Police have made more arrests in what officials are calling the largest auto-insurance fraud case ever seen by Manitoba Public Insurance Corp.
Twenty-one people have been picked up since last week and police say more arrests are likely.
Authorities say they have disrupted a scheme by an organized gang to defraud MPIC by rolling back the odometers of recently purchased out-of-province vehicles, staging phoney collisions and/or reporting the vehicles as stolen.
The investigation, dubbed Project Rollback, was started by MPIC and police after an adjuster at the publicly owned auto insurer noticed something unusual with an insurance claim last year.
That led to the discovery of allegedly phoney claims that officials said total more than $800,000. Officials said about $650,000 in claims were paid out by the insurer and another $150,000 in payouts were pending.
Falsified safety inspection certificates were part of the attempt to defraud MPIC, officials said. (CBC)Tim Arnason of MPIC's special investigations unit said the scam began almost immediately after the vehicles were brought into the province.
"It was not uncommon for a vehicle to be purchased in, let's say October, brought here very quickly. Safetied very quickly. Flipped around on paper sales very quickly, and it's involved with a loss within weeks, sometimes days."
MPIC said the bogus claims go back as far as 2005 and perhaps earlier.
Winnipeg police on Monday said they executed search warrants last week at homes on Tilstone Bay, Guay Avenue and Killarney Avenue in Winnipeg. They also raided two commercial garages on Nairn Avenue and Selkirk Avenue.
In all, over three days, 21 people were taken into custody, police said.
Arrest warrants have also been issued five others who have not yet been located, police said.
Source
Wednesday, October 28, 2009
Thursday, October 15, 2009
Auto insurance overhaul threatens inner city agents
(NECN: Peter Howe, Boston) - Massachusetts is now 16 months into a sweeping overhaul of automobile insurance called "managed competition," aiming to use more market competition -- and less state regulation -- to set and ultimately lower car insurance rates.
But as it produces winners and losers, it's also producing some political controversies for Massachusetts Governor Deval L. Patrick. Those include an increasingly intense outcry from a group of several dozen inner city, mostly minority, insurance agents who say their companies -- and 230 jobs across the state -- are threatened to be driven out of business by the changes.
Against very long odds, beginning in the late 1970s Roussel Theodat built, and his daughter Marie-Armel helped and then took over, a successful little business, Theodat Insurance Agency in Boston's often-struggling Codman Square section in Dorchester.
Now Marie's in a fight for the company's life, and her three employees' jobs.
"Every day it's a challenge. Like a lot of the agents like to say, we're hemorrhaging right now, and every day it's just one day closer to closing our doors.'' She says her challenge isn't just the economy, it's Patrick's auto insurance policies. Patrick's insurance commissioner, Nonnie S. Burnes, has begun phasing out an old system meant to prevent inner-city drivers from being unfairly denied car insurance. The change means getting rid of a type of agent called "exclusive representative providers,''
Source
But as it produces winners and losers, it's also producing some political controversies for Massachusetts Governor Deval L. Patrick. Those include an increasingly intense outcry from a group of several dozen inner city, mostly minority, insurance agents who say their companies -- and 230 jobs across the state -- are threatened to be driven out of business by the changes.
Against very long odds, beginning in the late 1970s Roussel Theodat built, and his daughter Marie-Armel helped and then took over, a successful little business, Theodat Insurance Agency in Boston's often-struggling Codman Square section in Dorchester.
Now Marie's in a fight for the company's life, and her three employees' jobs.
"Every day it's a challenge. Like a lot of the agents like to say, we're hemorrhaging right now, and every day it's just one day closer to closing our doors.'' She says her challenge isn't just the economy, it's Patrick's auto insurance policies. Patrick's insurance commissioner, Nonnie S. Burnes, has begun phasing out an old system meant to prevent inner-city drivers from being unfairly denied car insurance. The change means getting rid of a type of agent called "exclusive representative providers,''
Source
Monday, September 28, 2009
State Auto hires new claims chief
State Auto Insurance Cos. has hired the former executive of a California insurer to lead its claims operation.
The Columbus-based insurer said Wednesday that Stephen Hunckler has stepped in as chief claims officer. Hunckler is the former executive vice president and claims chief for Balboa Insurance Group of Irvine, Calif., and has more than 30 years experience in the business.
He replaces John Melvin, who announced plans for retirement this year and is staying on through the transition through early next year, spokesman Kyle Anderson said.
State Auto said Hunckler has a background in working to turn around underperforming regions and claims organizations and integrate acquisitions. The company last year closed a deal to buy Kansas City, Mo.-based Rockhill Insurance Group and a number of its subsidiaries.
“We’re fortunate to have someone of Steve’s experience and success leading our claims organization, which fulfills the promise we make to our independent agents, insureds and claimants every day,” Chief Operating Officer Mark Blackburn said in a release.State Auto Insurance Cos. has hired the former executive of a California insurer to lead its claims operation.
The Columbus-based insurer said Wednesday that Stephen Hunckler has stepped in as chief claims officer. Hunckler is the former executive vice president and claims chief for Balboa Insurance Group of Irvine, Calif., and has more than 30 years experience in the business.
