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Today’s News: Health Care Overhaul Receives High Marks, Louisianans Don’t Fully Understand Flood Insurance and Young Drivers Make Insurance Claims Most

Posted in Auto Insurance , Auto Insurance Claims , Health Care , Health Insurance , Home Insurance

August 6th, 2010
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The health care overhaul has received some high marks from a surprising party, a study found that Louisiana residents don’t fully understand home insurance and new data has revealed that young drivers have the highest frequency of claims.

Health Care Overhaul Receives High Marks

Democrats and even some Republicans have given President Barack Obama high marks for the way his been able to carry out the new health care law. A new poll suggests that many people are very pleased with the way he’s pushed for health insurance and executed it, especially within the law’s first 100 days of being signed. Since May, favorable reviews have increased; however, since there are still months and years to go, views could change. Most say the November elections will be the real indicator of how the masses feel (NY Times).

Louisianans Don’t Fully Understand Flood Insurance

The Insurance Information Institute recently released a study revealing that people in Louisiana — homeowners in the epicenter of Hurricane Katrina’s destruction — are less likely than others around the country to understand that a home insurance policy doesn’t cover flooding. Specifically, 16 percent of Louisiana homeowners mistakenly believe that a homeowners policy covers flooding, having no idea that a flood insurance policy from the National Flood Insurance Program is how floods are covered (NOLA).

Young Drivers Make Insurance Claims Most

A report from the Highway Loss Data Institute revealed that drivers ages 16-19 have the highest frequency of auto insurance claims, as well as the highest average loss per claim. The types of claims this age group has the highest claims for include collision, property damage liability and bodily injury coverage. On the other end of the spectrum are 30-59 year olds who have three times fewer average claims than the teenage group. However, the drivers with the fewest auto insurance claims, according to the study, are those over the age of 70 due to their increased concern about their own driving skills (Auto Quote Now).

How to Make Sure Your Auto Insurance Covers Your Injury

Posted in Auto Insurance , Auto Insurance Claims , Personal Injury Protection

July 13th, 2010
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The cost of medical care and health insurance in America is astronomical. Even though health reform measures have been passed, one of the great concerns is that health insurance rates will rise prior to all the reform taking place.

Only time will tell regarding that subject. However, a new study from the Insurance Research Council indicates that to help offset the low reimbursement to hospitals from public health insurance programs for auto accident injuries, automobile insurance companies are being targeted for the funds.

There is much crossover between auto insurance and medical coverage, though the laws dictating the minimum auto insurance coverage a person needs to carry vary from state to state. Depending on where you live, your auto insurance policy may offer some medical benefits to be used in case an auto accident causes personal injury resulting in a claim.

According to FAQ: What is the Best Medical Coverage with Auto Insurance?, “medical payments coverage will pay for the medical (and/or funeral) expenses for you or one of your passengers in case of an accident, or will also cover the insured if they are a passenger in another vehicle or if they are struck as a pedestrian.”

This bridge is usually a great tool for ensuring that car accident injury settlements can be prompt and swift. However, since the cost of medical care is on the rise, hospital costs are shifting, too.  The IRC report estimates “Bodily Injury (BI) liability claims in 38 tort [liability based] and add-on states, cost-shifting in 2007 resulted in $1.2 billion in excess hospital charges.”

As a result, consumers who fall victim to auto personal injury need to take extra precautions to ensure medical expenses resulting from an auto accident are covered. Some important steps include:

• Report the accident immediately to the police and exchange all insurance and contact information.
• Regardless of how you immediately feel after the accident, let a paramedic check you and then go to the emergency room.
• From the second you go to the hospital, start documenting everything you can by saving receipts and getting photocopies of your medical reports.
• Report every ache and pain you may have experienced.
• Some injuries, like whiplash, may not surface immediately. If you experience any delayed pain due to the car accident, make sure the doctor you meet with documents the event that could have caused the pain.
• In case you or your passengers should be in too poor of condition to follow the above steps, inform your emergency contact of these procedures in advance.

Car accident injuries can range from mild to severe and may end up costing the victims thousands of dollars. By fully understanding how the insurance system works, you can prevent large medical bills from adding major insult to major injuries.

Today’s News: New Coverage for Pre-Existing Conditions to Begin, Florida Auto Insurance Fraud Skyrockets and Gov’t Long-Term Care Program Already Doomed

Posted in Auto Insurance , Auto Insurance Claims , Health Care , Health Insurance

July 7th, 2010
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Some relief may be on the way for those who suffer from preexisting conditions as the government has set up a new health insurance program that is to begin soon. In Florida, auto insurance fraud via intentional crashes has skyrocketed and the government plans to start a new program for those in need of long-term care, but there is a major glitch that could force its failure before it even begins.

