Wednesday, December 31, 2008

Auto insurance rates to dip slightly in Manitoba next year

WINNIPEG — Automobile insurance rates in Manitoba will dip slightly next year.

Manitoba Public Insurance has received approval from the Public Utilities Board to cut the average premium by one per cent.

The board has also ruled that there will be no premium rebate in 2009.

Rebates worth dozens of dollars to the average car owner have been issued in recent years, but the board says the depressed investment markets make such rebates unfeasible.

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Tuesday, December 30, 2008

When buying a car, it's best to look beyond initial cost

Have you been to a car dealer's showroom lately looking for a vehicle, or scanned the classifieds for a previously owned vehicle?

You might even be looking for a car being sold by the owner.

While cost has a great deal to do with your decision, so should safety ratings, miles per gallon in town and highway, the type of fuel the vehicle uses and how much the vehicle will affect your auto insurance payments.

In tight economic times, vehicle operating costs and safety factors should be as important as how clean the car looks or how fast it will go.

Here is a brief look at how you can help yourself make a better decision and how interconnected these items really are:

When you add a vehicle to your insurance policy, your new Vehicle Identification Number is one item you will provide to your insurer. While the VIN let's the insurer know about the year, make, model, it also allows the insurer to consider the safety rating of the vehicle, since protection against risk is what insurance is about.

The Insurance Institute for Highway Safety (www.iihs.org) crashes vehicles and rates them to evaluate the risk to both the passengers and the vehicle itself. That information is just one factor in developing the cost of auto insurance for the vehicle.

IIHS has just released the top safety pick awards for 2009 vehicles for all categories from large cars, minivans and SUVs to the minicar category.

The VIN also provides information you can use even before you purchase a used vehicle. In many metro areas, a company called Car Checkers will provide an inspection to let you know the general condition of the vehicle.

Similarly, an on-line service called Car Facts (www.carfacts.

com) uses information from insurance companies and other sources will give you a history of the VIN as to accidents in which it was involved and other useful data.

Another method for understanding the current value for used vehicles is to view the Web sites of the National Automobile Dealers Association (www.nada.com) and/or Edmunds (www.edmunds.com), which gives a good comparison to the NADA information.

Additionally, the classified section of the newspaper, in print or on-line, provides another way to check on the value of the type of vehicle you are considering for purchase.

There's one more area of concern you should consider. The National Insurance Crime Bureau (www.nicb.org) allows you to check the VIN of a vehicle to determine whether it has been declared an unrecovered stolen or a total-loss vehicle.

Flooded vehicles became an issue of concern after recent hurricanes and other severe weather. If a vehicle has been declared a total loss from a traffic crash, fire or flood, some of these vehicles can find their way back into circulation through less than honorable means. It's very important to find out if the vehicle you are considering has been rebuilt and retitled.

The NICB provides one more data report that can influence your purchasing decision. It's the Hot Wheels report that lists the most stolen vehicles on an annual state-by-state basis. If you purchase a new or used car, knowing how popular the vehicle is with car thieves can save both time and money.

Keep in mind that services such as Car Checkers and CarFacts charge a fee whereas the NADA, Edmunds, the IIHS and the NICB do not.

And don't forget another excellent source for background information -- your insurance agent. With the day-to-day experience agents have, they can provide insight into particular makes and models of vehicles from a claims perspective.

Take the time to do the research before purchasing a new or used vehicle. The importance of an informed decision cannot be overstated when it comes to the hundreds or thousands of dollars involved in such a transaction. Neither can the safety factor be overlooked, since the vehicle is supposed to not only provide transportation but passenger safety in case of a traffic accident.

To know as much as possible about maintenance and repair costs for a specific vehicle as well as the mileage you should expect is also important since the initial cost is only the start. Overall costs for fuel, regular maintenance, the cost of auto insurance, the annual cost of tags and taxes all add up.

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Monday, December 29, 2008

Painless ways to cut costs to pay for holiday spending

Worried about how you're going to pay for the holidays? Here's a plan: Find painless ways to save on things you pay for all year. There are plenty of opportunities, if you know where to look.

"If you treat a few big things as discretionary purchases and shop around, you can save hundreds of dollars," said Steve Krenzer, president of Experian's interactive media group, which operates LowerMyBills.com.

Here are five money-saving ideas. Few people will be able to take advantage of them all, but even one or two could help recoup the $431 Americans expect to spend for gifts on average this holiday season.

Refinance your home: Interest rates on home loans have remained naggingly high -- between 6% and 7% -- for most of the last two years. But in the last week rates dropped significantly, said Jeff Lazerson, president of MortgageGrader, a Web-based loan company. That spells opportunity for anyone who bought or refinanced a home in the last two years -- or anyone with an adjustable-rate mortgage.

Fixed-rate, 30-year mortgages with no upfront fees were going for 5.75% early this week, Lazerson said. For someone paying 6.25% now on a loan balance of $500,000, refinancing into this loan would save $161 a month, or about $1,930 a year.

Of course, if you have little or no equity in your property because of tumbling home prices, you won't qualify for a new mortgage. You'll also have to document your income.

It's worth noting that you can get an even lower rate -- 5.25% -- if you are willing to pay upfront fees, called points, and closing costs. But those fees can easily run thousands of dollars. And it would take 18 months of reduced payments just to recover that cost, Lazerson said.

Unless you're certain you won't refinance again or sell your home in that time, the no-cost loan is the better deal.

Appeal your property tax: Although the slide in housing prices might prevent you from refinancing, the downturn can be a benefit when it comes to your tax bill.

Property taxes are usually tied to a home's assessed value. If you bought your home when prices were in the stratosphere, then chances are your home's assessed value is significantly higher than its current market value. This would also be the case if your assessment was raised during the housing boom -- if you live in a state where assessment increases are allowed. (They're not in California.)

The difference can be huge: Real estate website Zillow.com, for example, estimates that one Southern California home that sold in late 2007 for $2.5 million is now worth $1.9 million. If this property owner can convince the county assessor's office that Zillow's new value is accurate, he can save more than $6,000 annually in property taxes.

Every county assessor's office offers a process to appeal property assessments that homeowners believe are too high. To find your assessor's office, go to the "links" page of the website of the Federation of Tax Administrators.

Shop for car insurance: Auto insurance rates can vary from insurer to insurer by hundreds of dollars a year. And shopping one year doesn't preclude finding an even better deal the next, Experian's Krenzer said.

State insurance regulators often help with the shopping by providing cost comparisons on their websites. California’s Insurance Department offers an easy-to-use online price comparison service for auto and other types of insurance. The examples are generic but can help you identify the lower-cost providers.

How much can you save? I shopped for myself, and as a result I'll be switching insurers, saving $823 a year. (I have been paying $2,477 a year for high-limit coverage on two cars, one driven by my teenage daughter.)

A caveat: Be sure to select "standard" coverage, not "basic -- liability only," in the first drop-down menu if your policy covers damage to your car in the event of an accident.

Review your cellphone plan: Most people secure their cellphone service and then forget about it unless they need more minutes or change plans, Krenzer said. But that's a mistake in today's market.

The reason: Cost per minute has been trending down. If you haven't checked rates in a few years, you may be paying too much, he said. Better yet, you don't necessarily need to switch carriers or plans to save money.

With a single phone call, Krenzer said, he was able to cut the cost of his own cellphone bill by $50 a month, without switching carriers, changing his phone number, losing minutes or giving up any bells and whistles. Your cellphone company won't give you its best rate unless you call and ask for it.

Krenzer saved even more money -- an additional $100 a month -- when he realized that he was paying for unlimited international dialing even though he now has a BlackBerry and is more likely to e-mail when overseas than call.

Bottom line: He cut his monthly bill in half, to $150 from $300. Annual savings: $1,800.

"A lot of us make these choices when we first get a phone and then we put the decision in a box and never reevaluate it," Krenzer said. "But the cost of these services has been coming down. If you do your comparison shopping and treat it like a discretionary purchase, you can save a lot of money."

Troll for waste: Even the most financially savvy among us have some niggling expense that could be cut without much pain. For Krenzer it was his second gym membership. He sheepishly noted that, in better times, he joined two -- one close to work and one close to home. Upon further review, he figured one membership was enough, saving him about $20 a month, or $240 a year.

If you think about it, you may have unnecessary regular expenses, such as unused Netflix memberships, premium cable channels that are rarely watched or subscriptions to magazines that go unread.