He replaces John Melvin, who announced plans for retirement this year and is staying on through the transition through early next year, spokesman Kyle Anderson said.
State Auto said Hunckler has a background in working to turn around underperforming regions and claims organizations and integrate acquisitions. The company last year closed a deal to buy Kansas City, Mo.-based Rockhill Insurance Group and a number of its subsidiaries.
“We’re fortunate to have someone of Steve’s experience and success leading our claims organization, which fulfills the promise we make to our independent agents, insureds and claimants every day,” Chief Operating Officer Mark Blackburn said in a release.
Source
The Columbus-based insurer said Wednesday that Stephen Hunckler has stepped in as chief claims officer. Hunckler is the former executive vice president and claims chief for Balboa Insurance Group of Irvine, Calif., and has more than 30 years experience in the business.
He replaces John Melvin, who announced plans for retirement this year and is staying on through the transition through early next year, spokesman Kyle Anderson said.
State Auto said Hunckler has a background in working to turn around underperforming regions and claims organizations and integrate acquisitions. The company last year closed a deal to buy Kansas City, Mo.-based Rockhill Insurance Group and a number of its subsidiaries.
“We’re fortunate to have someone of Steve’s experience and success leading our claims organization, which fulfills the promise we make to our independent agents, insureds and claimants every day,” Chief Operating Officer Mark Blackburn said in a release.State Auto Insurance Cos. has hired the former executive of a California insurer to lead its claims operation.
The Columbus-based insurer said Wednesday that Stephen Hunckler has stepped in as chief claims officer. Hunckler is the former executive vice president and claims chief for Balboa Insurance Group of Irvine, Calif., and has more than 30 years experience in the business.
He replaces John Melvin, who announced plans for retirement this year and is staying on through the transition through early next year, spokesman Kyle Anderson said.
State Auto said Hunckler has a background in working to turn around underperforming regions and claims organizations and integrate acquisitions. The company last year closed a deal to buy Kansas City, Mo.-based Rockhill Insurance Group and a number of its subsidiaries.
“We’re fortunate to have someone of Steve’s experience and success leading our claims organization, which fulfills the promise we make to our independent agents, insureds and claimants every day,” Chief Operating Officer Mark Blackburn said in a release.
Source
Tuesday, September 15, 2009
Insurance Quotes-Exclusive Free Insurance Quotes site offers Innovative Free Insurance Quotes
Insurance Quotes-Exclusive Free Insurance Quotes site offers Innovative Free Insurance Quotes Service
Switch your insurance now and save up to fifty percent off your existing insurance policies all while increasing your coverages in a matter of minutes. Whether the insurance be, auto insurance, health insurance, life insurance, business insurance, or home owners insurance- all are necessary and not one person should be left without it.
Thousands of people are experiencing extreme hardships at this point in there life , and most do not even have money to pay their insurance bills due to astronomical rates or hikes in their recent insurance premiums and insurance plans. www.insurance-auto-insurance-health-insurance.com understands the current economic crisis, and is now seizing the opportunity to offer very competitive insurance quotes, insurance rates, and insurance premiums that most insurance companies are providing, but for a fraction of the cost. www.insurance-auto-insurance-health-insurance.com is providing the hard working people of the world with additional affordable insurance coverages at a typical savings of up to fifty percent off your existing insurance premiums. www.insurance-auto-insurance-health-insurance.com/ is revealing to the public , all of these incredible insurance quotes, insurance rates and insurance premiums along with exclusive access to there amazing insurance rates and resources. Now is the time to save big on auto insurance, health insurance, life insurance, business insurance, and homeowners insurance. Let www.insurance-auto-insurance-health-insurance.com/ guide you and your family to saving quite possibly thousands of dollars just in insurance rates savings.
Source
Switch your insurance now and save up to fifty percent off your existing insurance policies all while increasing your coverages in a matter of minutes. Whether the insurance be, auto insurance, health insurance, life insurance, business insurance, or home owners insurance- all are necessary and not one person should be left without it.
Thousands of people are experiencing extreme hardships at this point in there life , and most do not even have money to pay their insurance bills due to astronomical rates or hikes in their recent insurance premiums and insurance plans. www.insurance-auto-insurance-health-insurance.com understands the current economic crisis, and is now seizing the opportunity to offer very competitive insurance quotes, insurance rates, and insurance premiums that most insurance companies are providing, but for a fraction of the cost. www.insurance-auto-insurance-health-insurance.com is providing the hard working people of the world with additional affordable insurance coverages at a typical savings of up to fifty percent off your existing insurance premiums. www.insurance-auto-insurance-health-insurance.com/ is revealing to the public , all of these incredible insurance quotes, insurance rates and insurance premiums along with exclusive access to there amazing insurance rates and resources. Now is the time to save big on auto insurance, health insurance, life insurance, business insurance, and homeowners insurance. Let www.insurance-auto-insurance-health-insurance.com/ guide you and your family to saving quite possibly thousands of dollars just in insurance rates savings.
Source
Friday, August 28, 2009
Auto Insurance - 5th Most Popular Cash For Clunkers Buy Is A Hybrid, But What Are The Auto Insurance Costs?
