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Location can affect auto insurance cost

Thu, November 19, 2009 - 6:48:16

Along with how safe a driver a person is, where they live can affect the price of auto insurance.

In a recent column for the Philadelphia Daily News, personal finance writer Harry Gross noted that insurance companies look at a variety of factors when determining risk. Risk is the driving force behind insurance - the more hazardous a policy may be, the higher it will cost the consumer.

For example, Gross said that a person who has just had a major medical problem may find it more difficult, or at least more expensive, to get life insurance. Auto insurance also runs on assessing risks.

"If there are more auto accidents or vandalism, etc. in your area, the companies will adjust your premium to reflect that additional risk," Gross wrote.

There are a number of other factors that can play into how much a person pays for auto insurance. For example, some insurance companies will reduce costs for a policy if the driver does not use their car very much. Furthermore, people with cars that are more safe may find that their rates are cheaper.

California law has breast exams included in health insurance starting at age 35

Thu, November 19, 2009 - 6:47:16

Recently, the U.S. Preventative Task Force issued a ruling that changed the recommended minimum age for women to start getting mammograms.

For some time now, women were recommended to get a breast exam every one or two years starting at the age of 40. Now, the PTF said that women don't have to start doing so until the age of 50, which has brought up the ire of breast cancer survivors.

Women in California, however, do have laws that back up their ability to have health insurance cover baseline mammograms starting at an age that is even earlier than the original recommendations.

California Insurance Commissioner Steve Poizner said that scientists should keep investigating the best techniques for treating medical problems.

"However, regardless of what recent medical panels have said, state law continues to require insurance companies to cover mammograms for women as early as age 35," Poizner said.

Along with starting at 35, California law dictates that women age 40 to 49 are entitled to a mammogram every two years, while women over 50 are entitled to one every year.

Consider home insurance for vacant properties

Thu, November 19, 2009 - 6:46:16

Some consumers are forced into keeping their old house even after buying a new one, especially with the way the housing market is.

As a result, the Insurance Information Institute has noted that many property owners should consider getting home insurance coverage for their old home in order to protect that investment. However, consumers should keep in mind that some insurers will not provide home insurance coverage for vacant homes.

"That's because such occurrences such as theft, vandalism, fire, or water damage are far more likely to happen in vacant houses than in occupied ones and the resulting damage is likely to be worse because no one is around to report it or stop it," Loretta Worters, vice president of the III, said.

If a home remains vacant for more than 30 days, insurance companies will often stop covering it. However, some providers will continue coverage if the homeowner alerts them prior to that window closing.

Also, a number of providers may offer special policies designed specifically for vacant houses. Often, these policies will cover the same thing a regular home insurance policy does, minus things like theft, broken glass or water damage.

A recent report from the U.S. Census Bureau noted that 2.6 percent of all houses in the country were counted as vacant in the third quarter, which is up from the 2.5 percent seen in the second quarter.

Institute announces 2010 vehicle safety picks

Thu, November 19, 2009 - 10:27:52

One of the factors that play into the cost of a person's auto insurance is the type of car they drive.

Recently, the Insurance Institute for Highway Safety released its Top Safety Pick awards for 2010, which include 19 cars and eight sports utility vehicles. In order to determine winners, the institute tests vehicles for their ability to protect people in front, rear and side crashes. Furthermore, this year marked the first time the award accounted for the strength of roofs.

"With the addition of our new roof strength evaluation, our crash test results now cover all four of the most common kinds of crashes," Adrian Lund, president of the institute, said.

Ford, and its subsidiary Volvo, had the most vehicles on the list at six. Subaru had five on the list and was the only car company to have vehicles in each of the four classes that are tested. Other makers with high numbers of vehicles picked included Volkswagon/Audi (5 picks) and Chrysler (4).

According to the Insurance Information Institute, there are a number of things consumers should consider when shopping for a safe vehicle. Those include the vehicle's crashworthiness and what kind of restraint systems it has.

Representatives request study of drug prices

Wed, November 18, 2009 - 6:37:30

As Congress continues to debate extending health insurance coverage to all Americans, a few of its members are trying to get investigations started regarding increases in drug prices.

In a letter sent to the General Accounting Office, a number of Democrats have requested analysis into whether drug companies are artificially inflating drug prices. Members of the House who signed the letter - Charles Rangel, Henry Waxman, Pete Stark, and John Lewis - noted in it that drug companies have been watching the health debate with an eye to how new reforms may affect drug prices.

"Any price gouging is unacceptable, but anticipatory price gouging is especially offensive," the letter stated.

The letter comes after the New York Times published an article that showed recent analysis indicated drug companies have increased drug prices more rapidly in the past year. The letter requests that the GAO analyze price trends.

Recently, the Senate put forward its own version of health care changes in the form of a 2,074-page bill. Recently, the House narrowly passed its own version of changes in the health care system.

Keeping homes safe while traveling

Wed, November 18, 2009 - 6:35:30

Many people may end up traveling for the Thanksgiving holiday, and while doing so they should make sure their homes are protected against burglary.

