Archive for the ‘Auto Insurance’ Category

Driving in Snow and Ice

The best advice for driving in bad winter weather is not to drive at all, if you can avoid it.

Don’t go out until the snow plows and sanding trucks have had a chance to do their work, and allow yourself extra time to reach your destination.

If you must drive in snowy conditions, make sure your car is prepared (TIPS), and that you know how to handle road conditions.

It’s helpful to practice winter driving techniques in a snowy, open parking lot, so you’re familiar with how your car handles. Consult your owner’s manual for tips specific to your vehicle.

Driving safely on icy roads

1.Decrease your speed and leave yourself plenty of room to stop. You should allow at least three times more space than usual between you and the car in front of you.
2.Brake gently to avoid skidding. If your wheels start to lock up, ease off the brake.
3.Turn on your lights to increase your visibility to other motorists.
4.Keep your lights and windshield clean.
5.Use low gears to keep traction, especially on hills.
6.Don’t use cruise control or overdrive on icy roads.
7.Be especially careful on bridges, overpasses and infrequently traveled roads, which will freeze first. Even at temperatures above freezing, if the conditions are wet, you might encounter ice in shady areas or on exposed roadways like bridges.
8.Don’t pass snow plows and sanding trucks. The drivers have limited visibility, and you’re likely to find the road in front of them worse than the road behind.
9.Don’t assume your vehicle can handle all conditions. Even four-wheel and front-wheel drive vehicles can encounter trouble on winter roads.

If your rear wheels skid…

1.Take your foot off the accelerator.
2.Steer in the direction you want the front wheels to go. If your rear wheels are sliding left, steer left. If they’re sliding right, steer right.
3.If your rear wheels start sliding the other way as you recover, ease the steering wheel toward that side. You might have to steer left and right a few times to get your vehicle completely under control.
4.If you have standard brakes, pump them gently.
5.If you have anti-lock brakes (ABS), do not pump the brakes. Apply steady pressure to the brakes. You will feel the brakes pulse — this is normal.

If your front wheels skid…

1.Take your foot off the gas and shift to neutral, but don’t try to steer immediately.
2.As the wheels skid sideways, they will slow the vehicle and traction will return. As it does, steer in the direction you want to go. Then put the transmission in “drive” or release the clutch, and accelerate gently.

If you get stuck…

1.Do not spin your wheels. This will only dig you in deeper.
2.Turn your wheels from side to side a few times to push snow out of the way.
3.Use a light touch on the gas, to ease your car out.
4.Use a shovel to clear snow away from the wheels and the underside of the car.
5.Pour sand, kitty litter, gravel or salt in the path of the wheels, to help get traction.
6.Try rocking the vehicle. (Check your owner’s manual first — it can damage the transmission on some vehicles.) Shift from forward to reverse, and back again. Each time you’re in gear, give a light touch on the gas until the vehicle gets going.

Properly insuring a rental car can be confusing, frustrating and downright daunting. Unfortunately, many consumers do not even think about car rental insurance until they get to the counter, which can result in costly mistakes—either wasting money by purchasing unnecessary coverage or having dangerous gaps in coverage.
Before renting a car, the I.I.I. suggests that you make two phone calls—one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car.

Follow this link for the rest of the article

III – Do I need separate rental car insurance?

State Farm rate history:

• 2008:  0.9 percent decrease statewide.
• 2009:  19.1 percent increase statewide.
• 2010:  8.4 percent increase statewide.

Alfa rate history:

• 2008: No change.
• 2009: 5.8 percent to 6.5 percent statewide. 
• 2010: 18 percent statewide.

Allstate Indemnity rate history:

• 2008: 9.9 percent statewide.
• 2009: No change. 
• 2010: 9.9 percent statewide.

Sources: Press-Register files, Alabama Department of Insurance

Home insurance rates on the rise in Alabama | al.com

Alabama’s biggest home insurers are boosting their rates, citing storm-related losses and a need to increase reserves.

Illinois-based State Farm Fire & Casualty Co., the dominant insurer in the state, plans to increase its home insurance premiums by an average of 8.2 percent on Nov. 1, according to a rate bulletin posted on the Alabama Insurance Department website. State Farm’s homeowners market share approaches 27 percent in the state.

