Consumer Watchdog Criticizes California's ‘Unjustified’ Auto Insurance Rate Hikes

PublishedMarch 23, 2023

California Insurance Commissioner Ricardo Lara's recent approval of a $263.7 million rate hike by California's largest insurer, State Farm, marks the latest in a flurry of approvals of unjustified 2023 auto insurance rate hikes by the top six auto insurers, collectively totaling more than $1 billion, Consumer Watchdog said in a news release.

These companies insure approximately 48% of the state's insured vehicles. The group said hardest hit by the rate hikes are low-income workers who, under some auto insurers' job-based rating plans approved by Lara, will pay up to 25% more than

Indiana Farmers Insurance Now Using AI-Powered Estimating from CCC

PublishedMarch 23, 2023

CCC Intelligent Solutions Inc. announced March 22 that Indiana Farmers Insuranceis the latest auto insurer to leverage its industry-first AI-powered CCC® Estimate–STP solution. 

Estimate-STP uses advanced AI and insurer-driven rules to automatically initiate and populate detailed and actionable estimates in seconds. In market with 15 insurers, including seven of the top 10 carriers based on direct written premium, representing 50% of U.S. auto claims volume, CCC Estimate–STP offers line level estimates from photos without the need for human intervention.

"Indiana Farmers Insurance is

Allstate Keeps Auto Rate Hikes Coming

Written by Chad Hemenway, Insurance Journal
Published March 14, 2023

Allstate Corp.updated its initiative to accelerate auto insurance rate increases.

“Allstate continued to implement significant auto insurance rate actions in response to inflationary increases to loss costs,” said Jess Merten, CFO of Allstate Corp. “During the month of January, the Allstate brand implemented auto rate increases of 9.9% across 13 locations, resulting in total brand premium impact of 0.7% which are expected to raise annualized written premiums by approximately $182 million.”

Allstate implemented $1.48 billion and $1.14 billion of rate increases in the fourth

Nationwide Reports 2022 Record Sales, Growth Amid Challenging Conditions

PublishedMarch 2, 2023

Nationwide reported 2022 earnings results March 2, reflecting one of the strongest performances in the company's 96-year history.

These results were achieved while paying nearly $19 billion in claims and benefits to its members in a year marked by high inflation, rising interest rates, volatile equity markets and severe weather.

Another Year for the Record Books

Total sales for the Columbus, OH-based mutual insurance and financial services company were a record $57 billion, $4 billion over 2021---which was also a record year.

Nationwide's key measure of

With Car Insurance Costs Up 14%, Many Decide to 'Self-Insure'

Written by Gordon Severson, KARE 11 News
Published Feb. 28, 2023

Inflation has been one of the biggest buzzwords lately, so it should come as no surprise to anyone that auto insurance is becoming more expensive.

However, there are several additional reasons besides inflation that have caused auto insurance premiums to increase by nearly 14%, according to a new study from Bankrate.

The average American driver is now paying $2,014 a year on car insurance, up from $1,771 in 2022.

...

Auto Insurance Customers with Poor Credit Pay Up to 60% More

PublishedFeb. 27, 2023

AutoInsurance.org recently released its list of the 12 most significant factors that affect auto insurance. While most people aren't surprised to read a driver's history of accidents and traffic violations made the list, many did not expect to see credit score matters as much as it does.

According to the report, a low credit score could result in up to 60% higher car insurance rates. With that much at stake, insurance policyholders should look for ways to improve their credit.

Melanie Musson, nationally recognized car insurance expert with AutoInsurance.org, said, "It's unlikely an insurer will run a

Auto Insurers Taking AI Broader, Deeper Across Claims in 2022

PublishedFeb. 21, 2023

CCC Intelligent Solutions Inc. on Feb. 21 announced an update to its insurer AI adoption report, which for the third straight year shows significant growth in the adoption of AI in auto claims.

The company reported the application of advanced computer vision AI for claims processing increased 60% year-over-year. The company also reported more than 14 million unique claims have now been processed using a CCC AI solution, tripling since before the pandemic in 2019.

In addition to more claims using AI, the data show a deepening penetration of multiple different AI solutions being applied per claim. In fact, CCC reports

Insurers See California EV Sales Trends Driving Rate Filing Approval Urgency

Written by Don Jergler, Insurance Journal
Published Feb. 21, 2023

Vehicle pricing was a major concern during the inflationary environment that dominated headlines in 2022, however a new report shows sales of electric vehicles in California rose by more than 50% last year from 2021 with an estimated increase in market share of 17.1%.