Maybe you pay bank fees for services you could get for free. You may even want to review your land-line telephone service if you already make most of your calls by cell. If you want to keep a land-line phone in case of emergency, make sure you're on a bare-bones plan.

The savings from any one of these cost-cutting measures may seem small, but they can quickly add up over time into a sum you'll be happy to spend on something else.

Kristof is a freelance writer.

kathy.kristof@latimes.com

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Sunday, December 28, 2008

Judge dismisses auto fraud indictments against Lawrence lawyer and Haverhill chiropractor

Judge drops case against lawyer, chiropractor By Mark E. Vogler and jim patten
mvogler@eagletribune.com and jpatten@eagletribune.com

SALEM - Lawyers for popular Lawrence attorney Socrates De La Cruz and Haverhill chiropractor Troy Wheelwright proclaimed they had been exonerated of auto insurance fraud allegations yesterday after a judge dismissed their April indictments.

Superior Court Judge Howard Whitehead threw out the indictments after finding that prosecutors had failed to show probable cause that a crime had been committed.

De La Cruz, 34, of Methuen and Wheelwright, 40, of Amesbury were among eight area people indicted by an Essex County Grand Jury that determined they were part of a conspiracy to stage phony accidents to defraud insurance companies.

The indictments stem from an investigation initiated more than two years ago by the state attorney general's office, working with detectives of Lawrence's auto insurance fraud task force and investigators of the Insurance Fraud Bureau of Massachusetts. That probe focused on four separate staged crashes that occurred between October 2002 and February 2003.

Harry Pierre, a spokesman for Attorney General Martha Coakley said the AG's office was "reviewing our options,'' in the wake of the dismissal.

"The court's decision reflects there was an absence of probable cause, and absence of evidence to charge Mr. De La Cruz with any of the indictments," said his defense attorney Hank Brennan.

"And in consequence, the court through its ruling dismissed all the indictments against Mr. De La Cruz," Brennan said.

Paul Cirel, lawyer for Wheelwright, also welcomed the decision. Wheelright is the owner of Haverhill Family Chiropractic at 606 Broadway, Haverhill.

"We told you he would be vindicated from day one," Cirel said.

Cirel noted that Whitehead had allowed the motions to dismiss because there was never any evidence his client and De La Cruz had committed a crime.

Similar motions filed on behalf of Michael Kaplan, 46, of Hampstead, N.H., operator of Kaplan Chiropractice, 200 Sutton St., North Andover, and Omar Castillo, 35, of Methuen, a runner and former van driver for Kaplan, were denied, Cirel said.

The dismissed indictments could raise defense attorney challenges for others being prosecuted by the attorney general's office. Among those indicted was Andover Attorney James C. Hyde, 56, of Boxford. He is a partner of the Andover law firm of Berger and Hyde.

This week's development represents the biggest setback in the area's five-year crackdown on auto insurance fraud which has led to 345 individuals charged so far.

"I haven't been officially notified, so I really don't have any knowledge," Lawrence Police Chief John Romero said last night.

It was Romero who assembled a fraud task force after the September 2003 death of a 65-year-old great grandmother from Lawrence who was killed in a staged crash that investigators said she helped plan to scam insurance companies.

Brennan, the defense attorney, said it was clear the judge's ruling showed the state attorney general failed to prove allegations against De La Cruz - allegations that the Essex County District Attorney had previously decided not to prosecute.

"Attorney De La Cruz would like to thank all the people throughout the community who have supported him, his friends, his family who believed in him and he would like to thank God for providing him with the guidance and faith that he has had throughout the entire course of this ordeal," Brennan said in an interview last night.

De La Cruz has been held up as a role model ever since he rose from a hard life on the streets of Lawrence to be honored as the 1991 National Youth of the Year by the Boys & Girls Clubs of America. He later worked as a prosecutor in the Essex County District Attorney's Office before going into private practice.

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Saturday, December 27, 2008

Battle for insurance market’s top spot

After the financial results for January-September 2008 were made public, the local insurance market leader is still uncertain, with Q3 of the year likely to cast light on the matter.
The 2009 RCA campaign (third-party liability auto insurance) could bring about a change in insurance market leader in the last quarter of this year, a position held since 2002 by the Allianz-Tiriac insurer. After announcing its results for January-September 2008, Allianz-Tiriac is once again at the top, with a volume of gross subscribed premiums of over 285 million euro.
The Vienna Insurance Group-owned Omniasig is second, with gross subscribed premiums in the first three quarters worth 252.4 million euro.
According to Business Standard daily, Omniasig announced a 48.74% rise in gross subscribed premiums [Ed. n. growth was calculated on the lei-denominated value] compared to year-on-year, which constitutes an advance of almost double compared to the general evolution of the insurance market estimated for the first three quarters.
The growth reported by Omniasig was sustained by a surprising evolution on the property insurance segment, which rose 98.51% compared to September 2007, according to company figures.
The property-type insurance (against flooding and natural calamities) brought 118.88 million lei. Moreover, the farm insurance segment went up to 430%, up to 6.38 million lei.
“The significant growth of the property segment over January-September 2008 is the result of Omniasig’s policy to diversify the portfolio with a view to diminishing the share of car insurance.
This policy will also be applied by the company in the future,” company representatives told Business Standard.
No-fault insurance also registered significant growth, of 82.87%, while RCA insurance rose 20.89%. The battle for third-party auto insurance takes place at the end of the year, and this insurance could change the positions held by Allianz-Tiriac and Omniasig. While the current market leader presently has a more reserved policy in terms of auto insurance, Omniasig has been aggressive in its strategy in the past few years for auto insurance, aiming to raise its market share.

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Friday, December 26, 2008

OnStar, GM offer car insurance discount

How would you like to cut your car insurance in half? OnStar and GM are teaming up to reward customers for driving less.

Anyone who owns an OnStar-equipped GM vehicle and drives fewer than 15,000 miles a year can save up to 54 percent on their auto insurance.

The program tracks the mileage and forwards it to the customer's insurance provider by e-mail.

Get more information on ways to save on auto insurance

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Thursday, December 25, 2008

Foreign drivers get Kansas car insurance

At least two insurance companies in Kansas are insuring motorists who hold foreign driver's licenses.

State law doesn't prohibit the companies from doing so, and supporters of the practice say it ensures that all drivers are protected in accidents.

But critics have raised concerns about road safety and national security.

Farmer's Insurance Group office manager Claudia Villatoro said she has been insuring motorists with foreign licenses, regardless of their legal status, for about a year.

"It's helping people," Villatoro said. "Every time they have an accident, they're covered."

State Farm also insures drivers who present valid foreign licenses, but gives policyholders 12 months to obtain a United States or Canadian driver's license, according to Tamara O'Connor, a public affairs supervisor for the company.

Those who do not show a valid U.S. license after that time risk not having their policies renewed, she said.

Under state law, all cars registered in Kansas must carry auto insurance. Drivers must show proof of insurance when filing for or renewing a vehicle's registration.

Critics, supporters

Members of the Minuteman Civil Defense Corps, which has chapters in Kansas, are among critics who said such insurance policies threaten national security.

Chris Simcox, the group's president, said he wonders how deeply insurance companies are probing motorists' backgrounds for criminal activity in other countries.

"How can they ensure the public safety?" he asked.

But Luis Figueroa, a legislative staff attorney for the Mexican American Legal Defense and Education Fund, said insurance companies who offer such policies are in the best position to analyze the risk.

"We think this is definitely a positive sign, although we do think the Legislature needs to encourage people getting state driver's licenses," he said.

Figueroa said the driver's license application process requires people to be regularly tested on their driving skills and road knowledge, which encourages safe driving.

Figueroa has assisted local immigrant advocate groups who have lobbied in Topeka and in Wichita on such matters.

State Rep. Brenda Landwehr, R-Wichita, introduced legislation last session that would have cracked down on illegal immigrants by revoking business licenses and imposing civil penalties on any Kansas business found to have employed an illegal immigrant, among other proposals. The legislation was defeated.

She questions whether insurance companies are considering legal versus illegal status when deciding to insure such motorists. She wonders what qualifications insurance companies use to accept or reject motorists using a foreign driver's license.

"If they're in the country legally, then temporary insurance is not a bad idea," she said. "Having anyone uninsured on the road is wrong."

