Discount Diva: Make time to write down a budget

Whether you’re giving your finances a complete overhaul or just a tune-up, creating a budget is key. But it ain’t easy.

Your pulse races. Your head pounds. You want to whack your smirky husband in the head with his little bottle of orange Gatorade because he keeps pawing the calculator. But that hour of frustration is worth the months of smoother sailing and financial stability it will bring.

And fortunately, the Internet is filled with free budgeting tools to help you get the job done. I like BankRate. com’s Home Budget Calculator. It breaks everything down so all you have to do is gather your bank statements, pay stubs and bills and take a deep breath. Once you’ve got a handle on where everything is being spent, you can take stock and tweak areas that might be out of whack. To be sure you’re living within your means, financial-planning Web site Crown.org suggests how areas of spending should measure up:

•Housing: Housing should make up no more than 30 percent of your net spendable income (money left after taxes and charitable giving). This category includes mortgage or rent, home insurance, maintenance (such as new furnace filters or weather stripping) and utilities.

• Food: Things like groceries — not dining out — should comprise about 11 percent of your budget.

• Automotive: The family car makes up 14 percent. Take a close look at this one. Lots of folks overspend in this category for the sake of driving something flashy. This includes your car payment, auto insurance, maintenance (think oil changes) and replacements (such as brake pads).

• Personal insurance: Coverage such as life, health and disability insurance, covers 5 percent.

• Repayment of debt: Getting in the black gets 5 percent. However, this category can vary greatly. Paying off debt should be a priority, so it’s worth shaving off expenses in other areas to devote more money to repayment efforts.

• Entertainment: Dining out, vacation and recreational activity and movies get a suggested 7 percent.

• Clothing: Your wardrobe covers 6 percent. Crown.org suggests allotting $10 per month per family member, even if it goes into a piggy bank. That way, you won’t get caught short when it’s time for back-to-school clothes or new winter boots.

• Savings: Crown.org favors socking away 5 percent, but there are a lot of variables here. You’ll want to make savings a top priority. Once you’ve got a healthy cushion in liquid savings — enough to cover at least three to six months of expenses — concentrate on debt repayment. Money has less power sitting in a low-yield savings account than it does blasting away at high-interest debt.

• Medical and dental: Costs such as physician payments get 4 percent.

• Investments: Money for stocks, bonds and mutual funds tallies 5 percent.

• Miscellaneous: Only 8 percent of your budget is left for all those expenses that don’t seem to fit anywhere else.

• Child care: If you’ve got child care expenses, they should comprise about 5 percent of your budget. But since it’s not figured into the standard formula, it’s up to you to decide which categories you want to steal from to make up that percentage.

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BCAA Insurance rewards customers for commuting car-free

BURNABY, BC, Jan. 12 /CNW/ - Using alternative forms of transportation is
not only good for the environment, it's also good for your pocketbook, thanks
to a new initiative from BCAA Insurance. The company's "Evenings and Weekends"
Auto Insurance plan - the first in B.C. - rewards those who leave their car
behind when commuting during the week by offering a 15 per cent discount on
collision premiums. The "Evenings and Weekends" discount is available only on
BCAA's Advantage Auto, member-exclusive optional auto insurance.
   "Evenings and Weekends" Auto Insurance is designed for customers who
either work from home, or commute to work or school using an alternative form
of transportation, such as walking, cycling or public transit. Some other
insurance companies offer a discount for hybrid vehicles, but this coverage
applies regardless of the type of vehicle an insured drives.
   "At BCAA Insurance, we're listening to customers who want
environmentally-friendly products and want to be rewarded for 'green'
behaviour," says BCAA Auto Insurance Product Manager, Heather Prizeman. "With
BCAA's discount, saving the environment and saving money can go hand in hand."
   Insurance is based on the doctrine of "Utmost Good Faith", and any
"Evenings and Weekends" customers who risk driving between 6 a.m. and 6 p.m.,
Monday to Friday, will be subject to a higher deductible if they are in an
at-fault collision during that time.
   To celebrate the launch of BCAA's "Evenings and Weekends" Auto Insurance
and a range of eco-conscious home insurance options, BCAA is giving away a
fuel-efficient 2009 Toyota Prius hybrid. Visit www.bcaa.com/green for details
on how to win.

   BCAA Insurance is one of the largest providers of home, auto, travel
medical and life insurance in B.C. BCAA insures over 115,000 homes and 195,000
vehicles in the province. Each year, BCAA sells more travel insurance than any
other provider in B.C. To learn more about the products and services offered
by BCAA Insurance, visit www.bcaa.com.

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Drivers Dropping Car Insurance Cite Poor Economy

It's a dangerous new trend that could end up costing you thousands of dollars, even when you're not at fault.

Insurance agents say more and more customers are dropping their car insurance because they can't afford it.

Agents encourage anyone thinking of canceling their policy to call their agents first to try to come up with another solution.

You can often save money by signing up for the minimum coverage.

Agents at Bob Shropshire Sons Downtown say they've seen more and more customers fall behind on their auto insurance payments.

"It could be anything from loss of job and loss of income. A lot of people that are used to getting the overtime, a lot of these companies are scaling back now and they may not have that. A family member or themselves might be hospitalized, medical bills and things like that come up," explained Christopher Shropshire of Bob Shropshire Sons.

AAA says the Insurance Research Council found it's a trend that's happening across the nation, but cutting the average $60 monthly insurance bill from your budget could be your costliest mistake.

"Driving without insurance is really a big gamble. Uninsured motorists face legal fees, fines, penalties including a suspended license. They're often required to pay a 25 to 50 percent surcharge to secure a new auto policy," said Elaine Zeinner, AAA Public Affairs Manager.

It's against the law in Ohio, Indiana, and Kentucky to drive without auto insurance.

If you're caught without it, you could go to jail.

Get in an accident without insurance and you could lose much more if you're sued by the victim.

"Their job, income, garnishing wages and they might be forced to sell their home," Shropshire explained.

AAA says research all of your options before allowing your policy to lapse.

"Some easy safe ways for people to save on their auto insurance include combining their auto and home insurance. You can get discounts of up to 30 percent. You can increase deductibles," Zeinner explained.

Insurance agents say this is a good time to check your own policy.

You want to make sure that your policy includes uninsured or underinsured coverage and that it's equal to what you have on your own policy.

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The Cost Of Insurance Ignorance

Most insurance agents are paid to sell product, not to help clients manage risk. Knowledge can correct this problem.

Today everyone wants to increase cash flow. All kinds of cost-saving ideas are shared and written about by professionals around the country, but no one is discussing the number one area that can dramatically reduce your cash expenditures. That area is insurance.

In my 30 years of financial planning, I have learned one undeniable truth. If people would manage risk rather than "buy insurance," they can save real money in the long run.

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First, let us define risk management. Risk management is the process of analyzing the financial impact of an event (such as a death, disability, property loss, etc) and determining the most cost-effective way to minimize the potential of it causing economic hardship. It does not mean limiting your out of pocket expenses to zero when an event occurs, but merely preventing economic hardship.

Most people buy insurance so that it covers every dollar of medical bills or pays for all repairs of an auto or home loss, with a small deductible. This type of mentality causes too many dollars to go toward nominal risks and too few dollars to go toward the true risk.

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Second, economic rewards cause insurance to be sold rather than for advisers to do prudent risk management. For example, there is nominal economic incentive for insurance agents to help people do prudent risk management in the case of life insurance. How many times have you heard an insurance agent tell you that you needed less coverage?

