Car Insurance Misconceptions vs. Reality

 

Buying car insurance that’s right for you can be a challenging task, especially with so many options available. You’ll have to navigate through persisting myths as well, but we can clear some of these up for you.

 

Misconception: A red vehicle costs more to insure

 

Reality: If you’re looking for auto insurance for a red car, don’t worry about having to pay more for coverage because of color. Car insurance providers do not factor in color, nor do they ask for that information. Most will, however, take into account such things like model, make, year, and engine size of your car. How many miles you drive each year, where you drive, your past accident history, and even your credit history may be used to determine coverage pricing.

 

Misconception: Car insurance will pay off my loan if my car is totaled

 

Reality: Some consumers have outstanding loan balances that are greater than the value of their vehicle; these customers may want to consider purchasing “gap” insurance (coverage that, for an additional charge, will pay the difference between your loan value and the cost to replace your car).

 

Misconception: Car insurance is “one size fits all”

 

Reality: Auto insurance can, and should be, customized to each customer’s individual needs.

 

Misconception: More expensive cars cost more to insure

 

Reality: The cost of a vehicle does influence the price of insurance but just as important are things like how costly replacement parts are, how many repair specialists there are for a vehicle, etc.

 

Misconception: Rates automatically go up after a traffic ticket

 

Reality: Getting a traffic ticket doesn’t automatically mean significant premium increases. However, not all tickets are created equal, either. The following are some premium-busting tickets you’ll want to avoid:

• DUI Reckless driving
• Careless driving
• Speeding
• Failure to stop
• Failure to yield to pedestrian
• Driving in a carpool lane

Misconception: If a friend borrows the car, he or she is responsible for damages

 

Reality: If you ever decide to let a friend borrow your car, make sure he or she is an experienced driver with a solid driving record. If they do get in a car accident, it may be your insurance that has to cover the damages.

Gap Insurance: What Is It and Who Needs It?

When you buy a new car, you may be asked if you want gap insurance. Find out all the benefits of gap insurance—and understand how insurance options help protect you—so you can decide what’s right for you.

 

 

What Is Gap Insurance?

 

Gap insurance literally covers the gap between what you owe on a car and what it's worth if your car is totaled in a covered loss, such as an accident or theft. The types of losses covered and the extent of coverage vary depending on the company providing the gap insurance, so make sure you clarify what's covered before you make your decision.

 

Who Needs Gap Insurance?

 

If you purchased or leased a new vehicle and weren't able to afford a large down payment, you may need gap insurance. Vehicles notoriously depreciate in value — and quickly — and depreciation starts the moment you leave the dealership. If you're not able to pay the difference between what you owe and what your vehicle is worth out of pocket, gap insurance may be worth your while.

One thing to remember if you're leasing a vehicle: Often, leasing companies include gap insurance or loan/lease payoff coverage in their contracts, so make sure you review your contract before you purchase it from your auto insurance company.

 

When Do You Need Gap Insurance?

 

Here's an example of when you'd use gap insurance: You swerve to avoid a deer and end up driving into a ditch, where your brand new vehicle rolls over. Though no one's hurt, your car sustains heavy damage — so much so that the cost to repair your vehicle is higher than its actual cash value (ACV). Your insurance company decides to total your car, and after running an N.A.D.A. valuation, they determine the ACV is $25,000.

You purchased your car a few weeks earlier for $28,000, and you haven't even made the first payment yet, so you still owe $28,000 to your lender. If your insurance company pays $24,500 to settle your claim — remember: you still have to pay your $500 collision deductible, so you must subtract that amount from the ACV amount — you're still responsible for paying the remaining $3,500 to your lender.

In this case, if you have gap insurance, that $3,500 is covered by your insurance company, and they'll pay your lender the difference between what you owe and what your vehicle is worth. You won't be responsible for paying the difference because you chose gap insurance when you got the vehicle.

Keep in mind that if you purchase gap insurance from your insurance company, often you can only use this coverage if your claim is covered under your comprehensive or collision coverage. Not every insurance company offers the same types of coverage, so refer to your policy for more details.

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.

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.

Are You Protecting Your Most Valuable Asset?

What’s your biggest asset? Your home? Your car? Many Americans don’t realize they have failed to protect their biggest asset: their income.

 

When you do the math, the money you will earn before retirement is probably more significant to your family’s financial well-being than the value of your home or car. What if your family’s income is unexpectedly disrupted due to a death in the family?

 

According to a recent survey by Nationwide Financial, Americans are $1.2 million short on average when it comes to protecting their income with life insurance.

 

Do the math

Consider an individual who makes $50,000 a year with plans to retire in 30 years. This person is likely to earn at least $1.5 million before retirement. Assume this individual has $300,000 in life insurance coverage. While this may seem like a lot of money on the surface, it is approximately $1.2 million less than what this person would have earned for the family. In fact, $300,000 in coverage replaces just six years of income for the surviving family. When the life insurance money is exhausted, the family’s income will be reduced by $50,000 a year for 24 years. If this person’s family can’t generate new income, they will almost certainly be forced to adjust their standard of living.

