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Today’s News: States Struggle to Cover Medicaid, Employers Want Proof of Kinship to Insure and Auto Insurer Agrees to Rate Cut

Posted in Auto Insurance , Farmers Insurance , Health Insurance , Medicaid , Save on Auto Insurance

August 11th, 2010
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If Congress fails to cover Medicaid costs this fiscal year, states could face a massive budget hole they will be forced to fill on their own. In other news, employers plan to toughen their health insurance guidelines to require employees to prove the kinship of their adult children and an auto insurance company has agreed to a rate cut that could benefit policyholders.

States Struggle to Cover Medicaid

States have already been forced to fill an $84 billion gap in order to balance their 2011 fiscal year budgets, but it appears that they may have to come up with even more money if Congress is unable to cover the growing costs associated with Medicaid soon. Specifically, states nationwide could face a $12 billion hole that they will be required to fill, with California, Texas, North Carolina and New York each facing upwards of $1 billion on their own.

Congress lawmakers have stalled with any passage of Medicaid assistance due to fears of a national deficit increase. Unfortunately, states may have to bear the brunt of these fears for another year (CNN Money).

Employers Want Proof of Kin to Insure

Now that health care reform is requiring plans to cover dependents until the age of 26, many employers are expecting to pay an increase of up to 9 percent to cover the costs. These costs will trickle down to employees, resulting in an increase in premiums on health insurance.

However, premiums will also be raised in order to weed out ineligible dependents, something companies are expected to formally announce soon as they begin to require proof that your dependents are actually yours. Whether through marriage certificates, birth or adoption certificates or proof of legal guardianship, you will have to do more work to prove a dependent is legit in the near future (CNN Money).

Auto Insurer Agrees to Rate Cut

Some lucky California Farmers Insurance customers will receive a 10-percent break on their auto insurance as a part of an agreement reached by the California Department of Insurance and the insurance giant. The rebate will only be offered to customers with policies that renew between July 15 and Jan. 15 and it is only offered one time.

For most, the rebate will average about $50 per policy; however, if you’re planning on spending your money anytime soon, you’d better make other plans since it won’t be mailed to customers until February 2011 (Sacramento Business Journal).

Today’s News: Insurance Available for Early Retirees, Chinese Drywall Goes to Trial and Car-Sharing Insurance Bill Passes

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

July 12th, 2010
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Good health insurance news is on the horizon for workers who decide to retire early, Chinese drywall sees its first trial jury, something that could possibly affect thousands with home insurance and the California Assembly has passed a new sharing auto insurance bill.

Two New Health Insurance Options Available for Early Retirees

Many early retirees have a difficult time securing health insurance because they are no longer covered by their employers after their COBRA benefits run out and they may have a few years to go before qualifying for Medicare. However, the government is now offering two solutions under health care reform to help early retirees afford insurance. The Early Retiree Reinsurance Program, which launched on June 1, will offset some of the costs of medical and prescription coverage for retirees ages 55 to 64. And a second program, which launches in July, will create “high-risk” pools in each state and D.C. to help those with pre-existing conditions afford coverage. (Wall Street Journal)

Chinese Drywall Problem Goes to Trial in Florida

The Chinese drywall issue that has plagued many homeowners for months is seeing its first jury trial in Miami. Homeowners whose houses were built with a specific drywall made in China found that their pipes were corroding and dwellers were falling ill. However, when they made claims with their home insurance companies to have the drywall replaced, many were dropped from their policies. The trial in Florida involves Banner Supply Co., which sold drywall in the state since 2006, and how the company handled business after learning that they drywall was tainted. (Tampa Bay Online)

Car-Sharing Insurance Bill Passes

A new car-sharing auto insurance bill has passed in California that will allow car owners to share their cars while maintaining their personal auto insurance policies. Typically if a car is used in the form of a taxi service then it requires a commercial license and pricier coverage. But now that car sharing services like Neighborhood Ride have emerged, drivers can share their cars and receive money but still be considered a carpooling volunteer. The insurance bill is meant to help maintain the charitable nature of the service and helps drives save on auto insurance. (Streetsblog San Francisco)