State requirements

Neither the Kansas Insurance Department nor the Kansas Department of Revenue, which oversees vehicle tags and registration, has policies that would prevent motorists with foreign driver's licenses from obtaining insurance in Kansas, spokespeople for both organizations said.

Immigrant advocate groups have routinely lobbied for illegal immigrants to have access to U.S. driver's licenses or a form of a license so they could insure their vehicles.

But a 2007 state law says driver's license applicants must have a Social Security number that is verified by the federal government, or another verifiable government ID, such as a visa or birth certificate.

Companies who issue insurance using a foreign-driver's license offer a reasonable solution, said Villatoro, of Farmers Insurance, because it's making sure all drivers are safe.

"I think it's better for them to be insured" than not, said Villatoro, who advertises the service in area bilingual and Spanish-language media. "It affects other people."

State Farm, which also sells the policies, said in an e-mailed response, "Although we recognize the immigration and national security concerns surrounding this issue, we do not believe it is appropriate that we take positions on issues that are outside our areas of expertise."

Being responsible

It's unclear how many vehicles in Kansas that are insured with a foreign driver's license have been registered with the state Department of Revenue's Division of Vehicles.

The division processed about 2.56 million vehicle registrations in 2006, according to the department's most recent report. In 2005, it processed about 2.53 million vehicle registrations.

Critics have said that issuing driver's licenses to illegal immigrants appears to reward them for breaking the law.

Larry Magill, executive vice president for the Kansas Association of Insurance Agents, is concerned about whether insurance companies are being responsible by offering such policies.

"Looking the other way on the immigration law violation in order to prevent somebody from driving without insurance, that doesn't seem to be a responsible way to address the issue in my opinion," Magill said.

The association hasn't dealt with the matter, Magill said, because it hasn't been brought up.

Magill said he wonders whether motorists insured using a foreign driver's license are familiar with U.S. traffic laws, such as which side of the street to drive on.

Simcox, with the Minuteman group, said his organization could consider lobbying lawmakers to pressure insurance companies to stop issuing such policies.

"This is another opportunity to close one of those loopholes," Simcox said.

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Wednesday, December 24, 2008

Drivers without insurance will have their vehicles towed after Jan. 1

Dallas City Hall just sent out a press release to remind drivers that after Jan. 1, those who do not have insurance will have their vehicles towed when stopped for a traffic violation.

DALLAS - Drivers with no proof of insurance will have their vehicles towed under a new policy that goes into effect Jan. 1. On that date, the Dallas Police Department will enforce the Uninsured Motorist Ordinance approved by the Dallas City Council on May 28.

Under this ordinance drivers stopped for a traffic violation who cannot show proof of auto insurance meeting state requirements will be issued a citation and will have his or her vehicle towed at the owner's expense to the Dallas Auto Pound. The City already tows the vehicles of uninsured drivers involved in traffic accidents.

"The Dallas Police Department currently issues about 75,000 citations a year to motorists with no auto insurance," said Dallas Police Chief David Kunkle. "In addition, officers towed over 3000 vehicles from accident scenes in 2007 where the driver did not have insurance. Motorists are urged to obtain the proper state required auto insurance to avoid having their vehicles towed."

The new ordinance is in response to the large number of people driving in the City of Dallas without the proper state required auto insurance. These uninsured drivers place an unfair burden on those who comply with state law and maintain auto insurance. With the new ordinance, the city anticipates fewer of these citations as more drivers comply with the law to avoid having their vehicles towed.

More information on the Uninsured Motorist Ordinance is at www.dallascityhall.com. Persons with questions about the policy can call (214) 670-5111.]

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Tuesday, December 23, 2008

Auto Insurance Fraud on the Rise

Need more evidence of consumer distress? Auto insurance fraud is up, with consumers resorting to extreme means -- torching, drowning or dumping SUVs, pickups and cars -- in hopes of getting quick cash from insurance policies.

Once rare, suspect car demolition cases are commandeering investigators, dominating their working hours at state agencies and insurance companies. Nationwide, auto fire insurance claims have jumped by 6% in the past 12 months after years of little change. Indiana, Michigan and New York are hot spots, with burned car claims spiking 13% to 18%, says Dennis Shulkins with State Farm Insurance's special investigations unit.

The fraud spike is a bellwether of consumers' economic woes. "Increasingly, people are turning to insurance fraud as a quick bailout for their financial misery, to get out of auto leases they no longer can afford, and to pay off credit card or mortgage debt," says James Quiggle, a spokesman for the Coalition Against Auto Fraud, a trade group.

High anxiety is driving consumers to rash acts that raise immediate suspicion. Dozens of expensive vehicles were left at water’s edge in Gulfport, Miss., just hours before Hurricane Gustav hit. Scores of cars reported stolen are turning up ditched in Lake Erie and in western deserts. Crime rings are making hay, burning cars for hire in California and smashing cars to smithereens outside the Las Vegas city limits. A New Jersey school principal pleaded guilty to charges he torched a leased auto that had $9,000 in excess mileage fees.

States and insurance companies are wising up to paper-thin ploys. The surge in suspicious automobile destruction claims has prompted New York to put additional resources into this sort of crime. Through October, the state had won 110 court decisions requiring consumers to give up insurance money and ownership of vehicles determined to have been intentionally torched, stolen or sent to chop shops for disposal. That's up nearly 50% from a year earlier. A helicopter-borne Nevada police task force now prowls the skies to check out suspicious vehicles that are careered into the desert at night to be burned or smashed. Utah, which typically investigates an average of two questionable auto destruction claims a year, already had 30 cases pending by summer’s end.

Bogus car destruction and theft claims eventually sock it to all motorists. "Honest policyholders should be outraged at paying additional premiums as a result of people attempting to commit fraud," says Shulkins. There are no national statistics on the total value of auto insurance fraud. However, the average policyholder shells out up to $300 a year in higher premiums to help pay for all types of property and casualty fraud.

For weekly updates on topics to improve your business decisionmaking, click here.

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Monday, December 22, 2008

Video: You Can Save Money on Auto Insurance!!

Tips from the Insurance Information Institute on how to cut auto insurance costs by hundreds of dollars a year

NEW YORK, Dec. 3 /PRNewswire/ -- The Insurance Information Institute says there are five things consumers can do to cut auto insurance costs. But it is important to evaluate each one to be sure it will work for you.

To view the Multimedia News Release, go to: http://www.prnewswire.com/mnr/iii/36231/

Insurance Basics

Motorists are required to carry liability protection which will pay for damages you cause to another person or their property. But other coverages are optional, such as collision: which will repair or replace your car if you are in an accident; and comprehensive coverage, which will reimburse you if your car is stolen. Both collision and comprehensive coverage are sold with a deductible -- the amount of money you pay out-of-pocket, before your insurance kicks in.

5 Tips on How to Save

  1. Consider raising your deductible (going from $250 to $1000 could save you between 15 percent and 20 percent). Because you will need your own cash on hand if you have a car accident, this tip only works if you have enough money available to cover the deductible;
  2. If you have an older car, consider dropping optional coverages like collision and comprehensive. It's not cost effective to have too much coverage on an older car and that action could save you anywhere from 10 percent to 40 percent on your annual premium depending on the make and model of the car.
  3. Drivers with good driving records often get the best premiums, so be a safe driver.
  4. Your credit rating may affect what you pay for insurance so maintain good credit. Data shows that drivers with long, stable credit records have fewer accidents than drivers who have poor credit.
  5. Ask your insurance company about discounts. Many companies offer discounts for those who are safe drivers, good students, retired, in college, etc.

You can also save hundreds of dollars by shopping around. Compare prices but also look into the financial health of the company and find out if it is customer friendly.

About the Insurance Information Institute

I.I.I. is an educational, fact finding and communications organization funded by the property/casualty insurance industry to explain what insurance is and how it works. Each year, the I.I.I. works on more than 3,700 news stories, handles more than 6,000 requests for information and answers nearly 50,000 questions from consumers. www.iii.org


SOURCE Insurance Information Institute

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Sunday, December 21, 2008

Auto agents accuse Mass. insurance commissioner Nonnie Burnes of giving preference to new companies

A state insurance agents association, which is already involved in a lawsuit against insurance commissioner Nonnie S. Burnes, is alleging Burnes is again giving preferential treatment to companies new to the state's auto insurance market.

The Massachusetts Association of Insurance Agents contends that companies who this year became part of the state's new insurance system, most notably Progressive Direct Insurance Co., must assume some of the pooled losses caused by high-risk drivers that is shared by established companies. In recent years, the losses have totaled about $100 million.

