seeking out customer service applications, GEICO selected Guidewire for greater functionality and flexibility. In addition to loss reporting, assignment and scheduling functionality, Guidewire will assist GEICO and extend its ClaimCenter capabilities.

Guidewire ClaimCenter is an end-to-end claims system for property/casualty insurance companies. ClaimCenter’s flexible business rules enable claims organizations to optimize and monitor the claims process. Claims executives can define, enforce, and continually refine their preferred claim handling practices.

Source: Datamonitor

Infinity Property and Casualty Corporation is a national provider of personal automobile insurance with a concentration on nonstandard auto insurance. Its products are offered through a network of approximately 13,000 independent agencies. For more information about Infinity, please visit http://www.ipacc.com .

SOURCE Infinity Property & Casualty Corporation