Today’s News: States Get $51 Million to Rate Health Insurance, Prop 17 Gets Shot Down and AIG Repayment Prospects Look Shaky

Posted in AIG , Auto Insurance , Health Insurance , Save on Auto Insurance

June 25th, 2010
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The U.S. Department of Health and Human Services has made grants available to states to help them enhance their health insurance rate review programs, California’s Proposition 17 auto insurance bill does not make the vote and AIG looks to be struggling to fulfill its promise to repay taxpayers.

$51 Million to Rate Health Insurance

Every state, as well as the District of Columbia, has been granted $1 million to work on a process that will help it review and give approval to health insurance premium requests. In total, there is $250 million to give out to states under the Patient Protection and Affordable Care Act, but the $51 million is the initial portion being used to get the programs started. The deadline for states to grab their share is July 7, while the second round of grants is expected to be distributed before the end of the year. (Insurance News Net)

Prop 17 Gets Shot Down

After months of debates on whether California drivers would benefit from Proposition 17, also known as the Continuous Coverage Auto Insurance Discount, the voters gave the ultimate answer: no. Prop 17 was best known for being advertised as a major benefit because it would provide auto insurance discounts to those who maintained their coverage continuously. However, opponents disliked the bill since drivers who were unable to maintain coverage would suffer a penalty. With 99.1 percent of the votes in, Prop 17 was losing by 158,000 votes. (San Francisco Chronicle)

AIG Repayment Plans Fading

After AIG’s attempt to sell its Asian life insurance unit went bust when it refused an original offer from Prudential PLC – an act that resulted in an even lower bid from the buyer – some wonder whether the insurer will be able to repay its debts to taxpayers. The $35 billion that AIG could have gained would have placed a significant dent in the $132.6 billion it borrowed. However, the company now has to try to sell the life insurance unit again to try to repay what is owed. (CNN Money)

What to Do If Your Auto Insurance is Overcharging You

Posted in Auto Insurance , Save on Auto Insurance

May 25th, 2010
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It’s not always fun to pay for auto insurance coverage, but it could easily become upsetting if you find out that you’re being overcharged. Some insurance customers in California are processing these same emotions as news is revealed about auto insurer Mercury Insurance and the possibility that it has overcharged its customers.

The commissioner for the California Department of Insurance (CDI) is undergoing an investigation; however, in the meantime customers have to decide what to do on their end. If you find yourself in this situation, should you look for new auto insurance, take action against the company or do nothing at all. We will explore some options to consider if you think your car insurance company is overcharging you.

File a Complaint, Then Let Nature Take Its Course

In the case of Mercury Insurance, it seems that complaints had been filed, which prompted the commissioner to get involved. If you find yourself in this situation, you could very well start with contacting one of your company’s auto insurance specialists to see why you seem to be charged more than necessary.

If nothing is settled by taking this route then you could consider contacting your local department of insurance to file a complaint. Your call could very well prompt an investigation of the insurance company’s activities. If so, after filing your complaint, you could simply let nature take its course.

Initiate a Law Suit

There have been many cases in history where auto insurance companies have been sued by individuals or groups of individuals who have been overcharged.

For instance, in 2006 a class action lawsuit was filed against State Farm Insurance in Honolulu, Hawaii because the provider was improperly using credit scores to set rates for Hawaii customers, thus overcharging them for coverage.

The lawsuit included 1,396 State Farm policy members whose credit reports were misused. Rather than going through a long, drawn out lawsuit, State Farm agreed to settle the case for $1.2 million.

Of course, initiating a lawsuit or your own, or finding that it could escalate to a class action lawsuit where other parties are involved who have suffered the same setback could become time consuming. So if you decide that you want to take this route just to make sure you’re getting the best car insurance rates, it’s important to make sure that you’re ready for all that the process entails.