That’s good for EV makers and dealers, and it looks good for the environment, but insurers doing business in California may be eyeing the bottom-line implications.

One major insurer in California reports EVs are more costly to repair, while the carrier’s share of customers with EVs has increased over

Collision Repairers Place 29 Carriers on Insurer Report Card Honor Roll

PublishedFeb. 21, 2023

Among more than 87 auto insurance companies graded by collision repairers in terms of how well they work to ensure quality repairs and customer service, 29 received a “B” or higher to earn a spot on the Honor Roll in the 2023 CRASH Network Insurer Report Card.

Ten companies, including four of the largest U.S. auto insurers, received a grade of “C-” or lower. In fact, none of the Top 10 largest, best-known auto insurers received an overall grade higher than a “C+,” with more than 50 insurers scoring higher.

Body shops were asked to evaluate how well each insurer’s “policies, attitude and payment practices

Louisiana Men Sentenced for Staging Accidents to Defraud Insurance, Trucking Companies

PublishedFeb. 20, 2023

John Diggs, 62, of Thibodaux, LA, and James Williams, 68, of Gibson, LA, were both sentenced Feb. 14 to 10 months in prison by U.S. District Court Judge Lance M. Africk after they pleaded guilty to conspiracy to commit mail fraud, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.

The announcement was made Feb. 16 by U.S. Attorney Duane A. Evans.

According to court records, Diggs and Williams conspired with passengers Lois Russell and Tanya Givens to stage an

N.C. Rate Bureau Requests 28.4% Rate Increase for Auto Insurance

PublishedFeb. 13, 2023

Insurance Commissioner Mike Causey on Feb. 2 announced the North Carolina Rate Bureau has submitted a rate filing with the N.C. Department of Insurance, requesting an increase for auto policies.

In the filing, the bureau has requested an overall average statewide increase in private passenger auto insurance rates of 28.4%, which would become effective Oct. 1.

The N.C. Rate Bureau represents the auto insurance companies in the state and is not a part of the N.C. Department of Insurance. By law, the bureau must submit auto rate filings with the department every year by Feb. 1.

Causey and department

Insurer Trade Groups Respond to Illinois’ Rate Regulation Bill

Written by Lyle Adriano, Insurance Business Magazine
Published Feb. 9, 2023

The American Property Casualty Insurance Association (APCIA), the Illinois Insurance Association (IIA) and National Association of Mutual Insurance Companies(NAMIC) have together issued a statement decrying a newly announced Illinois bill which would limit the number of non-driving factors auto insurance companies can use in setting the rates of consumers.

House Bill 2203, announced Feb. 8 and sponsored by state Sen. Javier Cervantes and state Rep. Will Guzzardi, would allow the Illinois Department of

Some Auto Insurers Refusing to Cover Certain Hyundai and Kia Models

Written by Peter Valdes-Dapena, CNN Business
Published Jan. 30, 2023

Progressiveand State Farm, two of America’s largest auto insurers, are refusing to write policies in certain cities for some older Hyundaiand Kiamodels that have been deemed too easy to steal, according to the companies.

Several reports say the companies have stopped offering insurance on these vehicles in cities that include Denver, CO, and St. Louis, MO. The insurance companies did not tell CNNwhich cities or states were involved.

The Highway Loss Data Institute released insurance claims data last September

Maryland Auto Celebrates 50 Years of Insuring Maryland Drivers 

PublishedJan. 26, 2023

In 2023, Maryland Auto Insurance marks 50 years of providing coverage to Maryland drivers unable to obtain auto insurance in the standard market. 

Since its inception in January 1973, Maryland Auto has been a mission-driven agency, dedicated to making auto insurance available to all Maryland residents and to reducing the number of uninsured drivers on Maryland roadways. The independent state agency currently insures approximately 25,000 Maryland drivers. Over its 50 years in operation, the agency has issued millions of policies to Maryland drivers. 

“When we provide insurance to drivers who currently

Major Car Insurance Companies Getting Out of California

Written by KCAL News Staff
Published Jan. 23, 2023

Major auto insurers are pulling back in the California marketplace, saying the state's drivers are just too expensive to insure.

Californians are driving about as much as they were before the pandemic, but apparently not as well.