Auto and home insurance rates vary widely from company to company and agents (even independent ones) can only represent a few firms which may or may not be the best deal in your locale.

Lastly, the marketing of insurance policies plays on individual fears and greed to lure customers into worthless gambling-like policies. An example of this would be accidental death insurance, which would shock most purchasers if they actually read the policy description of "an accident" to collect a claim.

Comment On This Story

Why do people (especially those who are younger) think they are most likely to die accidentally when statistically they are at least 10 times more likely to die due to sickness? Other types of insurance marketing that have little risk management benefit are cancer insurance and hospital income insurance. The costs are usually low and you may actually collect, but consider it gambling and not managing risk. Who wants to win one of these kinds of gambles?

Based on my decades of experience in insurance and risk management, I believe that four out of five people will likely save on the cost of their risk management plan by keeping in mind several key points.

1. Most families purchase life insurance to provide funds to surviving family members. Therefore, if you are single and buying insurance you probably have little need for a life policy. If you are married and don't have children, only buy insurance if the surviving spouse would struggle economically; for example, if you have a very large mortgage that cannot be paid on one salary. If you're married with children and you need insurance consider a 15-year term life insurance policy and get rid of any whole life or adjustable life that an agent sold you.

A 40-year old non-smoker should be able to buy $1,000,000 of 15-year term insurance for $450 to $900/year depending on health. The length of term life insurance (10 year, 15 year) purchased should line up with when your major financial commitments will have diminished (college costs, mortgage, other debt). Shorter terms reduce the cost of the insurance dramatically.

2. Group life insurance is often viewed as extremely cost effective, but unless the company subsidizes the premium, group life insurance is often 25% to 100% more costly than a simple 15-year term policy. Specifically the Federal Employee Government Life Insurance (FEGLI) is one of the least cost-effective policies.

3. Homeowners insurance should carry no less than a $1,000 deductible or substantially more if you can afford the first $1,000 to $5,000.

4. Auto insurance cost is mainly dependent on the company, your driving record, the type of car and your credit score. That's right--credit score. Insurance companies have found a high correlation between credit worthiness and driving safety.

So buy a boring, inexpensive car, drive safely, improve your credit score and then shop for insurance. People think that if you have been with an insurance carrier for many years they will treat you better if an accident occurs. This is only true if a company has a forgiveness program and it still may be beneficial to switch.

If an accident were to occur, then the rate increase would likely not be more than 40%. If you are saving 20% per year or more, then it may still make the switch worthwhile. Some cost-effective companies to consider are Amica Mutual, Geico, Progressive (nyse: PGR - news - people ), Erie (mid-Atlantic only) and USAA (military only). There are numerous no-agent online programs and Progressive specifically has a very good search engine for their rates and cost comparison to other companies.

5. Long-term care insurance is sold on fear and most people pay for much more coverage than they need. Long-term care insurance should not be purchased to pay every dollar of care, but to pay the portion that your own income and assets could not afford over an extended period of time, perhaps six months or more.

Typically I find that people with less than $250,000 of assets or more than $2,000,000 of assets are unlikely candidates for long-term care insurance. People in the middle can normally self insure between 25% and 50% of the risk with their own income and assets.

6. There is no guarantee that insurance purchased via membership in an association will be cost effective. The American Institute of Certified Public Accountants has a great disability and life plan for members that are tremendous cost savers.

The Association of Retired Persons, AARP, on the other hand is costly to any members who are moderately healthy. AARP members should shop around and never assume the association has your best interests at heart.

7. Medical insurance is an economic mess in the U.S., but we are not going to fix that in this article. The best thing you can do today is get a high deductible medical insurance plan with a health savings account (HSA). The HSA allows you to keep your money in lieu of paying insurance premiums accumulated until (hopefully never) the need arises. This can easily allow a moderately healthy family to accumulate $1,000 to $2,000/year in insurance premium savings. The HSA also can be used tax-free for expenditures not typically paid for with tax-free dollars--over the counter drugs, dental bills, eyeglasses.

All insurance has numerous factors that can make one person's situation very different from another's. The key is to learn true risk management practices and only insure to prevent economic hardships. Never do your risk management with an insurance agent unless you are certain you understand the coverage and spectrum of opportunities to manage the risk.

Lastly, the best advice may be to find a comprehensive, fee-only adviser who can analyze your risk management plan and make savings recommendations.

Times like these help us realize how the conflicts of interest of the financial services industry have helped companies and their sales agents, but have been an outright failure in providing truly professional advice to the American public.

Arroyo Insurance Services Sees Increase New Business

Whether it's reducing business expenses, getting coverage after bankruptcy, business auto insurance, professional liability insurance or worker's compensation, Tim Pine with Arroyo Insurance Services is an established California business insurance broker with excellent personalized customer service.

Orange County, CA (PRWEB) January 13, 2009 -- California Businesses are facing a lot of challenges in the current economic environment, and one of the biggest challenges is maintaining their various insurance policies while still staying in the black. The first days of 2009 have shown that many businesses are actively shopping to make sure they are receiving the best possible value. Arroyo Insurance Services offers California businesses access to over 50 A+ rated insurance carriers for a wide range of insurance policies including worker's compensation, business auto insurance, and general liability. Arroyo Insurance Services has $120 million in written premium and can help businesses that are looking to save on insurance costs while still getting the best coverage.

"These are tough times and while we never suggest dropping existing coverage, if you sit down with a client and spend some time evaluating areas where they are over insured or perhaps would be better off with another carrier we can usually save them a significant percentage," says Timothy Pine, a commercial insurance broker with Arroyo Insurance Services.

Reducing business expense is top of mind with businesses these days, and Arroyo Insurance Services works individually with each client to find a solution that is most cost effective while maintaining the integrity of the coverage. Business auto insurance is one area where companies are looking for savings.

"For a January renewal, I sat down with a prospective new client to review their existing policy and determine where we could save money. This particular client was on the brink of going out of business so every dollar in premium we could save them improved their position. My goal as their broker was to understand their business risks and build a program that covered their risks and if possible saved them money. They had a fleet of 12 vehicles but only 5-7 were being used on a daily basis since early September. We looked at the next year and determined that by placing a little more than half of the fleet in non-operational status we cut their business auto insurance by half, saving more than $30,000 in premium," says Pine.

Bankruptcy reorganization is another issue that businesses face in these tough economic times and often their insurance carriers will drop a business that has gone through a bankruptcy. Arroyo Insurance Services can work with a business that has gone through a bankruptcy and is restructuring and can find a carrier that will take them on. Arroyo Insurance Services knows the market and knows the issues that can arise after a bankruptcy, including mergers, which require specialized insurance knowledge.

Arroyo Insurance Services offers a full range of commercial insurance services to businesses, with big agency options and excellent and personalized service tailored to the particular need of a business.

For additional information, visit http://www.socalinsurancebroker.com or call (800) 401-6764.

About Arroyo Insurance Services - Arroyo Insurance Services is one of the top 20 largest insurance brokerages in Southern California that offers a wide range of commercial insurance services. They have access to over 50 top rated insurance carriers and provide general liability, worker's compensation, business auto insurance, business owner's policies and claims management services with excellent, personalized customer service and a dedication to saving their clients money on insurance premiums.