The AP has reported here that the fifth most popular cash for clunkers purchase (what buyers bought with their rebate) is the Toyota Prius. Because of federal tax credits, insurance discounts, and cost of ownership figures, hybrid cars are further proving themselves to be a wise consumer buy.
Hybrid cars are more expensive off the lot than their traditional counterparts, but the benefits are many-fold:
Federal Tax Credits
The federal government offers an income tax credit for Americans that purchase hybrid cars. Credits range from $450 to $3,000 depending on the make and model of the car. Time is running out on many of the credits, but savvy shoppers can still find great deals while this credit is available.
Insurance Discounts
Most insurance companies are offering discounts up to 10% for hybrid car owners. Car shoppers should compare auto insurance quotes before they purchase their new vehicles to get an idea of what their new premiums will cost.
Cost of Ownership
With low depreciation, fuel savings, and tax credits, the cost of ownership on a hybrid is lower than a conventional vehicle. Some take as little as a year to pay for themselves, others over five. Sooner or later, the break-even point is reached, and surpassed.
Fuel Savings
The fuel savings of a hybrid car is the gift that keeps on giving. Well after the break-even point, hybrid cars will save owners money on gas.
Environmental Impact
While there are some potential disposal problems with the batteries of hybrid cars, driving a hybrid reduces carbon emissions is often personally satisfying.
As fuel costs rise and incentives become available, the initial investment of purchasing a hybrid car over a traditional model is taking less time to pay for itself. If you're thinking of purchasing a new car (even if you can't trade-in a clunker) consider a hybrid.
Source
Hybrid cars are more expensive off the lot than their traditional counterparts, but the benefits are many-fold:
Federal Tax Credits
The federal government offers an income tax credit for Americans that purchase hybrid cars. Credits range from $450 to $3,000 depending on the make and model of the car. Time is running out on many of the credits, but savvy shoppers can still find great deals while this credit is available.
Insurance Discounts
Most insurance companies are offering discounts up to 10% for hybrid car owners. Car shoppers should compare auto insurance quotes before they purchase their new vehicles to get an idea of what their new premiums will cost.
Cost of Ownership
With low depreciation, fuel savings, and tax credits, the cost of ownership on a hybrid is lower than a conventional vehicle. Some take as little as a year to pay for themselves, others over five. Sooner or later, the break-even point is reached, and surpassed.
Fuel Savings
The fuel savings of a hybrid car is the gift that keeps on giving. Well after the break-even point, hybrid cars will save owners money on gas.
Environmental Impact
While there are some potential disposal problems with the batteries of hybrid cars, driving a hybrid reduces carbon emissions is often personally satisfying.
As fuel costs rise and incentives become available, the initial investment of purchasing a hybrid car over a traditional model is taking less time to pay for itself. If you're thinking of purchasing a new car (even if you can't trade-in a clunker) consider a hybrid.
Source
Monday, July 13, 2009
This is no time to raise car insurance assessment
The MCCA, created in 1978, is run by private insurance companies to reimburse catastrophic auto injury claims exceeding $440,000. The MCCA's voting board members include Progressive, AAA, State Farm, GMAC and Auto-Owners. It operates in relative secrecy, exempt from Michigan's sunshine laws -- the Open Meetings Act and the Freedom of Information Act. Technically, the state insurance commissioner is a member of MCCA's board, but he has no vote.
The MCCA makes estimates about potential claims. Oftentimes, these projections are over many decades. Its most recent estimates of expected claims were erroneous; the actual number of claims was far less than the association projected. So why this rate increase now?
Serious auto accidents in Michigan have declined 54% percent since 1996. That's 9,000 fewer accidents. The average number of miles driven is the lowest it has been in 17 years. Michigan drivers have America's highest rate of safety belt use (97.2%). And in 2008, annual traffic deaths per million vehicle miles traveled (1.37) were the lowest ever recorded.
Consumers are more than doing their part. Yet rates continue to go up, and company profits are at their highest levels. The average annual bill in Michigan is $1,076, second only to New Jersey's statewide average of $1,100. Michigan's $436 average annual collision premium is the nation's highest. The old saw that rates are this high because no-fault covers all "reasonable and necessary" health care costs doesn't wash anymore. No-fault's health coverage is approximately 20% of the overall premium. And that portion ranks 22nd in the nation, not first.
Gov. Jennifer Granholm has called for a change in law to make the MCCA more transparent. The state House moved in the right direction by passing laws requiring the MCCA to open its books and its meetings to the public. On the Senate side, Sen. Glenn Anderson, D-Westland, has introduced similar legislation, which adds a public representative to the MCCA board and gives votes to the insurance commissioner and the public representative.
The MCCA and the auto insurance industry have had Lansing in a 30-year headlock, securing preferential treatment and breathtaking deregulation, fueling their power and profits at the expense of consumers.
Source
The MCCA makes estimates about potential claims. Oftentimes, these projections are over many decades. Its most recent estimates of expected claims were erroneous; the actual number of claims was far less than the association projected. So why this rate increase now?
Serious auto accidents in Michigan have declined 54% percent since 1996. That's 9,000 fewer accidents. The average number of miles driven is the lowest it has been in 17 years. Michigan drivers have America's highest rate of safety belt use (97.2%). And in 2008, annual traffic deaths per million vehicle miles traveled (1.37) were the lowest ever recorded.
