When Should You Drop Collision Coverage?

 Many people with newer cars keep collision coverage on their policies, but they also may not know when or if they should drop this coverage. While there's no set rule for determining whether collision coverage becomes unnecessary for your particular situation, there are some simple considerations to make if you're debating whether or not you should keep it on your policy. We've outlined them here.

 

 

What's your vehicle's actual cash value?

 

This is one of the easier things to determine because you can find several sources that will provide actual cash value (ACV) estimates online or through publications. Common sources for ACV estimates are N.A.D.A. Guides, Kelley Blue Book and Black Book. These will give you a good idea of what your vehicle is worth.

 

If you're not sure which source to use, you can contact your insurance company to see how its claims department determines ACV in your area. Often, one of these guides is used by claims representatives to establish a vehicle's ACV.

 

Remember to be realistic about the condition of your vehicle to get a realistic ACV estimate. If your vehicle has dents, sun damage, torn upholstery, etc., these may lower your vehicle's ACV.

 

How much do you pay for collision coverage?

 

Factor in the price you pay for collision coverage. If your collision premium is $250 for a six-month policy term, you're paying $500 per year to insure your vehicle against damage that may never happen. For your situation, is the cost worth the potential risk?

 

If your vehicle is worth $2,500 and your collision premium is $500 per year, you're paying 20 percent of your vehicle's value for one insurance coverage.

 

On top of that, the most you'd receive in a total loss settlement would be $2,000, and that doesn't factor in the amount you're paying for collision coverage. Should you keep collision at this point? Well, it depends on your personal situation — more on that later.

 

Keep in mind that collision premiums generally decrease as your vehicle ages, so the cost for collision coverage may be less next year than it is this year.

 

What's your collision deductible?

 

What deductible did you choose when you added collision coverage to your policy? Did you select a $500 deductible? $250? $1,000? It is important to consider the amount of your deductible because, if you ever have to use collision coverage, you'll be responsible for paying that amount out of pocket.

 

If you selected a $500 collision deductible and you pay $250 every six months for your collision premium, you could be paying $750 out of pocket to have and use collision coverage for each policy term, so consider what you're able to handle financially. Would the amount paid by your insurance company help you after you've paid your deductible?

 

What can you afford out of pocket?

 

Sit down and think about what's best for you, right now. If you're living paycheck to paycheck, a $500 settlement from your insurance company may be exactly what you need to replace a totaled car. However, if you've amassed a pretty comfortable financial nest, you may be able to afford $5,000 or more out of pocket.

 

Before you decide, also consider more than just money factors. If you drop collision coverage and have to replace your vehicle unexpectedly, are you able to spare the time it takes to shop for a new car? If you're without a car for a few days, will you be able to get to work or other scheduled engagements without your vehicle? Is a rental car feasible until you find a new vehicle?

 

What services or options would you forfeit if you drop collision coverage?

 

Finally, consider what else you're bypassing by dropping collision coverage. If you don't have Collision coverage, will forfeiting options for other coverages affect you negatively? For instance, with some companies, if you drop Collision coverage, you won't be able to purchase Rental Reimbursement coverage.

 

Should you keep collision coverage or drop it?

 

Your personal situation purely drives this decision. If you have a $1,000 collision deductible on a vehicle that's worth $1,000, you're basically paying for insurance that's not going to pay you when you need it. Some people choose higher deductibles because the premium is lower, which means up-front costs are lower. Think about this before making your decision. Focus on what you can handle, including time and money considerations, before you decide. You may be surprised at what you discover.

ObamaCare makes it more difficult to buy insurance year-round

Here's more fallout from the health care law: Until now, customers could walk into an insurance office or go online to buy standard health care coverage any time of year. Not anymore.

 

 

Many people who didn't sign up during the government's open enrollment period that ended Monday will soon find it difficult or impossible to get insured this year, even if they go directly to a private company and money is no object. For some it's already too late.

With limited exceptions, insurers are refusing to sell to individuals after the enrollment period for HealthCare.gov and the state marketplaces. They will lock out the young and healthy as well as the sick or injured. Those who want to switch plans also are affected. The next wide-open chance to enroll comes in November for coverage in 2015.

 

It's a little-noted consequence of President Obama's health care overhaul, which requires nearly all Americans to be insured or pay a fine and requires insurers to accept people with health problems.

 

"I have people that can buy insurance, but the companies shut them down. They won't take the applications," insurance broker Steve Bobiak of Frackville, Pa., said. "We're a free country. You should be able to buy anything anytime you want."

 

Those who act now may still be able to get in, depending on where they live. Following the lead of the government marketplaces, some companies are extending off-marketplace sales for a week or a month to help people who hit snags trying to enroll by this week's deadline. Rules vary from state to state.