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A Strong Market for Insurance ... for Automobile Drivers

When you go to buy auto insurance in Georgia, you have almost 90 companies to choose from, says the Georgia Public Policy Foundation.Yet for most people, their choice of health insurance comes down to the two or three companies offered by their employer.The difference? The tax code doesn't warp the market for auto insurance the way that it does for health insurance.

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6 things to know about insurance credit scores

By Andrew Housser

Most likely, you know that you have a credit score that affects your chances of being approved for credit and the rates you pay for loans. But you might not know that you also have a separate, credit-based "insurance credit score" that affects the rates you pay for auto insurance.

Three major credit reporting agencies -- Equifax, Experian and TransUnion -- each report consumer credit scores, generally based on a formula designed by the Fair Isaac Corporation. Credit scores, which range between 300 and 850, are calculated using mathematical methods that incorporate credit history, amount of credit used and available, number of late and on-time payments, whether any payments due are in default and other variables.

Insurance companies use a variant of credit scoring, developed specifically for their industry, to help predict an individual's likelihood of filing an insurance claim.

In underwriting auto insurance, driving history remains the key factor, but insurance credit scores play an important role as well. Several studies have shown that credit information can indicate how a person manages financial risk. People who manage their finances responsibly also tend to have fewer accidents, which translates into lower costs for insurers. Those people, in turn, can receive lower rates on insurance premiums because they are less likely to incur costs for insurers.

With credit scores figuring heavily into insurance credit scoring, the insurance industry states that insurance scoring benefits a majority of consumers, because most people have good credit scores. The median credit score is 723, according to Fair Isaac. About 45 percent of consumers have a score between 700 and 799, and another 13 percent score above 800.

What does that mean for your insurance rates? Here are a few things to know about insurance scores -- and how you can improve your score.

• Insurance scores take debt, payments into consideration. Insurance scores examine debts, payments, credit history, bankruptcies and new applications for credit. If you have a number of new credit cards or carry high balances, those behaviors might count against you, even if your income is high. Solution: Use credit cards judiciously, make sure to pay off balances in full monthly and think twice before opening new accounts.
  
  
• Insurance credit scores are based on credit information. Insurance credit scores operate under federal laws that prohibit discrimination against consumers for reasons of ethnicity, religion, gender, marital status and birthplace. Therefore, insurance credit scoring is based solely on credit information, not on any personal information.
  
  
• Nearly all states permit insurance scoring. Only Hawaii prohibits insurance scoring to rate auto insurance policies. Several states do have restrictions on the books that limit how insurance scores can be used.
  
  
• 4. Insurance scoring is research-based. The industry has used credit information in making rating decisions since 1970. Several studies have affirmed that there is a connection between credit history and the likelihood of a person filing an insurance claim.
  
  
• 5. Negative issues diminish from the score as time passes. More recent credit activities have a greater impact on the insurance score than older behaviors. Solution: Work to pay bills on time and keep credit usage manageable to improve a less-than-perfect score.
  
  
• 6. You will be notified of score-based rates. If your insurance rates increase because of your insurance score, most companies are required to notify you. The notification -- called an adverse-action letter -- will include information on how to learn more about your score. Solution: Check your credit report regularly. If you see any inaccurate information, take steps immediately to correct the information. Also tell your insurance underwriter about any inaccuracies so that the insurer can choose to evaluate your rates differently.

Overall, the insurance industry maintains that insurance scores help most people pay less for their insurance. The scores also are said to help assign costs of coverage fairly to consumers, based on their risk profiles, and to provide fair tools for insurers to make decisions.

One thing is for sure: Insurance scores are here to stay, and so they create another reason to be smart about managing your money and credit.

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Fiscal Fitness '09: Trim $240 From Your Home Insurance Tab

Today's tip is part of our Fiscal Fitness '09 series. Every weekday this month, you'll get help getting fiscally fit as we work toward our goal of saving $2,000 to invest in three stocks!

On Monday, we went over simple ways to save $400 on your car insurance premiums. If you were paying attention, today's money-saving task should be a breeze.

Many of the same strategies for slashing auto insurance premiums -- such as increasing your deductible and making safety improvements -- can be used to cut the cost of covering your home, too.

The payoff is similar as well: Just a few simple tweaks could instantly trim your premium by $240 or more without sacrificing your level of coverage. With the average homeowner paying about $800 for coverage, according to a J.D. Power and Associates study, we're talking a 30% break on one of your biggest bills.

Three moves to $240-plus back in your pocket
Again, the following tips will sound familiar if you've already tackled our car insurance cost-cutting drill.

1. Raise your deductible and save up to 25%: According to the Insurance Information Institute, raising your deductible to $1,000 (from $250) can lower your annual premium by as much as 25%. (One note on homeowners insurance deductibles: If you live in a disaster-prone area, your policy may require separate deductibles for windstorm, hail, and earthquake damage.)

2. Purchase all your insurance from the same company and save 5% to 15%: Combining all your insurance business with one company can earn you a volume discount. Travelers (NYSE: TRV), Allstate (NYSE: ALL), and Mercury General (NYSE: MCY) all offer discounts when you buy two or more types of insurance. If you insure your car with a different company or have an umbrella liability policy elsewhere, ask what kind of deal you can strike by giving your home insurer all your business.

3. Cover small claims on your own and save 5% to 35%: Obviously you can't control the whims of Mother Nature. However, if damage is done to your abode -- whether it’s from weather or from man-made annoyances, like letting the bathtub overflow -- footing the bill on your own instead of filing a claim can be the prudent way to go for several reasons. Since claims go on your insurance record (similar to your credit report), the size and type of the claim can affect your future premiums and even put your insurability at risk. On a more tangible level, a claim-free record can earn you dollars off your premiums. Making no claims over a three- or five-year period can qualify you for a 5% discount for each year thereafter, typically maxing out at 25% to 35%. That's $40 to $280 off on an $800-a-year premium.

Every percentage savings counts
For extra credit -- and extra cash -- here are other tactics to trim your homeowners insurance premiums:

• Reinforce your Fort Knox: Things like deadbolts, smoke alarms, fire extinguishers, and burglar alarm systems offered by companies like ADT and Brink's Home Security (NYSE: CFL) don't just help you keep your home safe. They can also net you discounts of 5% (for standard fare) and as much as 20% (for a sprinkler system and alarm that automatically calls the police).

• Upgrade your infrastructure: Improvements to your plumbing or electrical systems may qualify for discounts. When you make improvements, be sure to inform your insurer and see if they'll give you a break. This is also helpful if insurability is an issue. So ask if making a few fixes (e.g. installing a new roof or replacing an old boiler) will help.

• Weather-proof your home: Punch your zip code into the search engine at disastersafety.org for suggestions on how to shore up your home against the elements in your locale. Adding things like storm shutters and shatterproof glass and reinforcing your roof may earn you breaks on your premiums. Moreover, home-improvement companies like Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) make it easier, with guides to installation and even instructor-led classes.

• Kick butts: Quitting smoking is good for you in many ways, one of which is that some insurance companies will trim the cost of premiums for customers insuring a home where no one smokes.

• Check to see if you're really still insuring that: If it’s been a while since you reviewed your coverage, you may be paying top dollar to insure no-longer-priceless stuff. Your once-new computer equipment is probably worth a lot less years later. Also, if you've gotten divorced or sent your kids off to college, there's less stuff to cover. Let your insurer know that.

Warning: Don't dump your insurer on a whim
It might be tempting to jump ship to save a few bucks. Think twice -- thrice, even -- before doing so.

