Both Foremost and Bristol West were acquired by Farmers Insurance Group — Foremost in 2000 and Bristol West in 2007. As a part of the decision to place all independent agency business under the Foremost name, the Bristol West brand will be transitioned to Foremost in all states by year end.

“Moving to a single brand for independent insurance agencies and our customers will strengthen recognition in the industry,” says Bob Sadler, vice president of independent agency operations.

The Maryland Automobile Insurance Fund was created by the Maryland State Legislature in 1972 to provide auto liability coverage for residents of Maryland who cannot get is elsewhere it the private insurance market. MAIF is actually an independent agency of the state and reports straight to the Governor. It also has to answer to the Maryland State Legislature.

MAIF receives no state funding and gets its operating funds from insurance premiums that are written by the agency.

While some people cannot get insurance on the open market, experts say that for those who can it is important to ask questions and do detailed research. For instance, they recommend checking the company’s rating with J.D. Power. This company compiles data such as customer service, prices and claims process information to come up with a rating for each company.

It is also recommended that drivers check with their local body shop to ask for a recommendation to find a good auto insurance carrier as body shops regularly deal with the insurance adjusters. They know who pays on time and has a payment history.

Readers are torn on whether the city’s new fee for nonresidents who cause an accident is a good thing – some saying they welcome the cost recovery program while others say they plan to boycott the city.

“From their pedestrian stops to outrageous parking fees at the beach to now this,” supportsb1070 commented on ocregister.com. “If I want to go to the beach, guess I will have to choose one of the many others… just wait (until) the tourists start getting caught up in this, I’m sure it will hurt their tourism.”

But tmeatzie wrote: “This is a great idea, totally fair! (It makes) people accountable to pay for services rendered.”

City officials on Monday finalized an ordinance that will charge a fee to nonresidents who are at fault in an accident, which would be upwards of $3,000 in fees, depending on the accident.

The story generated more than 120 comments and the issue gained national interest and was reported in a variety of publications including the San Francisco Gate, USA Today and the Washington Examiner, among others.

Fees will vary based on services rendered, the most expensive being extraction for someone trapped in their vehicle, which will cost nearly $2,000. A car fire comes with a $750 bill and each fire truck that responds to the scene will cost $405 an hour.

The program is expected to generate $100,000 a year that would go toward equipment replacement costs or other Fire Department needs.

The city will bill the at-fault driver’s insurance company and those who are not insured will be billed directly.

Officials at the Insurance Information Network of California, a Los Angeles-based nonprofit that informs consumers on various insurance issues, say it is more likely the cost would come out of the driver’s pocket because many auto insurance policies would not cover the fee.

Fullerton, Garden Grove, Costa Mesa and Santa Ana have all implemented a similar program, officials say. Santa Ana charges a fee for those who don’t live in the city and residents.

Comments on ocregister.com weighed a little heavier on the opposing side for the Huntington Beach fees; however, quite a few readers wrote in defense of the new ordinance.

Those against the new rule say emergency services should be covered for all tax-paying citizens from any city and wondered whether or not this rule would lead to more cost recovery methods for the city.

Dlrpuppy wrote that he worries the fire department will start responding to accidents that may not need fire services to collect on the fees.

“This is preposterous. There are no checks and balances here. It is the role of the government to provide emergency services.”

Others said they expect the city will soon reconsider installing red light cameras, an enforcement option the city rejected in 2009.

“Cameras will be coming soon,” wrote mjcooper74. “Mark my words, it will happen.”

Some readers in support of the fee called for their cities to follow suit, saying Huntington Beach taxpayers shouldn’t have to foot the bill for an outsider having an accident.

“Who do you think should pay for your accident?” wrote hbforever. “Why is everyone so up in arms about this? You, not the taxpayers, should be responsible for your own actions.”

Oclegaleagle added the new ordinance makes sense.

“If you are at fault for a traffic collision that damages property…you are likely to be billed for the damages. You break it, you buy it,” he wrote. “This is nothing new. It is legally sound.”

Here’s what other readers had to say:

Pulchritudinous: “I really hope my city decides to do the same thing. I can’t explain how many accidents are caused by our neighboring city residents who don’t know how to drive.”

Mjcooper74: “Lemme see if I got this straight…last year HB decides against red light cameras, fearing the resulting tickets will drive tourists away yet now they are willing to nail the same nonresidents for accidents?”

Psmetaophage: “It makes sense to me. Perhaps people should study their auto insurance to be sure it covers these extra costs.”

Schmenkey: “Just one more reason to avoid Huntington Beach. Every broke city in California is looking for ways to dump their financial problems onto its residents. How about just write more tickets to the idiots who run red lights, speed and do…other violations?”

