Rise in auto insurance rates inevitable due to auto insurance fraud!

The next time you open your mailbox and see a hike in your auto insurance bill, you must ensure that you don’t get upset with the insurance agent or your insurer. You must instead target all your anger on those who are responsible for this state of affairs – the auto insurance fraudsters.

These are the people who have ruined the entire system and created this mess state the local officials. In the State of New York, the average auto insurance rates are the fourth highest and this is due to auto insurance fraud. This bit of information has come from the elected
representatives as well as law enforcement agencies.

Auto accidents are staged by con artists and there is an entire network that operates in this scam. This includes unscrupulous doctors who file false claims for medical treatments and they make it look like the persons have suffered serious injuries. They collect the insurance claims by doing all of this, state officials. There are a number of auto insurance fraud cases in the State of New York every year and this costs insurers millions of dollars each year. Hence, the insurance companies have no choice but to pass on these costs to the customers. During 2010, insurance fraud had cost the residents over $204 million, as per reports from Fraud Costs NY, which is a collation of business and civic groups from the state.

"The situation is even worse for motorists in Brooklyn," stated Sen. Marty Golden.

He claimed that the motorists in his district paid over 185% over the state average for auto insurance cover.
Insurance companies are shelling out millions of dollars each year to settle these fraudulent claims as they don’t have sufficient time on hand to investigate each case and bring the fraudsters to book, stated Golden.
He went on to add that there is one company that has already left New Jersey and is now threatening to get out of New York as well. If that happens, New Yorkers will be short of one company, which means that consumers will have lesser choices and this will in turn drive up the auto insurance rates.

The no-fault auto insurance cover is being blamed for this fiasco. This is a faulty system and criminals have been using the loopholes in this system to get past the no-fault laws at the expense of the motorists in New York, stated Golden. Now Golden has introduced the legislation and hopes that it will help in addressing the problem.
By Richard Burton
Published: Wednesday, June 29th, 2011

Understanding auto insurance for teen drivers better

Teenagers are always known to be high spirited and excited when they get their very first car. Due to this reason, many companies are wary about providing insurance to teens for their cars and will give them the coverage at very high rates. This is not to say that all the companies out there will do the same. If you are looking at auto insurance for teens, you can look at multiple options that are there before making a decision to pick a provider for your needs. There are also many methods by which you can look at saving some money on the insurance premium payments if you plan things well.

It is always wise to get some extra advice. This is easier than ever with so many different websites offering opinions and expert tips to get a better deal on insurance. Spend a little time understanding the variables you will be judged on by an underwriter so you know what to discuss and what to ask for with an insurance provider. You just might find that there are indeed cheaper options available which will not put an overly large dent in your pockets. There will be a lot of websites offering support round the clock to insurance providers to allow them to acquire the best possible deal.

Price is a big factor for most teens looking for auto insurance. This is not the reason to compromise on proper coverage as there are risks involved with you being an inexperienced young driver. Youngsters in the age group of 16 to 18 are often caught with traffic violations and car accidents making it quite important to ensure that they are provided with a proper guidance and course to make them eligible for their permits to drive. The record you have and any violations in your name will make it that much harder for you to get a cheaper insurance quote.

Did you know that good grades can count in more ways than one? This is especially true of the insurance companies as they often consider whether a candidate can be a good investment. Companies don’t offer all out excellent discounts based on grades alone but a student with good grades looks to be a more stable and reliable candidate to bank on than one who has been a drop out or performed poorly at school. If you have a luxury car or a really racy model, you can pretty much gear yourself to pay extra. Fast cars and a young driver are the ultimate formula for accidents in the eyes of insurance agents and providers.

Call your local Insurance Agent for more details!
By Jasper Ericks

Are you Protected? Regarding Automobile Insurance &/or Homeowners Policies

Is your Insurance Agent working for you?
 
1. Are you getting the best bang for your buck?
2. Are you properly covered/protected?
3. Do you understand your insurance policy that you purchased? The limits, the meanings of the limits?
4. Do you know if you have the proper coverage to be protected?

These are all legitimate questions that you should be asking your local "Insurance Agent"!
You should be making an appointment to go over your insurance policies on a yearly basis!

Pull out your insurance policies and take a look at your coverage! Do you have NY State minimum coverage? Enough coverage? What is your liability limits?

Don't wait until it is too late to know if you are protected!

What are the common mistakes related to Automobile claims that you should avoid?

When you are someone who is crazy about your car, you would no doubt have gotten the best possible insurance policy on it to ensure that it stays that way. When you have an unfortunate accident, every thought leaves your head and you are completely shaken up and wondering how bad your car looks like at the moment, sometimes that’s what you think about even before checking how badly hurt you are. When things are calmer however, you realize that you have to gather all the information you need to file for an insurance claim. Many drivers end up jeopardizing this process even before they get started on it.

