Chubb Launches New Personal Auto Insurance Policy
28 September 1998
Chubb Launches New Personal Auto Insurance Policy
WARREN, N.J., Sept. 28 -- The Chubb Group of Insurance
Companies announced today that it is launching a new personal auto insurance
policy, Masterpiece(R) Auto Preference(SM). The new product is designed to
provide broad coverage, choices in the event of a claim and significant
financial protection.
The new policy was designed after two years of research and development,
including a survey of automobile owners. The survey found that financial
protection was the first concern of car owners; they want sufficient financial
protection from lawsuits, payment for medical bills, and higher insurance
limits to help pay for a loss caused by an uninsured or underinsured motorist.
In response, Masterpiece Auto Preference offers liability limits up to
$10,000,000 and up to $1,000,000 in uninsured or underinsured motorist
coverage, therefore providing some of the highest limits of these coverage
types in the industry. In addition, anyone purchasing $1,000,000 or more in
liability limits under the Masterpiece Auto Preference program will receive
worldwide liability coverage.
"Our market research showed unequivocally that consumers want choice, and
that's exactly what we are delivering with Auto Preference. They want
superior financial protection and control over their claim settlements," said
Paul Franklin, worldwide auto manager in the Personal Lines Division, "Chubb's
Auto Preference customers are able to buy high limits for equipment
manufacturer parts and even have the option to set the replacement value of
their car before the loss happens," he continued.
Conducted by Research 100, an independent marketing research firm based in
Princeton, NJ, the consumer survey found that 85% of respondents preferred to
select their own repair shops. Another key finding was that 82% have a clear
preference for original equipment manufacturer's parts instead of "after
market" parts made by a company that did not make the car. Most insurance
companies will not fully pay for repairs if the consumer chooses to take his
or her car to a dealer, who may charge more. Typically, many insurance
companies will pay only what the "average" repair shop charges. Additionally,
many other companies will not pay for more expensive original equipment parts.
Masterpiece Auto Preference has an optional provision called "agreed
value" that allows the customer to lock in the amount the car will be valued
at in the event of a total loss, eliminating the factor for depreciation used
by most insurance companies when settling a claim. For partial losses, such
as a tire damaged in a collision, no depreciation will be applied.
Masterpiece Auto Preference's "Lease Gap" option, insures the dollar
difference between the car's current value at the time of a total loss and its
lease buyout value. "Lease Gap" is broader than what is typically found in
car dealer gap insurance because "Lease Gap" also includes the costs of early
lease termination fees and unrefunded security deposits.
Other provisions in the new Masterpiece Auto Preference policy include up
to $1500 to replace car locks if keys are lost or stolen, no deductible for
repair of chipped windshields, full payment to replace airbags, even if
accidentally deployed; and reimbursement for meals, phone calls and an
overnight stay if a covered loss occurs more than 50 miles away from home.
Masterpiece Auto Preference is now available in Colorado, Connecticut,
Illinois, Indiana, Kansas, Missouri, New Mexico, New York, Pennsylvania, and
Utah. The policy will become available in many additional states in the next
few months.
Member insurers of the Chubb Group of Insurance Companies form a
multibillion dollar organization providing property and casualty insurance for
personal and commercial customers worldwide through 5,000 independent agents
and brokers, Chubb's global network includes branches and affiliates
throughout North America, Europe, Latin America, Asia, and Australia.