According to the Georgia Insurance Information Service, along with protecting against burglars, the measures people take to make their homes safer could also provide some savings on their home insurance prices. For example, things like deadbolts and smoke alarms can reduce home insurance costs by 2 to 5 percent, while burglar alarms can bring discounts of as much as 15 percent.

There are a number of other things people can do when they are away from their homes for the holidays. For example, homeowners should make sure their houses are well lit and should trim down any landscaping.

"Homeowners can prevent crooks from targeting their homes during the holiday season by taking some simple precautions," David Colmans, executive director of GIIS, said.

People should also keep in mind that burglars may not only be looking for things like jewelry and electronic equipment. They may also be hunting for personal documents, which can lead to identity theft. Consumers should make sure to lock their documents away in a safe place. If they do find their personal documents have been stolen, victims should contact authorities as soon as possible.

Widow left with medical bills

Tue, November 17, 2009 - 6:37:52

After a supposed approval from her health insurance provider, an Illinois widow was saddled with a bill for more than $161,000, which was charged for a failed cancer treatment for her husband.

Fanny Gonzalez's story was recently featured in a column from the Chicago Tribune's Jon Yates. Her husband, Jose Sanchez, was diagnosed with a form of gastric cancer and in January went to the Cancer Treatment Centers of America.

There, the Tribune notes, the couple was told that the center would look into a certain drug for treatment of the cancer after it cleared the move with Blue Cross and Blue Shield of Illinois, which was Sanchez's insurance company. Eventually, they got a letter from the center saying the treatment was approved.

However, because the drug used was considered "experimental" in the treatment of the particular cancer, the claim was eventually denied.

"This was a total shock to me," Gonzalez told the paper. "Knowing that I was going to be put into this situation, I would not have accepted the drug."

Despite the treatment, Sanchez eventually succumbed to the cancer on May 21. Now, his wife was left with the bill. However, after being contacted by the Tribune, the center said it would work out a plan to help Gonzalez pay off the debt, with the possibility that it will be forgiven.

Sanchez isn't alone when it comes to struggling to pay off medical bills. For example, a recent study showed that 62 percent of bankruptcies were caused by costs associated with health care, even though 78 percent of those studied had health insurance.

Home insurance important for protection against water damage

Tue, November 17, 2009 - 6:36:52

When it comes to protecting one of the most important investments a person will make, people should make sure they properly protect their homes against water damage.

A recent article from the Insurance Information Institute notes that claims involving water damage made up 22 percent of all home insurance claims in 2007, with the average cost per claim being $5,531.

"Even a small amount of water can cause serious damage to your home," Jeanne Salvatore, consumer spokeswoman for the I.I.I, said. "That is why it's important to have the right type and amount of insurance, including flood insurance."

Home insurance covers most claims involving water damage, including burst pipes and damage from rainfall. However, damage that resulted from a flood is not covered, and separate flood protection has to be purchased by the homeowner in order to be safe.

Maintenance is also important when it comes to protecting a home against water damage. The Institute for Business & Home Safety noted that homeowners should check for leaks in pipes and should make sure to windows are properly sealed.

Those without health insurance more likely to die from traumatic injuries

Tue, November 17, 2009 - 11:22:33

A recent study shows that people without health insurance are almost twice as likely to die because of traumatic injuries.

The study was conducted by researchers from Harvard University and showed that those without health insurance who had a severe injury were 80 percent more likely to die because of their wounds when compared to people who have insurance.

Though the numbers showed people without insurance run a greater risk of dying, the exact cause is unknown, especially since emergency rooms are required to stabilize patients regardless of their insurance status. The researchers did cite a number of possibilities, including the fact the hospitals that treat people without insurance may be underfunded.

Furthermore, regardless of the law, people without insurance may get treated differently, which would include them being more likely to be transferred out of a hospital once they are stabilized.

The study comes as members of Congress continue to debate the issue of reforming the health care system in the country. The Senate is in the process of looking at a bill that was recently passed by the House.

Sacramento life insurance agent arrested on 100 felony counts

Mon, November 16, 2009 - 6:36:56

A licensed life insurance agent was arrested on 100 different felony counts that are tied to an alleged Ponzi scheme.

According to the California Department of Insurance, William A. Sassman, 41, of Sacramento, was arrested on the charges, which include 43 counts of felony grand theft, 40 counts of selling unauthorized securities, 16 counts of burglary, and a count of using a device, artifice or scheme to defraud. If convicted of all the charges, Sassman could face 20 years in prison.

The Ponzi scheme Sassman allegedly ran involved 35 victims, more than half of whom were senior citizens. Steve Poizner, insurance commissioner for the state, said that when the department gets wind of illegal practices that target seniors, it takes "swift action."

"Preying on our senior citizens is especially disgusting and those who do will be investigated, caught and prosecuted to the fullest extent of the law," Poizner said.

Total losses tied to the alleged scheme, which appears to have lasted five years, come to an estimated $6.3 million. The CDI's investigation into Sassman's business practices is ongoing, and in the past also involved cooperation from the California Department of Justice.