Consumers are more than doing their part. Yet rates continue to go up, and company profits are at their highest levels. The average annual bill in Michigan is $1,076, second only to New Jersey's statewide average of $1,100. Michigan's $436 average annual collision premium is the nation's highest. The old saw that rates are this high because no-fault covers all "reasonable and necessary" health care costs doesn't wash anymore. No-fault's health coverage is approximately 20% of the overall premium. And that portion ranks 22nd in the nation, not first.
Gov. Jennifer Granholm has called for a change in law to make the MCCA more transparent. The state House moved in the right direction by passing laws requiring the MCCA to open its books and its meetings to the public. On the Senate side, Sen. Glenn Anderson, D-Westland, has introduced similar legislation, which adds a public representative to the MCCA board and gives votes to the insurance commissioner and the public representative.
The MCCA and the auto insurance industry have had Lansing in a 30-year headlock, securing preferential treatment and breathtaking deregulation, fueling their power and profits at the expense of consumers.
Source
Monday, July 6, 2009
Authorities Crack Down On Auto Thieves
Warren (WWJ) -- Four law enforcement agencies in Metro Detroit are joining forces this week to combat car theft.
Sheriffs from Macomb, Oakland, and Wayne Counties, and Warren's Police Commissioner, Thursday morning announced that Operation ICE (Inter-County Enforcement) caught 63 suspects and recovered 59 cars from Tuesday through Thursday.
Operation ICE was designed to capture thieves in the act of stealing a car, as well as suspects not yet in custody. Teams of officers also made unannounced visits to confirm that previously convicted car thieves are complying with the terms of their release.
"Through the efforts of law enforcement, and the citizens protecting their cars, and the insurance companies, we are making progress with auto theft in this country," Warren Police Commissioner William Dwyer said.
Warren Evans, Sheriff of Wayne County, said that car thefts in the area are down approximately one-third.
However, authorities also report that car theft remains profitable for new and repeat offenders because law enforcement is working with reduced resources.
"We'll catch them, and they'll go to jail today and tomorrow, but many are going to be released on bond, and in Wayne County, at least, you're probably going to be on your fourth conviction for auto theft before you're going to do any prison time," Sheriff Evans said.
Sheriff Evans said that law enforcement needs to become more creative in deterring auto theft, such as using GPS tether devices for convicted car thieves.
Source
Sheriffs from Macomb, Oakland, and Wayne Counties, and Warren's Police Commissioner, Thursday morning announced that Operation ICE (Inter-County Enforcement) caught 63 suspects and recovered 59 cars from Tuesday through Thursday.
Operation ICE was designed to capture thieves in the act of stealing a car, as well as suspects not yet in custody. Teams of officers also made unannounced visits to confirm that previously convicted car thieves are complying with the terms of their release.
"Through the efforts of law enforcement, and the citizens protecting their cars, and the insurance companies, we are making progress with auto theft in this country," Warren Police Commissioner William Dwyer said.
Warren Evans, Sheriff of Wayne County, said that car thefts in the area are down approximately one-third.
However, authorities also report that car theft remains profitable for new and repeat offenders because law enforcement is working with reduced resources.
"We'll catch them, and they'll go to jail today and tomorrow, but many are going to be released on bond, and in Wayne County, at least, you're probably going to be on your fourth conviction for auto theft before you're going to do any prison time," Sheriff Evans said.
Sheriff Evans said that law enforcement needs to become more creative in deterring auto theft, such as using GPS tether devices for convicted car thieves.
Source
Monday, June 29, 2009
How To Save On Auto Insurance
Shop around. If you use an independent agent, ask for a review for better prices or check with another agent or two because they're likely to represent a different mix of companies. Get quotes from a couple of insurers that sell directly to consumers. Try one or more online websites, such as insure.com.
• Consider raising deductibles. Think about dropping collision and comprehensive coverage on an older car if it's not being financed.
• Insure your car and home with the same company for a discount.
• Make sure you're getting all the other discounts you qualify for, such as low annual mileage, safety features in your vehicle, taking an accident prevention course if you're over 62, and good-student discounts.
Source
• Consider raising deductibles. Think about dropping collision and comprehensive coverage on an older car if it's not being financed.
• Insure your car and home with the same company for a discount.
• Make sure you're getting all the other discounts you qualify for, such as low annual mileage, safety features in your vehicle, taking an accident prevention course if you're over 62, and good-student discounts.
Source
Monday, June 22, 2009
Insurance Fraud Hurts Us All
Insurance fraud doesn't just hurt insurance companies -- it hurts everyone buying insurance through the increased costs of premiums.
"Claim abuse continues to be a significant problem," said Elizabeth Sprinkel, Senior Vice President of The Insurance Research Council (IRC). The IRC estimates that claim fraud added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims in 2007. "The excess payments attributable to fraud and buildup help drive up the costs of insurance for everyone," added Sprinkel.
The Coalition Against Insurance Fraud estimates that insurance fraud costs at least $80 billion each year, or almost $950 per family. The Hawaii State Department of Commerce and Consumer Affairs, which prosecutes and investigates car insurance fraud, estimates that car insurance fraud costs each Hawaiian household $200 to $300 more in premiums every year.