Loyalty has its rewards -- and moving your business may mean sacrificing good-customer discounts you've earned over the years. Plus, insurers looking to trim their portfolios will often start with newer, more uncertain customers.

More ways to save ...

• Don't get shortchanged if disaster strikes: Surveys show that more than half of U.S. homes are underinsured by an average of 22%. Coverage based on generic formulas ($65 to $150 per square foot) won't cut it if you've renovated or failed to account for rising building costs. For $7.95, accucoverage.com will calculate your home's replacement costs. Also missing from many policies are flood insurance (assess risk and find providers at floodsmart.gov), sewage backup coverage, and adequate liability coverage, which run as little as $250, $50, and $25 a year, respectively, according to Kimberly Lankford's The Insurance Maze.

• Check your risk reputation: If you've made all the right improvements but still feel like you're paying too much for insurance, there may be something in your claims history that's spooking insurers. Premiums and eligibility are based on the five-year claims history in your home and auto insurance files. Your personal claims history and your property's history will be on file if you have one. In some states, your credit history plays a factor in setting rates. ChoicePoint (an Equifax (NYSE: EFX) spinoff) is the dominant insurance records bureau. If you have a personal or property claims file (not everyone does), choicetrust.com allows you one free look a year at your C.L.U.E. (Comprehensive Loss Underwriting Exchange) report. So does ISO Insurance's A-PLUS (Automobile-Property Loss Underwriting Service), which shows your car and property claims history through the eyes of an insurance underwriter. (Call 800-709-8842 to see yours for free.) If you really need your insurance score (similar to a FICO score), ChoiceTrust offers home and auto insurance scores for $12.95 each, including an Equifax credit report.

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BLAKE: Check insurance bill closely

The semi-annual packet from Little Green Lizard Inc. told me that my auto insurance premium for the next six months was going up by almost 20 percent.

That seemed unreasonable. There'd been no accidents, no claims, no tickets. But buried deep in the pile of paperwork was a "Dear Policyholder" letter that explained most of the hike: Under a new Colorado law, I must buy at least $5,000 in "medical payments" coverage "unless you, the named insured, reject the coverage in writing."

Ah! The ever popular negative-option purchase. If a company tried such a ploy on its own, the attorney general's office would go after it hammer and tong, just as it did in the bad old days when record companies and book clubs would send you unsolicited products and bill you if you didn't return them.

But what's a legislature for if not to mandate scams that would otherwise be illegal?

If you haven't recently received a similar letter from your car insurer, you will, just before your next premium comes due. The law became effective Jan. 1.

Medical payments coverage provides extra money for you and your passengers in the event of an accident, even if it's not your fault. It is already an option, in amounts from $1,000 to $100,000, from most companies. But you have to select it.

Only an estimated 32 percent of Colorado policyholders choose to purchase it. Why? Because if you are a senior on Medicare, or already have health insurance, it's a redundant cost. You've already got such coverage.

The annual rate for $5,000 in medical payments coverage varies from company to company, but it is about $60 per car per year, said Carole Walker, director of the Rocky Mountain Insurance Information Association. My company is asking a little more than that.

The medical payments bill, which received virtually no media coverage, was promoted by something called the Trauma Care Preservation Coalition, made up of ambulance providers, first responders, hospitals and emergency room doctors. They argued that they weren't getting paid as quickly as they did under the no-fault insurance law, which Colorado had from 1974 to 2003.

But no-fault is expensive. A study commissioned by Gov. Bill Ritter last year found that premiums dropped 35 percent in the five years since the tort system was readopted.

But no-fault keeps crawling up out of the swamp because lawyers, ambulances, first responders and the various tangential health providers (remember the aroma therapists?) profited from it. They have lobbyists and the average health consumer doesn't. The legislature responds more quickly to lobbyists.

Auto insurance companies were opposed to the medical payments bill, which was an amalgam of three separate measures. But Walker said the industry finally agreed to the final version on grounds that it was the "least onerous" alternative.

To be sure, there is another negative option in insurance law: Uninsured (and underinsured) motorists coverage. But more than 90 percent of our policyholders are happy to have it. They know what's out there on the road.

The medical payments bill included one more peculiar provision: For the first time in Colorado (or any state's) history, it prioritizes payments by the insurers. The first specified payee is the ambulance company, followed by the ER docs, then the various levels of trauma centers.

Prioritization means delay. If the ambulance company is slow to bill, everybody else has to wait longer than usual.

Read your next auto insurance packet closely and discuss medical payments with your agent, if you have one. Don't pay again for coverage you might already have, or don't want.

I signed the opt-out page and then presumptuously subtracted the $100 for medical payments from the total bill. But then I forgot to put the opt-out page in the same envelope as the check. I sent it along later. I expect the little green lizard himself to show up on my doorstep demanding an explanation for my confusion.

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Parents of Teen Drivers in South Carolina Can Save up to 25 Percent on Auto Insurance

Nationwide Chooses South Carolina to Launch National Pilot Discount Insurance Campaign

COLUMBIA, S.C., Nov 06, 2008 (BUSINESS WIRE) -- Nationwide Mutual Insurance Company announced today the introduction of the Nationwide Insurance Family PlanSM, a program available exclusively to the company's customers in South Carolina. The pilot program will allow parents of teen drivers to save up to 25 percent on auto insurance for their children.

With the Nationwide Insurance Family PlanSM, parents who have multi-line discounts with Nationwide can apply the same discount insurance to their teen driver's auto insurance policy. If the young driver maintains a good driving record, they can keep available discounts when they are ready to separate from their parents' car insurance policy.

"In the current economic conditions, we know that people are looking for any way they can to save money," said Terrance Williams regional vice president of southern states for Nationwide. "It can be very expensive when teenage children begin to drive. We hope that the Nationwide Insurance Family PlanSM will provide some relief to already tight family budgets."

A recently released report from the National Association of Insurance Commissioners showed that the average auto insurance expenditure in South Carolina increased by $2.27 in 2006. It is likely that auto insurance expenses in South Carolina have increased even more since then. Legislation passed by the South Carolina General Assembly, which took effect January 1, 2007, has increased minimum liability requirements for South Carolina drivers. It is likely that this will be reflected in next year's NAIC report, which will include numbers from 2007.

Nationwide will pilot the Nationwide Insurance Family PlanSM for South Carolina car insurance customers for the rest of the year. Based on the program's success, the company will evaluate the possibility of making it available for customers across the country.

"South Carolina is an important state for Nationwide," said Williams. "We have a strong customer base here that we'd like to maintain and grow. The Family plan allows us to deliver even more value for our customers, particularly those with families and multiple insurance needs."

Nationwide, based in Columbus, Ohio, is one of the largest diversified insurance and financial services organizations in the world, with more than $161 billion in assets. Nationwide ranks #108 on the Fortune 500 list. The company provides a full range of insurance and financial services, including auto insurance, and motorcycle, boat, homeowners, life, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions, long-term savings plans and health and productivity services. For more information, visit www.nationwide.com.

Nationwide, the Nationwide framemark and On Your Side are federally registered service marks and Nationwide Insurance Family Plan is a service mark of Nationwide Mutual Insurance Company.

SOURCE: Nationwide

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Alberta Sees 8.8 Per Cent Increase in Auto Insurance Rate Quotes in Year-End Study

2009-01-15 10:51:03 - The study, designed to spot and highlight the pricing trends of car insurance in Alberta, identified an 8.8 per cent increase in the average lowest rates quoted for auto insurance in Q4 2008 compared to the same time period in 2007.