Insurance companies divide that loss based on their market share in Massachusetts.
Nonnie S. Burnes

"It's not chump change," said Francis A. Mancini, president and chief executive officer of the association. "We're not talking about a couple of dollars. We're talking about millions and millions of dollars."

Burnes, however, has taken a position contrary to a state rule, according to the Commonwealth Automobile Reinsurers, which provides access to insurance to high-risk drivers, including young and poor drivers.

"It's outrageous," Mancini said. "That's what it is."

On Wednesday, Daniel R. Judson, a Boston lawyer representing the reinsurers governing committee, wrote to Burnes that despite the state rule he understood the Division of Insurance to take the position that new companies are exposed only to an assessment for the reinsurers' administrative costs and not an assessment for any pool losses or profits. Judson further wrote that the governing committee failed "to see where ... the language exists which exempts (any new company) from its share of the profits and losses."

In a letter to association members, Mancini wrote that if Burnes intends to spare new companies from sharing in pool losses, she should state that in an emergency rule to the reinsurers and then "allow for a public hearing and have the DOI explain why such a rule is a fair and equitable way to share the deficit."

B. Catherine Wilton-Bransch, Massachusetts product manager for Progressive, said the company is "a little surprised that this is all blowing up now."

Wilton-Bransch said Progressive believes it should not be part of the pool, that it has taken drivers who would typically be assigned to the pool and written their policies and assumed the risk.

"Fundamentally, we look at it and we say, 'We are not putting anything into the pool,'" Wilton-Bransch said.

Robert R. Wilcox, president of Wilcox Insurance Agency in Westfield, said every company writing policies in the state should help cover pool losses.

"She's got different rules for different carriers," Wilcox said of Burnes.

Earlier this year the association and Arbella Insurance sued Burnes in Suffolk Superior Court, contending companies new to the state have received an unfair competitive advantage as a result of receiving a two-year moratorium on having to write any policies on bad drivers.

"There really isn't any need for an incentive to come to Massachusetts," said Mancini, noting that private passenger auto insurance is a $4 billion industry in the state.

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Saturday, December 20, 2008

Is it wrong to increase insurance based on age?

Sandy K. of Freeport, who turned 75 in February, celebrated that milestone with her children and grandchildren. She and they were "quite glad" she had attained that age, she wrote. But she added, "Too bad the insurance companies do not feel the same way."

Here's why. In August, Sandy, a retired computer troubleshooter, received a bill for the renewal of her optional umbrella liability insurance policy from Allstate and was shocked. Her insurance premium - for the same coverage as the previous year - had increased by 55 percent, from $280.17 to $433.72. And when she called Allstate to find out why, she said she was "told it was increased simply because of my age."

Sandy K. said, "This increase was based not on poor driving accidents or anything negative other than I have the good fortune to age." And in a letter to New York Attorney General Andrew Cuomo, she asked if the higher premiums constituted age discrimination.

Beth Frank, of Cuomo's office, replied that while Sandy may consider the increase improper, no antidiscrimination laws were broken.

Allstate case worker Betty Bentivegna in Northbrook, Ill., confirmed in a letter to Sandy that her age was the reason for the premium increase. The policy premium was based on the same information as last year, Bentivegna wrote, "with the exception of a 75-or-over driver." She added, "Allstate files its rules and rates within each state, and these filings have been approved."

Curiously, Sandy's auto insurance premium did not increase - indeed it was reduced, because her driving record was clean, said a spokeswoman in Allstate's Long Island office. Only the optional umbrella liability policy premium was raised. Why? Because she drives and she turned 75, the spokeswoman told me. I asked what an umbrella policy has to do with a driver's age.

Auto and umbrella policies "are separate policies with different rating classifications," she explained.

I asked the state Insurance Department, the agency that approves increases, if Sandy K. is a victim of age discrimination. Spokesman Andrew Mais wrote that New York law "prohibits age discrimination in underwriting practices," which refers to "accepting, rejecting or terminating policyholders based upon the advanced age of the insured." But, he added, insurance companies may use age as a reason to raise rates, and that would affect both older and younger individuals.

What if raising the price is a way of forcing a person of age out of a policy? "We follow the law," Mais insisted. Sandy K. told me, "Just because he thinks it's legal doesn't make the situation right."

George Nager, 85, and his wife Pauline, of Levittown, did more than complain when they were outraged that their Long Term Care Insurance carrier had raised their premiums by 12 percent. The Nagers are lawyers and, with other policyholders, they filed a freedom of information suit last month in State Supreme Court in Mineola to force the state Insurance Department to open its files and explain why it granted the increase. The state had declined their repeated requests, claiming that much of the information is proprietary.

The Nagers purchased their long-term care insurance policies in 1998 from GE Capital, whose policies were taken over in 2006 by Genworth Life Insurance Co. of New York, based in Lynchburg, Va. In June, Genworth notified Nager and his wife that the premiums for their policies, which were several thousand dollars a year, would increase by 12 percent. The state Insurance Department had granted the increase in May, its records show, without notifying or hearing from policyholders on the merits of Genworth's request.

In a letter to state Insurance Superintendent Eric Dinallo, Nager said such an increase would be a hardship on older people who were counting on long-term care insurance policies to protect them if they needed nursing care. Pauline Nager pointed out that many such policies were sold under the state's Partnership for Long-Term Care insurance, which is designed to provide affordable insurance and keep the elderly from using Medicaid as a first resort. The premium increase undermines the program, she said.

George Nager acknowledged that when he bought the policy, he was told that premiums could be increased. But he was assured by the sales representative that GE had not raised its premiums since 1974, that his policy contained a guarantee against cancellation as long as he paid the premiums and that they could not be raised for an individual, but for a "class." There was the rub that many policyholders may not understand.

If you are part of a group of policyholders from New York, for example, that bought their policies in June 1998, at a certain premium, you could be considered part of a "class" and the premiums of people in that "class" may be increased. It's not surprising that Nager was unclear about this possibility. Even Jesse Slome, director of the American Association for Long Term Care Insurance, was unfamiliar with the definition of class until he consulted with insurers at my request.

"Some companies define class in their policies," he said. "A class could be viewed as anything by which premiums vary ... age, state, sex, benefit options." Nager and others who have joined in the suit insisted in their complaint to Dinallo that their class had not changed and that their policies were "guaranteed renewable." But Earl S. Klayman, supervising actuary of the state Insurance Department's Health Bureau, explained that "guaranteed renewable" simply means the policy cannot be canceled as long as the premiums are paid. "However," he added, "the insurer has the right to raise the premiums as long as this is done on an entire class of policies and not because an individual has a claim."

The Nagers' suit seeks the details behind the decision to grant the increase, especially the financial information to justify the company's request for the raise. Klayman said such raises are designed to make sure insurers have sufficient reserves to pay claims. And he said his department has denied most of the raises requested by insurers. But the department's Web site shows only the 29 increases that have been approved in the past four years, ranging from 8 to 20 percent.

Mais, the state Insurance Department spokesman, declined to comment on the suit, which is to be heard next month. Stay tuned. And let me hear about your insurance frustrations.

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Friday, December 19, 2008

Auto insurers begin to add pet policies

Good news, Fido. Tough break, turkey: Some auto insurance companies have quietly begun offering free coverage to four-legged friends, paying medical bills for pets injured in car crashes.

But just as dogs and cats rule the roost at home, they also top the insurance pecking order. The handful of insurers that offer the coverage with comprehensive collision policies are drawing the line at cows, pigs, sheep, goats, chickens, turkeys and other animals kept for profit or food -- although Farmers Insurance Group will cover ferrets, rodents and reptiles.

The coverage reflects what pet owners have known for years and some corporations are just now realizing: The bonds run deep with fluffy friends. Even if they do soil the carpet now and again.

"People love their pets and regard them as part of the family," said Lori Conarton, communications director for the Insurance Institute of Michigan, which represents 38 companies writing 74 percent of auto insurance policies in Michigan.

"Given that the insurance industry is pretty competitive and market driven, if this coverage is well received, I'm sure other companies will add it as well."

With little fanfare, AAA-Michigan began offering the coverage -- at no charge in March to all customers with comprehensive collision. The coverage pays $500 per incident for medical bills or $500 for so-called replacement animals if they die in crashes.