Drivers’ ability to obtain affordable car insurance is dependent on a number of factors; one factor with many implications is the type of automobile that is being insured. This piece of data can inform the coverage-provider of two important things: a general range of how expensive any future repairs might cost and a relative idea of what type of driver the consumer may be. “A make or model of car that has a high number of claims or higher claims cost will be charged a higher premium for comprehensive and collision coverage,” explains the Indiana Department of Insurance in its consumer handbook. The department goes on to state, “Persons sharing characteristics with high-claims groups will be charged more for insurance coverage.”

Unfortunately for some consumers, the claims data characterizing hybrids and their owners have changed for the worse when compared with the numbers from 2008. At that time, according to Mitchell International, the small group of consumers purchasing hybrids was marked by conservative driving practices, and insurers went after this relatively low-risk group with attractive discounts on premiums. But, as the buyer base changed, so did the typical risk profile for hybrid owners.

The article also emphasizes the existence of a gap in the price of repairs between hybrids and non-hybrids as a possible motive for insurers to edge up hybrid owners’ rates. The study showed that “hybrids overall have a 6.5 percent or $182 higher average claim severity” than their non-hybrid counterparts. Accounting for this disparity could be the fact that hybrid owners tend to take their automobiles back to the dealership for repairs, which means that more expensive original equipment manufacturer (OEM) parts are likely to be used over non-OEM parts, according to the article.

Customers are not as happy with auto insurance companies this year compared to 2009, based on an extensive survey performed by J.D. Power and associates. Satisfaction among customers was down 10 points in 2010, based on a possible score of one thousand.

The survey consists of 5 categories, claims, price, customer communications and policies. The area that dissatisfied customers the greatest was price as rates have increased at many major auto insurance companies recently because of slumping business. The amount of drivers who experienced a rise in rates this year has been 22% while the average rise last year was only 17%. Almost 90% of the drivers who received an increase in their insurance rates did not receive any notification from their auto insurance companies about the increase.

Insurance rates are expected to rise as more drivers recover from the recent economic slow down. Many consumers go without insurance or drastically reduced their coverage during times of economic uncertainty.

The survey also reported a significant increase in the number of drivers who use the websites of auto insurance companies to complete the bulk of their transactions.

The J.D. Power and associates survey consisted of polling twenty-five thousand participants that currently have an auto insurance policy.

Auto insurance rates can go up for customers who have higher incidences of accidents, and teens may be particularly susceptible to getting into crashes since they are new to the road.

While being a driving rookie may be enough to cause younger people to get into wrecks, they also provide their own problems through engaging in distracted driving. Along with having friends in the car, one of the main sources of stealing teens’ attention from the road is cell phones.

However, Seventeen Magazine, AAA and the U.S. Department of Transportation recently announced a new contest that could help inspire teens to keep their hands off their keypads and on the wheel.

Young people will have a chance to create their own video to help tell their peers about the dangers of distracted driving, while also having a shot at $2,000.

“This contest is an innovative and fun way to get teens involved in spreading the word about the importance of keeping their eyes on the road – and off their phones,” Transportation Secretary Ray LaHood said.

Along with that effort, the Insurance Information Institute provided its own tips to drivers, including pulling over when needing to use a phone.

One such option is a program made available by the California Department of Insurance (CDI), which could assist some drivers who lack the income to maintain traditional coverage. The California Low Cost Automobile Insurance (CLCA) program, which is now available throughout the state, helps secure California auto insurance for residents who have at least three years of being continuously licensed, live below specified income levels, use a car worth less than $20,000 and maintain a relatively good driving record. Interested drivers can answer a short set of questions on the CDI’s website to determine if they are eligible.

The plan, known as the Territorial Rating Equalization Exchange (TREE), was modeled after risk exchange systems in which insurers in low-risk areas would subsidize premiums in high-risk areas.

Insurance regulators first proposed the plan in the wake of the deregulation of the state’s auto insurance market, and its reliance on territorial ratings that in some cases had not been updated since the 1940s, when portions of the state were significantly less urbanized.

TREE aimed to alleviate concerns by some insurers that they would be at a disadvantage in writing policies in high-risk areas.

Now, regulators have essentially declared TREE to be a solution in search of a problem.

The program, once established, never became operational and the Department of Banking and Insurance says the problem it was designed to address — namely, cost and availability of coverage — never really materialized in the auto insurance market.

A 60-day comment period on the proposal to eliminate TREE ends in September.

After peaking in 2009, overall customer satisfaction with insurance companies has declined significantly in 2010, according to the J.D. Power and Associates 2010 U.S. National Auto Insurance Study(SM) released today. Overall customer satisfaction averages 777 on a 1,000-point scale, decreasing by 10 points from 2009(1).

The study measures customer satisfaction with auto insurance companies across five factors: interaction; policy offerings; billing and payment; price; and claims. The decline in overall customer satisfaction in 2010 is largely attributable to declining satisfaction with price, which has decreased by more than 30 index points compared with 2009. At the same time, price has also gained in relative importance as a driver of overall satisfaction.

