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...
Families have to proceed cautiously with auto insurance matters affecting young adults, especially considering how expensive coverage can cost for these higher-risk drivers . One related question many policyholders have is: Should I take my insured child off my auto insurance policy when he or she is away at college? In the following paragraphs we will walk you through the consequences and...Read more
Accidents and the insurance claims that follow can have ramifications for drivers, especially if the collision was the fault of the policyholder. This begs the question: Will my auto insurer drop my policy following a car accident? The answer is yes, it’s possible, depending on several factors and circumstances - although it is more likely that your policy will be non-renewed. First, however, it...Read more
by Frankie Kuo and Andrew Pentis Without comprehensive federal reforms, states have been taking immigration legislation upon themselves, one issue at a time. This includes the licensing of drivers who cannot prove legal presence. In fact, 10 states have enacted laws in the last three years to offer driving-privilege cards and IDs to their so-called undocumented immigrants. Other states, meanwhile...Read more
Maryland is home to almost 6 million residents, of which over 4 million are licensed drivers. Drivers need to be aware that where they live and park their cars in Maryland can significantly impact their car insurance rates. We compared auto insurance costs using a representative pool of 12 sample drivers to see how much premiums could vary in the Old Line State based on location. We compared...Read more