Montgomery’s Alfa Mutual Insurance Co., the No. 2 insurer with 17.2 percent of state homeowner premiums, increased rates by 18 percent on Sept. 1, state records show.

Allstate Indemnity Co. of Illinois, Alabama’s third-largest insurer with a 6.7 percent market share, boosted its homeowner rates in the state by 9.9 percent on Sept. 13.

Ragan Ingram, chief of staff for the state insurance department, said the rate increases were approved after insurers showed how they have been affected by recent storm-related losses.

"What we’re seeing is an increase in wind-related losses from tornadoes," he said.

The home insurance rate hikes come less than a month after the National Weather Service reported that as of mid-September, Alabama had just 18 tornadoes so far in 2010, the fewest in 60 years. On average, about 51 twisters pass through Alabama each year, according to Weather Service meteorologist Jim Westland.

Ingram said it is the severity of recent storms, not their frequency, that is driving up rates. "There has been a lot of losses related to tornadoes and hail losses as well," he said.

Alfa spokesman Jeff Helms said the insurance company based its decision to raise rates on "past and future expected losses" related to claims.

"We have seen increased claimant losses over the past several years and are seeing an increased frequency of tornadoes and hail storms throughout the state," Helms said. "Our goal is that we position ourselves to be able to provide our policyholders with the coverage they need in case something happens."

Shane Robinson, spokesman for Allstate’s Southeast region, said the 9.9 percent increase for Allstate Indemnity Co. customers in Alabama is for policies that renew on or after Oct. 28.

"As the numbers of claims in Alabama have increased, so have the costs," Robinson said. "Allstate is making responsible business decisions to remain strong and positioned to deliver on its promise to our customers."

Robinson said the impact will vary, but three-fourths of affected customers will see an average increase of less than $60 a year.

"We always encourage customers to work with their Allstate agent to review their current coverage to ensure all discounts are being applied, which can help keep their premium as low as possible," he said.

Efforts to reach officials at State Farm were unsuccessful Monday.

Join the conversation by clicking to comment or e-mail rwilliams@bhamnews.com.

© 2010 al.com. All rights reserved.

Home insurance rates on the rise in Alabama | al.com

Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xky9kfle

Many Americans admit to having a knowledge gap when it comes to what their home insurance actually covers, according to a new survey.

Nearly one third (31 percent) of Americans don’t know how much their most valuable assets — their homes — are insured for, and an additional 46 percent don’t know how much coverage they have for their homes’ contents, such as furniture and clothing, say the results of a survey by Zogby International for MetLife Auto & Home. Additionally, many homeowners aren’t aware of coverage overlaps that may exist, which could result in opportunities to save money.

The first of a two-part "Insurance Literacy" survey, tested consumer knowledge of insurance basics, including homeowners, condo, and renter’s insurance.

Common misconceptions that could lead to coverage gaps were:

– Thirty percent of homeowners believe their insurance coverage is based on the current market value of their home. Actually, the available coverage limit for homeowners insurance is based on the cost to rebuild the home, a mistake that could lead to confusion for homeowners trying to evaluate whether they have the right amount of insurance.

– More than two thirds (71 percent) of those surveyed believe insurance pays for the full cost to rebuild their property in the event of a major loss, such as a fire or other natural disaster. But nearly all insurance companies "cap" the amount paid to rebuild the dwelling following a total loss, unless additional coverage is purchased. Furthermore, the coverage is subject to a deductible, and certain causes of loss, such as water damage caused by the natural disasters of flooding, are excluded completely.

– Almost three-quarters (73 percent) believe insurance will pay the full cost to replace personal belongings in the event of a loss. However, depreciation is usually factored in, unless optional replacement coverage is selected, and the coverage, regardless of the chosen settlement method, is subject to a deductible.

– Sixty percent believe insurance will pay for the full cost of replacing valuables, such as jewelry and collectibles. Most insurance policies contain a payment cap for replacing valuables, although additional coverage can be purchased, and the coverage is subject to a deductible.

– For a major loss, nearly two-thirds (64 percent) of those surveyed expect their insurance to cover any building code mandated upgrades that are necessary. Without an endorsement/rider, most home insurance does not cover required upgrades located in an undamaged portion of the home.

"More than two-thirds of consumers surveyed also said they’d rather pay a higher premium than be told that a loss isn’t covered," said Bill Moore, president of MetLife Auto & Home. "To ensure this doesn’t happen, consumers can find the best value by learning more about their policies and selecting the coverage that best meets their needs, rather than simply shopping for the lowest premium."