Toronto, ON, January 15, 2009 -- Today, Kanetix® (www.kanetix.ca), Canada's shopping marketplace for insurance quotes, released the results of their quarterly Alberta auto insurance premium study.

This ‘end of year' increase comes as no surprise. While past studies suggested Albertans shopped for newer vehicles resulting in higher premiums because they typically include more coverages, this is not the reason for the increase this time around. Instead, it is due to higher car insurance rates

In the summer of 2008, the Alberta Auto Insurance Rate Board announced a 5 per cent increase in the mandatory auto insurance premiums. This increase came into effect on November 1st. If you also consider that rate increases by several insurers to the additional Alberta car insurance coverages (like collision and comprehensive premiums) were implemented, the year-over-year comparison was sure to be higher.

'No one wants to hear about car insurance premiums going up, especially given all the negative news regarding the economy,' suggests George Small, Co-founder of Kanetix.ca. 'That's why now is the time to make sure you are getting the best rate for your car insurance coverage. Simply put, why pay more than you need to for your car insurance? Too often people overpay because they assume all insurers rate their policies the same, but a simple visit to Kanetix.ca to get quotes will show how the rates insurers offer can vary wildly.'

As an online auto insurance shopping service that provides real-time quotes from many well-known competing insurers, Kanetix is in a unique position to empower insurance consumers with the tools needed to not only anticipate car insurance trends, but also to compare auto insurance quotes to find the best rate for the car insurance coverage they need.

About the study
Intended as a tool to spot and highlight the pricing trends of car insurance, the Kanetix Alberta car insurance rate study is released quarterly. Kanetix believes this study to be an accurate reflection of what Alberta auto insurance consumers are seeing when they get their renewal notice from their current insurer, as well as when they shop around for coverage. The study includes all drivers, regardless of their driving or insurance history, and includes the lowest car insurance rate quoted, no matter which company provided it (e.g. direct writing companies or broker-based insurers).

The results of the study are determined by comparing the average of the lowest auto insurance premiums quoted online for Alberta shoppers through Kanetix in Q4 2008 (i.e. October, November, and December) with the average from the same period in 2007. The results, and resulting interpretations, are based on the profile information as it is entered by the shopper and may not represent their accurate driving profile or vehicle data. As such, Kanetix can make no representation or warranty, either expressed or implied, as to the accuracy of this information.

About Kanetix
Launched in October 1999, Kanetix is Canada's leading national, online insurance marketplace. The Kanetix insurance information and shopping service brings consumers and insurance companies together in a one-stop shopping environment. Each day, thousands of consumers visit the Kanetix website to compare insurance quotes from a variety of Canadian insurance companies. Kanetix visitors can select the insurance quote of their choice and where available, choose to complete the application for coverage online or purchase their policy over the phone.

In addition to the insurance marketplace, Kanetix is a leading provider of online insurance quotation technology and develops online quotation systems and websites for some of Canada's leading insurance providers.

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Media Advisory - Issues raised about court decision upholding auto insurance cap: Insurance Bureau of Canada available to respond

HALIFAX, Jan. 15 /CNW/ - There was a press conference this morning in
response to the recent court decision regarding the $2,500 cap on pain and
suffering awards for minor injuries.
   Insurance Bureau of Canada representatives are available to respond.
Please call James Geuzebroek to arrange an interview.

   Insurance Bureau of Canada is the national industry association
representing Canada's private home, car and business insurers. Its member
companies represent nearly 95% of the property and casualty (P&C) insurance
market in Canada. The P&C insurance industry employs over 110,000 Canadians,
pays more than $6 billion in taxes to the federal, provincial and municipal
governments, and has a total premium base of $38 billion.
   To view news releases and information, visit the media section of IBC's
website at www.ibc.ca.

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AAA Michigan says it will lay off 146 workers

AAA will announce layoffs of 200 employees today in a six-state region that includes Michigan, primarily because more members are conducting their business through the Internet and avoiding the trip into branch offices, said an AAA Michigan official.

Some 146 of those layoffs will be in Michigan, including 75 in Southeast Michigan, said Nancy Cain, AAA Michigan public relations director.

The layoffs will be effective over the next month.

“More people are using the 1-800 number and going online to purchase auto insurance, make claims and contact us for travel information,” Cain said. “We are seeing less traffic coming through our branches.”

Over the past seven years, branch visits have declined 5 percent each year, Cain said.

AAA also will close 14 branch offices in Michigan, including three full-service centers and 11 insurance sales offices, Cain said.

In Southeast Michigan, two full-service centers will close in Royal Oak and Roseville, and two sales offices will close in Detroit and Warren.

Still, 35 full-service branches will be open in Michigan, including 18 in Southeast Michigan.

The layoffs and office closures will save AAA $25 million this year, Cain said. In 2008, AAA Michigan reported total revenue of $1.2 billion, down some $50 million from 2007, she said.

A four-year decline in auto insurance premiums also contributed to the downsizing, she said. AAA also sells home owner and life insurance policies.

“Since 2004 the average premium for car and home insurance has declined by $100 in Michigan,” she said. “Financially, we are strong. (The industry) is much more competitive on rates.”

Cain said while AAA has sold more auto policies, prices have gone down because of competition with other insurers.

“Revenue is down because of a lot of claims’ losses because of the weather, wind and snow storms,” Cain said. “AAA travel is also down because fewer people have money to travel.”

In addition, while still profitable, AAA has seen investment income decline because of the stock market, she said.

The six-state region of AAA, called the Auto Club Group, is composed of clubs in Michigan, Chicago, Minnesota-Iowa, Nebraska, North Dakota and Wisconsin.

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Homeowners Are Wising-Up to the Benefits of Home Insurance Discounts

WILMINGTON, N.C., Jan. 16 /PRNewswire/ -- With the current state of the economy, more home insurance customers are turning to insurance companies who offer bundling, home security and home safety discounts to outweigh the rising cost of homeowners insurance.

Home Insurance rates have steadily increased over the past five years with 42 percent of U.S. homeowners reporting a premium increase in 2008. Catastrophic storms making landfall in the U.S. are mostly to blame and have caused many insurance providers to increase rates or decline coverage in coastal/storm-prone regions.

With the unemployment rate at a 40-year high and the mortgage crisis among us, homeowners under strain from the current economic slump are feeling the affects of insurance rate hikes now more than ever.

A 2008 study by J.D. Power and Associates shows that satisfaction levels among home insurance customers have flat-lined over the past five years in a direct correlation with rising home insurance rates. Further, data from a 2008 poll on HomeInsurance.com reported that 91 percent of respondents were unaware of what discounts they were taking advantage of on their homeowners policy -- if any at all.

However, as homeowners grow more aware of the benefits of home insurance discounts, experts expect satisfaction levels to increase. For example, in the same 2008 J.D. Power and Associates study, customers who bundled their policies reported being more satisfied with their homeowners insurance.

"Bundling home and auto insurance policies with one company often allows homeowners to save 10-30 percent on their homeowners policy," said Carlos Lagomarsino, CEO of HomeInsurance.com. "It's really a no-brainer."

In addition, homeowners are now asking for home security and home safety discounts. Additional savings of 10-15 percent are often awarded to homeowners who have deadbolts, home security systems, fire alarms and/or fire extinguishers.