"This was an opportunity to provide a new coverage that we believe was right for the market. We believe it's a good benefit for our policy holders and we're happy to provide it," said Anthony Ptasznik, vice president for membership and insurance produce management at AAA-Michigan, the state's second-largest provider of auto insurance.

Insurers say although there are few claims, the new pet policies are a low-cost way to try to attract customers.

The market is huge: Michiganians keep 2.18 million dogs and 2.47 million cats, according to the American Veterinary Medical Association.

Pet auto insurance coverage was pioneered nationally by Progressive Corp. in September 2007. The insurer, based in suburban Cleveland, sells policies in all 50 states.

"We know how much our customers love their cats and dogs and many of us have pets, too," said Miriam Deitcher, director of targeted marketing at Progressive. She has a beagle puppy who loves to tag along on car rides.

"This coverage provides a comfort, and we're really thrilled we led the way in offering it," said Deitcher, who declined to say how many claims have been made.Jerry Davies, a spokesman for Los Angeles-based Farmers, said the verbal feedback he's heard has been positive since it began offering the insurance in June.

Dog owner Lynda Broughman says she doesn't have the coverage, but likes the idea.

She said $500 might not go far given that the medical bill for an animal involved in an automobile accident could easily reach several thousand dollars. And she notes that replacing her English bull dog would cost $1,800 or more.

"It still would be nice to have that coverage, $500 is a lot better than nothing," said Broughman, who works in the student accounting office at Jackson Public Schools.

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Thursday, December 18, 2008

Auto Insurance Rate Quotes – Does Your Zip Code Affect Your Auto Insurance Premiums?

Ricky Lee
In most cases, people know the reasons why their home insurance is affected by the zip code they have. But, they usually don´t understant what impacts their rate when it comes to auto insurance.

If you do understand this, you will be able to save money when buying a home, as you will understand how saving a few hundred bucks on your house can end up costing you a few thousand dollars in auto insurance in the next few years.

Below you can find out how:

1. The place where you buy your house determines in most cases what mileage you make every year. If you don´t live near the places you usually go to (and you have to drive there) your mileage will go up because of this.

Your job is the best example: if your job is 10 miles from your home and you do that trip five times each week, you will drive twice as much as someone who has their work place only 5 miles away.

Also, the area you choose to live in will determine if you have a mass transit access in the vicinity. Using it as often as possible will help get your rate down.

2. What´s the crime rate in the area where you reside? Low or high? The auto insurance rates are also partially influenced by this factor. If you live in a dangerous area, the risk of vandalism and theft is higher, and the rate increases accordingly.

So, when you´re in the market for buying a house, take into consideration these issues, as they can increase your expenses in auto insurance premiums if you ignore them.

You should also compare all the information you have on the insurers that are disposed more favorably to the zip code you live in. Their rates can vary.

So, if you´re looking for a house, a good tip would be to compare the auto insurance quotes for a number of zip codes and see what the differences are. If your zip code adds an extra $250 to your annual premiums of the auto insurance, in 20 years you will be paying a total of $5,000.

Discover the best car insurance rate quotes online. Visit my auto insurance rate and learn where to get instant car insurance quotes.

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Wednesday, December 17, 2008

La. residents can compare rates for auto, home insurance online

Louisiana automobile and home owners can now get quotes on insurance from their computer.

Insurance commissioner Jim Donelon announced Monday that auto and homeowners rate comparison guides are available at the Department of Insurance Website, www.ldi.state.la.us.

The rate guide provides quotes from top carriers of auto and homeowners insurance in the state, Donelon said.

The auto quotes reflect various rating situations, such as driver and vehicle age, location and driving record. The homeowners quotes reflect situations such as the location, age and price of the home.

To access the guides, visit www.ldi.state.la.us and click on publications, guides and forms near the top of the screen. The guide includes links to each company.

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Tuesday, December 16, 2008

District of Columbia Pays Highest Insurance Rates to Drive

Drivers in the District of Columbia pay the highest combined average automobile insurance premiums in the United States, taking the top spot from New Jersey.

The National Association of Insurance Commissioners has released its 2005/2006 Auto Insurance Database Report, which indicates the District of Columbia leads the auto insurance pack with a combined average insurance premium per vehicle of $1,315.55 in 2006, down from $1,345.58 the year prior.

The state combined average premium is calculated by summing the average premiums for liability, comprehensive and collision coverages. The result is the average price for a policy that contains all three, the NAIC said.

The drop in premiums in D.C. wasn''t enough to keep New Jersey in the top spot among the most expensive auto insurance regions. The Garden State had a combined average insurance premium of $1,284.43 in 2006, down from $1336.80 in 2005.

According to the NAIC report, the rest of the top five regions in most expensive auto premiums for 2006 were: Louisiana, with $1,254.66; New York with $1213.14 and Rhode Island, with $1197.81.

Throughout the United States, rates have continued to fall, according to the report. The combined average premium nationally was $936.60, down from $954.02 in 2005 and $967.28 in 2004.

According to the report, Iowa had the lowest combined average auto premium in 2006 at $644.49, followed by North Dakota with $688.58.

The NAIC cautions against state-to-state comparisons because many factors affect a state''s average premiums, such as underwriting costs, accident rates, traffic density, auto theft and state regulation.

In 2007, the top five writers of private-passenger auto in the United States, according to A.M. Best Co state/line product information based on direct premiums written, were: State Farm Group with a 17.5% market share; Allstate Insurance Group, with 11.3%; Progressive Insurance Group, with 7.3%; Berkshire Hathaway Insurance Group, with 7.2%; and Farmers Insurance Group, with 5.5%.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

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Monday, December 15, 2008

Auto Insurance Industry Overlooked $16 Billion in Premium Losses

Auto Insurance Industry Overlooked $16 Billion in Premium Losses

Premium Rating Error Report by Quality Planning Concludes Auto Insurers Could Boost Profits by Paying More Attention to Miles Driven by Customers


Last update: 9:00 a.m. EST Dec. 4, 2008
SAN FRANCISCO, CA, Dec 04, 2008 (MARKET WIRE via COMTEX) -- Quality Planning ( www.qualityplanning.com), the ISO company that validates policyholder information for auto insurers, today released its annual premium rating error report. Quality Planning estimates that these errors resulted in the loss of $16.1 billion of auto insurance premium revenues in 2007, slightly down from the 2006 figure of $16.6 billion -- but still almost 10 percent of the total $162 billion in personal auto premium written. Two primary reasons are identified for rating error: consumer fraud and the inability of insurers to keep track of key lifestyle and driving habits of their customers.
The report, titled "Auto Insurance Industry Continues to Hemorrhage Cash," can be found online here: http://tinyurl.com/6mtf3c.
"The year 2007 saw the first decrease in auto premium leakage since Quality Planning began issuing this industry report five years ago," said Dr. Raj Bhat, president of Quality Planning. "We believe this is likely the cumulative effect of several large insurers eliminating the mileage component from their rating plans."
"Seldom is there debate over whether or not people who drive more miles should pay higher premiums, yet over the past several years some companies have elected to forgo the use of annual mileage as a critical rating factor -- simply because it was difficult to validate," added Bhat. "Their decision may prove costly."
The report aggregates and summarizes audit results of more than 4 million policies from 16 major carriers. The sample includes substandard to preferred books of business, all distribution channels, and national and regional carriers.(1) Sample results were weighted to reflect the total national private passenger auto line.
In this year's report, Quality Planning noted a small upward trend in the misreporting of garaging addresses and of youthful drivers. The trend was most striking in large urban areas where vehicle garaging location can dramatically affect premium. Nationwide, 1 to 2 percent of all policies written include an unrated operator, who is most often a high-premium younger driver. Policies that contain such rating errors account for more than $2 billion of annual premium leakage.
"The insurance industry can combat premium leakage by applying appropriate analytic tools," said Bhat. "Some policyholders misrepresent facts, and others don't report lifestyle changes. Others boldly commit fraud. Underwriting doesn't have to accept those trends as a cost of doing business or, worse, as justification to counterbalance leakage by inflating premiums for all policyholders."
The 2007 report includes a detailed analysis that shows how different categories of rating error contribute to overall premium rating error and distinguishes between vehicle rating errors (mileage, usage, type of vehicle, and location) and driver rating errors (driving experience and driving record). Quality Planning recommends auto insurers better analyze policyholder rating data to identify and correct flawed information -- steps which could have a positive effect on profitability.
Rating integrity and competitive advantage
Quality Planning helps auto insurers minimize rating error. The San Francisco-based company processes auto insurance companies' books of policyholders through a battery of more than 150 proprietary tests, cross-reference checking, and pattern-matching algorithms to identify errors and discrepancies that might suggest customer fraud. Quality Planning also provides insurers with additional services, such as policyholder phone interviews to discover missing drivers, verify garaging addresses, determine annual mileage, and other key rating information. Over time, insurance companies with accurate rating information are better able to compete and are more financially stable.
About ISO
A leading source of information about risk, ISO provides data, analytics, and decision-support services to professionals in many fields, including insurance, finance, real estate, health services, government, human resources, and risk management. Using advanced technologies to collect, analyze, develop, and deliver information, ISO helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, ISO employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, ISO helps customers protect people, property, and financial assets. For more information, visit www.iso.com.
About Quality Planning Corporation
An ISO business, Quality Planning is focused exclusively on providing rating integrity solutions to auto insurers. Quality Planning works with insurance companies to identify areas of significant rating errors using sophisticated database management, statistical analysis and modeling, customized survey design, and highly targeted customer interaction. Quality Planning helps clients work within their existing rating plans and charge fair prices to policyholders based on a true representation of risk. The company was founded in 1985 and is headquartered in San Francisco. For more information, visit www.qualityplanning.com.
(1) The sample was limited to audits for which Quality Planning retained contractual rights to aggregate data for industry analysis.
Contact:
Tim Cox
Zing Public Relations
650-369-7784
Email Contact