On a positive note, with purse strings tight, opportunities exist for consumers to become more aware of what their current policies do cover in the event of a loss, to avoid insurance overlaps and unnecessary out-of-pocket expenses. For example:

– Electronically downloaded and stored entertainment, such as music, ring tones, etc., can be expensive to replace without easy access to free re-downloads. However, more than 90 percent of homeowners didn’t know that insurance can extend coverage to electronic data.

– Almost half (47 percent) didn’t realize there’s no need to secure additional coverage to insure the personal property of college-age children living on campus. This is covered under the standard homeowners contract, subject to its terms and conditions.

– Many homeowners would be surprised to learn that damage to appliances and wiring from a power surge would be covered by their insurance policy. More than half (59 percent) didn’t think it would — limiting out-of-pocket expenses to a deductible.

Natural Disasters

Many homeowners exhibit confusion about insurance coverage for natural disasters and unforeseen occurrences. The majority of homeowners understand that flood damage is written on a separate policy from their standard insurance policies. However, many consumers are still misinformed — or unsure — about the coverage available for other types of events.

In some cases, homeowners are aware of the potential for a loss, but don’t realize what coverage they have against a particular hazard. Among other things:

– Although 83 percent believe foundation damage from earth movement is very serious or somewhat serious, only 37 percent know they aren’t covered for this under the standard homeowners policy.

– More than a quarter (28 percent) incorrectly believe they’d be covered for an earthquake or volcanic eruption, and the same amount aren’t sure one way or the other. Most standard policies exclude this peril.

– For water damage from a sewer or sump-pump back up, 67 percent of homeowners believe this would be covered. Without the appropriate rider, most policies don’t cover this.

The Zogby/MetLife Auto & Home homeowners insurance survey sample consisted of interviews with 1,196 adults who have homeowners, condo, or renter’s insurance, and who are living in a household with a telephone. The interviewing was conducted May 26, to June 9, 2010.

Source: MetLife Inc.

Read more: http://www.insurancejournal.com/news/national/2010/08/24/112704.htm#ixzz0xky9kfle

Low reimbursements from public health insurance programs, such as Medicare and Medicaid, have prompted hospitals to shift costs to automobile insurance companies—raising auto injury claim costs and forcing auto insurers to more closely scrutinize and negotiate hospital bills prior to payment.

A new study from the Insurance Research Council (IRC) estimates that for bodily injury (BI) liability claims in 38 tort and add-on states, cost shifting in 2007 resulted in $1.2 billion in excess hospital charges.

However, the study says, the full impact of hospital cost shifting, including that occurring in other insurance coverages and in other states, is likely much greater.

"The conventional wisdom is that hospitals aggressively seek to shift costs from public insurance programs to private payers such as auto insurance companies," said Elizabeth Sprinkel, senior vice president of the IRC. "With this study, we now have information on the magnitude of cost shifting and a better understanding of the need for supportive state laws and effective tools that will enable auto insurers to pay hospitals appropriately and help control auto injury claim costs."

Spronkel said hospital cost shifting to auto injury claims illustrates the complex relationship between property/casualty insurance and the broader healthcare and insurance system.

"Healthcare legislation enacted by Congress last month underscores the complexity of this relationship," said Sprinkel. "It will take months, if not years, to understand the full impact of the reforms on hospital cost shifting and the auto insurance system."

To explore the relationship between key health system features and auto injury hospital costs, IRC developed a statistical model of average hospital charges for auto injury claims in different states. Key predictors of average hospital charges confirmed by the model are the percentage of a state’s population without health insurance coverage and the percentage of the population covered by Medicaid.

To estimate excess hospital charges due to hospital cost shifting, IRC compared average hospital charges for BI liability claims in Maryland with average charges in 38 other tort and add-on states. In the 1970s, Maryland received a waiver from the federal government allowing it to regulate hospital reimbursement rates for all purchasers of hospital services. As a result, virtually all hospital cost shifting in the state was eliminated. IRC said that Maryland’s unique approach to hospital reimbursement, while unlikely to be replicated in other states, provided an opportunity to examine costs in an environment with minimal cost shifting.

