Arbella Customers to See Maximum 28% Cut in Auto Insurance Rates Under New Pricing Policy

Five-Point Arbella Customer Care Package Provides Greater Policy Enhancements at No Cost

QUINCY, Mass., Nov. 27 -- Arbella Insurance Group, the Commonwealth's third largest auto insurer, said today that some of its customers could see their premium costs plummet by up to 28 percent next year under a proposed rate filing made this week to the Massachusetts Division of Insurance.

The filing comes on the heels of the state's move toward "managed competition" which allows every insurer in the state to propose its own auto insurance rates. According to Arbella's filing, the average rate cut for the company's approximately 350,000 drivers will be about 7.7 percent. However, about a third of Arbella's drivers could see rate cuts of 20 percent or more and more than half could see cuts greater than 10 percent, according to the figures filed today with the state. An estimated eight percent of Arbella customers are eligible to receive a cut of 28 percent.

"In all, we think 75 percent of our drivers will see rate decreases in the first year of managed competition, and a third of them will see really significant decreases," said John Donohue, chairman and CEO of Arbella. "This is only the beginning as we make further discounts and enhancements available to our best customers. We have vowed to be among the most competitive domestic companies in the auto insurance market. And we will be."

In addition to the rate cuts, Arbella today introduced a five-point "Arbella Customer Care Package" that provides drivers with significant policy enhancements at no extra charge. Included in the customer package are increased coverage for major items such as new vehicle replacement costs, substitution transportation coverage, enhanced towing and labor coverages, replacement coverage on mechanical parts and a new benefit -- trip interruption coverage.

Furthermore, the company announced expanded discount credits for those customers who have both auto and homeowners policies with Arbella. They will receive a 20 percent discount off of homeowners and 5 percent off auto policies. The auto discount will include insurance policies for condominiums and rentals as well as for customers whose homes are insured by the Commonwealth's FAIR plan. This sizeable combined auto and home discount is believed to be new and unmatched in Massachusetts. Additionally, Arbella announced it will offer an enhanced multi-car credit to those with multiple vehicles and a loyalty credit for all customers that renew their policies with Arbella. A separate discount will be offered to auto insurance customers who complete a state-approved advanced driver training program.

"One of the greatest things about our new pricing structure is it gives us an ability to be innovative and reward careful drivers and those who are doing all they can to reduce accidents and liability," said Donohue. "Our existing discounts already reduce costs for anti-theft devices and passive restraints and so forth. Now, we're able to layer on new discounts, go even farther and cut costs more for drivers who are helping to keep our costs down."

The Arbella Customer Care Package

Arbella's new Customer Care Package will include five new enhanced coverages for customers, all at no additional cost to the customer:

  1. New Vehicle Replacement Cost Coverage -- 100 percent replacement cost
     of a new car should it be totaled.

  2. Enhanced Coverage for Towing and Labor -- Arbella will pay for a longer
     range of towing services for those customers who select towing
     coverage.

  3. Enhanced Rental Coverage -- Arbella will pay for longer periods of time
     and larger vehicles.

  4. Trip Interruption -- Arbella will provide this unique benefit.  Should
     a customer's trip be interrupted due to mechanical breakdown further
     than 100 miles from their home, Arbella will cover expenses incurred
     (such as hotel).

  5. Replacement Cost on Mechanical Parts (tires, batteries, etc.) --
     Arbella will pay 100 percent of the replacement cost of parts damaged
     in a motor vehicle accident.

  Arbella Insurance Group

Established in 1988, the Arbella Insurance Group (http://www.arbella.com/) is a $674M revenue company with over $1B in assets headquartered in Quincy, Massachusetts. Arbella is a customer-focused regional group of five property and casualty insurance carriers, which provides personal and business insurance in Massachusetts, business insurance in Rhode Island, and personal insurance in Connecticut.