During these trying economic times, have Americans reached a point of desperation? Does the line between right and wrong blur when the stock market plunges? One thing is clear: As the country struggles economically, less people have a problem with crimes where the 'victim' is a faceless corporation. Even though consumers in general end up paying the price for their crimes, fraudsters don't seem to be bothered.
Source
"Claim abuse continues to be a significant problem," said Elizabeth Sprinkel, Senior Vice President of The Insurance Research Council (IRC). The IRC estimates that claim fraud added between $4.8 billion and $6.8 billion in excess payments to auto injury insurance claims in 2007. "The excess payments attributable to fraud and buildup help drive up the costs of insurance for everyone," added Sprinkel.
The Coalition Against Insurance Fraud estimates that insurance fraud costs at least $80 billion each year, or almost $950 per family. The Hawaii State Department of Commerce and Consumer Affairs, which prosecutes and investigates car insurance fraud, estimates that car insurance fraud costs each Hawaiian household $200 to $300 more in premiums every year.
During these trying economic times, have Americans reached a point of desperation? Does the line between right and wrong blur when the stock market plunges? One thing is clear: As the country struggles economically, less people have a problem with crimes where the 'victim' is a faceless corporation. Even though consumers in general end up paying the price for their crimes, fraudsters don't seem to be bothered.
Source
Monday, June 15, 2009
Auto Insurance Fraud: An Ethical Grey Area?
Over the past few years, public outrage over auto insurance fraud has become increasingly lax. According to a study by the Coalition Against Insurance Fraud, in 1997, 91 percent of people thought it unethical to misrepresent facts on an insurance application to get a lower premium. Today, only 82 percent believe the same.
The Coalition's study also shows that 4 out of 5 Americans think insurance fraud in general is unethical, but 1 out of 5 (approximately 45 million people) believe defrauding insurance companies is acceptable under certain circumstances.
Public opinion of the morality of other fraudulent acts such as tax and credit card fraud has changed as well, the Coalition points out. People are especially willing to turn a blind eye to fraud when the person committing it is a friend or relative.
Some of those who contemplate auto insurance fraud try to rationalize their decisions by looking at the circumstances of their plan. They will consider if a type of fraud is commonly committed by others, or if it hurts anyone. If they believe the only ones affected by their actions is a faceless insurance company, they are more likely to go through with the insurance fraud when they would normally never commit other crimes.
Source
The Coalition's study also shows that 4 out of 5 Americans think insurance fraud in general is unethical, but 1 out of 5 (approximately 45 million people) believe defrauding insurance companies is acceptable under certain circumstances.
Public opinion of the morality of other fraudulent acts such as tax and credit card fraud has changed as well, the Coalition points out. People are especially willing to turn a blind eye to fraud when the person committing it is a friend or relative.
Some of those who contemplate auto insurance fraud try to rationalize their decisions by looking at the circumstances of their plan. They will consider if a type of fraud is commonly committed by others, or if it hurts anyone. If they believe the only ones affected by their actions is a faceless insurance company, they are more likely to go through with the insurance fraud when they would normally never commit other crimes.
Source
Monday, June 8, 2009
Auto Insurance Fraud by the Numbers
The statistics are astounding: In Hawaii, there was a 61 percent increase in convictions for auto insurance fraud from 2007 to 2008. Car give-ups -- abandoning a car and reporting it stolen -- rose by almost 33 percent in 2008 in New York, according to the state's fraud bureau.
In Pennsylvania, law enforcement saw insurance fraud and related crimes jump 30 percent in 2008 over 2007, with car insurance fraud accounting for 46 percent of total fraudulent claims. Two-hundred eighty-eight people were arrested for false car insurance claims, including staged accidents.
"Insurance fraud normally increases during a troubled economy. The credit crunch, subprime meltdown, higher gas prices and general economic distress have led more drivers to seek a bailout through insurance money," said Dennis Jay, executive director of the Coalition Against Insurance Fraud. "They're literally being driven to desperation."
It isn't just phony auto accidents or fake car thefts either. Two men in Idaho were sentenced in January for auto insurance fraud and arson. A car owner simply paid a man to torch his car.
"Arson and insurance fraud are becoming more prevalent with the current decline in the economy," said Idaho Department of Insurance Director Bill Deal. "These crimes will not be tolerated and can result in significant jail time for the individuals involved."
Source
In Pennsylvania, law enforcement saw insurance fraud and related crimes jump 30 percent in 2008 over 2007, with car insurance fraud accounting for 46 percent of total fraudulent claims. Two-hundred eighty-eight people were arrested for false car insurance claims, including staged accidents.
"Insurance fraud normally increases during a troubled economy. The credit crunch, subprime meltdown, higher gas prices and general economic distress have led more drivers to seek a bailout through insurance money," said Dennis Jay, executive director of the Coalition Against Insurance Fraud. "They're literally being driven to desperation."
It isn't just phony auto accidents or fake car thefts either. Two men in Idaho were sentenced in January for auto insurance fraud and arson. A car owner simply paid a man to torch his car.