Find a New Auto Insurance Company

Another option that you have if you think you’re being overcharged is to consider a new car insurance policy with a different company. By conducting a quick auto insurance quotes comparison among the various companies out there, you could see who is charging the best rates for auto insurance.

However, before you get started, it’s a good look at the small print on your auto insurance policy, as well as all of the perks that may come with it. For instance, you could receive a discount for purchasing online auto insurance or adding a home insurance policy to your account.

Or you might find that a company could add a one-time service fee that others don’t. The idea is to cover your bases so that you get the best all-around coverage possible, especially if you’re leaving a company that has delivered the goods but seems to be overcharging you. So seek great auto insurance quotes, but also look for what the insurance company could do for you if you need to file a claim.

Of course, you don’t want to set out to get a cheap auto insurance policy without making sure that a company you’re working with will actually take care of you. Instead, you want to make sure that you’re being charged fairly for your coverage. So if you think that your company is taking advantage of you, hopefully one of the above options would help to you find the auto insurance best for you.

Report Shows Ford Cars Better for Auto Insurance Repair Costs

Posted in Auto Insurance , Save on Auto Insurance

May 24th, 2010
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A new NHTSA report has revealed that on average Ford cars are cheaper to repair after a collision, which means auto insurance companies have fewer costs to endure and could in turn offer cheaper rates to their policyholders.

The 2010 Relative Collision Insurance Cost Information Booklet, released by the National Highway Traffic Safety Administration (NHTSA), helps car insurance companies determine how to set premium costs for cars and is indeed important for those who are trying to choose what cars to buy.

Ford Cars Are Cheaper to Repair

According to the report, Ford, Lincoln and Mercury owners may enjoy cheaper auto insurance rates than some other owners with comparable cars because of the affordable repair costs associated with these vehicles. Overall, these three vehicles have the lowest collision insurance costs of any automaker out right now.

More specifically, the following 2007-2009 models are the cheapest to repair:

• Ford Taurus
• Ford Focus
• Ford F-Series trucks
• Mercury Grand Marquis
• Mercury Mariner
• Lincoln Town Car

According to the report, nearly 78 percent of Ford, Mercury and Lincoln models are rated better than the industry average in claims costs.

Choosing Your Car Based on Insurance Isn’t a Bad Idea

Many car buyers don’t think that choosing their vehicle based on the auto insurance rates they’ll be charged is important. But as you’ve probably already experienced, auto insurance costs can indeed vary significant depending on the car type, which is why it’s good to at least consider getting an insurance quote before buying a car.

In the case of the NHTSA report, it seems that auto insurance quotes could be a bit cheaper for some Ford models than other vehicles on the road. So if you’re considering a car partially based on its insurance costs, you may want to think about adding a Ford vehicle to the list.

8 iPhone and Android Car Insurance Apps That Can Save You Money

Posted in Auto Insurance , Save on Auto Insurance

May 21st, 2010
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A lot of auto insurance companies are making it possible for customers to take advantage of cool new iPhone apps and additional smart phone apps. Whether you’re checking auto insurance rates, getting defensive driving lessons or submitting a claim, being a safe driver and managing your auto insurance has never been easier.

If you have an iPhone or other smart phone, now’s your chance to learn about the many apps that are available to you. Here is a quick rundown of the car insurance apps available to you.

State Farm Steer Clear iPhone App

The Steer Clear iPhone App from State Farm Insurance was recently launched by the insurer to help drivers up to the age of 25 improve their driving skills. In order to use the app properly, the driver must complete assignments like locating vehicle controls, including hazard lights, and making sure to slow down at yellow lights.

If the assignments on this State Farm iPhone app are completed, the driver becomes eligible for auto insurance discounts and also has the benefit of knowing they’re a safe driver.