 

After those extensions, eligibility for coverage during 2014 is guaranteed only for people who experience certain qualifying life events, such as losing a job that provided insurance, moving to a new state, getting married, having a baby or losing coverage under a parent's health plan.

 

The federal law doesn't prevent companies from selling policies to everyone all year. But insurers consider it too risky now that the law prohibits them from rejecting people in poor health.

 

"If you didn't have an open enrollment period, you would have people who would potentially enroll when they get sick and dis-enroll when they get better," said Chris Stenrud, spokesman for insurer Kaiser Permanente. "The only insured people would be sick people, which would make insurance unaffordable for everyone."

 

Bobiak, whose NICA Benefits company helps people buy insurance in New Jersey, Ohio and Pennsylvania, said he learned only a couple of weeks ago that insurers were cutting off new policies.

"It's lousy communication out there," he said. "If we don't know, my God, how do they expect other people to know? It's terrible."

 

A survey by the Kaiser Family Foundation in mid-March found that 6 out of 10 people without insurance weren't aware of the marketplace deadline on March 31. The Obama administration, insurance companies and nonprofit groups scrambled to spread the word, often with messages that focused on the cost savings available to many people through the government marketplaces.

 

There wasn't much public discussion about people who prefer to buy policies outside the marketplaces, sometimes finding better deals or options more to their liking.

 

Health and Human Services spokesman Aaron Albright pointed to a cryptic note on the HealthCare.gov website: It says "in some limited cases some insurance companies may sell private health plans outside the marketplace and outside open enrollment" that satisfy the law's coverage mandate. It doesn't say how to find any companies doing that. Albright had no further comment.

 

Gary Claxton, a health law expert at the Kaiser Family Foundation, said it's "highly unlikely" that companies will offer such coverage after the deadline window fully closes. Some do still offer temporary plans, lasting from a month to a year. But those plans don't cover pre-existing conditions and don't get buyers off the hook for the law's tax penalty.

 

Nate Purpura, spokesman for eHealthInsurance.com, which sells policies from 200 companies across the nation, said at this point he knows of none planning to offer major medical insurance after this month, except to people with qualifying life events.

 

For people trying to get an off-marketplace plan through an open enrollment extension, some insurers are selling them through April 15, and others through the end of the month. Purpura said eHealth will offer such plans in at least some areas of these states: Arizona, California, Georgia, Hawaii, Louisiana, Maryland, Michigan, Nevada, New Mexico, Ohio, Oregon, Utah, Virginia and Washington state.

 

Kaiser Permanente will offer extensions that mirror the state or federal marketplace in the area where a plan is sold, Stenrud said. The federal marketplace extension for online enrollment is April 15. But Oregon, for example, is giving marketplace buyers until April 30.

 

After that, Stenrud said, without a qualifying life event, the door closes until Nov. 15.

Nationwide Insurance is Proud to Sponsor “Maria’s Message” to Help End Distracted Driving

 

If you live in Central Ohio, you probably know the name Dom Tiberi.

 

As weekday sports anchor of WBNS-10TV News and co-host of the weekend Wall-to-Wall Sports, Dom delivers the news on the OSU Buckeyes, Columbus Blue Jackets and local high school sports.

 

Central Ohioans have a deep and personal connection to Dom. So, in September 2013, when his daughter, Maria, was killed in a distracted driving-related car accident, the community felt his pain and loss.

 

Now, Dom has turned tragedy into opportunity.

 

In February, the Tiberi family and WBNS launched “Maria’s Message,” a public service campaign to help stop distracted driving and prevent other families from suffering the heartbreak the Tiberis endured.

 

Nationwide Insurance is a proud sponsor of “Maria’s Message” and shares Dom’s efforts to end all types of distracted driving.

 

Together, we can honor Maria’s spirit by doing everything we can to make our roads safer and prevent distracted-driving accidents.

What If Someone DOesnt Have Health Insurance In 2014

If someone who can afford health insurance doesn’t have coverage in 2014, they may have to pay a [fine]. They also have to pay for all of their health care.

 

The fine is sometimes called the "penalty," "individual responsibility payment," or "individual mandate."

When the uninsured need care

When someone without health coverage gets urgent—often expensive—medical care but doesn't pay the bill, everyone else ends up paying the price.

 

That's why the health care law requires all people who can afford it to take responsibility for their own health insurance by getting coverage or paying a fine.

 

People without health coverage who pay the fine will also have to pay the entire cost of all their medical care. They won't be protected from the kind of very high medical bills that can sometimes lead to bankruptcy.

The fine in 2014 and beyond

The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:

• 1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual, is used to calculate the penalty.) The maximum penalty is the national average yearly premium for a bronze plan.

• $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The way the penalty is calculated, a single adult with household income below $19,650 would pay the $95 flat rate. A single adult with household income above $19,650 would pay an amount based on the 1 percent rate. (If income is below $10,150, no penalty is owed.)

