For Berkshire Hathaway owned GEICO ( NYSE:BRKA ) and Allstate ( NYSE:ALL ), the first quarter of 2015 was a surprisingly poor quarter for their auto insurance businesses. Claims related losses reduced GEICO’s first quarter pre-tax operating income by more than half, falling from $353 million in first quarter 2014 to $160 million this year. Meanwhile Allstate’s underwriting income fell from $183...
For Berkshire Hathaway owned GEICO, the first quarter of 2015 was not pretty. In the company's latest 10-Q filed with the SEC, the insurer experienced a significant jump in its loss ratio (the percentage of premiums spent on loss expenses) for the quarter, going from 75.8% in 2014 to 80.1%. Despite overall growth in premiums written and earned, the spike in claims-related expenses significantly...
Usage-based auto insurance can cost less, but at a price to your privacy Looking for a surefire way to save money on your auto insurance premiums? If you’re willing to have your driving habits monitored and evaluated, you can reap significant savings a la usage-based insurance (UBI) , also known as pay-as-you-drive and pay-as-you-go insurance. How Usage-Based Auto Insurance Works UBI usually...Read more
In this article, we compare the major roadside assistance services available from auto insurance companies, clubs, manufacturers, and even your credit card. Each provider has a different menu of features, access to a network of body shops, and cost. Then, we'll review the strength and cost of each of the providers' roadside benefits. At a glance, here are how the programs from the major roadside...Read more
Where a driver lives and parks their vehicle is a major factor that affects the cost of car insurance - in South Dakota, costs can vary by up to 35% from the most expensive to the cheapest spot. We compared car insurance rates for two sample drivers in 32 cities across the Mount Rushmore State. Our analysis found the state average annual premium to be $921 for the two benchmark profiles, with the...Read more
Where a driver lives and parks their car in the Gem State can influence their auto insurance costs. We conducted a study of car insurance quotes in 40 cities in Idaho with two sample drivers to determine how much the variation was. It found that the overall average cost for a year's liabiliy protection for our benchmark drivers was $847 a year, but costs could range by 11% from the most expensive...Read more