Help I Crashed My Car

The Help I Crashed My Car Blackberry cell phone app allows you to contact your car insurance company, a body shop and up to 3 family members if you’ve been in an accident. This is very useful if you’ve been injured as well because this free Blackberry app links up with your phone’s GPS system to help you find police, hospitals and rental facilities in the area that you’ve had the accident.

Nationwide Insurance Cartopia

In Dec. 2009, Nationwide Insurance introduced a new free iPhone application called Cartopia that offers a number of features for options for car buyers and prospective Nationwide customers. By just entering a vehicle’s VIN, you can get a free AutoCheck vehicle history score from Experian Automotive. Also, you are able to check a car’s trade-in value, retail and dealer invoice pricing, estimated monthly payments and loan rates. And if you want to check the cost for insurance, you could receive free quotes from Nationwide insurance.

R-U-Buzzed?

We all know that drinking and driving is a very dangerous habit and should never be practiced. Not only does it threaten the safety of everyone on the road, it could increase your auto insurance rates. This is why the R-U-Buzzed iPhone app was released.

By entering your weight and what you drank into the application, you will receive a fairly-accurate estimate of your blood-alcohol content and a recommendation of whether or not you should drive.

Geico Glove Box

Geico Auto Insurance offers an iPhone app called the Geico Glove Box. It offers a lot of great features to Geico customers, including offering account access and claims assistance. Also, you can take advantage of videos, how-tos and roadside assistance.

Hartford Mobile iPhone App

Hartford Financial Services Group recently released its own free iPhone app, known as Hartford Mobile for its customers. The application offers a lot of great features, including offering access to an auto accident checklist, help with submitting a claim, an interactive Emergency Kit Checklist, auto repair facilities, accident history, replacement vehicle information and a glass repair database.

ACP Interactive Blackberry App

If you own a Blackberry and find yourself in a car accident, you could quickly and effectively submit a car accident claim – if you have the InsPost Auto Claims Reporting App. The app was launched in 2009 by California-based ACP Interactive and allows customers to instantly start the claims process that will be sent to your specific auto insurer.

Since most Blackberry phones have cameras, you can take pictures of the accident to help enhance the process. To take advantage of this useful car claim option, now’s the time to get your free app.

Progressive’s iPhone and Android Apps and New Mobile Site

In an effort to ensure that its customers have the best mobile car insurance experience possible, Progressive Insurance not only offers new phone apps for iPhone and Android, but also introduced a new mobile site to make sure its apps are used with ease.

Some benefits of the new apps and site include seeing crash test results and recall notices, comparing costs of insuring different cars, finding agents’ offices on an interactive map, requesting a quote, making payments, retrieving a copy of your insurance ID card, receiving mobile alerts and making Progressive insurance claims via their apps.

There’s no doubt that there are plenty of great new mobile phone apps to take advantage of, so if you own an iPhone or other mobile device, it’s time to see what types of apps could improve your auto insurance experience.

And if you don’t have phones that are compatible with the cell phone apps, you could quickly and easily search for affordable auto insurance quotes with Go Insurance Rates.

Why California’s Proposition 17 Matters

Posted in Auto Insurance , Auto Insurance Companies , Save on Auto Insurance

May 11th, 2010
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Coming up on next month’s ballot in California is a major auto insurance initiative that could have a huge effect on how drivers are charged for their coverage. The initiative is known as Prop 17 and has been making a lot of noise in recent months due to the continuous auto insurance discount.

Some say that the new proposition will be beneficial to customers because it offers a discount to individuals who are able to maintain their coverage continuously, even if they switch auto insurers. However, others say that those who are not able to maintain continuous coverage at no fault of their own could suffer from it immensely due to excessive surcharges.

Thanks to this bill, advocates and opponents have been fighting tirelessly for months to push their own agendas. Now, it will be up to voters to decide their fates.

