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Today’s News: Health Benefits for Federal Same-Sex Partners, Flood Insurance to Cover Oil Damage and Countdown to Prop 17

Posted in Auto Insurance , Health Insurance

June 23rd, 2010
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President Barack Obama recently announced that he would extend health insurance and other benefits to same-sex partners of federal workers, flood insurance companies say that they will be able to cover damage to buildings affected by oil damage and California residents are counting down to ballot day when they will then vote on Prop 17, which could significantly change auto insurance rates for them.

Health Benefits Extended to Same-Sex Partners of Federal Workers

President Barack Obama announced recently he would be extending a wider range of benefits to the same-sex partners of eligible federal workers. These benefits include medical treatment via health insurance, relocation assistance, credit union options and fitness centers.

The original set of benefits only included long-term care insurance along with a few other fringe benefits. According to the Office of Personnel Management, health insurance and other new benefits will become offered to same-sex partners next month. (Washington Post)

Flood Insurance to Cover Oil Damage

The Louisiana Insurance Commissioner recently announced homeowners who carry flood insurance will be covered if they have damage to their homes as a result of oil water from the spill in the Gulf of Mexico. However, Commissioner Jim Donelon noted that flood insurance would only cover structural damage to homes or businesses, not ground contamination. He is asking Louisiana’s Congress to move quickly in adding a provision to flood policies so that ground contamination will be covered since it is also not covered in home insurance policies either. (NOLA)

The Time to Vote on Prop 17 is Almost Here

On Tuesday, June 8, California residents will have an opportunity to vote on Prop 17, also known as the Continuous Coverage Auto Insurance Discount Act.

While Campaign for Consumer Rights, a campaign affiliate of Consumer Watchdog, has been vigorously fighting the act, Mercury Insurance has been backing the bill. In fact, the troubled auto insurance company has poured $17 million into advertisements to help promote the legislation. If the act passes, drivers will receive major auto insurance discounts for remaining insured while those who don’t will be penalized. (Examiner)

History of Auto Insurance Specialists

Posted in Auto Insurance

June 17th, 2010
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The first cars began appearing on roads during the late 19th century. Ever since, auto collisions have been a concern among drivers. Though liability could be determined in the case of a collision, that guilty driver did not necessary have the ability to cover the costs of the damage they created. This problem is what eventually led to the notion of auto insurance.

The Emergence of the Auto Insurance Specialists

The first auto insurance policy was created to protect drivers from such financial liability. Ohio History Central explains that in 1897, a man purchased the first-ever American auto insurance policy in Dayton for $1,000, which was to protect him should he harm a person or damage property with his car. Eventually, all states in the U.S. required drivers to have auto insurance and the Auto Insurance Specialists emerged in order to meet the increasing auto insurance needs of drivers.

As driving a car has become a part of the American way of life, numerous companies have developed that provide auto insurance policies to drivers. The Auto Insurance Specialists is now one of California’s largest auto insurance agencies.

AIS Today

Since their founding in 1968, AIS has evolved in many ways. The Auto Insurance Specialists have grown to serve over 400,000 customers and include insurance coverage for motorcycles, boats, homes and more.

AIS differs from auto insurance companies, however, because they also serve as an intermediary between the policy-seeking individual and the company that provides insurance. As they describe, AIS does the work for their customers by “shopping dozens of carriers, instantly finding you the best combination of price and protection, and saving you the time and hassle of comparison shopping.”

AIS is comprised of car insurance specialists who know the ins and outs of auto insurance and can find a policy that meets your needs. It may seem at first that the Auto Insurance Specialists cost more than traditional auto insurance providers because they charge a fee for finding you a policy. It is important, however, that you also consider the time and stress that AIS saves you. By eliminating time-consuming comparison shopping from the process of buying auto insurance, it is possible to purchase the policy you have been looking for quickly and with the advice of an expert.

Learn more about how you can get free insurance rates from companies like AIS with Go Insurance Rates.

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)

The History of Auto Insurance

Posted in Auto Insurance

June 15th, 2010
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The auto insurance industry undergoes frequent changes year after year as society changes; however, in recent times  there have been even more changes than ever.