"In order to take advantage of all available discounts, we recommend that our customers speak with a live consultant who can offer expert advice and qualify them for discounts in their area before purchasing a policy," said Jana Bell, Senior Managing Partner of HomeInsurance.com. "Between October and December 2008 alone, we were able to save our customers $556 on average by bundling their home and auto insurance with one company."

For a list of some common home insurance discounts visit: http://homeinsurance.com/articles/home-insurance-discounts.php .

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Auto electrification needs government aid: Ford exec chair

DETROIT (Reuters) - The electrification of the car industry will need assistance from government energy policy to spur demand, though the method remains an open question, Ford Motor Co Executive Chairman Bill Ford said on Sunday.

Speaking to reporters at an event in conjunction with the North American International Auto Show, Ford also said the demand for vehicles such as an electric small car Ford Motor has plans to produce in a partnership with Magna International, is also uncertain.

"I do think we are going to need some help in the marketplace with the new administration in terms of an energy policy that would drive demand for these vehicles," Ford said of U.S. President-elect Barack Obama's administration.

Energy policy could take the form of a gas tax, purchase incentives, a program for scrapping older vehicles to spur demand for replacement cars, or some combination, he said.

"With gasoline still below $2 per gallon in some parts of the country, I think we are going to need some help."

Ford burned through $7.7 billion of cash during the third quarter and has told lawmakers that it would like access to a line of credit of $9 billion as insurance against a worsening in the economy. It does not want to tap the line.

The automaker has been in a turnaround plan for several years that includes white and blue collar job cuts, plant closings and asset sales including brands Aston Martin, Jaguar and Land Rover from its former premier auto group.

"Despite some of the economic issues we have gone through the last two years, we have kept our R&D spending alive and we have kept it in a myriad of alternate technologies," he said.

The development of lighter and more powerful batteries has been a key stumbling block for developing electric vehicles, plug-in hybrids and other vehicles, something on which Ford has seen progress in recent years.

"We don't know what the volumes are going to be, we have no idea what the demand is going to be, but it is a road that makes a lot of sense," he said of the electrification program.

One risk to Ford's electrification strategy is the threat that gas prices stay low and sap consumer demand for electric vehicles. U.S. gas prices peaked at a national average above $4 per gallon in the summer, but are half that now.

"We are betting long-term that fuel becomes dear and that energy independence becomes important not only to Americans, but people around the world," Ford said. "The bigger risk is to do nothing."

Ford Motor on Sunday announced plans to deliver electrified vehicles to the market by 2012, including a small full battery electric car in 2011 that will use the Focus compact car platform and a drivetrain from Magna.

The automaker also plans to have a full battery electric commercial van in 2010 and next generation hybrid vehicles, including a plug-in version, by 2012.

"If we go ahead and launch these vehicles and there is no infrastructure to charge them, the utilities aren't on board and there isn't incentive for the customers ... we could launch these vehicles into dead space," Ford said.

"But I don't believe that is going to happen, because I believe that the new administration and the new Congress are going to make this a high priority," he added.

(Editing by Lincoln Feast)

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Rash of car tire and rim thefts hits eastern Nassau

Talk about hot wheels.

Cops say they are combating a rash of tire and rim thefts - with dozens of reports to Nassau police since the beginning of last month - on late-model vehicles parked in South Shore communities along the Nassau-Suffolk border.

Bandits making their way primarily through Massapequa, North Massapequa and Massapequa Park have in many cases stolen all the tires from a car, authorities said.

The authorities have taken note of the brazenness of the thieves, who usually work overnight, leaving owners to wake up to find their vehicles propped up on concrete blocks.

"Look at NASCAR. They do it in eight seconds," said Det. Sgt. Lucy Graziano of the Nassau County police crimes-against-property squad, explaining that a coordinated team of thieves can remove four wheels pretty quickly.

Police say targeted cars have included Hondas, Infinitis and Nissans. The stolen wheels, which can cost $5,000 or more to replace, aren't particularly high-end or specialized.

In Suffolk, Police Det. Lt. Peter Cilentro said yesterday that his vehicle theft section said the wheel-theft problem seems to be particularly acute in southwest Suffolk, near the county border, in places like Babylon and Lindenhurst, and with vehicles made by such manufacturers as Infiniti, Mercedes and Nissan.

Detectives face a challenge zeroing in on where the stolen goods are being fenced, because very few have distinctive numbers or markings that help investigators track the true owners, Graziano said.

"They can bring them to a legitimate place and probably get decent money," she said of the thieves, although they might get only a few hundred dollars.

By contrast, replacement rims for many late-model cars can cost more than $900 each, plus $200 or so for each tire, and more than $100 for a tire-pressure monitor on each wheel, one dealership said.

A spokesman for the Insurance Information Institute said that wheel thefts would generally be covered, less a deductible, for auto insurance policyholders with comprehensive protection.

Nassau police are stepping up patrols in the affected areas, Graziano said.

Jody Calabrese, a service consultant at Infiniti of Massapequa, said the dealership has repaired the vehicles of victims of tire thefts seven or eight times since late November. He said the vehicles were mostly late-model cars.

Even the dealership hasn't been immune. On the Thanksgiving weekend, he said, "we had a set of wheels actually stolen from our lot" off an Infiniti coupe.

And on New Year's, thieves trying to steal tires at its used car dealership were scared off by a passerby but never caught.

Thieves often place paving stones behind the tires and let the air out of each, he said, "which will lower the car enough that they can take the wheel off, thus avoiding having to jack the car up," Calabrese said, showing the stone found at the dealership after the aborted New Year's heist.

The thieves' victims are not impressed.

Shelly Dougherty and her husband, Daniel, of North Massapequa woke up to an unhappy surprise early last Monday when Daniel walked out of their home to drive to the gym: All four wheels of their new 2009 Nissan Maxima were gone. Tires, rims, everything, replaced with concrete blocks, she said.

Insurance should pay most of the cost of the replacement wheels, which, in their case, will run in the thousands, she said.

Although they have another car, the theft means that husband, wife and their youngest, who is 1, must wake up early so Shelly can drive Daniel to the train station every morning.

"It's hard when you have a baby," she said.

Staff writer Andrew Strickler contributed to this story.

A thief determined to steal a set of wheels can always find a way, no matter how well the owner tries to protect the vehicle. But simple steps can make a thief's work much harder - which makes it more likely he will give up. Remember: Thieves doing their handiwork want to make as little noise, spend the least amount of time and do the smallest amount of work as possible. Some tips:

GARAGE IT. You should leave your car in a garage or parked in a well-lighted place.

GET WHEEL LOCKS. They cost about $50 for a set of four at the dealer. Each of the locks supplements a factory lug nut and can be opened only with a special key given to the owner.

"It has an odd shape in the face of it that requires a matching key in order to install or remove the lug nut," said Jody Calabrese, a service consultant at Infiniti of Massapequa in the southeast part of Nassau, which has been affected by a spate of thefts.

Without the key, a thief - no matter how good - will probably need to make a lot of noise and spend a considerable amount of time stealing your wheels.

And that would make it more likely a neighbor would hear a racket or a police officer driving by would notice something suspicious.

STASH KEY WELL. Owners need to be careful where they leave the wheel-lock key, too. "Unfortunately, the large problem is, most people leave the key in the car, which the thieves know and they'll break into the car and search for the key," Calabrese said.

- MATTHEW CHAYES

It can cost you

Replacement wheels for many new top-end cars don’t come cheap.