Webster’s names ‘distracted driving’ as top word of the year

Mon, November 16, 2009 - 6:35:56

A concept that plays into the potential for higher auto insurance rates has made a recent splash in the vocabulary world.

"Distracted driving" was named as Webster's New World 2009 Word of the Year, beating out words like "cloud computing" and "wallet biopsy" to take the top spot. Some studies have shown that distracted driving can lead to an increased chance people will get into an accident, which can lead to higher auto insurance rates.

"A sign of the times surely, distracted driving is another reflection - and consequence - of our ongoing romance with all things digital and mobile and the enhanced capabilities they provide," Webster's New World noted.

Distracted driving is the practice of doing other things while driving a car. Those tasks could include using a cell phone, eating a sandwich or putting on makeup. Because people are more tied to their electronic devices, thereby increasing their use, the subject of distracted driving has become important as of late.

So important, in fact, that the U.S. Department of Transportation recently held a summit examining ways that distracted driving could be reduced. As a result of the summit, President Barack Obama signed an executive order banning federal employees from using cell phones while driving cars on official government business.

Providers of annuities, life insurance need to adjust to new financial climate

Mon, November 16, 2009 - 6:34:56

A recent study indicates that companies that offer annuities and life insurance will have to adjust because of the recent financial crisis.

According to Conning research, many insurance companies that provide investment opportunities moved toward more "aggressive" assets, which led to gains in 2006 and 2007. However, reduced amounts of capital will make it necessary for companies to change their strategies and offer different products in the near future.

"The 2008 financial crisis and its impact on the life insurance industry will likely resonate with industry executives for some time to come," Stephan Christiansen, director of research at Conning, said, adding that the industry continues to firm up its responses to the financial troubles the country is dealing with.

Along with the industry adjusting its approach, consumers should also keep in mind certain guidelines when they consider investing in an annuity. The Insurance Information Institute notes that there are several kinds of annuities, including those that are fixed or variable. Fixed annuities don't offer as high of a return, though they are less risky than the variable type of investment.

Americans mixed on health insurance changes

Mon, November 16, 2009 - 6:21:50

A recent Associated Press poll shows that Americans are closely split when it comes to Democratic plans to expand health insurance, though more people oppose it than support it.

The poll shows that 43 percent of respondents are against the healthcare plans being debated in Congress, while 41 percent said they are in favor. Another 15 percent said they were undecided on the matter.

"When poll questions were framed broadly, the answers seemed to indicate ample support for Obama's goals," the AP noted. "When required trade-offs were brought into the equation, opinions shifted - sometimes dramatically."

For example, 67 percent said they agreed with a requirement that would make everyone get at least some form of health insurance. However, when presented with the idea that a penalty would be enforced on those who don't have coverage, 64 percent said they would not support it.

The current overhaul of health insurance was recently passed by the House and will be considered in the Senate. If passed, it would represent one of the largest changes to the industry since the creation of Medicare.

Fewer Americans support government role in providing health insurance

Mon, November 16, 2009 - 11:09:16

A new poll from Gallup shows that more people do not believe it is the federal government's responsibility to ensure that all Americans have health insurance.

Of respondents, 50 percent did not believe that it was the government's job to make sure people have health insurance coverage, whereas 47 percent said it was. This marks the first time in eight years that the survey shows fewer people think it's the government's responsibility to see that all citizens have health insurance.

"The current poll results indicate that, with the renewed healthcare debate since Obama took office, Americans have become less convinced that it is an appropriate goal for the federal government to take on the responsibility of ensuring that all Americans have healthcare coverage," Gallup noted.

As one might expect, the poll results fell along party lines. Of Republicans, and those who lean in that party's direction, 77 percent said it was not the government's responsibility, compared to the 74 percent of Democrats who said it is.

The survey comes during a time when members of the federal legislature are trying to decide the future of health insurance coverage in the country. The House recently passed a measure that would reform healthcare by a vote of 220-215.

Census worker’s murder may have been staged for life insurance benefits

Sun, November 15, 2009 - 6:20:50

The Associated Press reports that the recent death of a Census Bureau employee may have actually been part of a scheme to cash in a life insurance policy.

According to the AP, which relied on unnamed officials who were close to the case, members of law enforcement are considering the possibility that the death of Bill Sparkman was actually a suicide that was made to look like a homicide. His supposed motive in doing so would have been to make sure his son, Josh Sparkman, could still get the death benefits associated with a life insurance policy.

"The money is not the concern," Josh Sparkman told the AP. "I just want to know what happened to my dad."

Bill Sparkman's body was found on September 12 in a wooded area in Kentucky. He was found hanging from a tree, though his feet were touching the ground. He was also bound and gagged, and had the word "fed" scrawled on his back, leading some to the fear that he was murdered for being a federal employee.

According to the Insurance Information Institute, life insurance policies may come with a "suicide exclusion provision." The provision prevents the payment of a death benefit if the insured person committed suicide within a certain amount of time from the purchase of the policy.