The insurer's third-quarter profits this year were down 42 percent compared with last year's numbers
Online PR News – 14-October-2011 – – The recent announcement that Progressive’s September profits have posted a 6 percent year-to-year decline and that its third-quarter profits have shown a whopping 42 percent year-to-year decline is just one more example of how this year’s spate of natural disasters have hit property/casualty insurers hard, according to Online Auto Insurance (OAI).
This year has been extremely costly for coverage providers, with industry experts saying companies have paid out nearly $25 billion in damage claims filed by everyone from homeowners in the Midwest to New Jersey auto insurance policyholders.
While losing an insured home or vehicle to a catastrophic weather event can be traumatic, it beats suffering that loss and not being reimbursed for it.
OAI advises consumers who are ready to renew their auto coverage or are shopping around for the best deal to make sure they consider choosing a policy that protects them against damages inflicted by natural disasters, which federal officials say have caused more than $45 billion in economic costs so far this year.
Most homeowner policies insure against losses from a fire, and federal programs exist to financially protect homes against flooding damage. But only comprehensive auto coverage offers vehicle owners the same level of protection against nature’s wrath.
Comprehensive is not required by law in any state except as part of a loan agreement, and it will likely cost a little more than a bare-bones liability policy, but it is the only way to adequately insure a car or truck against weather-related damage.
In addition to fires and flooding, comprehensive also covers vehicle owners for damage as a result of earthquakes, hail and windstorms, as well as vandalism, riots and damage done by deer and other animals.
The comprehensive portion of your policy can also reimburse you if your windshield is cracked or shattered.
In addition to the claims payments for natural disasters, anemic investment performance helped push profits down.
To read more about this and other safety and car insurance issues, go to http://www.onlineautoinsurance.com/new-jersey/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.