The Fight Over Prop 17

If you’re not familiar with Prop 17, also known as the Continuous Coverage Auto Insurance Discount Act, then now’s the time to get up to speed. This proposition was introduced last year and heavily promoted by now troubled auto insurer Mercury Insurance. However, the proposition also received a lot of opposition, especially from Consumer Watchdog’s campaign affiliate, Campaign for Consumer Rights.

The organization believed that the proposition would unfairly punish individuals who were unable to maintain their continuous auto insurance coverage by charging them a major surcharge to re-establish their coverage. It felt that these heavily-promoted persistency discounts would only work for individuals under specific circumstances and would not help senior citizens, injured or disabled individuals and military personnel.

How Prop 17 Could Benefit Customers

Despite the fact that those who struggle to maintain their coverage could be hit with a surcharge if they want to reinstate their coverage, there are some benefits to this California persistency discount:

• Discount for continuous coverage: If you maintain your coverage continuously, you will be rewarded a discount on future auto insurance.
• Switch auto insurers without penalty: If you want to switch to a new auto insurance company, you can simply roll over your coverage credit like a 401(k) plan and still be considered a person with continuous coverage.
• 90-day grace period for insurance cancellations: If you do cancel your auto insurance for some reason, you have 90 days to reinstate it before you’re no longer eligible for the discount.
• Increased competition: With more auto insurance companies realizing that customers can switch companies and keep their discount, some predict that the industry will become more competitive in order to keep and lure in customers.
• The roads may be safer: If more people are able to take advantage of the persistency discount term simply for keeping their insurance, some think more will obtain and keep their insurance, which in turn helps keep the roads safer.

The Persistency Discount Isn’t New

While California is trying to make the persistency discount a law, the concept is actually not new for auto insurance companies. For instance, some are already able to take advantage of the AAA persistency discount and the Geico persistency discount if they are long-term customers.

However, the major difference between the discounts offered by these companies and the discount California is trying to implement is that you don’t have to stay with the same company to receive the discount.

California’s proposed insurance discount could possibly encourage other states to follow its lead if it is successful. This, in turn, could encourage more drivers to purchase auto insurance, which is something that benefits everyone.

H.E.A.T. Warns of Auto Theft Crimes that Could Raise Insurance Rates

Posted in Auto Insurance , Save on Auto Insurance

April 30th, 2010
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According to H.E.A.T. (Help Eliminate Auto Theft), Michigan drivers, as well as drivers around the country, should be warned about the various types of auto thefts that are on the rise. These auto thefts could not only cause unnecessary hardships, they could quickly increase your auto insurance rates.

Auto Theft Crimes on the Rise

According to H.E.A.T., there are a number of specific auto theft crimes on the rise. Here are the crimes the organization listed:

• Component theft: This is the theft of vehicle parts like tires, rims, airbags and navigation systems, which are being sold to crooked dealers and repair shops.
• Online fraud: With this type of auto theft, trading and selling stolen vehicles via “open market” sites like Craigslist.org.
• Vehicle re-tagging/cloning: Thieves are taking legitimate VIN numbers from cars matching the year, make, model and color of a stolen vehicle and swapping or duplicating the identifying digits.
• Check fraud: In this scenario, vehicle buyers are offering fake certified checks to sellers in order to purchase a vehicle. To get this done, the buyer insists that the transaction take place in the evening or on a weekend when the check can’t be immediately verified.

How Auto Theft Could Increase Auto Insurance Rates

There are a number of ways that auto thefts have a directly negative effect on auto insurance rates:

• Personal coverage: If your car gets stolen, the auto insurance company may have to pay to recover the vehicle. This will more than likely increase your premium significantly.
• Coverage nationwide: When auto thefts increase in a certain area or nationwide, this has a huge effect on insurance rates across the board. Car insurance companies don’t like to pay for auto thefts, so if they think they’ll have to cover them, they’ll increase premiums to anticipate the losses.

Because auto theft seems to be increasing across the country, it’s good to make sure your car is protected. This way, the only reason your auto insurance rates will increase will be due to yearly increases.

