The National Association of Insurance Commissioners (NAIC) suggests that now is a great time to conduct an insurance coverage check up.  If times are tough, there may be ways to keep the coverage and save money. Here are some of the policies they consider reviewing during these uncertain financial times:

• Health insurance coverage – If you have an individual health insurance policy, work with your insurance agent or broker to try to reduce your premiums by modifying benefits or cost-sharing requirements.
• Life insurance policy – Now is also a good time to review your life insurance needs to ensure you have the right policy for your financial situation and your family composition. Life insurance is an important way to cover the financial effects of an unexpected or untimely death. This is even more important in today’s economic climate.
• Homeowner’s insurance policy – If you’ve updated areas of your home to make it safer you could be eligible for discounts that might lower your premium. Call your insurance company to find out.

TTI, Inc., designed a new program that targets high-risk drivers by placing “How’s My Driving?” bumper stickers on their cars. The program encourages MVA, judges and insurance carriers to require How’s My Driving? monitoring for “high-risk” drivers, because in their mind, the solution is accountability.

Much like Neighborhood Watch programs have done for street crimes, TTI, Inc. plans to use citizen advocacy to enforce our highways to reduce car crashes and save lives.

Insurance companies have been studying this for years and the studies are conclusive. How’s My Driving? programs save lives and money. They show that fleet drivers that know they can be reported drive safer and are more responsible.

According to TTI, this unique program does not require reporting a number on a sign but uses the vehicle’s license plate as the identifying number. It, therefore, allows any driver to report any other unsafe driver. Knowing this, changes the attitude of unsafe drivers.

TTI estimates that if every state implemented “How’s My Driving? For Everyone” the annual benefits would exceed 57 billion dollars per year and save over 14,000 lives.

What are your thoughts?  Is this an invasion of privacy? What’s next?  DNA testing for pre-existing conditions when applying for health or term life insurance.

A new study by the Insurance Research Council (IRC) indicates that there is a strong correlation between the percentage of uninsured motorists and the unemployment rate. Based on current unemployment rate projections, the IRC forecasts that the percentage of uninsured motorists will likely rise from 13.8 percent in 2007 (latest data available) to 16.1 percent in 2010.

According to the most recent data from the National Association of Insurance Commissioners, the average uninsured motorist coverage claim was $1,481 for property damage and $19,650 for bodily injury in 2005. The National Highway Traffic Safety Administration reported in 2008, that one in five of all pedestrian deaths were the result of a hit and run accident.

This is very disturbing information.  But the bottom line is this:  make sure you’re adequately insured.

I saw a story from the National Association of Insurance Commissioners (NAIC) that suggests you take time to review potential holiday mishaps and how your insurance might apply. I thought this was a good idea and wanted to share it with you. Here are some questions that they addressed that I thought would be helpful.

Auto Insurance

What if you and a family member are taking turns driving your car to a family gathering and you get into an accident while your relative is driving?

Auto insurance coverage follows the vehicle, so your car will generally be covered while your relative is driving, the same as if you were driving. For example, if your family member slides off the road due to a patch of ice, and you only have liability coverage, there would not be coverage for any damage to the car itself, no matter who was driving. In addition, keep in mind that your premiums might increase due to the accident.

What if you take someone else’s car (with their permission) to the store because it was the last one in the driveway, and you accidentally back it into your neighbor’s car parked across the street?

The existing auto insurance policy on the borrowed vehicle would provide primary coverage in the event of a claim. If no coverage exists, your auto insurance policy might provide coverage. Talk with your insurance agent or company to find out if your auto insurance coverage will extend to a friend or family member’s car you plan on operating.

Homeowners Insurance

What if someone breaks your car’s window and steals gifts from the back seat while your car is parked at the mall?

Standard homeowners and renter’s insurance policies provide coverage for this peril, subject to the policy deductible and coverage limits. Some automobile policies also provide coverage. If this happens to you, talk with your insurance agent or company to find out under which policy you should file your claim.

What happens if your coworker, a guest at your holiday party, slips and falls on your icy driveway?

Standard homeowners insurance policies provide limited medical payments coverage if your seeks medical attention. If the coworker sues you for additional damages, your standard homeowners insurance policy should provide liability coverage. Check with your insurance agent or company to be sure you have adequate liability limits.

What if your presents are stolen from under the Christmas tree in your living room?

Standard homeowners insurance policies provide coverage subject to the deductible and special sublimits for certain goods, such as electronics and jewelry. For example, if the wrapped package was a $300 gift card to an electronics store, there might only be $200 coverage; if the package contained $2,000 worth of jewelry or furs, there might only be $1,500 coverage; and if the package contained a silver-plated tea set, there might only be $2,500 coverage. Standard condominium and renter’s insurance policies provide similar coverage. Check your homeowners policy for specific sublimits.

What if someone steals the holiday decorations in your front yard?

Under a standard homeowners insurance policy, decorations are generally covered, subject to your policy deductible and coverage limits. These items would also generally be covered if you have a condominium or renter’s insurance policy.