$900 Each rim

$200 Each tire

$100 Each tire for air-pressure monitors

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Electronic stability control: Life-saving auto technology

Simply put, electronic stability control is the most important auto safety innovation since seat belts.

That's the consensus from Consumer Reports, the federal government, the Insurance Institute for Highway Safety and many other auto industry experts.

"Our recommendation to consumers is that you want to buy a vehicle with electronic stability control," said David Zuby, a vice president of the Insurance Institute. "It's a very effective way of reducing the risk of fatal crashes."

The good news is that the high-tech system that helps prevent rollovers and other accidents caused when a car skids out of control is found on more and more of today's new cars and trucks.

The Insurance Institute says 73 percent of 2009 models will have stability control as standard fare, and it's available as an option on an additional 14 percent of vehicles.

The better news is that the full implementation of stability control — 100 percent of vehicles must have it by 2012, the federal government says — might prevent thousands of fatalities a year. Statistics show that half of fatalities occur in single-vehicle crashes, and fully half of those are preventable using ESC, according to Insurance Institute research.

Yet unlike air bags and anti-lock brakes, which most consumers have become familiar with, electronic stability control remains a mystery to most motorists. That's partly because it's a complex and relatively new technology.

And it doesn't help that automakers insist on calling it by many different names.

South Korean automaker Hyundai sees ESC as both a lifesaving technology and a competitive business advantage. That's why it puts a sticker on every new vehicle it sells (except the budget-price Accent) touting the ESC on board.

"We are definitely not a brand that embraces a technology that has not been proven effective," said John Krafcik, the acting president and chief executive of Hyundai Motor America, based in Fountain Valley. "We can't afford to do that. Electronic stability control is definitely helping to avoid fatalities."

When Hyundai introduced the redesigned Sonata in 2005, it was the only mid-size sedan with ESC as a standard feature, Krafcik said. Rivals such as Honda and Mazda have since added it to their Accord and Mazda6 models, while it remains an option on the best-selling Toyota Camry.

Research showed that stability control was the No. 1 deciding factor for buyers who picked the Sonata over the Camry, he said.

Starting in 2008, Consumer Reports magazine required that its top car picks — choices closely watched by many buyers — have ESC, either as a standard feature or as a readily available option.

"We strongly recommend buying an ESC-equipped vehicle," said Doug Love, a Consumer Reports spokesman.

The Insurance Institute for Highway Safety agrees, saying since 2007 that its Top Safety Picks must offer ESC. Its just-released top small-car picks include three vehicles with stability control as a standard feature (Scion xB, Subaru Impreza, VW Rabbit 4-door) and three with optional ESC (Honda Civic 4-door, Mitsubishi Lancer, Toyota Corolla).

The Insurance Institute's Joe Nolan noted cars aren't involved in rollovers as much as SUVs and pickup trucks, but "when they do roll, the consequences can be deadly."

The U.S. Department of Transportation, as well as the Insurance Institute, a nonprofit researcher funded by insurers, has done much of the research related to stability control. ESC will reduce single-vehicle fatal crash risk by 51 percent, and multiple-vehicle fatal crash risk by 20 percent for cars and SUVs, the institute says.

The technology is particularly useful on sport-utility vehicles, which tend to be top-heavy and more prone to rolling over. ESC reduces the risk of a fatal single-vehicle rollover in an SUV by 72 percent, according to the institute. About 10,000 Americans die each year in rollover accidents.

How many vehicles offer ESC? More all the time. It was an optional feature on the 2008 Mini Cooper, but was made a standard feature for 2009. Other vehicles, such as the Chevy Colorado pickup, Ford Escape hybrid SUV, Ford F-150 pickup and Honda Fit subcompact added ESC for the first time in 2009. A Web site, www.iihs.org/ratings/esc/esc.aspx, offers a gadget where consumers can search vehicles by year, make and model to see if it has ESC.

While standard on more new vehicles, it's affordable as an option. On a 2009 Toyota Corolla, for instance, stability control is offered for $250. Also, some insurance companies offer discounts on vehicles with ESC. Los Angeles-based Farmer's Insurance offers a 5 percent discount on collision coverage in 38 states, including California, spokesman Jerry Davies said.

While 99 percent of the 2009 model-year sport-utility vehicles provide ESC as a standard feature, just 37 percent of pickups do. It's standard on 74 percent of 2009 model-year passenger cars, up from 64 percent in 2008.

Consumer Reports and the Insurance Institute acknowledge that electronic stability control systems, which come from several auto suppliers, aren't identical.

"We test the systems as part of the vehicle's overall performance. And we do see differences in the performance of ESC systems from one vehicle to the next," said Love of Consumer Reports. "They all use slightly different algorithms, which determine when the system is triggered and how the vehicle responds."

That's not necessarily a bad thing. Someone driving a Corvette is likely to drive it more aggressively than someone behind the wheel of a minivan, and probably would want a stability control system to intervene less often. Some vehicles offer on/off switches for the feature.

Systems differ by type of car and even within a brand, said Kay Stepper, a marketing manager at Robert Bosch, which provides ESC systems to Mercedes-Benz, BMW, Toyota and others.

Still, Stepper said, "at a minimum, all are designed to provide the same level of safety."

While the number of U.S. auto fatalities per miles driven has decreased in recent years, the number of deaths has remained steady at 37,000 to 39,000 a year since 1995. Safety technologies such as electronic stability control, as well as newer innovations such as lane-departure prevention systems and predictive collision systems, are expected to lessen that number.

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South African Insurance Site Now Offers Car Insurance

Mendham, New Jersey, USA (January 2009)—A web site dedicated to offering competitive insurance rates in South Africa has launched a section on car insurance.

Car Insurance123 (http://car.insurance123.co.za) allows users to fill out a simple, online form and obtain an instant online auto insurance quote. Rates are competitive, and there is no obligation to purchase. The insurance premium is based on a number of factors including the model, age and mileage of the car, the driver’s age, driving history and a host of other factors. A quick, hassle free quote is then delivered to the customer’s email address.

The section is part of the comprehensive Insurance123 website, which offers quotes on household insurance, life insurance, commercial insurance, medical insurance and travel insurance. The site also contains tips on how to purchase insurance, how to save money on insurance, as well as a blog on insurance where customers can post comments.

The information on Car Insurance123 and all Insurance123 websites is to be used as a guide only. Customers are urged to double check the fine print when purchasing a car insurance policy, or any insurance policy.

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Ohio auto insurance rates continue decline

COLUMBUS — Ohio auto insurance rates have declined for the second consecutive year, according to the 2005/2006 Auto Insurance Database Report released today by the National Association of Insurance Commissioners (NAIC).

In 2006, Ohio had the 13th lowest auto insurance rates in the nation, holding its ranking from 2005. In 2004, Ohio was ranked 14th in the United States.

“Ohio has an extremely strong and competitive auto insurance marketplace, and Ohioans are benefiting from this competition,” said Ohio Department of Insurance Director Mary Jo Hudson. “Healthy competition drives prices lower, and we want to promote robust competition here in Ohio.”

In 2006, Ohioans paid an average $654.33 in auto insurance premiums, far below the national average of $817.11. In 2005, Ohioans paid an average of $669.87 in auto insurance premiums.


Department analysts expect that rates for automobile insurance, overall, will slightly rise in 2008. Changes in automobile insurance rates can be attributed to repair costs, medical costs, weather-related claims, and the number of cars on Ohio roads.