New Coverage for Pre-Existing Conditions to Begin

A new health insurance program is being launched by the Obama administration that will help Americans who are currently uninsured and also have pre-existing medical problems. The program, also known as the Pre-Existing Condition Insurance Plan, will offer lower-cost insurance coverage to those who have trouble getting insurance elsewhere. It will begin accepting applications as soon as July 1 and start offering coverage as early as Aug. 1. Some think the coverage costs could still be a bit of a stretch for many individuals and families, but will still be worth a try. Those who are interested should visit healthcare.gov for more information (Associated Press).

Intentional Crashes Cause Florida’s Auto Insurance Fraud Cases to Skyrocket

Auto insurance fraud where a policyholder crashes his or her car just to generate medical claims is on the rise in Florida, according to the National Insurance Crime Bureau (NICB). The industry group acknowledges that staged accidents surged by 58 percent to 1,999 in 2009. Among the cities with the highest number of intentional crashes was Tampa with the highest number sitting at 487. According to the group, the economic slump contributes most to the significant increase in fraudulent accidents (Business Week).

Governmentt Long-Term Care Program Already Doomed

A new program is being offered by the federal government to provide insurance assistance to those in need of long-term care. The program is needed as the costs of long-term care continue to skyrocket. However, the Community Living Assistance Services and Support (CLASS) Act, which will offer adults with severe physical or cognitive limitations receive anywhere from $50 to $75 a day to help pay for services, won’t be getting its start until 2017. Many think the program could be successful when it actually starts, but in the meantime, tons of seniors could suffer major financial setbacks trying to pay for care on their own (Delaware Online).

How Vehicle Recalls Affect Car Insurance

Posted in Auto Insurance , Auto Insurance Claims

July 6th, 2010
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Recent news has reported GM needed to recall about 1.5 million trucks, crossovers and cars with the model years 2006-2009 due to windshield washer fluid heaters that could catch fire. This massive recall wasn’t the first we’ve seen this year. In January, Toyota announced that it would be recalling 2.3 million vehicles, a number that climbed to nearly eight million by February.

While car owners were busy trying to figure out how to safely operate their recalled vehicles until they were able to get them repaired, some began to wonder what could happen to their auto insurance in the meantime. Would they be charged more for insurance now that they own defective vehicles? This is a question that is still hanging in the balance.

Auto Insurance Pricing and Recalls

Before exploring how a recall affects an auto insurance policy, examine just how auto insurance is priced. According to the Insurance Information Institute, some or all of the following items could affect the price of a policy:

• Driving history
• Physical location
• How many miles you drive
• Cost of the car
• Age and gender
• Credit rating
• Repair costs
• Safety rating

The recall of a vehicle is not among the items listed above. This is because experts tend to believe that recalls don’t seriously affect auto insurance rates. In fact, not long after the Toyota vehicles were recalled, insurers from both State Farm and Allstate Corp. came forward to say not only would individuals with vehicles affected by the recall be covered if they were in an accident, but that the recall would not have an effect on policyholders’ auto insurance rates.

Could a Recall Affect Your Insurance In the Long Term?

While insurers were certain that a recall would not affect a person’s auto insurance rates right after the Toyota recall, there hasn’t been as much certainty whether or not it could influence rates in the long-term. As mentioned above, the safety rating of a car is a contributing factor in how insurance rates are determined, so if a car accumulates too many claims or has too many recalls, the possibility of seeing an increase in rates over time could heighten.

In the case of the most recent recalls this year — Toyota and GM — the likelihood of rates increasing merely because the vehicles were recalled are pretty slim. However, this doesn’t mean a recall should not affect your approach to purchasing a vehicle or even keeping an eye on your auto insurance rates.

Watching Recalls for Your Own Safety and Insurance Pricing

Before purchasing a vehicle, it’s a good idea to find out if the model has been recalled previously. This helps to ensure your safety while in the car, as in the instance of “sticky pedals” like those found on Toyotas, and protects you from the possibility of higher interest rates.

That’s not all. If you are not lucky enough to have purchased a vehicle from a manufacturer like Toyota that was willing to accept responsibility for any accidents, you could find yourself at fault for an accident and suffer a rate increase for damaging another person’s property. These are all good reasons to make sure you know the history of not only the specific vehicle you purchase, but the make and model as well.