The first mistake most drivers make is not collecting insurance information from the other driver. You may have found the other person to be totally apologetic and he or she may have volunteered to pay for damages in cash. Irrespective of the promises extracted, make sure you have the pertinent insurance information to contact immediately after. Waiting it out will tend to blur the details and make the claim more difficult. You are paying a premium every month on your insurance, get things started immediately if you want to get the claim.

Call your "Insurance Agent" for direction on reporting your claim!

Another common mistake drivers make when it comes to auto insurance claims is not calling up their company to ask about what needs to be done. Most people have refrained from ever calling their company back to raise any questions about claims after all the horror stories about how rates have changed overnight for many folks reach their ears. When you hear such tales, you must understand that this is not the case for every company and for the good ones, they do answer your queries without any complications. There are even laws in place to protect consumer interests in such cases.

Giving an honest statement is an important part of your insurance claims. Some people make a horrible mistake by exaggerating details and trying to get more of a payout. Your insurance claims investigator will talk to the other party, witnesses and will also examine the statement issued by the police. An attempt at dishonesty will only end up with you having to pay for it. Don’t try to change, distort or add to the facts. Just give them an honest feedback and accounting of what happened and things will work out smoothly for you. Report quickly and give a clear picture of what happened, nothing more, nothing less.

Texting while driving? Put down the cell phones and handheld devices!

Gov. Andrew M. Cuomo, joining officials in other states who have sought steep penalties for phone-wielding motorists, said on Friday he would introduce legislation to crack down on drivers who text, post on Twitter or otherwise distract themselves with handheld electronics while at the wheel.

The governor said he would propose upgrading so-called distracted driving from a secondary offense to a primary one, meaning that police officers could pull over drivers solely because they are spotted pecking away at their phones.

“Every day, countless drivers, particularly teenagers and young adults, drive with their eyes on a screen rather than the road,” Mr. Cuomo said in a statement. “We need to impose a true deterrent to stop people from driving while using an electronic device and to keep our roads and citizens safe.”

The governor’s proposal would also increase the penalty for distracted driving from two points on a driver’s license to three points, the same punishment meted out for offenses like running a stop sign, failing to yield or committing minor speeding infractions.


Violators would be fined up to $150, an amount that remains unchanged from when the Legislature first banned texting while driving in 2009.

The proposal comes as lawmakers around the country push to tighten restrictions on using electronics at the wheel, a widespread practice that has been blamed in a number of fatal accidents in New York State in recent years. In 2009, 5,474 people across the country died in crashes linked to distraction, according to federal data.

Compared with most other states that have sought to crack down on distracted driving, New York’s existing law is relatively lax. Thirty-three states have forbidden text-messaging while driving, but only four of them do not consider it a primary offense, according to the Governors Highway Safety Association.
Safety advocates praised the proposal, saying it would allow more widespread enforcement of the state’s ban on texting while at the wheel.

“The secondary nature of New York State’s law dilutes its deterrence value,” said John A. Corlett, the legislative committee chairman for AAA New York State. “Lawmakers need to stiffen the consequences for those who endanger the rest of us with their dangerous conduct.” And Ray LaHood, the federal transportation secretary and an outspoken critic of distracted driving, issued a statement saying, “I commend Governor Cuomo for introducing strong legislation that will help save lives and put a stop to dangerous distracted driving behavior on New York roads.”

Mr. Cuomo’s proposal would apply not only to texting, but also to any other hands-on use of smartphones, tablet computers, laptops, gaming devices or other portable electronics while driving. It would not include any devices mounted on a car’s dashboard, like a GPS.

A similar proposal by Mr. Cuomo’s predecessor, David A. Paterson, failed to win approval last year. But aides to Mr. Cuomo expressed optimism about winning passage before the scheduled end of this year’s legislative session on June 20. Lawmakers in both houses of the Legislature have expressed interest in strengthening the state’s laws on distracted driving: a bill to make texting at the wheel a primary offense passed the Senate last month, and the Assembly is expected to approve it next week.


The bill’s sponsor in the Senate, Carl L. Marcellino, a Long Island Republican, responded positively to Mr. Cuomo’s proposal. But he questioned the scope of the plan. “Maybe there’s some things you don’t want to cover,” Mr. Marcellino said, mentioning iPods as one example. “I like the fact that he’s engaging because it gives us the strength of his office and prestige behind the legislation and will help move us forward. But I think we have to be careful because it’s a very expansive bill.”