"Arson and insurance fraud are becoming more prevalent with the current decline in the economy," said Idaho Department of Insurance Director Bill Deal. "These crimes will not be tolerated and can result in significant jail time for the individuals involved."
Source
Monday, June 1, 2009
Auto Accidents
Five Basic Types of Auto Insurance
Unfortunately, automobile accidents are one of the most common situations that result in personal injury. If you are in an automobile accident, there can be catastrophic injuries and there are several different types of insurance that may be available to cover the often extensive damages. In order to recover all that you are entitled to in the event of an accident, you should be aware of the basic types of auto insurance that may be available:
· Liability will pay to have the other driver's car repaired and will cover your liability for any injury to another person in the event you are the one at fault in an automobile accident. If the other person is at fault, his liability coverage should pay on his behalf.
· Collision will pay to repair the damage to your car, or will pay the value of your car if it is "totalled" if there is property damage where no one is at fault.
· Medical Payments is coverage that provides for payment of medical bills for anyone injured as a result of a car accident. This would include any passengers in any vehicle involved in an accident. Normally, the limits of medical payments coverage are relatively small. A $2,500 or $5,000 limit is not unusual.
· Comprehensive insurance may be available to cover damage to your car that can occur in a situation other than a vehicle accident. For example, if your car is damaged by debris during a thunderstorm, comprehensvie insurance should cover the repairs.
What You Should Do If In An Accident
If you are involved in an accident, there are certain steps you can take to protect your right to any potential recovery:
Source
Unfortunately, automobile accidents are one of the most common situations that result in personal injury. If you are in an automobile accident, there can be catastrophic injuries and there are several different types of insurance that may be available to cover the often extensive damages. In order to recover all that you are entitled to in the event of an accident, you should be aware of the basic types of auto insurance that may be available:
· Liability will pay to have the other driver's car repaired and will cover your liability for any injury to another person in the event you are the one at fault in an automobile accident. If the other person is at fault, his liability coverage should pay on his behalf.
· Collision will pay to repair the damage to your car, or will pay the value of your car if it is "totalled" if there is property damage where no one is at fault.
· Medical Payments is coverage that provides for payment of medical bills for anyone injured as a result of a car accident. This would include any passengers in any vehicle involved in an accident. Normally, the limits of medical payments coverage are relatively small. A $2,500 or $5,000 limit is not unusual.
· Comprehensive insurance may be available to cover damage to your car that can occur in a situation other than a vehicle accident. For example, if your car is damaged by debris during a thunderstorm, comprehensvie insurance should cover the repairs.
What You Should Do If In An Accident
If you are involved in an accident, there are certain steps you can take to protect your right to any potential recovery:
Source
Monday, May 25, 2009
Canoga Park man arraigned on auto insurance fraud charge
A Canoga Park man was arraigned Tuesday in Ventura County Superior Court and charged with one count of felony auto insurance fraud.
Jose Herrera, 29, allegedly made a false report to his Ventura-based insurance carrier, Alliance United, stating that his 1997 Jeep had been stolen, according to prosecutor John Vanarelli.
Herrera, who is in custody with bail set at $250,000, allegedly made the false report on Dec. 15.
Vanarelli said Herrera was charged in Ventura County because the insurance company is based in the county.
Herrera is facing up to five years in prison if he is convicted of felony auto insurance fraud, Vanarelli said.
The defendant was arrested Monday at his home in Canoga Park, officials said.
Source
Jose Herrera, 29, allegedly made a false report to his Ventura-based insurance carrier, Alliance United, stating that his 1997 Jeep had been stolen, according to prosecutor John Vanarelli.
Herrera, who is in custody with bail set at $250,000, allegedly made the false report on Dec. 15.
Vanarelli said Herrera was charged in Ventura County because the insurance company is based in the county.
Herrera is facing up to five years in prison if he is convicted of felony auto insurance fraud, Vanarelli said.
The defendant was arrested Monday at his home in Canoga Park, officials said.
Source
Monday, May 18, 2009
Auto insurance revamp blocked
A lberta's Automobile Insurance Rate Board is looking to revamp how drivers' premiums are calculated in the province, by moving away from an annual industry-wide rate adjustment, which could produce more options and potentially better rates for motorists.
But the proposal has been rejected by the Stelmach government, which maintains the current system is working well.
The province doesn't foresee major reforms and certainly won't make any changes pending an Alberta Court of Appeal ruling, expected shortly, that will determine whether a$4,000 cap on pay-outs for soft-tissue injuries is unconstitutional.
The rate board, which regulates the annual premium changes for basic automobile insurance in Alberta, wants to scrap the "one-size-fits-all" industry-wide adjustment and instead review companies on an individual basis to see whether their rate proposals are appropriate.
The new model would pro-vide more insurance options for drivers, reduce market uncertainty and lower rates over the long term, the board argues, while still allowing the AIRB to ensure companies don't apply exorbitant premium increases.
"You could shop some more so you might be able to find a better rate,"explains Merle Taylor, the rate board's consumer advocate. "I don't think it's in anyone's interest if the (annual rate caps) are the same across all companies."
But the proposal has been rejected by the Stelmach government, which maintains the current system is working well.