source



SOURCE: Quality Planning Corp.
 http://www2.marketwire.com/mw/emailprcntct?id=E26664B2C07A2253

Sunday, December 14, 2008

Rating errors plague auto insurers

NEW YORK, Dec. 5 (UPI) --

Rating errors for auto insurance policies resulted in the loss of $16.1 billion in premium revenues in 2007, an industry research group said Friday.

Quality Planning Corp., which tracks information for the insurance industry, said the auto premium leakage declined from the $16.6 billion lost in 2006. However, insurers' revenue losses still came to almost 10 percent of the $162 billion in auto premium revenues for the year, the Insurance Journal reported Friday.

The year 2007 saw the first decrease in auto premium leakage since Quality Planning began issuing this industry report five years ago, said Raj Bhat, president of Quality Planning.

The decline came from the elimination of the mileage component from the ratings systems at several large companies, he said.

The Quality Planning report is an evaluation of more than 4 million policies written by 16 large insurers, the Journal said.

Some policyholders misrepresent facts and others don't report lifestyle changes. Others boldly commit fraud, Bhat said.

Underwriting doesn't have to accept those trends as a cost of doing business or, worse, as justification to counterbalance leakage by inflating premiums for all policyholders.

source

Saturday, December 13, 2008

NIC sees dip in auto insurance business

KOLKATA: The recession-hit automobile industry is impacting the business of insurance companies especially the ones for whom auto insurance constitutes a bulk of the business portfolio. However, there may be a rush by corporates to take terrorist coverage in the wake of India’s worst terrorist attack. Personal insurance coverage for such attacks are covered under the personal accident policy.

The Chairman-cum-Managing Director of National Insurance Company (NIC), V. Ramasaamy, said that his company did not have any exposure to either the Taj Mahal Hotel or the Oberoi Trident.

He said that the financial meltdown had not affected his company although auto insurance premium, which constitutes 51 per cent of NIC’s business portfolio might take a hit. “There has been growth till October but new vehicle insurance may be lower. We are therefore concentrating on renewals,” he said. Between April and October, NIC clocked a growth of 10.9 per cent with business touching Rs. 2,510 crore. The public sector insurer is confident of touching its target of Rs. 4,500 crore this fiscal which will represent a 11 per cent growth over 2007-08 when business stood at Rs. 4,024 crore. He said segments such as health had contributed handsomely to the business with a growth of 30 per cent and an income of Rs. 900 crore. Medical insurance had a 17 per cent share in NIC’s business.

Mr. Ramasaamy said that the 82,000 agents had been revitalised with an incentive scheme over and above their commission. The back assurance scheme which had generated Rs. 240 crore worth of business in 2007-08 through 26 tie-ups with leading banks, is set to see a jump by Rs. 50 crore. “There may be one or two more such tie-ups by march 2009,” he said.

Earlier, Mr. Ramasaamy launched a group mediclaim policy for Tower Infotech which will cover their 51,000 business associates to provide financial assistance during hospitalisation.

source

Friday, December 12, 2008

IFA Insurance Company Now Accepting PayPal for Car Insurance Payments

IFA Insurance Company, a leading Car Insurance company, has added PayPal as an available payment method for IFA low cost New Jersey and Pennsylvania Auto Insurance. The integration of PayPal provides IFA customers an additional convenient and secure method to pay for their Auto Insurance coverage.

Clark, NJ (PRWEB) December 10, 2008 -- IFA Insurance Company, a leading Auto Insurance company, has added PayPal as an available payment method for IFA low cost New Jersey and Pennsylvania Auto Insurance. The addition of PayPal allows IFA to offer new and existing customers an additional convenient and secure method to pay for their auto insurance coverage.

News Image

IFA Insurance Company continues their leadership role in modernizing the process of evaluating, purchasing, and managing auto insurance. Providing an array of payment options is one of many new initiatives from IFA designed to make Car Insurance simple. PayPal has become increasingly popular with savvy online shoppers since their inception in 2001. PayPal now boasts over 160 million accounts worldwide. IFA was compelled to build the technology link to PayPal to allow customers an additional secure payment method.

David Walsh, President of IFA Insurance Company, knows that providing flexible payment terms and a number of different payment methods is what car insurance shopper's demand, "Beyond offering low Auto Insurance rates in New Jersey and Pennsylvania, IFA believes that the entire process of buying and managing a car insurance policy must be easy, flexible, and secure. Partnering with a great company like PayPal helps us to offer our customers the flexibility of choice and the simplicity of click to pay. Knowing that PayPal transactions are guaranteed secure makes them a perfect partner for IFA."

IFA Insurance Company is an independent, property-casualty insurer located in Clark, New Jersey. IFA specializes in writing private passenger auto insurance in New Jersey and Pennsylvania. IFA has been an auto insurance specialist since 1972. Setting up a low rate NJ Auto Insurance or PA Auto Insurance policy can be completed on the web, Auto Insurance Quote, or can be completed by phone with an IFA specialist at 877-432-0292.

For additional information about IFA Insurance Company contact Ken Conklin by phone at 877-432-2277.

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House GOP proposes auto-industry-funded insurance program

THe House GOP leadership Wednesday released an alternative plan to the Democrats' proposed $15 billion in loans to the auto makers. The plan is reminiscent of an loan-insurance-themed proposal that House Republicans pushed hard during the financial bailout debate. The plan would be industry funded.

During the financial debate, critics argued that the banks didn't have the capital to fund the insurance plan. It's likely that automakers would also claim they don't have the cash to fund the insurance program. Indeed, GM has said it might not have enough cash to continue operating for more than a few weeks.

"Rather than a taxpayer-funded government bailout that replaces private investment,," explains a leadership memo, "the House GOP plan proposes that the government provide insurance, funded by the participants with a modest FDIC-like fee, which would cover up to 50 percent of the losses of new investment in the case of default, helping to unlock immediate private investment."

The outline of the plan, and a statement from Minority Leader John Boehner (R-Ohio), after the jump...

