December 23, 2008
A trade group for Massachusetts insurance agents has asked the state's top regulator to force Progressive Insurance to take down its Web site, which agents say routinely gives inaccurate quotes -- particularly when comparing Progressive's prices to its competitors.
The complaint comes in a letter to Insurance Commissioner Nonnie Burnes from the Massachusetts Association of Insurance Commissioners. The letter follows an admission by Progressive that its Web site was mistakenly doubling the rates of several competitors -- Commerce Insurance and Liberty Mutual.
It's the second time in the seven months Progressive has been selling personal auto insurance online that the company has become a target of agents' ire. In August, the company admitted that its Web site was mistake-prone in some circumstances, and vowed to correct any problems.
"It is safe to say that an independent insurance agent found to be providing inaccurate quotes, particularly for competing companies, would face a regulatory hearing and fine by the Division of Insurance," wrote Frank Mancini, president of the Massachusetts Associaton of Insurance Agents. "We are not aware of any action taken by the DOI for the inaccurate quotes provided to Massachusetts consumers earlier this year by Progressive."
Mancini is requesting that Progressive be forced to take down its Web site until the accuracy of its quoting system can be verified. Mancini has also said the company should be fined for every inaccurate quote
It's not the only problem the agents' group has with Progressive. Agents say Progressive is selling six-months-only policies, which are supposedly against regulations in the Bay State, as well as altering deductibles and PIP coverage without informing purchasers of the ramifications of the changes.
In a statement, Progressive spokeswoman Cristy Cote said the mistakes were caused by human error in the design of the site. Cote also said that Progressive has sent apologies to the 21,000 consumers who saw incorrect quotes.
"To help remedy this situation, we notified both companies as well as the Massachusetts Division of Insurance and the Attorney General's office, and we removed the comparison rating service from our Web site," she said. "We will not re-install this service until we're completely confident that it is delivering fair and accurate pricing information to Massachusetts consumers."
Wednesday, December 31, 2008
Friday, December 5, 2008
Most Holiday Travelers Unaware Of Insurance Coverages
A majority of travelers don’t fully understand what insurance covers during their trips according to a national survey by an agents group.
The telephone poll was sponsored by Trusted Choice and the Independent Insurance Agents & Brokers of America based in Alexandria, Va.
Conducted by International Communications Research, an independent research firm based in Media, Pa., the survey contacted 1021 households during the month of November.
People were asked if they thought their personal auto insurance would cover a car rental for damages or other related expenses; if their insurance would cover them for loss of luggage containing gifts; or if health insurance covered them if they became ill or were injured while traveling.
Thirty to 75 percent of the respondents either did not think they were covered or did not know if they were.
“With so many people traveling for the holidays, it is imperative that they understand their insurance needs and rights before leaving home,” said IIABA President and Chief Executive Officer Robert A. Rusbuldt.
He said IIABA advises that travelers “consult with their Trusted Choice independent insurance agent to discuss their current policies and what do to in the event that they need to file a claim while on vacation.”
Madelyn Flannagan, IIABA vice president for education and research, said, “Many consumers do not know when they may already be covered or where they might have gaps while on vacation.”
The survey found that about 75 percent of homeowners did not think or did not know if they would be covered in the event the airline lost their luggage containing holiday gifts.
Actually, most homeowners or renters insurance policies do provide worldwide coverage for most belongings, IIABA said. Airlines have reimbursement policies for lost luggage. Lost gifts purchased with a credit card may also have some level of protection from the issuer. Before purchasing baggage insurance, consumers should check their current policies. It may be a waste of money, according to IIABA.
Nearly one third of consumers do not think or do not know if their current policies cover them in a rental vehicle. In fact, driving a rental car is considered to be the same as driving your own vehicle for liability purposes, IIABA advised.
The purchase of liability damage waiver and collision damage waivers are often not necessary, but IIABA said that consumers should consult their independent insurance agent to find out what’s best for their travel needs, especially when traveling outside of the United States.
The survey found that more than 35 percent of respondents did not think or did not know if they were covered in the event they became ill or injured no matter where they were located.
Most individual and employer-provided health and medical insurance policies cover you when you are injured or become sick no matter where your injury or illness occurs for short recreational trips, said the IIABA
The group said that in general, major medical health insurance plans sold in the U.S. will provide coverage for emergency medical services you require while traveling. Still, insurance companies cannot guarantee the quality of care that is available wherever you travel and some policies have territorial restrictions.
The telephone poll was sponsored by Trusted Choice and the Independent Insurance Agents & Brokers of America based in Alexandria, Va.
Conducted by International Communications Research, an independent research firm based in Media, Pa., the survey contacted 1021 households during the month of November.
People were asked if they thought their personal auto insurance would cover a car rental for damages or other related expenses; if their insurance would cover them for loss of luggage containing gifts; or if health insurance covered them if they became ill or were injured while traveling.
Thirty to 75 percent of the respondents either did not think they were covered or did not know if they were.
“With so many people traveling for the holidays, it is imperative that they understand their insurance needs and rights before leaving home,” said IIABA President and Chief Executive Officer Robert A. Rusbuldt.
He said IIABA advises that travelers “consult with their Trusted Choice independent insurance agent to discuss their current policies and what do to in the event that they need to file a claim while on vacation.”
Madelyn Flannagan, IIABA vice president for education and research, said, “Many consumers do not know when they may already be covered or where they might have gaps while on vacation.”
The survey found that about 75 percent of homeowners did not think or did not know if they would be covered in the event the airline lost their luggage containing holiday gifts.
Actually, most homeowners or renters insurance policies do provide worldwide coverage for most belongings, IIABA said. Airlines have reimbursement policies for lost luggage. Lost gifts purchased with a credit card may also have some level of protection from the issuer. Before purchasing baggage insurance, consumers should check their current policies. It may be a waste of money, according to IIABA.
Nearly one third of consumers do not think or do not know if their current policies cover them in a rental vehicle. In fact, driving a rental car is considered to be the same as driving your own vehicle for liability purposes, IIABA advised.
The purchase of liability damage waiver and collision damage waivers are often not necessary, but IIABA said that consumers should consult their independent insurance agent to find out what’s best for their travel needs, especially when traveling outside of the United States.
The survey found that more than 35 percent of respondents did not think or did not know if they were covered in the event they became ill or injured no matter where they were located.
Most individual and employer-provided health and medical insurance policies cover you when you are injured or become sick no matter where your injury or illness occurs for short recreational trips, said the IIABA
The group said that in general, major medical health insurance plans sold in the U.S. will provide coverage for emergency medical services you require while traveling. Still, insurance companies cannot guarantee the quality of care that is available wherever you travel and some policies have territorial restrictions.
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