Guaranty National Reduces Rates On Six-Month Automobile Coverages
16 June 1998
Guaranty National Reduces Rates On Six-Month Automobile CoveragesENGLEWOOD, Colo., June 15 -- Nonstandard automobile insurer Guaranty National has announced plans to lower rates an average of six percent on its two six-month automobile insurance products offered to Ohio drivers. Those drivers expected to benefit most include married males, most single females and single males between 19 and 29. The reduction, which takes effect June 15 on new business and August 15 on renewal business, includes a 2.2 percent decrease on the Company's Summit product, and an 8.6 percent decrease on its Mesa product. Additionally, eligibility requirements for Mesa have been reduced, making it easier for drivers requiring minimum coverage six-month policies to qualify. Also, the discount rate for drivers with multi-car coverage, prior insurance, and a responsible residency history, has been raised from 35 percent to 45 percent. In the property and casualty business since 1955, Guaranty National became a stand-alone personal auto insurer in 1997, through a merger with its parent company, specialty insurer Orion Capital Corporation. Subsequent acquisitions of nonstandard personal auto operations in North and South Carolina expanded Guaranty National's geographic presence to 35 states, and its distribution network to nearly 10,000 independent agents. Today, Guaranty National is the third largest nonstandard carrier in the country marketing through independent agents. Currently, the Company offers two competitively priced nonstandard products, which can he structured to meet specific customer requirements. Its Summit and Mesa products meet the needs of the driver seeking the lowest six-month rate. Legacy and Shield, which will be introduced in Ohio later this year, are tailored to the driver looking for a low down payment one-month coverage. A variety of discounts, including a l5 percent transfer discount, a 20 percent multi-car discount, and a l0 percent homeowner's discount, provide additional pricing flexibility. Guaranty National and its affiliates carry A.M. Best ratings of "A(Excellent)" or "A-(Excellent)." Other Orion Capital subsidiaries include DPIC Companies, EBI Companies, Orion Specialty, and Wm. H. McGee.