In all instances, IRC found that average hospital charges for auto injury claims in Maryland were substantially lower than hospital charges in most other states.

IRC also found that the costs of expensive diagnostic procedures performed in Maryland hospitals were much lower than in other states but were more similar to costs in other states when the procedures were performed outside a hospital.

The IRC study, Hospital Cost Shifting and Auto Injury Insurance Claims, is based on data from more than 42,000 auto injury claims closed with payment under the five principal private passenger coverages. Twenty-two insurers, representing 58 percent of the private passenger auto insurance market in the Unites Sates in 2006, participated in the study.

Source: IRC

Find this article at:

http://www.insurancejournal.com/news/national/2010/04/22/109193.htm

Car insurance by the tankful?

Not quite, but California moved a step closer last month to pay-as-you-drive policies that could allow motorists to buy insurance like they do gasoline — a little at a time.

Insurance Commissioner Steve Poizner released regulations permitting and authorizing mileage verification for pay-as-you-drive, without dictating what form such plans must take.

The goal is to use per-mile pricing to entice Californians not to drive so much, thus easing air pollution, relieving traffic congestion and lowering the number of traffic collisions.

A first-of-its-kind plan is MileMeter, available only in Texas, which last year began offering six-month policies with chunks of insured miles ranging from 1,000 to 6,000 miles. When the "tank" runs dry, motorists buy more.

To read the complete article, visit www.sacbee.com.

California moves closer to pay-by-the-mile auto insurance | McClatchy

 http://www.al.com/business/index.ssf/2009/09/homeowners_insurance_rates_goi.html

Homeowners’ insurance rates going up for State Farm, Alfa, Farmers’ customers

by Jeff Amy, Business Reporter  Friday September 11, 2009, 9:00

State Farm, Alfa and Farmers’ are announcing increases in home insurance.

Three of Alabama’s four largest home insurers are raising rates, although State Farm Fire & Casualty Co., the state’s largest, is giving coastal residents something of a break.

No. 1 State Farm, No. 2 Alfa Mutual group and No. 4 Farmers Insurance Group — the firms that have won state approval for increases — together control 57 percent of the state’s homeowners market.

Company officials said costs to policyholders will vary on where they live, their house and other factors. All said the rate increases are meant to make sure they have money to cover future losses.

"It’s about having enough premium and protection to pay future claims," said State Farm’s David Majors.

Many insurance companies saw the value of their investments decline over the last year, said Amy Bach, executive director of United Policyholders, a California-based group that advocates for consumers.

"That’s the cycle we’ve seen forever," Bach said. "Whenever they’re getting bad returns on their investments, they look for ways to make things up by raising rates or becoming more creative in restricting claims."

In Alabama, No. 3 Allstate Corp. also wants rate changes, Insurance Department spokesman Ragan Ingram said. The Alabama Insurance Underwriting Association, the state insurer of last resort known as the "Beach Pool," raised rates in July by an average of 5.5 percent on its 12,000-plus customers in Mobile and Baldwin counties.

In 2006, the most recent year available, a homeowners policy in Alabama averaged $894, according to the National Association of Insurance Commissioners. That was the ninth-highest dollar average nationally, even though Alabamians were typically insuring homes valued at less than the national norm.

In 2002, state homeowners paid 10 percent less than the national average.

October’s 25.7 percent increase is Farmers’ third straight year of double-digit price increases, for a statewide average increase of 69 percent since May 2007. Los Angeles-based Farmers, a unit of Zurich Financial Services, grew its Alabama market share to 8.8 percent with a reputation for low rates, local insurance agents have said.

"The rates reflect the risks we take as a company, and we have to charge rates that ensure we can take care of the needs of our customers if a significant event should occur," Farmers spokesman David Bishop said of the latest increase.

Ingram said Farmers’ profitability in Alabama had been poor, justifying higher rates.

Montgomery-based Alfa hadn’t raised prices since 2006, and State Farm of Bloomington, Ill., had lowered prices by 6 percent on average since 2005.

While State Farm raised prices 19.1 percent statewide, its increases will be much lower in areas of Mobile and Baldwin counties close to the coast, reversing the pattern of recent years. Homeowners in most of south Mobile County will see rates go up less than 1 percent on average.