The study finds the proportion of customers who report experiencing an increase in premiums has increased significantly to 22 percent in 2010, compared with 17 percent in 2009. In addition, six in ten policyholders who have experienced a premium increase indicate they received no advance notice of the change from their insurers.

“Now that the market has stabilized, consumers are feeling more in control of their finances and have become more aware of and sensitive to the rate increases that have started to occur since the recent recessionary period,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “As a result, customers are considerably less satisfied with their insurer and their rates, and have begun shopping for new insurers at unprecedented high levels not seen since prior to the recession.”

Amica Mutual ranks highest in customer satisfaction with auto insurance companies for an 11th consecutive year with a score of 849. Erie Insurance (815) and Auto-Owners Insurance (813) follow in the rankings. New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction, although they are not included in the rankings due to the closed natures of their respective memberships.(2)

The study also finds the following key trends among Generation Y (Gen Y) auto insurance customers (those born between 1977 and 1994):

•Gen Y customers tend to be more critical of their insurance providers, compared with consumers in other generational groups, particularly regarding the ease of contacting a representative and receiving clear explanations of their insurance policies.
•Baby Boomers (those born between 1946 and 1964) tend to place a great deal of importance on traditional communications from their insurer, such as a new customer welcome kits, newsletters and magazines. Meanwhile, Gen Y customers are more concerned with being able to access their policy information online.
•While website usage among Baby Boomers is increasing, 40 percent of Baby Boomers report using their insurer’s website to review or make changes to their policies, compared with 60 percent of Gen Y customers.

While use of insurer websites continues to increase, other interaction channels—such as mobile phones—are beginning to emerge, with both agent-based and direct insurers rapidly introducing smartphone applications into the market. According to the J.D. Power Insurance Intelligence Monitor, insurance customers—particularly Gen Y customers—are apt to use mobile phone apps that keep their needs in mind, such as the Nationwide “accident toolkit” or the USAA app that allows users to display their policy information during a traffic stop.

“This type of functionality goes beyond simple information delivery—it involves providing real tools and services customers need, use and appreciate,” said Bowler. “It’s likely that these value-added apps could contribute to brand loyalty—and even the creation of brand ambassadors.”

For an in-depth examination of Gen Y auto insurance customer service expectations and how individual insurers are competing for this growing segment of the market, read “Keeping Millennials for Life: Tailoring Service to Meet the Unique Needs of Generation Y Customers,” available by clicking here.

The 2010 U.S. National Auto Insurance Study is based on more than 25,000 responses from auto insurance policyholders. The study was fielded in February and March 2010.

Customer Satisfaction Index Ranking

J.D. Power.com Power Circle Ratings

(Based on a 1,000-point scale)

For Consumers

Amica Mutual
849
5

Erie Insurance
815
4

Auto-Owners Insurance
813
4

Shelter
807
4

State Farm
795
4

GEICO
793
4

Liberty Mutual
785
3

American Family
784
3

COUNTRY
782
3

Alfa Insurance
781
3

Ameriprise
779
3

Automobile Club of Southern California
777
3

Industry Average
777
3

Progressive
775
3

Kemper
771
3

State Auto
771
3

The Hartford
771
3

Grange
770
3

Allstate
768
3

Travelers
768
3

Automobile Club Group
766
3

Safeco
763
3

Esurance
759
3

Nationwide
759
3

California State Automobile Association
758
3

Farmers
757
3

GMAC
751
2

MetLife
749
2

Mercury
747
2

Encompass
745
2

The Hanover
744
2

21st Century
739
2

Commerce
726
2

*USAA
899
5

**NJM Insurance Co.
849
5

*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.

**New Jersey Manufacturers Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM’s previously insured drivers, and/or previous/current auto/homeowner policyholders and therefore is not included in the rankings.

Included in the study but not ranked due to small sample size or localized availability are: American National Property & Casualty (ANPAC); Arbella; CHUBB; Direct General; Farm Bureau Mutual Group, Horace Mann; Infinity P & C; Kentucky Farm Bureau; North Carolina Farm Bureau; Tennessee Farm Bureau; Safety Insurance; and Westfield.

Power Circle Ratings Legend:

5 – Among the best

4 – Better than most

3 – About average

2 – The rest

Texas law declares that an individual will not drive an automobile within this state until financial accountability is arranged for the automobile. Many people accomplish this by purchasing liability auto insurance. Legal requirements presently calls for minimum liability protection of $25,000 for each hurt individual, $50,000 for anyone hurt in the accident, and $25,000 for property damage. All of these limits are going to increase on January 1, 2011.

For those who have organized financial accountability with an auto insurance policy, your insurance firm will file this data to the state. No action is necessary from you except if you are contacted. Nevertheless, you might wish to confirm that the Vehicle Identification Number (VIN) showing on the vehicle is the same as that shown on both your auto insurance policy and vehicle title and registration. Speak to your insurance firm if you see any inaccuracy.

Brad Richards