PRODUCT: Auto Program
COMPANY: Safeco Insurance, a Liberty Mutual company
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through Safeco-appointed agents.
FOCUS: Safeco has redesigned its auto program to give agents the flexibility to tailor coverage to a customer’s needs. The new auto program offers four coverage levels for auto, classic car and RV policies that build on each other and offer combined features for the best endorsement value.
The first of the four revised coverage levels is a new base level, Safeco Essential™, which provides less coverage than the previous base contract. It doesn’t include accident forgiveness or an original parts replacement optional endorsement. Auto theft transportation expenses are $20 per day at a maximum of $600. Matching Safeco’s Safeco Essential™ contract, the second level of coverage, Safeco Enhanced™, provides features such as accident forgiveness earned after six years and higher limits for several coverages such as loss of earnings for trial, bail bonds and customized equipment.
Above Enhanced is Safeco Superior™, which includes Safeco’s Enhanced level coverages as well as quicker accident forgiveness earned after three years, a diminishing deductible and new vehicle replacement coverage. Safeco Ultra™ is available for customers seeking Safeco’s best protection. It includes all features included in the lower levels, as well as higher limits and removes punitive damages exclusion in most states. The Ultra product provides the broadest suite of coverages and features, including dog and cat coverage, an emergency assistance package, roadside assistance and loan/lease gap coverage.
“Safeco is 100% focused on the success of independent agents, and what we’ve heard from them so far is that this redesigned auto program provides them with more quality options to offer their customers,” says Steph Bednar, Safeco auto director. “Everyone likes that.”
In addition, Safeco has improved its Quote & Issue™ system to give agents the ability to quote all four coverage levels at once. Clients can purchase each coverage level separately or assemble combined features a la carte for complete customization—perfect for all customers whether they’re “purely price-motivated or looking for high-value policy coverage,” Bednar says. As a bonus, the Safeco Safety RewardsTM program rewards safe driving.
“Agency customer service representatives tested and helped us design the tools,” Bednar says. “Agents will have a better opportunity to offer their customers ease, choice and expert advice.”
UNDERWRITING: Safeco presents personal auto coverage with limits ranging from minimum state statutory numbers to $500,000 per person/$500,000 per accident and $100,000 for physical damage liability. The company can combine coverage with combined single limits of up to $500,000. Minimum deductibles are $100. Uninsured/underinsured motorist protection can equal bodily injury limits. Medical payments can reach $10,000, depending on location. Safeco offers various other discounts, including as much as 15% for packaging auto and homeowners and up to 5% for insureds who have experienced no moving violations or accidents for at least three years.
MINIMUM PREMIUM: None.
TARGET: Preferred customers who are looking for flexible coverage that provides value.
COVERAGE TERRITORY: AL, AR, AZ, CO, CT, FL, GA, ID, IL, IN, KY, MD, MI, MO, MN, MS, MT, NH, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, WA, WI and WV. The latest release for this new program was in July, with the next planned for September and additional states scheduled to join throughout 2015.
CONTACT: Steph Bednar, Safeco Auto Product Director; Safeco Insurance, a Liberty Mutual company, 175 Berkeley Street, Boston, MA 02116; 425-943-6037.
Ronimarie Acord is an IA contributor.