The province doesn't foresee major reforms and certainly won't make any changes pending an Alberta Court of Appeal ruling, expected shortly, that will determine whether a$4,000 cap on pay-outs for soft-tissue injuries is unconstitutional.
The rate board, which regulates the annual premium changes for basic automobile insurance in Alberta, wants to scrap the "one-size-fits-all" industry-wide adjustment and instead review companies on an individual basis to see whether their rate proposals are appropriate.
The new model would pro-vide more insurance options for drivers, reduce market uncertainty and lower rates over the long term, the board argues, while still allowing the AIRB to ensure companies don't apply exorbitant premium increases.
"You could shop some more so you might be able to find a better rate,"explains Merle Taylor, the rate board's consumer advocate. "I don't think it's in anyone's interest if the (annual rate caps) are the same across all companies."
Monday, May 11, 2009
Auto-Owners Insurance Group Joins NICB
DES PLAINES, Ill., May 7 /PRNewswire-USNewswire/ -- The National Insurance Crime Bureau (NICB) announced today that the Auto-Owners Insurance Group is the newest addition to NICB's 1,000-plus member companies.
Auto-Owners Insurance Group, headquartered in Lansing, Michigan, is a Fortune 500 company and is the 17th largest property/casualty insurance company in the nation, based on written premium, and the largest insurer domiciled in Michigan. Auto-Owners writes insurance in 25 states and has over $4.4 billion in written premium.
Auto-Owners Insurance Group is one of only seven groups of insurance companies in the United States to receive the highest rating possible, A++ Superior by A.M. Best, which is a nationally recognized rating agency for insurance companies. In 2008, Auto-Owners was rated "Highest in Customer Satisfaction with the Auto Insurance Claims Experience" by J. D. Power and Associates 2008 Auto Claims Satisfaction Study(SM). Auto-Owners has over 4.6 million policies.
"We are very proud to welcome Auto-Owners to the NICB family," said Joe Wehrle, NICB's president and chief executive officer. "NICB represents all of the nation's 30 largest property/casualty insurer companies in the fight against vehicle theft and insurance fraud. We know that our strength lies in numbers. The more companies that we have working with us, the more successful we will be in combating insurance-related crimes."
About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,000 property and casualty insurance companies and self-insured organizations. NICB member companies wrote nearly $343 billion in insurance premiums in 2008, or more than 82 percent of the nation's property/casualty insurance.
Source
Auto-Owners Insurance Group, headquartered in Lansing, Michigan, is a Fortune 500 company and is the 17th largest property/casualty insurance company in the nation, based on written premium, and the largest insurer domiciled in Michigan. Auto-Owners writes insurance in 25 states and has over $4.4 billion in written premium.
Auto-Owners Insurance Group is one of only seven groups of insurance companies in the United States to receive the highest rating possible, A++ Superior by A.M. Best, which is a nationally recognized rating agency for insurance companies. In 2008, Auto-Owners was rated "Highest in Customer Satisfaction with the Auto Insurance Claims Experience" by J. D. Power and Associates 2008 Auto Claims Satisfaction Study(SM). Auto-Owners has over 4.6 million policies.
"We are very proud to welcome Auto-Owners to the NICB family," said Joe Wehrle, NICB's president and chief executive officer. "NICB represents all of the nation's 30 largest property/casualty insurer companies in the fight against vehicle theft and insurance fraud. We know that our strength lies in numbers. The more companies that we have working with us, the more successful we will be in combating insurance-related crimes."
About the National Insurance Crime Bureau: headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through information analysis, investigations, training, legislative advocacy and public awareness. The NICB is supported by more than 1,000 property and casualty insurance companies and self-insured organizations. NICB member companies wrote nearly $343 billion in insurance premiums in 2008, or more than 82 percent of the nation's property/casualty insurance.
Source
Saturday, April 4, 2009
Auto Insurance Rates Under Legislative Scrutiny
What is the biggest factor in lowering your auto insurance rates?
Having no tickets during the last five years? Driving an older car? Having no teenage drivers in your household? Not having a Rolls Royce?
Everything seems to be a factor, but some people are unaware that a huge factor is your credit score. Yes, your credit score.
Longtime Hartford Courant insurance reporter Diane Levick is reporting the following:
A Connecticut legislative panel has passed a bill that would further restrict auto insurers' use of consumer credit information to judge applicants and figure premiums, rather than ban the use of such data altogether.
Source
Having no tickets during the last five years? Driving an older car? Having no teenage drivers in your household? Not having a Rolls Royce?
Everything seems to be a factor, but some people are unaware that a huge factor is your credit score. Yes, your credit score.
Longtime Hartford Courant insurance reporter Diane Levick is reporting the following:
A Connecticut legislative panel has passed a bill that would further restrict auto insurers' use of consumer credit information to judge applicants and figure premiums, rather than ban the use of such data altogether.
Source
Thursday, March 26, 2009
Auto Insurance for Young Drivers
The biggest worry of most parents today is their children growing up and beginning to drive. They dread having to add them to their auto insurance policy because of the increase in premium. Unfortunately, all children grow up and when they start driving this has to be done. There are several reasons why insurance for young drivers is so high.The first reason that premiums are high for young drivers is their lack of driving experience. You will need to have, at the least, over three years driving to be quoted a lower rate.