New Online Car Insurance Shoppers Now Have More Choices for Car Insurance Quotes

Delaware, Idaho, Nebraska, and Vermont Can Now Compare Car Insurance Quotes at CarInsurance.com


Last update: 4:10 p.m. EST Dec. 5, 2008
ALTAMONTE SPRINGS, Fla., Dec 05, 2008 (BUSINESS WIRE) -- This week CarInsurance.com expanded its online car insurance platform into Delaware, Idaho, Nebraska, and Vermont. CarInsurance.com provides a simple platform so visitors can get a car insurance quote and purchase online car insurance. CarInsurance.com offers a lineup of auto insurance companies including Direct General, Progressive, Esurance, Unitrin Direct, Travelers, Safeco Insurance, The Hartford, QBE, Meritplan Insurance, and Newport Insurance. CarInsurance.com offers its Online Insurance Marketplace(TM) in all 50 states and the District of Columbia, along with services in Canada and the United Kingdom. In 43 states and the District of Columbia, they offer products through their independent agency system. As a leading online independent insurance agency, they can offer you the ability to purchase online car insurance or purchase insurance over the phone. You can compare rates and purchase a policy immediately through their website so you get a single-site car insurance shopping experience.
Delaware, Idaho, Nebraska, and Vermont drivers can now experience the best place to shop, compare, and buy online car insurance. CarInsurance.com offers choice, accuracy, and convenience for online shoppers. With auto insurance, each insurance company is targeting a different kind of driver or situation. It is CarInsurance.com's job to match you with the company that is the best suited for you and your situation. Auto insurance companies' rates change regularly, so you have to get a car insurance quote and compare rates to save with online auto insurance.
CarInsurance.com's goal is to make shopping and comparing easy. After you fill out the simple online insurance quote form at http://www.CarInsurance.com, you see a sampling of company choices and you can easily choose the best company. Accuracy is important; CarInsurance.com marries their technology with simplicity. The car insurance quotes you see come directly from the insurance company rating systems, so you save your time by going to a single site. You can choose the best company and buy online or purchase your policy over the phone to save your money. When you buy insurance online at CarInsurance.com, your final rate, and underwriting comes directly from the insurance companies' systems.
"We have worked to make sure visitors can do everything themselves online, and we have licensed agents available to assist shoppers in choosing and purchasing the best car insurance for their needs," said Executive Vice President and CIO, David Fitzgerald. "More and more shoppers are going online to get a car insurance quote; with our site we can help consumers find the best rates, the best protection, and save their time by using a single site to compare insurance products."
CarInsurance.com has completed its 2008 growth strategy. On January 28, 2009, they expect to complete their national footprint and expand into Alaska, Hawaii, Montana, North Dakota, South Dakota, and Wyoming. In addition, they will increase the number of online car insurance carriers throughout 2009, so visitors can shop and compare more auto insurance companies online.
About CarInsurance.com, Inc.
Based in Altamonte Springs, Florida, CarInsurance.com gives consumers the ability to instantly compare and buy competitive auto insurance rates directly from multiple insurance companies. Not only do consumers have an easy interface to review the rates of multiple insurance companies, but also when ready to purchase, consumers have the option of completing the transaction online or by talking directly to a licensed agent. The same insurance team has owned and operated the CarInsurance.com domain since 1995, making it one of the first online car insurance websites. CarInsurance.com helps consumers and insurance companies by providing companies new customers through real-time quoting and underwriting. Save your time. Save your money.(R)
SOURCE: CarInsurance.com
CarInsurance.com, Altamonte Springs
Erick Pace, 407-260-2220 extension 222
PressServices@carinsurance.com
http://www.CarInsurance.com

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Thursday, December 11, 2008

Free Auto Insurance Quotes Search Can Save Shoppers Hundreds Of Dollars A Year

(live-PR.com) - North Hollywood, CA ( Live-pr ) October 7, 2008 — InsuranceBureau.com has introduced an easier way to save money and find cheap auto insurance quotes. (www.InsuranceBureau.com) InsuranceBureau.com, an informative site featuring insurance tips and information, now provides a free service to all website visitors; searching for affordable auto insurance quotes. An exhaustive search for car insurance quotes can be completed with just as much thoroughness as traditional methods by using the auto insurance quotes finder on the website.

The impact of this quick and easy car insurance quotes service is making a splash among consumers looking for ways to save money in a troubled economy. Shoppers receive unbiased and competitive auto insurance quotes using just one single car insurance quotes form, not several different applications.

InsuranceBureau.com finds (www.InsuranceBureau.com) auto insurance quotes for consumers to compare at their leisure with no sales pressure to purchase a policy. Also, comparing car insurance quotes in this way ensures the consumer is getting the absolute most competitive auto insurance quotes possible. To learn more about how to receive free car insurance quotes with ease, visit (www.InsuranceBureau.com) InsuranceBureau.com.

www.InsuranceBureau.com
6400 Laurel Canyon Blvd, Ste 460
North Hollywood, CA 91606
Phone: 800.647.2164
Fax: 800.647.2142

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Wednesday, December 10, 2008

John Alsop Insurance Agency Announces New Enhancements To Their Auto Insurance Product

Modesto, CA (1888PressRelease) November 30, 2008 - John Alsop Insurance Agency has 25 years of experience in the insurance industry. The company offers many different types of insurance products including auto, home, commercial, health and life insurance. They also offer financial products for investment purposes. John Alsop Insurance Agency offers free client welcome kits & 24/7 customer service to all its customers. They also offer free policy reviews to understand what people need in their emergencies.

John Alsop Insurance Agency has recently announced addition of new features to its “Your Choice Auto” insurance product. The new features include deductible rewards, a safe driving bonus, ticket mitigation and accident forgiveness to the drivers.

People can save up to 37% by combining all their insurance policies with the John Alsop Insurance Agency. Free quotes can be obtained for any insurance product in 5 minutes or less with no extra broker fees. For payment facilitation, John Alsop Insurance Agency accepts Cash, Check, Visa, MasterCard and AMEX.

An automobile liability insurance policy in California with John Alsop Insurance Agency typically has all or a combination of these coverages:

- Bodily Injury Liability (BI or AA)
- Property Damage Liability (PD or BB)
- Medical Payments (CC)
- Coordinated Medical (CX)
- Uninsured or Underinsured Motorist (UM, UIM or SS)
- Collision (DD)
- Comprehensive (HH)
- Rental Reimbursement (UU)
- Towing and Labor (JJ)
- Replacement Cost Coverage (RC)
- Loan or Lease Gap
- Sound System Coverage (ZA)
- Tape Coverage (ZZ)

According to the Agency Owner, John Alsop, “The Your Choice Auto product gives drivers the opportunity of choosing a package that’s right for them. The Platinum Package includes Accident Forgiveness, Deductible Rewards and Ticket Mitigation also. It’s quality insurance at an affordable price.”

About John Alsop Insurance Agency -
John Alsop Insurance Agency, founded in 1991, is an insurance firm with six locations in the cities of Montclair, Rancho Cucamonga, Chino, Ontario and Montebello. They serve more than 20,000 customers and offer all types of insurance products including, but not limited to, auto, home, renters, commercial, health and life insurance. They also offer financial products for investment purposes.

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Tuesday, December 9, 2008

New Colorado Car Insurance Law Drives Consumer Education

Starting this month, the mail and inboxes of Colorado drivers will begin filling up with notices from their car insurance companies informing customers of a new "opt-out" requirement due to a new Colorado Law that takes effect January 1, 2009. Because many car insurance policy renewal notices are sent 60 days in advance, drivers whose coverage renews in January will start receiving revised premium notices — along with an optional rejection form, according to the Rocky Mountain Insurance Information Association. However, it's important for all Colorado insurance consumers to understand how the legislation affects their insurance, the association advised.

Colorado Senate Bill 08-11 creates a mandatory opt-out of $5,000 in medical payments coverage (MPC). Medical payments coverage is currently optional auto insurance coverage that is offered in many different amounts — ranging from $1,000 to $100,000. This is extra coverage on the auto policy that pays for the driver and passenger(s)'s medical bills regardless of who causes the accident. If Coloradoans buy this coverage it is in addition to health insurance and settlement money from an at-fault driver.

During the 2008 Legislative Session, Colorado lawmakers passed a bill that will require car insurance companies to add $5,000 of medical payments coverage to every car insurance policy, unless the customer rejects the amount in writing or in the same way it was sold to them (i.e. telephone, Internet).

For policies that go into effect after January 1, 2009, the additional $5,000 in med pay coverage will be automatically rolled on. For customers who don't already carry med pay this will mean a new premium. If drivers purchased less than $5,000 previously, the company is still required to offer a $5,000 limit, since the lower limit amounts will no longer be offered. Bottom line: Drivers will need to buy $5,000, choose a higher limit, or reject all medical coverage by sending back the rejection form, RMIIA explained.

It's estimated that about 32 percent of Coloradans currently choose to purchase some amount of medical payments coverage on their car insurance policy. "So the implementation of this new law will require the majority of Colorado drivers to again carefully weigh their decision to buy extra medical coverage and take action to reject the coverage if they determine they don't want or need it," saidCarole Walker, RMIIA executive director. That's why it's important for agents or company representatives to talk aboutinsurance choices and make sure their clients have the protection that's right for them, she advised.