 

The penalty increases every year. In 2015 it’s 2% of income or $325 per person. In 2016 and later years it’s 2.5% of income or $695 per person. After that it's adjusted for inflation.

 

If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have to make a payment.

 

Learn more about the individual shared responsibility payment from the Internal Revenue Service.

Enroll by March 31, 2014 and you won’t have to make the individual shared responsibility payment

If you enroll in a health insurance plan through the Marketplace by March 31, 2014, you won’t have to make the payment for any month before your coverage began.

 

For example, if you enroll in a Marketplace plan on March 31 your coverage begins on May 1. If you didn’t have coverage earlier in the year, you won’t have to pay a fine for any of the previous months of 2014.

If you pay the fine, you're not covered

It's important to remember that someone who pays the penalty doesn't have any health insurance coverage. They still will be responsible for 100% of the cost of their medical care.

 

After open enrollment ends on March 31, 2014, they won't be able to get health coverage through the Marketplace until the next annual enrollment period, unless they have a qualifying life event. Learn more about qualifying for coverage outside Open Enrollment.

Minimum essential coverage

To avoid the penalty you need insurance that qualifies as minimum essential coverage. If you're covered by any of the following in 2014, you're considered covered and don't have to pay a penalty:

• Any Marketplace plan, or any individual insurance plan you already have
• Any employer plan (including COBRA), with or without “grandfathered” status. This includes retiree plans
• Medicare
• Medicaid
• The Children's Health Insurance Program (CHIP)
• TRICARE (for current service members and military retirees, their families, and survivors)
• Veterans health care programs (including the Veterans Health Care Program, VA Civilian Health and Medical Program (CHAMPVA), and Spina Bifida Health Care Benefits Program)
• Peace Corps Volunteer plans
• Self-funded health coverage offered to students by universities for plan or policy years that begin on or before Dec. 31, 2014

Other plans may also qualify. Ask your health coverage provider.

What kinds of health insurance don't qualify as coverage?

Health plans that don't meet minimum essential coverage don't qualify as coverage in 2014. If you have only these types of coverage, you may have to pay the fine. Examples include:

• coverage only for vision care or dental care
• workers' compensation
• coverage only for a specific disease or condition
• plans that offer only discounts on medical services

Exemptions from the fine

Some people with limited incomes and other situations can get exemptions from the fine. Learn about exemptions from paying the fine.

3 Way Parents Can Discourage Texting While Driving

 

We’ve mentioned in past blog posts that according to the National Safety Council an estimated 25% of car accidents are caused by cell phone distractions. And that number is likely higher among younger, inexperienced drivers whose cell phones are practically an extra appendage. Here are a few simple things you can do as a parent to encourage your teen to put down the phone and drive.

 

1. Lead by example

 

You may not realize it, but while your teen is learning to drive, he or she is paying close attention to your driving habits. For your safety as well as to set a good example, make a point of never using your phone behind the wheel. This shows your teen that ignoring the phone while driving isn’t a punishment for inexperienced drivers: It’s a precaution everyone should take, like buckling a seatbelt.

 

2. Talk to your kids

 

Don’t rely on your teen to notice that you’re not using your phone behind the wheel. Take a few minutes to explain the dangers of texting while driving. Use the information on this infographic, from the National Safety Council, and be sure to remind them that it’s OK to take an emergency call or text in the car – just pull over first.

 

3. Explore high-tech solutions

 

There are several smartphone apps that can reduce the temptation of picking up the phone while driving. Most of these apps work by limiting the functionality of the phone when the car exceeds about 25 mph. Research a few options on the smartphone platform your teen uses; if your son or daughter doesn’t have a smartphone, encourage them to get into the habit of turning their phone off before getting behind the wheel. As a parent, there’s a lot you can do to influence your teen’s driving behavior. Making sure your teen understands the dangers of texting while driving can go a long way toward keeping you your son or daughter safe.

Nationwide Donates an Aquarium to Nationwide Children’s Hospital

Matt Jauchius, executive vice president and chief marketing officer of Nationwide, and Dr. Steve Allen, CEO of Nationwide Children’s Hospital, were on hand to unveil a giant aquarium at the Columbus, Ohio hospital. The fish tank was donated by Nationwide Insurance and designed by Wayde King and Brett Raymer from Animal Planet’s “Tanked,” a hit reality show showcasing custom aquariums.

 

 

 

Aquarium details The 12 1/2 feet by 4 feet unique aquarium will be a welcome addition to the hospital’s lobby. Featuring a waterfall and brightly colored saltwater clownfish, the aquarium will entertain hospital guests, patients and employees. Continuing our partnership with Nationwide Children’s Hospital Nationwide Insurance has partnered with the hospital for more than 60 years to achieve its mission of providing quality medical care to children. In 2006, Nationwide Children’s Hospital received a $50 million commitment from the Nationwide Insurance Foundation. Learn more about how Nationwide Insurance gives back through philanthropy, community involvement and volunteerism.

