WORCESTER, Mass., Nov. 19 /PRNewswire-FirstCall/ -- The Hanover Insurance
Group, Inc. (NYSE: THG), a leading writer of auto, home and business insurance
in Massachusetts, announced today that it has requested Division of Insurance
approval to offer an enhanced auto product that will deliver highly-
competitive prices and innovative coverage options not currently available in
the marketplace.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051031/NEM023LOGO )
In a rates and product filing submitted today, the company asked the
Division of Insurance for approval to:
-- Reduce the cost of auto insurance by as much as 30 percent or more for
its best customers
-- Cut rates by 20 percent or more for approximately 25 percent, or about
40,000 of its customers
-- Cut the state's six-year surcharge period - during which drivers pay
penalties for at-fault accidents and moving violations as currently
mandated by the state - in half, to only three years
-- Offer several new coverage options, as well as new or enhanced
discounts and account credits that enable drivers to reduce their costs
beyond simple rate reductions
At the same time, the company announced that it will expand its presence
in the state, adding more local independent insurance agents to its network.
"Contingent upon the division's approval, we will on April 1 offer
Massachusetts drivers the competitive rates and innovative products they have
earned," said Vincent Nieroda, president of The Hanover's Massachusetts
personal lines group. "At last, with these and other changes, drivers in the
Commonwealth will gain the benefits that a competitive market gives drivers in
every other state - better products, services and pricing. Even though
competition is just getting under way and Massachusetts drivers will realize
significant savings now, many more benefits will evolve over time, as new
companies enter the market, new products are introduced and companies fight
for market share."
"The rates and product innovations included in our filing reflect the
first of many changes we expect to make as managed competition evolves," he
said. "Now, instead of once a year, we can continually adjust our rates and
improve our product offerings, as we develop them, just as we do in other
markets. This will ensure that we are able to provide our customers with the
best value possible."
Nieroda said the company's plans to expand its already strong independent
agent distribution channel also will benefit consumers.
"Independent agents have always helped drivers make important insurance
decisions," he said. "Now that companies will offer differing products, it is
even more important to get the help of an independent agent to make the right
choices."
Enhanced Product
Pending approval by the Division of Insurance, The Hanover's new auto
product, Connections Auto, will provide broad liability, collision and medical
payments coverage, and will help drivers save money by taking advantage of a
range of account credits and discounts.
For example, The Hanover will offer deeper discounts for individuals who
insure more than one car, drive less than 7,500 miles a year, or successfully
complete a driver's education program. The company also will offer a new
discount for drivers who take an advanced driver training program, and will
offer an account credit for any driver who purchases insurance for his or her
cars as well as his or her apartment, condo or house.
Connections Auto also will offer two distinctive package options -
Connections DriveSmart and Connections DriveSmart Advantage-giving drivers
more choices without the hassle of having to add a'la carte coverages or
endorsements to their base policies.
Connections DriveSmart will offer drivers Second Chance Accident
Forgiveness, where under certain conditions The Hanover will waive the
surcharge for one at-fault accident under a driver's policy every 36 months;
Ultimate Towing and Labor, which pays increased limits for eligible towing and
labor cost and Ultimate Rental Reimbursement, which pays eligible car rental
costs for an extended time if an insured's vehicle is damaged in an accident.
Connections DriveSmart Advantage, which provides an additional level of
protection above the benefits of Connections DriveSmart, also includes New Car
Replacement Guard, which pays the value of a new vehicle if an insured's
vehicle is involved in an accident and declared a total loss within one year
of purchase or 15,000 miles, whichever is sooner, and Deductible Dividends,
which automatically reduces an insured's collision damage deductible by $100
and will reduce the deductible $100 further at each annual renewal, up to a
maximum of $500, for each year a policyholder goes without a chargeable
accident.
Other features of Connections Auto will include the ability to purchase
stand-alone endorsements such as Loan/Lease Gap Coverage, which covers the
difference between what a policyholder owes on his or her auto loan or lease
and what the vehicle is worth before it is totaled.
Availability
The Hanover, which currently insures more than 150,000 drivers in the
state, will make Connections Auto available for new and renewal business
effective April 1, contingent upon approval. Connections Auto, like all of The
Hanover's products, will be sold exclusively though the company's network of
independent agent partners.
As part of the company's commitment to customer service, The Hanover works
with the best independent agents in its markets, to ensure that its customers
receive the highest level of service. Drivers can locate an independent agent
by visiting www.hanover.com and clicking on "Find an Agent."
Winning independent agents interested in partnering with The Hanover
should contact Ed Ruhl at (508) 855-8181.
* This material is provided for informational purposes only. For detailed
coverage information, please refer to The Hanover's policy language.
About The Hanover
The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass.,
is the holding company for a group of insurers that includes The Hanover
Insurance Company, also based in Worcester; Citizens Insurance Company of
America, headquartered in Howell, Mich., and their affiliates. The Hanover
offers a wide range of property and casualty products and services to
individuals, families and businesses through an extensive network of
independent agents, and has been meeting its obligations to its agent partners
and their customers for more than 150 years. Taken as a group, The Hanover
ranks among the top 40 property and casualty insurers in the United States.
For more information, please visit www.hanover.com.
CONTACTS:
Media Relations Investor Relations
Amy Lynn BanekSujata Mutalikabanek@hanover.comsmutalik@hanover.com
(508) 855-4486 (508) 855-3457
SOURCE The Hanover Insurance Group, Inc.
Contact: Media Relations, Amy Lynn Banek, +1-508-855-4486, abanek@hanover.com, or Investor Relations, Sujata Mutalik, +1-508-855-3457, smutalik@hanover.com