Ohioans with questions about insurance can call the Department's consumer hotline at 1-800-686-1526.

Source: Ohio Department of Insurance

Insurance can be a surprise to Baby Boomers

Insurance is designed to bring at least a modicum of protection in the event of the unexpected.

But over the last decade, we've met the unexpected in connection with insurance policies. I suspect Baby Boomers may have some of the same surprises.

Insurers warn us to read policies carefully. I try, but both length and lingo tend to be deterrents.

I was unaware of a common home insurance clause until my parents went into an assisted living facility, leaving their modest Michigan house unoccupied from April of that year until it sold in September a year later.

Most insurers limit coverage for vacant houses to a few months and generally won't renew a policy for a vacant house. I called a company that insures unoccupied houses. I don't remember the premium, but it came as a shock.

The agent for my parents had retired, but his replacement finally came to our rescue. Noting that they had carried both auto and home insurance with his company for half a century, and told the house likely would sell quickly, he extended the policy.

That, of course, calls to question all the advice about switching insurers for lower rates. Companies generally give breaks for multiple policies and years.

More recently I sought information about health insurance reimbursement for my annual physical. Somehow my husband was listed as the patient on the benefits statement. He certainly doesn't get the exams I do, but the insurer could not release the information to me. We have since signed a form permitting each of us to inquire about payments for the other. We also added our son's name.

Years ago we celebrated when he and his sister were no longer young drivers on our auto insurance. But we didn't celebrate when we learned that just as premiums are higher for younger drivers, they also go up at the other end of the age scale.

I'm listed as the primary driver on our policy, but because my roughly 100 miles a week driving for a part-time job brings a higher premium, I suggested listing him as the primary driver. He isn't employed.

Wrong idea. He's five years older.

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Hawaii Compares Auto Insurance Rates, Carriers' Complaint Ratios

The Hawaii Department of Commerce and Consumer Affairs Insurance Division has published motor vehicle insurance premium comparisons for all islands, as well as published customer complaint ratios for carriers in the state.

The premium comparison is based on rates for 2007 Honda Accord four-door sedan. To see the comparison, visit http://hawaii.gov/dcca/areas/ins/consumer/consumer_information/mv_prem_comp_sheet/Web_2008_Statewide.pdf.

The customer complaint ratios are listed by island. On Oahu, GEICO Insurance Co. had the highest number of complaints, with 106. The company was followed by American INternational Co., which received 54 complaints during the specified time frame. However, Liberty Mutual Insurance had the highest ratio of complaints per 1,000 autos, with a score of 0.667. GEICO's ratio per 1,000 autos was the second-highest, at .0578.

According to the Division, the comparison information on licensed insurance companies transacting private passenger motor vehicle insurance in Hawaii is published as part of a continuing effort to assist and educate consumers. These complaint ratios are based on the number of written complaints received by the Division from Jan. 1, 2007 to Dec. 31, 2007 for the 11 insurance companies that write more than 95 percent of the private passenger automobile insurance market. The numbers do not reflect any determination on the part
of the Insurance Division as to whether a particular complaint may have been justified or not and include no-fault hearing requests.

For more information, visit http://hawaii.gov/dcca/areas/ins/main/whats_new/.

Source: DCCA

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Even if a driver who hits your car is insured, you could be stuck with the bill

Common sense dictates that the insurance company of the driver who causes an accident should pay for the damage.

In Texas, if the driver who caused the accident disappears without a trace, the company can refuse to pay. Then guess who picks up the tab? The unlucky person who got hit — or his or her own insurance company.

Philip Stonecipher was driving in Grapevine in August when his car was struck from behind. The other driver asked whether he was hurt, then shared her insurance information. Stonecipher didn’t get her address and phone number, figuring her insurance company would have that.

But when Stonecipher tried to make a claim with her company, United Automobile Insurance Services, the company turned him away.

The reason given was that the person listed on the insurance policy, Itzi Saray Bernal, 33, never told United Auto about the accident. She didn’t respond to letters or phone calls. A company investigator reported being unable to find her at her apartment complex.

United Auto claims supervisor Keith Reindl, who denied payment to Stonecipher, explained: "We can’t make a determination of liability until we speak to all parties. Every Texas driver has a duty to call their insurance agent when there’s a loss.  . . .  We exhausted a reasonable effort."

Can an insured driver disappear and leave the other driver out on a limb? Apparently so. The state has a new database system — TexasSure — that allows law enforcement officers to check personal auto insurance records of drivers to verify they carry insurance, as the law requires.

But no database tracks information such as when people go AWOL on their insurance company or don’t report accidents.

The insurance industry does share a database that shows claims opened by drivers and any payments made, says Mark Hanna of the Insurance Council of Texas. But in this instance, there’s no claim, so no information would be available.

Stonecipher, whose car requires $900 worth of repairs, worked almost 20 years in the insurance business. Based on his experience, he says the other driver’s carrier should have paid his claim.

When United Auto refused, he filed a complaint with the Texas Department of Insurance.

Department officials said they are investigating United Automobile Insurance Services and its related company, Old American County Mutual, for "a pattern of problems." That’s all they would say.

The department’s Web site shows that Old American County Mutual, which is the insurance company for whom United Auto writes policies, has received more complaints than any other automobile insurer in Texas.

About one-fifth of all complaints the department receives about auto policies concern Old American, even though other companies write many more policies.

United Auto officials say that only part of the complaints related to Old American are about United Auto. Old American County works with other managing agencies in the state, too.

Nevertheless, in recent days, United Auto apparently had a change of heart. Reindl alerted state regulators and Stonecipher that "in a spirit of compromise, and to show good faith in settling this matter," United Auto officials would reopen the case and assign a private investigator to search for the policyholder.

If they don’t settle with him, the next step for Stonecipher would be to file an uninsured-motorist claim with his company and let it investigate. If his company can find the driver, it can toss it back to United Auto to seek payment.

Otherwise, his company pays.

Stonecipher could also get a refund if state investigators find that United Auto acted improperly.

Or he could seek a lawyer to help him in the courts, but with such a low claim amount, that doesn’t make sense.

Stonecipher hesitates to file a claim on his policy. Generally, drivers are not penalized on their own policies if they have no more than one uninsured-motorist claim a year, state officials say. (If a carrier does raise rates because of that, the insurance department says it wants to know about it.)

But Stonecipher doesn’t want to file a claim because he has an insurance plan that refunds him money at the end of the year if he goes accident-free. Under his plan, he says, he may also have to pay higher premiums if he turns in any claims.

Stonecipher might have been able to avoid this if he had copied information from the other driver’s license and insurance card, noted the license plate and filed a police report.

All information is helpful. In this instance, United Auto listed Stonecipher’s lack of witnesses or a police report as part of its reasons for rejection.

Stonecipher says he didn’t file a police report because it was a minor accident with no injuries. Remember, though, that drivers can call police departments after an accident and give a report over the phone and get an incident report number. That adds credibility, because filing a false police report is illegal.

Stonecipher says no witnesses could be identified because other drivers didn’t stop. Drivers involved in accidents can ask onlookers for contact information, and eyewitnesses can offer their names and numbers for contact, too.

But the best bet is a camera. The Watchdog was in an accident 20 years ago in which the other driver accepted blame at the scene but later told his insurance company otherwise.

Because of that, I carry a disposable digital camera in my glove compartment. Point and click, especially in situations such as this.

News researcher Cathy Belcher contributed to this report.

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