Next is their age itself. If they are under the age of 25, the rate will mostly likely be high. Normally a single male driver rates higher than a single female. This is because males are rated as a higher risk to insurance companies.
Source
Next is their age itself. If they are under the age of 25, the rate will mostly likely be high. Normally a single male driver rates higher than a single female. This is because males are rated as a higher risk to insurance companies.
Source
Thursday, March 19, 2009
A Total Loss?
As for your car, well, there's not a lot left. The last time you saw it, it was being hoisted heavenward with two limp, deflated airbags dangling from the dashboard and broken glass littering the footwells. The front-end sheet metal resembled a rice-paper lampshade after a cross-country move. Questions start filling your head. Will you ever see it again? Should you start looking for a replacement? And at this point in time, is your auto insurance company a friend or foe? What if your car is rare or collectible? The following step-by-step guide helps answer these questions and more to help you survive the scrutiny of your car insurance company after you've survived a serious accident.
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Thursday, March 12, 2009
Florida Auto Insurance
What is it about Florida that makes you want to drive around in a chic convertible with the top down, enjoying the wind blowing through your hair, watching the palm trees whip by and smelling the tangy scent of ocean in the air? Perhaps it is because Florida offers many opportunities to tempt the senses. It is also a place the offers drivers intense heat during many parts of the year and sudden summer storms that cause numerous accidents and breakdowns. Having good auto insurance in the state of Florida is a must, and we can help you find an auto insurance carrier that will give you the coverage you need so you can feel good about driving in any part of Florida.
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Thursday, March 5, 2009
Insurance Raise your insurance deductibles and feel safer
Insurance is one of the most necessary evils known to man. Insurance companies profit by making the odds and setting premiums so that what the take in is always higher than they pay out. Over the long run, it is likely that you will pay much more to an insurance company than you will ever
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Thursday, February 26, 2009
NC auto insurance companies want rate hike
RALEIGH, N.C. Auto insurance companies in North Carolina are asking for a 1.4 percent rate increase despite being at odds with the state's insurance department.
The state Department of Insurance said Monday the North Carolina Rate Bureau has requested the statewide average increase for 2009.
The annual request comes despite the bureau's appeal of a state order in 2008 to decrease rates by 16.1 percent. Then-Commissioner Jim Long issued the order in September.
Current Insurance Commissioner Wayne Goodwin said insurance companies have ignored that decrease and increased their rates 9.4 percent in 2008. It went into effect Jan. 1 but could be overturned by the court system.
Goodwin said he will schedule a hearing for later this year if the Bureau and the department cannot agree on a settlement for the filed rates.
Source
The state Department of Insurance said Monday the North Carolina Rate Bureau has requested the statewide average increase for 2009.
The annual request comes despite the bureau's appeal of a state order in 2008 to decrease rates by 16.1 percent. Then-Commissioner Jim Long issued the order in September.
Current Insurance Commissioner Wayne Goodwin said insurance companies have ignored that decrease and increased their rates 9.4 percent in 2008. It went into effect Jan. 1 but could be overturned by the court system.
Goodwin said he will schedule a hearing for later this year if the Bureau and the department cannot agree on a settlement for the filed rates.
Source
Thursday, February 19, 2009
Public policy
In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.
A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.
Source
A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.
Source
Sunday, February 8, 2009
Auto insurance in the United States
Liability
Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.
An example of Property Damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of Bodily Injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or 1st Party's) policy.
In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:
Combined single limit
A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
Split limits
A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.
Bodily injury liability coverage is also usually split as well into a maximum payment per person and a maximum payment per accident.
In the state of Oklahoma, you must carry at least state minimum liability limits of $25,000/50,000/25,000. If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one persons medical bills but will not exceed 50,000 for other people injured in the accident. The insurance company will pay property damage not to exceed 25,000 in repairs to the vehicle that the insured hit.
Source
Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.
An example of Property Damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of Bodily Injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or 1st Party's) policy.
In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:
Combined single limit
A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
Split limits
A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.
Bodily injury liability coverage is also usually split as well into a maximum payment per person and a maximum payment per accident.
In the state of Oklahoma, you must carry at least state minimum liability limits of $25,000/50,000/25,000. If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one persons medical bills but will not exceed 50,000 for other people injured in the accident. The insurance company will pay property damage not to exceed 25,000 in repairs to the vehicle that the insured hit.
Source
Sunday, February 1, 2009
Auto insurance in the United States
Coverage available
The consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry liability insurance coverage to ensure that its drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible “proof of financial responsibility” requirements.
In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary, for example, when a family member comes of driving age they must be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Non-owners policies are also known as Named Operator Policies. The policies are useful for people whose drivers license has been suspended and they have to have insurance for their licensed to be reinstated.
Generally, liability coverage extends when you rent a car. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.
Source
The consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry liability insurance coverage to ensure that its drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible “proof of financial responsibility” requirements.
In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary, for example, when a family member comes of driving age they must be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Non-owners policies are also known as Named Operator Policies. The policies are useful for people whose drivers license has been suspended and they have to have insurance for their licensed to be reinstated.
Generally, liability coverage extends when you rent a car. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.
Source
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