Southeast Edition Florida Georgia Alabama Mississippi
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Allstate Will Buy Esurance and Answer Financial In a bid to capture more business from customers who shop online, Allstate Corp. has agreed to buy two popular online insurance sellers—Esurance and the associated site, Answer Financial. Allstate will pay a total price of about $1 billion– $700 million plus the tangible book value of the two firms acquired at close. Esurance is the third-largest provider of online auto insurance quotes through its website and a 24/7 call center. It sells in 30 states. Over the past five years, Esurance has more than doubled policies in force and grown premiums on average 20 percent per year, according to the company, which advertises heavily. It also
sells other personal lines coverages. Answer Financial provides auto insurance quote comparisons from 20 brand-name auto insurance companies to buyers in all 50 states. The carriers it represents include Esurance, Travelers, Progressive, Safeco, Met Life Auto & Home, Unitrin and The Hartford. In July, it reported having 324,000 policies in force. Alltstate is buying the firms from White Mountains Insurance Group, Ltd., a Bermuda-domiciled financial services holding company with interests in property/casualty insurance and reinsurance, including OneBeacon.
Tornadoes ripped across the southeast portion of the US brought destruction in April and May. States
and Arkansas, and now Missouri. Alabama was the hardest hit in April with over half of the fatalities. As of end of April 28 the confirmed death toll was at least 250, but that will rise as of the May 22 Joplin monster tornado. “It looked like it was probably a mile wide,” Birmingham, AL, Mayor William Bell said of the funnel cloud to CNN. Tuscaloosa, AL, mayor Walter Maddox predicted it would take months for the town to recover. President Barack Obama had already expressed condolences by phone to Alabama Gov. Robert Bent-
See Allstate, Page 13
Tornadoes Devastate South, Halting Local Automakers’ Plants, Inundating Insurers
See storm video at autobodynews.com
hardest hit were Alabama, Mississippi, Tennessee, Georgia, Virginia
See Tornadoes, Page 4
VOL. 2 ISSUE 4 JUNE 2011
Gunder Supporters Release Infinity Insurance’s Voice Recordings, Insurer Apologizes Barrett Smith, with Autodamage Experts, has released a voice recording of a call made by a representative of Infinity Insurance to one of Ray Gunder’s customers. Listen for yourself by downloading the WAV file at www.autobodynews.com. The recordings have been widely quoted in the appealed case which was recently resolved in favor of State Farm. Smith comments: “This type of underhanded practice goes on more often than most are aware or would like to believe and needs to be curtailed, and one sure way is for it to be exposed to the masses and for those who conduct themselves in this way to fear exposure. “For those of you who know Ray Gunder and the manner in which Gun-
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der’s Auto Center operates, listening to this recording will likely make your blood boil... it did mine. This “supposed” claim professional is trying their best to interfere with and undermine the relationship between Gunder’s and at least one of its customers. Who knows how many times this takes place? Continues Smith, “One has to ask themselves, what type of person has the lack of conscience and nerve to lie to a customer about a shop in which this claim-person has never dealt with or have first hand information to support what they say? “The simple fact is she doesn’t and it is apparent she is merely doing as told and reading from a prepared word track intended and designed to disparage Gunder’s good name and See Gunder Recordings, Page 6
Shop and Product SHOWCASE
REGIONAL ARTICLES in this issue...
Gunder’s Responds to Infinity Insurance Recordings . . . . . . . . .p. 1
Florida Bills Will Distribute Liability in Automaker Lawsuits . . . .p. 8 AL Auto-Scrapping Bill Curtails Scrap Industry . . . . . . . . . . . . . .p. 9
Hyundai to Expand AL Engine Plant . . . . . . . . . . . . . . . . . . . . . . .p. 18
COLUMNS in this issue...
Chess — Getting OSHA-Compliant Part 2 . . . . . . . . . . . . . . . . . . .p. 10
Espersen — The Value of Service Repair Information . . . . . . . . .p. 16
Yoswick — Industry Trends at WIN Conference . . . . . . . . . . . . . .p. 20
Insurance Insider — Allstate Deserves Credit for DRPs . . . . . . .p. 21
Schroeder — The Body Shop Garage Opens in Woodward, OK .p. 22
Danalevich — Total Loss Fees Are Profits to be Gained . . . . . . .p. 24
Amaradio — The Good Old Days . . . . . . . . . . . . . . . . . . . . . . . . . .p. 26
Evans — Repairing a Quarter Panel, Bumper, and Molding . . . .p. 28
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