 

More affordable than you may think

The good news is that life insurance is cheaper than most consumers think. The cost for a healthy 35-year-old to purchase a $1.5 million 20-year term life policy may be less than $65 per month.2That’s enough to erase or at least greatly reduce the average income replacement gap, and it’s less than many people pay to insure major assets like their home or car. Talk to an insurance agent or financial advisor about what you can do to reduce your income replacement gap. Nationwide Financial offers a free life insurance calculator to help consumers figure out how much coverage they need: nationwide.com/life.

Know more about your favorite TV show than your insurance policy?

More than half (57%) of the respondents to a Nationwide Insurance survey said they know more about their favorite prime-time television show than they do about their insurance policy.

 

When asked to describe their insurance policy, consumers said it was too long (53%), complicated (43%), overwhelming (31%) and confusing (29%).

 

The survey also found:

• Only 40% have read their entire policy (in the past 12 months)
• 2 in 5 say they completely understand policy details
• Half say they don’t understand how to file a claim after an incident

Most insurance policyholders want a simple explanation of their policy with the details summarized on a single page.

 

Nationwide Insurance believes changes in insurance laws would make it easier for policies to be more simple and understandable. Such changes include:

• Having an easy-to-read summary of coverage at the top of the insurance contract.
• Allowing insurers to use simpler language in the written communications with customers.
• Using electronic notifications and signatures on documents so consumers can more easily do business with insurance companies.

Nationwide has already made changes to its products and services to simplify the insurance experience for its members, including:

• Making members’ insurance information available to download on mobile devices through the Nationwide mobile app.
• Leveraging its exclusive agents to conduct On Your Side® Reviews with members so they can choose the coverage that meets their needs.
• Providing members with customer worksheets to use when working with agents to determine the type of coverage they want to buy.

Learn more about solving the insurance mystery in our infographic or contact a Nationwide Insurance agent to have an On Your Side® Review.

 

*Methodology

The Simplification Study was conducted between February 22 and March 5, 2013. The respondents were comprised of 1,594 adults ages 18+ who currently own property and casualty insurance. Results are weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Individuals for this research were selected from among those who have agreed to participate in Harris Interactive surveys. Because the sample is based on those who were invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated.

10 Tips For Buying Insurance In 2014

2014 marks the biggest change in health insurance since Medicare. For the first time ever, health insurance is mandatory for most Americans under age 65. The biggest change is that those people with pre-existing medical conditions will now be able to buy quality health insurance without fear of being declined, or facing a surcharge or a waiting period for pre-existing conditions that won't be covered.

 

The second biggest change is that those who earn less than 400 percent of the federal poverty level -- $45,000.00 for individuals or $95,000.00 for families of four -- will now be able to qualify for premium discounts on health insurance costs. The requirement to qualify for the discount is that insurance must be purchased on one of the new health insurance exchanges, aka marketplaces.

 

1. Work with a knowledgeable health insurance agent.

Eliminate about 80 percent of the difficulties of buying insurance online. A good agent can help you navigate the exchange site, help you determine whether you qualify for a discount and, if you do qualify, help you choose from among the various plan options and even help you enroll. They will be able to answer your questions as they come up. Best of all, having an agent help you doesn't cost a dime extra.

 

2. Don't buy insurance on an exchange if you don't qualify for a discount.

Insurance companies that participate in the exchange in most cases offer many more options for qualified health insurance beyond what they make available on the exchange. You can go to individual insurance company websites to see what each company has available. Or, you can have your agent do that for you (see Tip 1).

 

3. Work with an insurance agent to plan health coverage for your family if dependents aren't covered adequately by your employer plan.

If you have dependents covered under your group health insurance plan at work, unless the employer is paying for some of the cost, work with an insurance agent who will help you determine if you can get better coverage for less money on your spouse and/or children. Chances are if you have employer paid group insurance on yourself, you won't be eligible for an individual plan. But that doesn't preclude your spouse and children from having one, especially if the employer doesn't contribute anything toward dependent coverage costs.

 

4. Before choosing a health plan, be sure the doctors are "in network" and you can see specialists without a referral.

Less costly plans often don't let you see specialists without a referral from your primary care doctor.
 

When you are considering plans, don't just choose the cheapest. Pay attention to who is and is not in network. About 90 percent of the time, it probably won't make a difference. But, that 10 percent can be a life-and-death situation.
 

In Minnesota where I'm from, the gold standard of choice is the Mayo Clinic. I won't pick a plan myself or recommend a plan that doesn't include the right to go there without begging for a referral.

 

5. Hire an expert insurance agent or consultant to audit your insurance program.

Look for someone to make sure that all the major risks in your life are well-protected – for risks such as major lawsuits, major damage to or destruction of your residence, premature death, long-term disability and, of course, major medical expenses.
 

An expert can help you identify where the gaps are and recommend custom endorsements to plug those gaps. I have done several hundred audits over the years and typically find at least 15 to 20 coverage shortfalls or inconsistencies.

 

6. Protect your income with long-term disability insurance.

Some employers provide it. However, benefits that you receive while disabled usually are taxable income. So, if the benefit is 60 percent of your salary, you will be lucky to yield 45 percent after taxes.
 