Press-Register research and an Insurance Department inquiry earlier this year found that many companies were charging more to cover non-hurricane risks to Mobile and Baldwin homes than they were charging for all risks — including tornadoes, wind and hail — on similar properties in parts of north Alabama.

What they’re doing

State Farm Fire and Casualty Co.

• Statewide 19.1 percent average rate increase effective Nov. 1 for new business, Jan. 1 for existing policies;

• A 6 percent increase in Gulf Shores, Orange Beach, Fort Morgan and Dauphin Island;

• A 5.7 percent increase in the Eastern Shore, Magnolia Springs, Perdido Beach, Josephine and Lillian.

• A 0.6 percent increase in parts of Mobile County south of the CSX railroad and outside the Mobile city limits.

• Minimum deductibles of $1,000 for policyholders outside Mobile and Baldwin counties, though customers can buy them down to $500 if they pay higher premiums. In the coastal area, either $1,000 or 1 percent of insured value for non-wind damage, whichever is higher. Hurricane deductibles remain at 5 percent, though customers can pay more and get 2 percent.

Alfa Mutual Insurance Co.

• Statewide 5.8 percent average rate increase effective Sept. 1.

• A 14 percent increase in Gulf Shores, Orange Beach, Fort Morgan and Dauphin Island.

• A 16.6 percent increase in the Eastern Shore, Magnolia Springs, Perdido Beach, Josephine, Lillian and in parts of Mobile County south of the CSX railroad and outside the Mobile city limits.

• A 6.5 percent increase for customers of the smaller Alfa Mutual General Insurance Co.

• Alfa will triple its discount for buying both home and auto policies.

Farmers Insurance Group

• Statewide 25.7 percent average rate increase effective Oct. 16, with "specialty" policies rising 35 percent on average.

Homeowners’ insurance rates going up for State Farm, Alfa, Farmers’ customers – Business News, Economics & Finance News Articles – al.com

1916 earthquake would cause more harm in Birmingham today – Stories from The Birmingham News – al.com

Alabama’s largest recorded earthquake, nearly 93 years ago, caused panic but little else, according to accounts of the quake from The Birming­ham News.

The 5.1 magnitude quake centered in the Irondale area hit just after 4 p.m. Oct. 18, 1916, and was felt in seven other states. Hundreds of chimneys were toppled, win­dows cracked and water wells quickly bled dry in the Bir­mingham area. No injuries or deaths were reported.

If an earthquake of equal strength centered at Irondale hit today, it would exact a much higher toll on people and property, according to a Geological Survey of Alabama computer analysis.

In the 1916 temblor, work­ers emptied office buildings in downtown Birmingham, The News reported. "The sensa­tion on the upper floors of buildings was similar to that of standing on the deck of a vessel in a slight sea. There was the slight pitch, with the suggestion of a roll," according to a News account.

The Geological Survey’s 2007 analysis showed nearly $1 billion in damage for build­ing-related losses in Alabama from such a quake. The quake, according to the analy­sis, would destroy 26 build­ings, cause extensive damage to 302 others, moderate dam­age to 3,086 buildings and slight damage to 13,854 struc­tures.

1916 earthquake would cause more harm in Birmingham today – Stories from The Birmingham News – al.com

Stopped paying your insurance bill? It could cost you – Corpus Christi, TX | KRISTV.COM |

…..

According to Timothy Gaspar, an insurance agent with FMS Financial Partners in Encino, Calif., a policy lapse will almost always have negative consequences for the insured regardless of the type of coverage.

With auto insurance, which is required by law in all but two states, the consequences for letting an insurance policy lapse can be pricey. "Many auto insurance companies give consumers a discount for what they call ‘persistency,’ which is a discount for the amount of time you have had continuous insurance," Gaspar explains. "If you let this coverage lapse, the persistency credit will disappear, causing an increase in your rate."

Letting a homeowners insurance policy lapse can lead to even more serious financial jeopardy. Most preferred carriers will not accept a homeowner whose coverage has lapsed, and homeowners who fail to pay their premium for more than 45 days may be limited to a high-risk policy.

"I’ve had clients who let their homeowners insurance lapse for three or four months and suddenly find themselves unable to get coverage with anyone but a surplus lines carrier," said Gaspar. "It can really turn into an ugly situation."

read the rest by following the link below….

Stopped paying your insurance bill? It could cost you – Corpus Christi, TX | KRISTV.COM |