Auto accidents are up and some insurance companies say they are paying out more than they are taking in. But, the insurance commissioner says the facts don't support their claims.

To read more, see KCAL

Auto Insurance Rates Will Rise Across the U.S. in 2023

PublishedJan. 13, 2023

Car insurance rates are expected to increase by 8.4% across the U.S. in 2023, amid the increase in drivers returning to the road. That's the biggest jump in car insurance costs in the past six years. The average cost of full coverage car insurance across the U.S. is $1,780 per year.

ValuePenguinused the Quadrant Information Services database to analyze millions of quotes for drivers across the U.S. It also analyzed car insurance rate changes filed by top companies across the country to show the current and historical landscape of the auto insurance industry.

Auto Insurance Cost by

Romans Group Releases 2021 Profile of Collision Repair Marketplace

PublishedJan. 9, 2023

The Romans Group announced its 16th annual white paper, A 2021 Profile of the Evolving U.S. and Canadian Collision Repair Marketplace, is now available.

The pinnacle year for the collision repair industry was 2019, with an all-time high total addressable market (TAM) of $38.3 billion. Repair facilities were flush with repairable vehicles and had the manpower and parts to service the demand.

The recovery years of 2021 and 2022 were and continue to be awkward and choppy, as the collision repair industry attempts to bounce back within the constructs of numerous macro industry challenges and opportunities, U.S.

Independent Adjusters Charge Florida Insurers with Doctoring Damage Estimates

Written by William Rabb, Insurance Journal
Published Dec. 29, 2022

Do some Florida property insurance companies hire independent adjusters to inspect property claims, then routinely alter their inspection reports to reduce estimated losses?

Yes, and it’s a widespread and fraudulent practice, according to three adjusters who spoke Dec. 13 at a Florida House of Representatives committee hearing.

“The insurance companies were directing file reviewers to change my estimates to repair the roofs rather than replace a totaled roof,” said Ben Mandell, a licensed all-lines adjuster. “However, the insurer was leaving my

Americans Will Pay 16% More for Car Insurance by the End of 2023

PublishedDec. 8, 2022

The average American driver will pay nearly $1,900 for car insurance in 2023, as insurance rates continue to rise across the country, according to the Insurify 2022 Auto Insurance Trends Report: 2022 in Review and What’s Ahead for 2023.

By the end of 2023, Americans will pay 16% more for car insurance than they did at the beginning of this year. Auto insurance rates increased by 9% throughout 2022 and will likely rise another 7% in 2023, with the average American spending $1,895 on auto insurance by

Auto and Home Insurance Claims Processes Suffer Digital Growing Pains

PublishedDec. 6, 2022

The ongoing digital transformation of the property and casualty (P&C) insurance industry has hit some speedbumps when it comes to customer satisfaction among those who use insurers’ digital channels to manage their claims. 

According to the J.D. Power 2022 U.S. Claims Digital Experience Study, released Dec. 6, overall satisfaction with the digital claims process declines for a second consecutive year as insurers struggle to manage longer cycle times via digital channels.

“P&C insurers are facing a host of challenges that include rising repair costs as well as supply chain disruptions and shop

Crash Victims Say They’re Waiting Long for Repairs, Insurance Won’t Extend Rental Car

Written by Jason Stoogenke, WSOC-TV
Published Nov. 29, 2022

Some crash victims are frustrated after waiting for repairs from auto body shops running behind schedule because of parts shortages. In some cases, insurance won’t pay or keep paying for their rental car.

Amanda DeBrun said she was eight months pregnant when a car crashed into her SUV that she and her other child were in. No one was seriously hurt, but her SUV had extensive damage.

She took it to 3Masters Auto Collision in Charlotte, NC. The owner, David Padilla, told Action 9's Jason

Tesla Adds Insurance to Minnesota, Raises Rates in Other States

Written by Joey Klender, Teslarati
Published Nov. 22, 2022

Tesla is introducing its in-house insurance program to drivers in Minnesota, the 12th state to qualify for the automaker’s coverage. Tesla also applied to raise rates in Oregon and Maryland by up to 30%.

Tesla added Minnesota to its list of qualifying states Nov. 17, joining Arizona, California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah and Virginia.

Before Minnesota, Utah and Maryland were the most recent additions to the program, in July.

