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
Monday, June 29, 2009
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
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