Colorado insurance companies are taking steps to make sure their customers understand their options and the new opt out legal requirements. Companies are implementing education campaigns that will start this month to inform their customers, agents and employees of the law changes. RMIIA also has new educational guides, "Colorado Car Insurance GPS," that help steer drivers though their coverage choices. For information, visit http://www.rmiia.org/downloads/RMIIA_CO_auto_insurance.pdf.

Source: RMIIA

Monday, December 8, 2008

New Auto Insurance Law Includes 'Opt-Out' Requirement

If you are about to renew your automobile insurance you may want to look closely at your next bill.A new law goes into effect Jan. 1, that will require you to opt-out if you do not want extra coverage for medical care."It was in response to the huge crisis in trauma care and funding," said Sen. Betty Boyd, D-Jefferson County.

The bill's main sponsor, Sen. John Morse, D-El Paso County, told 7NEWS, "That after Colorado switched from 'no fault' insurance to 'tort', many medical providers were finding that they weren't getting paid.”“If they were,” he said, “sometimes it was years later."Right now, motorists have the option of purchasing extra medical coverage on their auto insurance.Next month, that option turns 180 degrees."If they do nothing, $5,000 worth of extra medical coverage will be automatically added to their coverage." said Carole Walker, of the Rocky Mountain Insurance Information Association.Walker said customers still have a choice, but they need to take action to decline it, if they don’t want it.She said the change was made to force motorists to assess what their needs are."If they don't have health insurance, they strongly need to consider the extra medical coverage," Walker said. "Even if they have health insurance, they should consider the extra medical coverage it if they have high co-pays or deductibles."Walker said the good part about the extra coverage is that you don't have to wait for a final settlement, from somebody who caused the accident, to pay your medical bills.Many motorists are not aware of the new law."I didn't learn about it until you told me," said Jamaica Shirley outside a supermarket in south central Denver.Like many people, Shirley said she doesn't pay that much attention to her insurance bill."I just open it and pay it to be honest," she said. "I couldn't tell you what it covers or anything, which is not good."Walker said anyone who drives should pay close attention to everything in their policy."I always tell people that the time to think about what kind of insurance they need is before an accident, not after," she said.Walker added that about 32 percent of Coloradans currently buy medical payments coverage.

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Friday, December 5, 2008

State Web site updates insurance comparisons

BATON ROUGE -- An electronic guide that allows consumers to compare homeowners and auto insurance rates has been posted on the state Department of Insurance's Web site, the first time in two years the data has been revised.

Insurance Commissioner Jim Donelon said the site includes basic information from a wide range of companies, based on 2008 rates, and from a spread of large and small cities across the state, from the town of Batchelor northwest of Baton Rouge, to New Orleans, Slidell and Shreveport.

Twenty-two companies' premiums are featured in the homeowners guide and 30 in the auto guide.

"This is as accurate as we can make it," Donelon said.

The guides feature premiums quoted by "top carriers of auto and homeowners insurance in the state," and links to the individual company's sites, he said.

Donelon said he expects the agency will continue to publish the information every other year.

The automobile insurance guide reflects different scenarios, based on locations, driver age, type of vehicle and driving record of the individual.

The homeowners premium guide reflects rates based on location and age and price of the home.

Donelon noted, however, that the guides may not fit an individual's exact circumstance. "These rates are for comparison purposes," he said.

Donelon said that an individual who shops around may find a company not listed in the guide that can offer better rates, coverage and service.

More information about the guides and the data is available by calling the department at 1.800.259.5300.

The department can provide information on the companies' national rating and the number of complaints -- if any -- filed against each one, Donelon said.

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State warns about auto insurance phone scam

COLUMBUS: The Ohio Department of Insurance is warning about a telephone scam targeting auto insurance customers.

Department Director Mary Jo Hudson said today that victims are receiving calls saying their insurance payment can't be processed and that they'll need to provide their bank account number as well as other personal information to resolve the problem.

Hudson said in today's economy, phone scams are becoming more prevalent, and consumers need to be on guard or risk falling prey to identity thieves.

She said to be very careful when anyone other than your insurance agent contacts you about your policy. Also, if you're suspicious about a caller, insist on getting a name and telephone number and don't give the person your financial or other personal information.

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Tips for new drivers

and even their parents -- a driver's license is a ticket to freedom. However, even while they explore their new freedom, new drivers must keep safety and responsibility top of mind. This includes investing in an affordable insurance policy that offers drivers full protection.

There are some immediate actions new drivers can take to help lower the cost of insurance. For example, drivers who have completed an approved drivers training course in the last three years may pay lower premiums.

"Choosing a hybrid as your first car not only helps green the environment, it also helps keep the green in your pocket," says Henry Blumenthal, vice president, TD Insurance Home and Auto. "Drivers who own or lease hybrid vehicles can save up to 10 per cent on auto insurance premiums through the TD Insurance Green Wheel Program."

Some additional tips for new drivers setting out this season include:

* Think pink:Keep your pink insurance card with you in the car and know what your insurance policy covers. You will need to show it if requested by the police or when you renew your license.

* Go slow:Watch out for children and pedestrians as well as changing road conditions. Accidents and tickets will increase your insurance rates and stay on your record for at least six years.

* Be equipped:Store an emergency kit in your car stocked with jumper cables, a flashlight, first aid kit and a disposable camera to take photos of any accident that may occur. Ensure that the spare tire is fully inflated and your cell phone is fully charged.

* Know your limits:Before heading out for a long trip, become familiar with the route. Keep distractions like loud music to a minimum and stay alert and observant to your surroundings.

Practice makes perfect, so keep driving and gaining experience on the road. To see which insurance policy best equips new drivers for the road ahead, visit

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Thursday, December 4, 2008

Auto Insurance Firms Record First Surplus in 7 Years

By Yoon Ja-young
Staff Reporter

Auto insurance companies recorded a surplus thanks partly to high oil prices in the first half of the year for the first time in seven years. While other financial businesses such as banks, asset management firms, and brokerage houses are suffering because of the global financial crisis, auto insurance companies are enjoying a surplus on top of high investment returns from bonds.

According to the Financial Supervisory Service (FSS), auto insurances recorded 5.5 trillion won in total sales for the first half ending in September, up 4.7 percent from a year ago.

They turned to surplus for the first time since 2001, with operating profits recording 10.7 billion won. Last year, they sustained operating losses.

They recorded a surplus thanks to the falling loss ratio, or the ratio of insurance money paid to subscribers compared with the insurance premium income of insurers.

The loss ratio stood at 68.3 percent, plunging 5.1 percentage points from 73.4 percent.

High oil prices were a boon for insurers in some ways, as an increasing number of drivers left their cars at home to use public transportation, and thus decreasing the number of accidents. The regulator also cited good weather as a factor that curbed loss ratio. Damage from typhoons or heavy rainfall was also small this year.

The report showed online direct auto insurers taking a bigger portion of the pie. They took 17.8 percent of the auto insurance market, up 2.3 percentage points from the previous year. The online auto insurance products saw a 20.1 percent sales growth.

Seeing the growth potential there, Samsung Fire & Marine Insurance recently announced it would advance into the online auto insurance market from next year. Kyobo AXA is the leader in this market with over a 40 percent market share, followed by ERGO Daum Direct.

The regulator, however, said the loss ratio could turn upward in the future following the recent plunge of global oil prices and insurance premium cuts. Dubai crude fell to below $60 per barrel from over $140 in July, while insurance companies cut insurance premiums by between two to three percentage points this summer.

chizpizza@koreatimes.co.kr

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Wednesday, December 3, 2008

AIG's auto-insurance business will drop the name 'AIG' to improve its prospects

American International Group Inc., the insurer bailed out by the U.S., will remove AIG from the name of an auto insurance unit to improve its sale prospects.

AIG will start calling its aigdirect.com business 21st Century Insurance in January, reverting to the brand of a California-based car insurer acquired last year, said Nicholas Ashooh, a spokesman for AIG.

AIG is selling businesses including auto insurance, U.S. life coverage, and a plane-leasing unit to repay the government loan that saved it from bankruptcy in September. The insurer was nearly overwhelmed by bad bets on U.S. housing and has posted about $43 billion in four straight quarterly net losses.

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Tuesday, December 2, 2008

Hassle free and Cheap auto and home Insurance quotes online

Released on: November 6, 2008, 8:03 am

Press Release Author: http://cheap-insurance-rates.com/

Industry: Financial

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