Chubb Slashes California Auto Insurance Rates

Insurer Meets Unmet Needs, Especially for Affluent Consumers, Through New Coverage Options

LOS ANGELES, Aug. 22 -- The Chubb Group of Insurance Companies is lowering its automobile insurance rates in California by an average of 34 percent. Furthermore, Chubb is rolling out new coverage options that address the unmet insurance needs of many Californians, including high limits of liability protection in a state where the number of uninsured and underinsured motorists is among the highest in the nation.

"Effective today, virtually every Chubb personal auto insurance policyholder in California will realize a rate reduction and will be offered a broader array of coverage options," said Kurt Morgan, California manager for Chubb Personal Insurance. "We anticipate that this action will prompt many more Californians to switch to Chubb's auto insurance, as they already have to our homeowners insurance. The assets and lifestyles of thousands of affluent Californians are at risk because they may be underinsured or underserved by their current auto insurer."

The rate reductions will vary based on factors such as driving record and driver characteristics, with some drivers enjoying a reduction of nearly 50 percent. Chubb also has taken other steps to help customers save money. It has doubled to 10 percent its good-driver credit. It has introduced a companion credit ranging from 10 percent to 20 percent off the auto insurance premium for customers who also have a Chubb homeowners policy.

Chubb offers policyholders the highest available liability limits in the insurance industry. Many customers select liability limits of $10 million or higher, and the typical customer will select uninsured/underinsured (UM/UIM) motorist limits up to $1 million. A corporate car personal extension can extend liability and UM/UIM coverage to company cars regularly used by the customer for personal purposes.

"These new liability coverage options are especially important for affluent drivers in a state where a recent study by the Insurance Research Council found that 25 percent of the drivers are uninsured," said Morgan. "What's even scarier is that uninsured motorists are far more likely to be involved in accidents involving injury." Mississippi is the only state with a higher number of uninsured motorists (26 percent), according to the study.

"Uninsured motorist coverage is one of the least understood features in an auto insurance policy. It helps protect you and your family against the other guy, who either doesn't have insurance or not enough of it," added Morgan.

Additional coverage options now available in California under Chubb's policy, Masterpiece(R) Auto Preference(R), provide customers with the opportunity to tailor their insurance to personal and family needs. A customer may have a policy quoted with or without agreed value coverage, which enables a policyholder to lock in a settlement value for a covered loss for a full year. If a car is stolen or totaled in a covered loss, the policyholder will receive that amount, without deductions for depreciation or a deductible. Other coverage options address medical payments up to $100,000, lease gap coverage, full replacement of window glass, towing expenses, and repair or replacement of spare parts for collector vehicles.

Several key coverages will be built into every Masterpiece Auto Preference policy in California, including up to $5,500 loss-of-use coverage. If an insured car is disabled because of a covered loss, the policy can cover the cost of renting a similar vehicle. If a covered loss occurs more than 50 miles away from the insured's nearest residence, the policy can cover meals, lodging and telephone expenses and even air transportation back home. Standard insurance policies do not pick up many of these expenses and limit rental coverage to $20 to $30 per day for 30 days, or a total of $600 to $900. Unlike many standard policies, the policy also affords policyholders:

   * the choice of repair shop and original equipment manufacturer's parts;
   * worldwide auto liability coverage, when carrying at least $1 million of
     auto liability coverage;
   * coverage for bodily injury and physical damage when renting a car
     anywhere in the world and the rental car company's loss of use of that
     car;
   * replacement of engines, tires, batteries and shocks made necessary by a
     covered loss without regard to wear and tear; and
   * replacement of damaged airbags and locks without the imposition of
     deductibles.

In the event of a loss, Chubb strives to contact policyholders within 24 hours of notification and issue payment within 48 hours after a settlement is reached. Although policyholders are free to select their own repair shop, the Masterpiece Auto Preference service can provide them with referrals to qualified facilities.

Chubb is a leading provider of property and casualty insurance for fine homes, luxury cars, valuable articles and yachts. Additional information on Chubb's personal insurance products and services can be found on the Internet at http://www.chubb.com/personal.

Member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers through 8,000 independent agents and brokers worldwide. Headquartered in Warren, NJ, Chubb's global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.