How Do I Know if I’m a High-Risk Driver?

Posted in Save on Auto Insurance

April 9th, 2010
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Not all drivers are created equal.There are some days where you just hop into your vehicle, drive around and realize that everyone else on the road is a menace to society. What you need to pay attention to are the days where everyone is seems well behaved as on those days, you may be the one ruffling feathers on the freeway.

We have all encountered vehicles being navigated by jerks, people on their cell phone or doing things that should only be done in the privacy of their home. Lawmakers and concerned citizens are working aggressively to implement laws to prevent distracted driving, but until things really change we all need to share the road. Included in that mix are drivers who only qualify for high-risk auto insurance.

We are all guilty of occasionally being a sloppy driver and before you start judging your neighbors, you need to determine your high-risk behaviors. For all you know, you may be on the way of being classified as a high-risk driver by your insurance providers and may be forced to secure coverage from theFacility Association.

If any of the actions below seem like common behavior for you, chances are you may be a high-risk driver and on your way to needing to secure ahigh-risk auto insurance quote:

• Gotten multiple moving violations over a short time span
• Fiddle with your cell phone, PDA and other electronic devices instead of keeping your eyes on the road
• Driving buzzed or drunk, regardless of whether or not you were caught by the authorities
• Are not an experienced driver
• Are the owner of a highly modified car
• Tends to be overly aggressive
• Have not been covered by auto insurance for any time period

Auto insurance premiums are determined by several factors. Your age, driving history and where you live are all part of the equation. If an insurance company is unimpressed by any of those characteristics you will end up paying significantly more or they may even deny providing you with coverage. If that is the case, you will need to explore other insurance options including finding a policy specifically designed to be acheap high-risk auto insurance plan.

How To Pick The Best Auto Insurance Agent

Posted in Auto Insurance , Save on Auto Insurance

April 5th, 2010
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In the digital era, many people have decided to forgo the more traditional option of choosing an insurance agent and elect to purchase insurance online. But there are benefits to choosing an agent who works for you, and with you.

Benefits of Using an Insurance Agent

Dealing with a real, live person increases the trust factor immediately. It’s important to be able to trust your insurance company and your agent. After all, they may be the ones bailing you out and saving you a lot of money in the long run.

Other benefits include:

• They know you on a personal level.
• You have a familiar voice to call when something goes wrong.
• They will work with you to find affordable insurance and potentially discounted rates.

Types of Agents

There are two different types of auto insurance agents. In the first case an agent may be working independently with multiple insurance companies. They can shop around to find which company will give you the best rate.

The other type, a captive agent, is employed by a single insurance company.

Choosing which type of agent you want to work with is more or less personal opinion. If you already have a particular company you are partial to, then go with a captive agent. If you’re unsure, it might be wise to go with an independent agent.

Choosing Your Agent

Now that you’ve decided which type of agent to go with, you need to decide which individual is right for you.

The first step is to call around to different insurance companies and talk to agents representing them. Obviously most people are looking for the cheapest auto insurance quotes, but the cheapest quote doesn’t mean you’re getting the best deal. Make sure you know what type of coverage you are getting with each quote. For example, liability coverage is going to be cheaper than collision.

Pay close attention to their customer service. Ideally, you’ll never have to file a claim with your insurance company, but chances are you will at some point. When this happens you are going to want an agent that will get the process moving quickly. Getting into a car accident and filing a claim is already stressful – an agent should be able to keep your stress levels low.

Check Your Agent’s Background

If you decide you like a particular agent, do a little research first. Talk to a local body shop to see if they have dealt with the agent in the past. Visit your states’ Department of Insurance to verify the agent is licensed in your particular state. Each state has their own particular web site dedicating to protecting consumers. Many insurance companies offer insurance in all states, but others may only offer it in a few.

If you’re ready to look for a car insurance quote, visit Go Insurance Rates, and get in touch with an agent today.