California Insurance

Some people call Peter B. Lewis, President and Chief Executive of the Progressive Corporation of Cleveland, a loner and an eccentric. And Mr. Lewis, favors, black Stetson hat and has a passion for contemporary art, does not dispute the labels. Still, he believes a Democrat, “I was really an eccentric in the insurance business.”

Politics aside, Mr. Lewis, 58 years, has a record of research in food for animals at risk businesses - such as insurance motorcyclists - to do most competitors grimacer. And its innovative reputation is undoubtedly enhanced by his latest venture, a Shop to help Californians self-insurance. Thanks to many accounts, it is the first service of its kind in the nation.

The venture with the name of Express provision of care facilities and operations on Friday in San Diego, aims to help consumers receive a quick comparison of auto insurance rates. Customers call a toll-free number and interviewed approximately 10 minutes for more details, the effects on prices, as their age, collect and report Driving and model of their car. For $ 25, Progressive mail is a list of after auto insurance rates by the eight largest auto insurers in California, especially on customers, with some purchases for advice on the best coverage.

The company said the differences in rates can be dramatic. It suggests, for example, that for a couple with his 30’s conduct so-so, records of a Honda Accord and a Ford Explorer, six months Premium $ 580 to $ 1564.

Progressive chose California because auto insurance rates, there was a lightning rod for consumers’ ire for years. This has led to the anger of passage in the year 1988 by Proposition 103, standards of profitability and has called on insurers to reset insurance rates. Jurisdiction of conflict which has only a handful of companies, Progressive among them, the agreement to repay the money.

Progressive is not the service to communicate indirectly, its own phrases. Because of Proposition 103, there is no effort to increase his own car in public affairs. Instead, the company hopes that money from the Venture.

The new service is remarkable for its ability, its board, a function that writing volumes of purchases for auto insurance. The articles usually offer some examples of drivers and price, they are likely to pay, but the value of these samples is limited by millions of possible combinations of factors, the individual prices. Progressive provides “real-time measurement and comparisons of consumer prices,” said Ralph Nader, consumers are favourable. “It is the difference between a tricycle and a Boeing 747.

Industry observers say that if the rate Express is successful, it may ultimately help calm some longstanding differences of opinion on the degree of competition in self-insurance. At the same time, experts add that this is perhaps also some insurers strategies of pricing policy. “You can not be pure or perfect competition, unless you have a lot of information,” said Joseph Belth, professor of insurance at Indiana University. “As human beings are disabled receive information, the forces of competition can not work.”

It was precisely this point that has sparked a heated debate two years ago in Washington between Mr. Lewis and Citizen Action, a group defending the rights of consumers. With nearly 300 auto insurance companies by writing in each State, Mr. Lewis was abruptly industry competitive. But others have disputed the argument that insurers that the high prices, because many people do shop around.

Mr. Lewis said he regularly to these meetings to learn what angers consumers and opportunities where appropriate on the spot. “A light was in my head,” he recalled. “You can not buy because the pricing is complex.

Mr. Lewis said that the company has no plans now extending to other states, but if demand is strong, everything is possible.

Assekuranz friendly leaders applaud Express course, they take care of anything that will help consumers. “It seems really useful and I hope it works,” says Patricia Lombard, director of the Western Insurance Information Service.