Jul 27, 2009

Auto Insurance Companies and Repair Shops

The article “Shops debate the place of insurers in the repair process” by Brian Albright on SearchAutoParts.com talks about how car designs have become more complex and expensive which is causing more and more auto insurance companies to get involved in the auto repair process.

Issues sometimes arise between repairers and insurers as the insurance companies pressure shops to cut costs. The repair shops see this as meddling as they deal with their own financial pressures. Most repair shops prefer that the insurance company give a check and stay out of the repair process, but customers find a lot value in the insurance companies taking over. In addition, insurance companies want to keep the repair shop's prices down as much as possible to save themselves money.

Not all insurance companies are getting in the way of the repair shop's agenda. State Farm auto insurance is generally seen as cooperative according to the article. Recently, they have participated in programs striving for efficiencies in the repair business. While some repair shops see this as intrusive, others see it as a positive force. Gene Regan, general manager at Causeway Collision Center in Manahawkin, NJ believes it is a productive initiative for State Farm to get involved. He sees the program bringing the repair shops and insurance companies together to learn from each other and develop better business practices. This will ultimately benefit the mutual customers who both parties look to please.

Jul 16, 2009

Chart of the Day: Madoff's 150-year sentence in context

Ex-financier Bernie Madoff, convicted of operating a $65 billion Ponzi scheme, served his first day of a 150-year prison sentence Wednesday... [but it] is only the fourth-longest given to someone for committing a white-collar crime in recent years...

Seattle PI: Chart of the Day: Madoff's 150-year sentence in context

Jul 10, 2009

Massachusetts Auto Insurance Rates Are Down



According to the article “Car insurance rates fall 8%, state says” by Todd Wallack in the Boston Globe, Massachusetts auto insurance rates are down since Massachusetts stopped setting their own rates in 2008. This information is from a study completed by the Division of Insurance.

The state study shows that auto insurance rates are down 8.2% from April 2008 to April 2009. The rates fell 5.2% from 2006 to 2007. In April of 2008 Massachusetts began allowing auto insurers to set their own rates which was to create controlled competition. Before this change, rates in Massachusetts were highly regulated.


Jason Lefferts is a spokesperson for the insurance division, and he said the study also found that during the last year the number of uninsured cars in Massachusetts dropped and that less people were considered high-risk drivers. Since the change in regulation, nine companies have become part of the Massachusetts auto insurance market.