5 Insurance Buying Mistakes to Avoid

Buying insurance can be confusing, but when the unexpected happens – a house fire, a fender bender or a broken bone – it's a relief to know that some of those financial losses will be covered. But how do you know how much coverage you need? And what questions should you ask before buying a policy? Many consumers aren't sure. Insurance coverage is far from one size fits all, so here's a look at mistakes some consumers make when buying insurance.

1. Assuming insurance is out of reach. The U.S. Census Bureau reports that 48 million Americans had no health insurance in 2012. And about 30 percent of U.S. households have no life insurance, according to LIMRA, a worldwide research and consulting organization for insurance and financial services. In some cases, consumers skip insurance because they think it's out of their budget. Often, that's not the case, according to Marvin Feldman, president and CEO of the LIFE Foundation, a nonprofit organization that educates consumers about financial planning and insurance. The LIFE Foundation collaborated with LIMRA on the 2013 Insurance Barometer Study, which found that the average consumer thinks life insurance is three times more expensive than it actually is. "[Consumers are] not researching it to determine what the cost is," Feldman says.

 

When buying health insurance or property and casualty insurance, ask about potential discounts. "Two-thirds of consumers don't realize they can get financial help if they buy their own health insurance, and they can get financial help if they go and buy in these health insurance marketplaces," says Lynn Quincy, senior policy analyst with Consumers Union, a division of Consumer Reports. "You may be way overpaying if you don't investigate this possibility." While health insurance discounts are often income-based, homeowners and auto insurers offer discounts for everything from being a member of groups like AARP, to being a good student or a good driver, to having a home security system.

 

2. Relying on assumptions or outdated figures. Changing economic conditions mean you might need more insurance coverage than you had in the past. Take life insurance. In the past, consumers might have based their life insurance coverage on their current income, but "if something happens and you're no longer around, you need more capital at work to provide the same income [to your beneficiaries]," Feldman says. Disability and long-term care insurance are even more complicated than traditional life insurance. "For disability, do you want coverage that lasts forever? Are there health issues in your family?" Feldman asks. "That's where you need to speak to somebody to get some guidance."

 

In the case of homeowners insurance, your home could be underinsured if you've renovated or if the cost to build a home has increased due to higher material costs or other factors. That's why experts recommend reviewing insurance coverage once a year to make sure it still fits your needs. Talk to your insurance agent if you're unsure.

 

3. Shopping on price alone. Comparing insurance policies can be confusing, but resist the urge to simply choose the policy with the lowest premium. Consider the company's reputation and the coverage you'd get for that premium. "As a general rule with health insurance, the higher the premium, the lower the amount you pay when you go to the doctor," Quincy says. Private health insurance plans must provide coverage examples showing what your estimated out-of-pocket costs would be for, say, having a baby or managing Type 2 diabetes. Some examples might not apply to you, but they can help you compare plans and see how much you might pay in coinsurance and copays.

 

"Make sure you're shopping apples to apples and getting quotes based on the same coverage that you have," says Lori Conarton, a spokeswoman for the Insurance Institute of Michigan. Your property and casualty insurance may not cover things like food spoilage in the event of a power outage or stolen electronics worth more than $1,000, so you may want to purchase extra endorsements to cover those possibilities, she adds.

 

With disability or long-term care insurance, prices can vary depending on the length of the elimination period – the amount of time you must wait before coverage kicks in – and whether the policy includes inflation protection, so consider these factors, too.

 

 

4. Glossing over the details. Make sure you understand what your insurance policy covers. For health insurance, it's cheaper to see doctors who are in-network and buy prescription drugs covered by the formulary, so Quincy suggests checking to see if your doctor is in-network and if your prescription drugs are covered before you buy a policy. Otherwise, you could get an expensive surprise.

 

Read your insurance policy and contact your insurance agent if anything is unclear. "Unfortunately, a lot of people don't find out what coverage they should have had until they have a loss," Conarton says. "Here in Michigan, we've had a lot of winter weather, and some people don't know that flooding is not covered under a regular homeowners insurance policy." However, you can usually buy a separate flood insurance policy. Many people also assume that drain and sewer backups are covered by insurance, but often they're not, Conarton adds.

 

5. Setting your deductible too low. Setting a low deductible typically means higher premiums, and in the case of property and casualty insurance, a greater likelihood of small claims that could ultimately raise your premiums. Insurance is designed to protect against losses you could not cover yourself, so if you can afford to pay the first $500 or $1,000 in losses yourself, you may not need a lower premium. "Consider your own financial situation," Conarton says. "How much of the risk are you willing to assume before you make a claim and the insurance company pays on your claim? You really have to think about how much of that loss you could pay yourself."