Minnesota’s insurance laws allow Tesla to operate with real-time driving behaviors, which can improve

CerebrumX to Use Ford Connected Data in Usage-Based Insurance Offering

PublishedNov. 15, 2022

CerebrumX Lab Inc., an AI-driven automotive data services and management platform, announced Nov. 14 it will incorporate Fordconnected vehicle data to support its data-driven usage-based insurance (UBI) as-a-service model for insurers.

This model offers a quicker and more cost-effective implementation of UBI programs by using embedded telematics for eligible Ford and Lincolnconnected vehicles.

Usage-based insurance (UBI) programs using embedded connected vehicle systems, with the consent of the customer, provide more accurate and reliable driving data, empowering insurers to reward safe

Maryland Auto Insurance Participates in Disaster Recovery Emergency Management Program Facilitated by MEMA

PublishedNov. 4, 2022

As the insurance industry continues to recover from the impact of the pandemic and recent natural disasters, Maryland Autois taking proactive steps to ensure it is able to provide continual access to insurance for Maryland drivers and uninterrupted claims support in the event of an emergency.

The Maryland Department of Emergency Management (MEMA) facilitated a training exercise Nov. 1 at Maryland Auto’s headquarters in Baltimore. Leaders from Maryland Auto’s Claims, IT, Auditing and Communications departments collaborated to address mock scenarios such as storm damage and

Some Americans Consider Driving Less, Skipping Coverage in Face of Rising Insurance Costs

PublishedOct. 26, 2022

Insurifyreleased its 2022 Auto Insurance Trends Report: Who’s Paying More for Coverage, the first part of a two-part report that comprehensively covers 2022’s unique car insurance landscape.

Insurify’s report leverages more than 40 million car insurance rates from proprietary car insurance applications across the U.S. It details who is paying more for car insurance in 2022, surveys drivers on how they’re managing rising vehicle costs and provides drivers with expert advice on how

Toyota Auto Insurance Comes to Texas

PublishedOct. 20, 2022

Toyota Auto Insurance, the automaker's branded insurance product, is now available to customers residing in Texas. 

Introduced to select markets in 2021, Toyota Auto Insurance offers customers quality, customizable coverage at affordable rates. 

Expanding into the Lone Star State represents a major milestone for Toyota Auto Insurance. Not only is Texas the nation's second most populous state, it's also home to Toyota's North American headquarters and Toyota Motor Manufacturing, Texas (TMMTX). The San Antonio manufacturing facility produces the Toyota Tundra full-size pickup truck and Sequoia three-row SUV.

Toyota Auto

Collision Repairers Actually Lament Lack of Insurance Adjusters in Shops

Written by John Yoswick, Autobody News
Published June 08, 2022

Aaron Schulenburg of the Society of Collision Repair Specialists (SCRS) said he was surprised by one of the findings of the association’s surveyearlier this year asking shops about what changes could have a positive impact on their business.

“I never

CDI Takes Action Against Insurers for Various Acts: Capping Labor Rates, Lowballing, Trade Practices

Written by Ed Attanasio, Autobody News
Published Oct. 12, 2015

The California Department of Insurance (CDI) took action recently against Allstate Insurance, Sterling Casualty and Alliance United Insurancebased on allegations listed in three separate statements of charges/accusations concerning illegal labor rate practices that were allegedly unfair and/or deceptive and based on complaints from body shops throughout the state.

These actions are based

SCRS Meeting Discusses Insurance Regulation, State Farm

Written by John Yoswick, Autobody News
Published June 21, 2012

State Farm’s PartsTrader program, the use of shops’ estimating and other data, and how one state regulator oversees auto insurers, were among the topics at a recent board meeting of the Society of Collision Repair Specialists (SCRS).

A number of participants at the meeting held on April 24 in Oklahoma City, OK, wore large buttons opposing “data mining” by the “Big Three” information providers, indicating they wanted the ability to “opt out” of having their shop estimating data aggregated and used or sold. The buttons were

State Insurance Divisions Differ From One Another in Terms of Addressing Repairer Concerns

Written by John Yoswick, Autobody News
Published September 22, 2011

It’s a common complaint among collision repairers: It’s not worth contacting the state insurance commissioner’s office because they don’t do anything about our complaints.

Yet in recent months, some state insurance commissioners have taken actions cheered by some shops, from radically changing their department’s focus, to issuing bulletins reminding insurers of state laws on steering or other shop-related activities.

What has led to these changes, and does it mean now is a