Also, while rates have yet to increase across the board as a result of a recall, some car models are expected to see increases sometime this year. So take a look at the vehicles out there that seem to be connected to increasing rates. You may find that you could save on the overall cost of your car by purchasing your next vehicle based on the cost of insurance.

Today’s News: Obama Wants $50 Billion Stimulus, Law Limits Health Insurance Rates and Parents Front for Teen Drivers

Posted in Auto Insurance , Auto Insurance Claims , COBRA Insurance , Health Insurance , Save on Health Insurance

June 30th, 2010
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President Barack Obama hopes to convince Congress to move forward with a $50 billion stimulus package that would, in part, re-extend the COBRA subsidy to unemployed workers who saw theirs expire recently. In other insurance news, a new law in New York will help to limit health insurance rates and a study has found that many parents are willing to “front” for their teen drivers after an accident.

Obama Wants $50 Billion Stimulus

On Saturday, June 12, Obama sent a letter to the Congressional leadership of both parties, pleading with them to add measures in upcoming bills that would help unemployed workers keep their health insurance for a longer period. The four-page letter asked Congress to pass a $6-8 billion measure to extend the 65 percent COBRA subsidy. In addition, he wants $23 billion to go to FMAP funding for states so that they don’t need to cut back on their Medicaid rolls. He notes in the letter that the current recession is the reason that benefits should be extended for a longer period than normal. (Firedoglake)

Law Limits Increase in Health Insurance Rates

New York’s Gov. David A. Paterson recently signed legislation that would give the state the power to block what might be deemed as unreasonably high health insurance rates for millions of residents. The law will cover about three million people who are enrolled in small-employer or individually-purchased plans and would require health insurance companies to apply to the state Insurance Department before they would be allowed to raise their premiums. New York currently has the highest premium average for individually bought policies. (New York Times)

42% of Parents Front for Their Teen Drivers after Accidents

A recent study shows that nearly half of parents are willing to commit auto insurance fraud by saying that they’re the primary drivers of their teens’ vehicles, especially after accidents. New research from First Car Magazine and Young Marmalade discovered that “fronting” for kids is so common that 41.79 percent of parents are willing to do it. Why? The main reason is that they hope to reduce auto insurance expenses. However, if caught, they could be prosecuted for fraud. (Insurance Rate)

Five Outrageous Celebrity Car Accidents

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance

June 24th, 2010
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In Hollywood, celebrities are usually known for their prestige, wealth and luxurious lifestyle. However, some have managed to become synonymously linked to their car accidents that have often times exposed the life of a troubling Hollywood starlet. Here, we gathered five notable celebrities along with their damaging car accidents that have occurred over the past several years.

1. Hollywood’s Repeat Offender

Damage costs to Spears’ Mercedes: approximately $1,000

Photo by: Pitxie

Beware of Britney Spears…on the road.Many of us know her as the “It” girl of our generation in Hollywood. She holds the title for several chart-topping hits as well as multi-million dollar endorsement deals. However, we’ve deemed this pop celebrity as Hollywood’s Repeat Offender. Spears has been involved in several fender benders over the last few years. After rear-ending another vehicle on one occasion, she recklessly pulled into a parking lot, side-swiping a different parked car. As if that isn’t bad enough, she inspected her own car, making sure it was OK, then left without taking any responsibility for other damage she caused. Many of these cases are seemingly careless, occurring because Spears simply wasn’t paying attention to the road (or to the parked car). Let’s not forget about the infamous time when she allowed her infant son to sit in her lap while she was driving.

2.Best Recovery Accident

Damages to Ferrari: Totaled

Photo by: PajamaWolf

Back in 2009, famed Real Madrid (former Manchester United) soccer player, Cristiano Ronaldo, was involved in a destructive car accident. While driving through a Manchester airport tunnel, Ronaldo crashed into a barrier that totaled his red Ferrari. Fortunately, no other cars were involved and no one was hurt. Witnesses say that they were surprised to see Ronaldo walk out uninjured immediately after the crash. Ronaldo resumed practice and training that morning despite the scary incident that occurred earlier in the day.

3.Most Mysterious Accident

Damages to Sheen’s Mercedes: Totaled

Photo by: Ravens_2000

Charlie Sheen faced a variety of problems this year involving the domestic disputes with his wife, Brooke Mueller, as well as controversy regarding his contract negotiations for his CBS show, Two and a Half Men. However, one odd problem this year was the fact that his Mercedes was found by police overturned on a cliff, sparking rumors about a possible tragic celebrity accident. After conducting proper police investigations, it turns out that Sheen’s vehicle was stolen from his home in Sherman Oaks. He had called earlier that evening to report that his car was missing from his home.