By the beginning of 2010, every state but New Hampshire and Wisconsin had changed their law to make liability coverage mandatory. Also, members of the federal government were trying to take steps to stamp out texting and driving, as well as create national standards for teen drivers.

With changes occurring frequently, it makes you wonder how many changes have taken place since the beginning of auto insurance – and when exactly the beginning is. The history of car insurance in the United States is a long one, so we will look at it by creating a timeline of the major adjustments that have occurred over the course of its history.

3000 B.C. – Auto Insurance Came from Ancient Tort Law

Okay, so we know that there were no automobiles or auto insurance in 3000 B.C.; however, it’s important to note that the concept of auto insurance comes from the ancient Chinese whose merchants needed protection for their boats. Based on this need, tort law was created.

Torts are wrongs involving damage to a protected interest and occur when a person deliberately or through negligence harms another person or group. The ancient Chinese tort laws specifically involved personal injury laws and still are valid today. The concept of auto insurance was born out of this idea and its history as we know it unofficially starts here.

1897 – First Auto Insurance Policy (Liability) Sold

Fast forward a few thousand years and we find the first auto insurance policy for the United States, which was issued in Dayton, Ohio in 1897. The state played an important role in the early auto industry and was the site of many firsts, including the beginning of car insurance history.

The first policy was sold to Gilbert J. Loomis as a liability insurance policy from Travelers Insurance Company for $1,000. In the policy, Loomis was protected if his car killed or injured someone or damaged their property.

1907 – First Auto Insurance Company Established

In 1907, A.T. Vigernon opened a small car insurance company in Providence, Rhode Island because he believed that the automobile would be the wave of the future. Naming it Automobile Mutual Insurance Company of America (now known as Amica), it is the nation’s oldest mutual insurer of automobiles and is still in business today with 39 offices across the country.

1927 – Mandatory Car Insurance Law Passed in Massachusetts

Building on the foundation laid out by the first auto insurance policy and company – in addition to a response to the massive growth of the auto industry and increasing accidents on the road – the first mandatory car insurance law went into effect in Massachusetts in 1927.

Under this law, known as the compulsory liability insurance statute, all parties were financially responsible for their vehicles. This statute would hold up for decades as most states passed similar laws by the 1940s.

1937 – Progressive Insurance and Non-Standard Coverage

Progressive Insurance got its start in 1937 and was known for further expanding the auto insurance industry. Rather than offering the standard policy that other companies offered, it tried to fill in a gap by writing non-standard auto insurance, which covered drivers that other companies refused to insure. Later, the company was also known as the first to offer a car insurance quotes comparison.

1966 – Dodd’s Attempt at a Federal Auto Insurance Bill

In 1966, Senator Thomas Dodd (D-Conn.) made an attempt to create a federal guaranty system that would protect policy holders and claimants in a similar way that bank depositors were protected by the FDIC.

His idea came after analyzing the insolvencies of more than 60 substandard auto insurance companies. However, it was promptly shot down after the NAIC criticized his proposal as being an intrusion of state regulatory authority.

1970s – Emergence of No-Fault Auto Insurance

While no-fault auto insurance got its start in 1930, it began to emerge in the 1970s as 24 states saw it fit to veer from the traditional tort-based idea of liability insurance where each person must have some level of financial responsibility. Instead, no-fault auto insurance required that individuals injured in auto accidents be limited in their ability to seek recovery from other drivers in an accident.

Now, only 12 states operate under this law or offer it as an option while the rest still function fully under the tort-based option.

1988 – California’s Prop 103

In California, Proposition 103 passed, which required that every insurer reduce its rates to at least 20 percent less than the rates that were in effect a year prior in 1987 among other adjustments to California’s auto insurance law. Prop 103 stands as the foundation of Prop 17, which is currently being considered on California’s June ballot as the controversial Continuous Coverage Auto Insurance Discount Act.

1995-Present – Auto Insurance Offered Online, Credit History Becomes an Issue, Texting and Driving Rules Emerge

In 1995, Progressive Auto Insurance was the first major auto insurance group to launch a website, which was known as Auto-Insurance.com. Even more, it was the first to sell coverage online when it became Progressive.com two years later.