The governor’s proposal would also increase the penalty for talking on a cellphone without a hands-free device, which New York outlawed in 2001, from two points to three points.Last year, the police in New York State issued 331,809 tickets, including 217,012 in New York City, to motorists who were spotted talking on cellphones without hands-free devices, according to the State Department of Motor Vehicles. By contrast, the police issued only 3,235 tickets last year for texting while driving, including 1,632 in New York City.

By THOMAS KAPLAN

Published: June 10, 2011

Understanding gap insurance and how it works

Gap insurance is basically the difference between the worth of the car and the amount you owe on the car. This comes into play when the car is totaled or stolen when the car owner is still making the payments. A car is totaled when it is damaged to an extent that the repairs would exceed the worth of the car.

We can illustrate this with an example. Let us assume that you purchase a car for 20,000 and you make a down payment of $500 and you are expected to pay $350 per month.

If the car is involved in an accident just barely six months after purchase and if it is totaled, then the collision insurance company will determine that your car which is six months old is presently only worth $16,500. This amount would be paid by the insurer to you after subtracting the collision deductible in case the accident is your fault. Hence, if you have already made 6 monthly payments along with the down payment, then on a total of $2,600 you will still have to pay $17,000 on your car. Under such circumstances, gap insurance will pay the difference of $1,100 between what is covered by the collision insurance ($16,500) and the amount you owe on the car ($17,400). Hence, if you had not purchased gap insurance, you would have had to shell out the extra amount of $1,100 from your pocket. (It is important to note that if the insurance company arrives at the conclusion that your deductible is applicable, then you will have to shell out that money and that will not be covered by gap insurance).

If you are a buyer, gap insurance will only make sense if you owe more than what the car is worth. For instance, if the down payment is low, or if you have purchased a vehicle which depreciates quickly, have high rate of interest, or if there are other costs like money owed on a trade-in on your new car payments, then gap insurance will make sense. Most of the buyers who make a healthy down payment will always be at an advantageous position and will therefore not require gap insurance.

If there is a lease then you are not purchasing the car outright, but you would be responsible if the car is stolen or if it is totaled. Here purchasing gap insurance will make sense and most lease contracts require gap insurance.
By Jasper Ericks
Published: Sunday, June 5th, 2011

Now insurance fraud would become more difficult – thanks to the bill

                                                                                    Insurance fraud is costing the policyholders as well as the state millions of dollars each year and business leaders in New York are hence urging policymakers to pass the legislation to help enable them to fight the insurance fraud.

Fraud Costs New York is a coalition of consumers, business leaders, and lawmakers. It has called upon the state legislature to bring about reforms in the no-fault auto insurance policy in order to curb auto insurance fraud and insurance scams that they claim has totaled to over $200 million in the last year alone.

The New York State Business Council’s acting President Heather Briccetti has stated that the State Legislature must stop funding criminals by bringing about reforms to the no-fault insurance laws. By bringing about this reform Albany could easily do away with the ‘fraud tax’ and also reduce the premium costs for small businesses all over New York, stated Briccetti.

The coalition has demanded that the Legislature must act on the bill S.2816/A.6286 which was sponsored by Senate Insurance Committee Chair James Seward, R-Milford, as well as Assembly Insurance Committee Chair Joseph Morelle, D-Irondequoit. This would give insurers the teeth to fight insurance fraud & abuse and that will help in reducing the no-fault costs.

Kristina Baldwin, assistant VP of Property Casualty Insurers Association of America stated that there are certain loopholes in the existing laws and these highly innovative criminal gangs seem to have figured out a way to exploit the same. Hence she feels that there needs to be a stricter law in order to address these issues and plug the loopholes.

The no-fault insurance system works this way – the insurer will cover all the damages up to the value of the policy, irrespective of who was at fault during the accident. Hence, the no-fault fraud generally occurs when fraudsters orchestrate staged accidents or sometimes individuals may claim for injury even when they were not involved in the accident.

Allstate Insurance Company announced last Thursday that it was planning to file a fraud lawsuit against around 37 residents of New York and was seeking to recoup $2.1 million. This comes close to the heels of yet another auto insurance fraud lawsuit filed by the insurer this year for around $4.7 million. In all, Allstate has filed about 29 lawsuits since 2003 and has claimed over $167 million in damages.

Allstate spokeswoman Krista Conte has stated that the no-fault system is currently being exploited and innocent citizens have become the victims due to this.
By Richard Burton
Published: Wednesday, June 8th, 2011

Test Your Driving Skills

 

Think you're smarter than the average driver?

The GMAC Insurance National Drivers Test features 20 questions from actual DMV tests across the nation. Test your skills and brush up on your knowledge of the rules of the road.

To start the test, choose Latham, NY in the drop down by clicking here.

According to GMAC National Drivers Statistics, New York State ranks 45th for drivers who are unfit for the road!