4.Paparazzo’s Prey

Damage costs to Richie’s Range Rover: $700

Photo by: CarollinCalico

Many of these celebrities are the cause their own tragedies. However, in Nicole Richie’s case, she was simply an innocent victim who was prey to ruthless paparazzi. A couple months ago, Nicole Richie’s Range Rover was rear-ended by a paparazzo. She claimed injuries but police were not called to the scene. Instead, she opted to see her own doctor. The paparazzo was then investigated because he was unable to show proof of a proper driver’s license and consequently arrested. Thankfully, Richie’s passenger was not injured and her baby was not on board.

5.Hall of Fame

Damage to Woods’ car: $10,000

Photo by: Brashears

Tiger Woods tops the list for the Hall of Fame celebrity car accident of all time. During a very odd morning, Tiger Woods was reportedly involved in a car crash that occurred at 2:25 a.m. just outside his private gated community home in Florida. Police reports state that he lost control of his SUV and crashed into a fire hydrant as well as a tree in front of a neighbor’s yard. A breathalyzer test indicated that he was sober. More troubling than the accident was the story that emerged after that devastating morning. Woods was pulled out of the vehicle by his wife, Elin Nordegren, who had to smash the back windows of the SUV to pull him out. By the time paramedics had arrived, he was in and out of consciousness which made people suspicious because the accident was mild, yet he had lacerations on his lips and blood in his mouth. Woods’ celebrity car accident brought light to the five year affair he had been having with multiple different women.

Celebrities are no different than us. They all have their occasional fender benders as well. However, most importantly, make sure that you’re insured so that you are covered in the event of an auto accident. Find which type of auto insurance works best for you. Contact your insurance agent as soon as possible so that they may help you file a claim.

Today’s News: Mortgage Insurance Rates to Increase, Veterans’ Health Care is Best and Georgia Stops Cell Phone Use While Driving

Posted in Auto Insurance , Auto Insurance Claims , Health Insurance

June 16th, 2010
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Congress is considering making some changes to FHA reform and as a result, home mortgage insurance rates could increase. In other insurance news, those who benefit from veterans’ health care have the best health insurance options and Georgia has taken a stand against motorists using their cell phones while driving, which could be a good thing for auto insurance.

Mortgage Insurance Rates to Increase

If you have mortgage insurance, which is to cover the costs for those who cannot pay 20 percent of their loan for their home’s down payment, you could see a rate increase. Mortgage insurance is closely associated with the Federal Housing Authority (FHA) because many homeowners seek the organization’s help when they are financially strapped.

Since the FHA Reform Act of 2010 is set to undergo changes this week, mortgage insurance could be affected. The biggest change is that the annual mortgage insurance premium could increase to 1.55 percent from 0.55 percent. (Housing Wire)

Veterans’ Health Care is Top of the Line

According to several studies conducted by a number of firms, VA health care seems to top the list among most other health care systems. Thanks to its separate, system-wide electronic health record, long-term relationships with patients, sophisticated measurement tools and coordinated approach to care, patients seem to get the best results when it comes to care.

The health care system is so highly-revered in fact that some think that health care reform and the new approach toward health insurance could see success if modeled after veterans’ health care. (Market Watch)

Georgia Stops Cell Phone Use While Driving

In an attempt to curb cell phone use while driving, Georgia’s Gov. Sonny Perdue signed new laws that prohibit drivers from using their phones while operating their vehicles. Since many accidents have been caused by cell phone use, especially texting while driving, the auto insurance industry is probably breathing a sigh of relief.

There have been many campaigns to end the act of using a cell phone while behind the wheel at the national level; however, it seems states are taking matters into their own hands in the meantime. (Worlds Breaking News)

Texting While Driving Bans: Wisconsin is 25th State

Posted in Auto Insurance , Auto Insurance Claims

May 27th, 2010
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The ongoing battle to eliminate texting while driving has resulted in Wisconsin becoming the 25th state to place a ban on this practice. There are still campaigns on the national level to eliminate texting while driving, but in the meantime, individual states like Wisconsin hope to stop their residents from continuing this dangerous activity.

Wisconsin 6th State This Year to Enforce Ban

While Wisconsin is the 25th state nationwide to enforce the ban, it is the sixth state this year to get it done. The CEO of AAA was recently quoted as saying that he believes that this ban is just one of many to come as states begin to see the relevance in stopping the dangerous activity in its tracks.