Around the same time, the issue of using credit history when determining auto insurance rates became an issue because some felt that it was more difficult for those with subpar credit to obtain reasonable car insurance quotes. This continues to be an issue today.

At the turn of the century, mobile devices became more common and as a result, more people began driving while talking on the phone and texting. In the past year, studies have emerged showing the dangers of texting and driving. As a result, the decision to ban this act has become a major focal point in 2010 state laws, as well as laws developing nationwide.

There’s no doubt that many major changes have occurred over the past century in the auto insurance industry. While it’s difficult to fill in every detail that occurred around the nation, it’s good to be able to answer some car insurance questions about how the industry got its start and made its way to present day.

Today’s News: Most Dangerous Cities for Drivers, Health Care Costs to Increase and Insurers Want Laws to Toughen

Posted in Auto Insurance , Health Insurance

May 25th, 2010
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If you’re wondering where your auto insurance rates could suffer the most, take time to review the 10 most dangerous cities for drivers. In other insurance news, employers believe health care costs will increase due to health care reform and insurers predict higher costs due to unfavorable investment practices.

Insurance.com Lists the 10 Most Dangers Cities for Drivers

A new study released by Insurance.com lists the 10 cities most known for being dangerous for drivers. The most dangerous cities of the 10 included Baltimore, Md., Johnstown, Penn., Portland, Maine, Des Moines, Iowa and Erie, Penn. Baltimore topped the list because it tallied the most claims for everything from fender benders to vandalism and theft.

As a result, 36.5 percent of its drivers claim a prior accident when receiving an auto insurance quote. On the other end of the spectrum was Yuma, Ariz., listed as the safest city. (PR Newswire)

U.S. Employers Expect to See Significant Health Care Cost Increases in 2011

Roughly 40 percent of employers who participated in a nationwide survey conducted by workforce consulting firm Mercer said that they anticipate health care costs to increase by 2 percent, while 25 percent expect an increase of 3 percent or higher and 30 percent have no idea what impact they might see as a result of health care reform.

Unlike health insurance companies, employers also say that they’re not eager to make the health insurance changes that are required of the new bill. (Reuters)

Insurers Predict Higher Costs if Laws Don’t Toughen

Insurance companies recently addressed the National Association of Insurance Commissioners in regards to practices conducted by investors that could eventually result in insurers needing to increase their costs.

One of the many unfavorable practices includes investors paying terminally ill people to be named as annuitants in variable annuities, meaning they become the person whose death triggers a death benefit. Insurers warn that this and other practices, if not stopped by law, could force companies to raise insurance prices to protect themselves. (Wall Street Journal)

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.

Today’s News: Trends Impact Home Insurance, IIHS Warns of Low-Speed Vehicles and Technology Could Lower Life Insurance Costs

Posted in Auto Insurance , Home Insurance

May 24th, 2010
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While recent trends in the world of home insurance appear to be increasing costs for homeowners, new technology in the world of life insurance could lower costs. Also, the Insurance Information Institute is warning drivers about the dangers of low-speed vehicles on the road.

Trends in Home Insurance Are Affecting Costs

New issues in the world of home insurance, including living in coastal areas, lower home prices and credit scores, have an effect on prices in the industry. According to Consumer Reports, even Chinese drywall issues are having an effect as homeowners find themselves displaced and having to pay for repairs associated with this problem.

Some think these new trends may be a new part of the home insurance fabric. And unfortunately, Consumer Reports predicts that these trends could permanently increase the price that homeowners are charged for coverage. (The Examiner)

Insurance Institute for Highway Safety Warns about Low-Speed Vehicles

The Insurance Institute for Highway Safety recently revealed that low-speed vehicles need to stay off of public roads after completing a recent round of crash testing. The organization hoped that the tests would convince low-speed vehicle owners to stop sharing the roads with regular traffic due the dangers involved.

While 45 states have passed laws allowing electric vehicles in areas with speed limits of 35 miles per hour or less, the cars are less secure, prompting IIHS to warn against the practice to increase safety and protect auto insurance rates. (New York Times)

SmartSAFE Electronic Signature Could Lower Life Insurance Costs

eSignSystems announced today that it would conduct demonstrations of its SmartSAFE electronic signature and vaulting solution at the 2010 ACORD LOMA Insurance Systems Forum. The new technology would allow policyholders to sign documents from the comfort of their homes.