Recycled Rides is a nationwide awareness project whereby members of the National Auto Body Council (NABC) repair and donate recycled vehicles to families in need in their communities. It is a community relations program intended to build good will at the local level, while improving and promoting the image of the collision industry on a national level. Insurance companies; paint and parts vendors donate their resources to assist collision repair facilities in making this project possible. Simultaneous donations of the recycled rides took place throughout the country last week.

What a great program! Be sure to check it out to see how you can help!

Money is tight for many people. I’ve talked about how to save money on term life insurance, but if you’re looking for ways to save money on your other insurance policies, here are some good tips:

o        Raise your deductible – Raising your deductible from $500 to $1000 may reduce your annual premium by up to 25%.

o        Insure your car and home with the same carrier - If you insure your car and home with the same carrier there are “bundle” discounts that could be as much as 15%.

o        Add an alarm system – Insurance companies value the protection of burglar and fire alarms-especially when connected to police and fire departments-and could reward you by reducing your premiums by up to 20%.

o        Compare Prices – To make sure you have the right amount of homeowners insurance, compare quotes to find the coverage you need at the lowest price.

Most US states allow driving at age 16, 16 1/2, or somewhere in between. A new Insurance Institute for Highway Safety report focuses on the costs in terms of lives of allowing kids to get their license sooner than later.

The message is that licensing at later ages would substantially reduce crashes involving teen drivers. The same conclusion has been reached in other countries. Teens in Great Britain and most Australian states can’t get their licenses until they turn 17, for example.
The question that many people have is whether the risk associated with beginning drivers stems from their youth and immaturity or their inexperience behind the wheel. If it’s mainly immaturity, then it would pay to put raise the age of drivers. But if the problem is mostly inexperience, raising the driving age would simply put off the toll of beginners’ crashes. It’s hard to separate these two factors.
Canadian researchers tried to untangle the influence of age and experience on crashes involving beginners by dividing drivers 16, 17, and 18 years old according to whether they had been driving less than a year or more than a year. The main finding, reported in 1992, is that 16 year-olds, especially girls this age, had higher rates of injury crashes than older teenagers who also were new to the road.

A review of 11 studies published since 1990 also separates the relative contributions of driver age and inexperience to beginners’ crashes. The upshot of this Institute study is that new drivers who are 16 years old have higher crash rates than older teenagers who also are new drivers. For more information go to www.iihs.org

I’ve written about this topic in recent weeks, but with gas prices through the roof it’s worth repeating.

If you’re like most drivers, you’re seeking ways to drive less and save money. There is a recent new car insurance program that some insurance companies are offering in which you can pay-as-you-drive.  It is emerging as a prominent way consumers can cut car-related costs.

According to a Brookings Institution report, about two-thirds of households would benefit from a usage-based program, with an estimated average savings on auto insurance of about $270 per car per year.

There are currently two companies that offer these types of programs (not offered in every state). Progressive auto insurer and GMAC Insurance.  Drivers who select pay-as-you-drive have a device installed in their vehicles that measures driving behavior through distance, time of day and other factors; the factors are reported to the insurance company and premiums are set accordingly.

According to the Insurance Information Institute, seven of the 10 costliest hurricanes in U.S. history have impacted Florida, and seven of those top 10 storms occurred within just two years.

Florida accounted for 22 percent of all U.S. insured catastrophe losses from 1980-2006, which equated to $57 billion (in 2007 dollars). Florida’s 10 costliest storms and total insured losses during that period were:

o        Hurricane Andrew (1992) – $22.2 billion

o        Hurricane Wilma (2005) – $8.9 billion

o        Hurricane Charley (2004) – $8.2 billion

o        Hurricane Ivan (2004) – $4.7 billion

o        Hurricane Frances (2004) – $4.7 billion

o        Hurricane Jeanne (2004) – $3.3 billion

o        Hurricane Opal (1995) – $1.9 billion

o        Hurricane Dennis (2005) -  $907.7 million

o        Hurricane Katrina (2005 – $576.5 million

o        Hurricane Erin (1995) – $476.2 million

Buying a life insurance policy is important, but if you live in Florida, buying flood insurance is vital.

A new insurance option may be put on the table for California motorists in the future. State legislators and California’s Department of Insurance are currently discussing a “pay as you go” type of automobile insurance for consumers. This coverage will be determined by the true mileage and will provide drivers who drive less to receive a break in their yearly premiums.

The new bill is sponsored by Jared Huffman and is universally supported by insurers. Assembly Bill 2800 (AB 2800) is a concern by consumer advocacy groups. These groups believe that the bill allows for unfair discriminatory ratings for motorists and will invade the privacy of the consumers who support it.

The basic idea of the new bill is to motivate California residents to drive less and hopefully that will reduce the amount of carbon emissions that pollutes the air. But wow! It’s a great incentive for everyone! Those who feel they can’t afford insurance might be encouraged if the bill was lower. California is often a trendsetter for forward thinking policies. Keep your fingers crossed that they not only implement this new pay-as-you-go plan but inspire other states to follow suit.