There have been many reports regarding just how dangerous the practice is; however, many drivers have continued texting and driving because of its convenience. Lawmakers and AAA hope that recent bans around the country will encourage people to pull over to the side of the road or what until they reach their destinations to use their mobile devices.

Texting While Driving Correlated to Higher Auto Insurance Premiums

Because texting while driving is considered a form of distracted driving, using a mobile device while driving is directly linked to an increase in fatal car accidents at worst, and at best an increase in auto insurance rates.

The time it takes to look down at the phone to send a text message is the time needed to react to a car that suddenly brakes in front of you. By putting the phone or mobile device away so that you can pay attention to the road, you could significantly decrease the risk of an accident.

A recent study from AAA of Southern California found that the number of drivers texting dropped by 70 percent in Orange County during the first six months after California’s ban was enforced. The hope is that bans around the country will have a similar effect to create safer driving conditions and essentially reduce auto insurance premiums for everyone.

NICB Says Suspicious Auto Insurance Claims Have Skyrocketed Along with Premiums

Posted in Auto Insurance , Auto Insurance Claims

May 14th, 2010
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The National Insurance Crime Bureau (NICB) has released a study revealing that elaborate auto insurance scams have led to a 46 percent increase in the number of suspicious claims submitted to insurers over the last two years.

Some think that the increase in auto insurance rates of 4.3 percent since the beginning of 2010 and the 24 percent increase seen over the past three years may have something to do with these scams.

Various Auto Insurance Scams Becoming Popular

According to NICM, staged accidents are just one of the many forms of auto insurance fraud that are gaining popularity among scammers. With this form of fraud, innocent drivers are lured into crashes or scammers are crashing their own cars into each other. Some are even fabricating fictitious “paper” accidents.

Another big scam on the forefront nowadays is coming from medical providers who prescribe expensive treatments for non-existent injuries.

Unfortunately, scammers on both ends of the spectrum have become very elaborate in their techniques and are no longer amateurs. This means the acts are more difficult to catch and have a greater impact on the auto insurance industry.

Avoid Being a Victim of a Scam

NICM has noted that Florida, New York, California, Texas and Illinois are the top five states that have generated the most bogus claims related to staged accidents; however, anyone in any state could become a victim.

To avoid inadvertently contributing to scammers’ goals and increasing auto insurance rates, here are some tips from NICB to stop scammers in their tracks:

• Maintain a good driving distance: NICB suggests maintaining a good distance between your vehicle and the one in front of you to avoid the “sudden stop” maneuver that could cause you to rear-end them.
• Get the details of a crash: If a scammer is able to make you rear-end them, be sure to call the police, get a report, keep the officer’s name and get a description of the damages to ensure that the scammer is unable to magnify the damage later and try to claim a large payoff.
• Take pictures: Use your cell phone camera or keep a disposable one handy to properly document the scene, especially if someone out of the blue materializes suddenly to try to direct you immediately to a doctor or attorney before you have a chance to think about what happened.

The NICB and local law enforcement around the country are cracking down on auto insurance fraud, but in the meantime, careful driving and sharp mind could stop a scammer from making the most of their scam.

Texas Auto Insurance Claims Increase by 50% Due to Weather

Posted in Auto Insurance , Auto Insurance Claims

May 5th, 2010
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A new report released by Allstate Insurance revealed that auto insurance claims due to bad weather increased by 50 percent in Texas. According to the auto insurer, the largest increases in auto insurance claims from 2008 to 2009 were in the cities of Houston, El Paso and Lubbock.

Auto Insurance Claims Caused by Hail, Wind and Floods

Texas saw its fair share of bad weather in 2009 and that weather resulted in a significant amount of damage for the state. According to Allstate, which is the second largest auto insurance company in the state, much of the damage and resulting auto insurance claims were the cause of hail, wind and floods.

In total, Texas saw $2.45 billion in catastrophic losses in 2009. This is the highest total in the nation and represented 23 percent of the $10.58 billion in catastrophic losses seen nationwide, according to Allstate.

High Insurance Claims Could Increase Insurance Rates

The increase in auto insurance claims could eventually have an adverse effect on auto insurance rates in the area. Because companies like Allstate will find themselves on the hook for billions of dollars in coverage, premiums across the board could increase in the months to come.

Unfortunately, Allstate agent Catalina Palma, who was interviewed by ABC News, doesn’t expect any change to come this year. “We know every year that we’re going to see severe storms packing hail, wind and rain,” she said.

Not great news for auto insurers or customers.