The company notes this convenience would speed up the process of new applications and could eliminate or reduce costs associated with handling and faxing paper documents. The good news is that this technology could not only add convenience to life insurance policyholders, but also lower costs as well. (Market Watch)

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

Posted in Auto Insurance , Save on Auto Insurance

May 21st, 2010
1 Comment

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.

Today’s News: 46% of College Grads Not Interested in Insurance, New York #1 in Staged Auto Accident Fraud and Uninsured ICU Patients More Likely to Die

Posted in Health Insurance , Student Health Insurance

May 21st, 2010
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Health insurance is a hot topic today as we find that young people starting their lives are not interested in coverage, while we see that those who forgo coverage have an increased chance of death. And in auto insurance news, we see that the Big Apple has received an unwanted distinction after raking in the most staged auto accidents claims.

Nearly Half of College Grads Aren’t Interested in Health Insurance

A new survey from eHealthInsurance revealed that one-in-five (21 percent) recent college graduates are uninsured, while less than one-third are able to confidently define basic health insurance technology.

But even more interesting is that while health care reform legislation was partially designed to make sure younger people are healthy and insured, the study found that 46 percent of those surveyed would prefer to live on their own and without health insurance after graduation, rather than live with their parents and be insured. (Market Watch)

New York #1 in Staged Auto Accident Fraud

According to the New York Alliance Against Insurance Fraud, New York City has been named the nation’s number one municipality for staged auto accident claims. The stats come from a report from the National Insurance Crime Bureau (NICB) that found 1,304 claims involving staged auto accidents were generated in NYC from 2007 to 2009.

Tampa, Florida was known as the worst city for auto insurance fraud, but according to the NICB report, the city only had 562 staged claims. (Property-Casualty.com)

Study Finds Uninsured ICU Patients Are More Likely to Die

A new study released by the University of Pennsylvania has found that individuals who enter intensive care units (ICUs) in Pennsylvania without health insurance are 21 percent more likely to die within 30 days than patients with private insurance.

The study showed that critically ill patients without insurance were more likely to arrive to the ICU in advanced stages of an illness because they had not sought care previously. Also, those without insurance were found to not prefer being kept on life support as long as insured patients, decreasing their potential life span. (Reuters)

Today’s News: U.S. Vehicle Thefts Decline, Life Insurance Outlook Improves and California’s Low-Cost Auto Insurance to Extend

Posted in Auto Insurance , Low Cost Car Insurance

May 20th, 2010
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The auto insurance industry is benefiting from a decline in auto thefts as well as an extension in low-cost coverage for one state. Life insurance is seeing improvements as well, as Moody’s brings good news about the state of the industry.

U.S. Vehicle Thefts Decline for 6th Year Straight

Good news for the auto insurance industry. According to the National Insurance Crime Bureau, auto thefts have declined nationwide for the sixth straight year. The bureau’s recent report on thefts shows that of the 366 Metropolitan Statistical Areas, 304 have reported lower rate of thefts for 2009 than the year prior. Fewer thefts have a positive effect on auto insurance rates, so the lower incidences of theft help keep rates lower. (Business Week)

Moody’s Says Life Insurance Outlook Has Improved

Moody’s Investors Service has upgraded the U.S. life insurance outlook from negative to stable. This upgrade shows that Moody’s expects the industry’s financial strength to grow in the next 12 to 18 months. However, the report looks at the overall state of the industry and not individual life insurance companies, one-third of which are still rated with negative outlooks. (Life and Health Insurance News)

Senate to Look at Bill that Extends California’s Low-Cost Auto Insurance

A bill that will extend California’s Low-Cost Automobile Insurance program has been sent to the state Senate after clearing the state Assembly in a 73-3 vote. Lawmakers hope that by extending the program, drivers suffering through these tough economic times will have continued access to affordable auto insurance.

A similar bill was vetoed by Gov. Arnold Schwarzenegger in 2009, but the new bill accounts for his objections. If the bill passes Senate, it could be extended through 2016. (Insurance News Net)