Unless you can live on that 45 percent, contact your employer. Request that the company include the premiums it pays you for long-term disability insurance in your taxable income. By doing this, you will have paid income taxes on the relatively small premiums so that if you become disabled, you can collect those benefits tax-free.
 

If your employer can't or won't do that for you, buy a supplemental individual policy that will cover at least the income taxes that you will have to pay on your group benefits.
 

If you don't have coverage at work, talk to a knowledgeable agent to help you qualify for and buy a privately owned long-term disability insurance policy. Because you're buying this policy with after-tax dollars, benefits will always be tax-free to you!

 

7. Buy an umbrella liability policy to cover insurance gaps in your primary policies.

All umbrella car or homeowners insurance policies cover lawsuits. Typically, these policies will provide a base layer of coverage, usually $300,000 or $500,000 per claim. Then, if you're sued for more than those limits, an umbrella policy will pay excess amounts up to the umbrella limit of $1 million or more.
 

The real advantage of an umbrella policy is that it will defend and pay some judgments against you from personal lawsuits not covered by your primary auto or homeowners policies.
 

Never worry about the price of an umbrella policy. Instead, focus on whether it is broad enough to cover those uncovered risks in your life not covered by auto or homeowners insurance.
 

Here are just a few examples of lawsuits not covered by auto or homeowners insurance that can be covered by the right umbrella policy:

• Damage to rental cars in the U.S. or abroad.
• Injuries you cause to a water skier while renting a powerboat on vacation.
• Liability that you agreed to in a contract such as a wedding reception contract, making you responsible for all injuries and/or property damage caused by wedding guests.
• Injuries you cause to a co-worker while driving a company-furnished car.

 

8. For a townhouse or condo unit, be sure you get the "deductible assessment coverage."

The rates for condominium master policies have been on the rise. To keep the premiums affordable, many associations have opted for higher deductibles of $5,000, $10,000 or even $25,000. Not only does that keep the premiums affordable, it also minimizes the number of claims made against the master policy, which helps keep the rates low.
 

Here's the problem: If the loss is caused by you from, say, a kitchen fire or dishwasher overflow, or is confined to your unit, most associations will require you to pay the deductible on the master policy.
 

"No problem," you say proudly. "I have loss-assessment coverage on my homeowners unit-owner policy." Virtually all laws on assessment coverage limit deductible assessments to $1,000. If that wasn't enough bad news, it also requires that the assessment be against all unit owners.
 

The bottom line is that you will need to get a relatively new coverage -- separate coverage -- called "deductible assessment" coverage. Find out what your association master policy deductible is and buy deductible assessment coverage for that amount from your insurance agent.
 

9. If your home is for sale, watch out for vacancy exclusions.

With the housing market in the dumpster the past few years, this common problem has arisen. A couple buy a new home before their existing home sells. They move into the new house, leaving the old house empty. Three months later, vandals break into the old home, have a wild party and completely trash the place, causing $50,000 in damage, and the owner has no coverage.
 

Homeowners policies exclude glass breakage and vandalism damage if the house has been vacant, that is without enough furniture to be lived in, for 60 days or more. There are high-risk policies you can buy to cover a vacant house, but the coverage is watered down and the premiums are three to four times greater than what you've been paying for homeowners insurance.
 

The better way to keep your homeowners policy and still have vandalism coverage is by keeping enough furniture in the house so it can be lived in, such as a kitchen table, a couch and a lamp in the living room, and one bed.

 

10. For all of your insurance needs, pick an insurance agent with great expertise.

What most people don't realize is that you can get an insurance expert for the price of an intern. Since all agents work on commission, an agent with a lot of experience costs exactly the same as a less knowledgeable agent.
 

The biggest mistake that people make when they buy insurance is that they shop based on price and end up with the agent who gave them the best quote, often with very little expertise. In fact, they would be much better off coverage-wise and price-wise if they shopped for the expertise of an agent first, then had the expert design insurance coverage with the right specifications and had the expert shop for that coverage.
 

Shopping for the best price first leaves you with a good deal but the wrong coverage. Shopping for expertise first leaves you with a competitive price for the right coverage.

When you have a serious claim, which choice would you make?

CHEERS TO 2013!

NEW YEAR RESOLUTION:   Getting Your Insurance Coverage in Order for 2014   There is not a lot of time to think about insurance during the hectic rush of the holidays, but as you ring in the New Year, it is a good idea to evaluate your insurance coverage. The National Association of Insurance Commissioners (NAIC) offers these tips and reminders to help with your review.

Homeowners/Renter's Insurance This is a great time to update your home inventory and make sure your homeowners or renter's policy is up-to-date. While the decorations are out of storage, take some photos or video of your baubles. Do not forget to make note of any antique items and their value so you can talk with your insurance agent to ensure that they are properly covered. If you are starting a home inventory from scratch, the NAIC's free smartphone app, myHOME Scr.APP.book, takes some of the headache out of the process. Download the app from iTunes or Google Play. You can also download a paper version here.   Now that you have opened all your gifts, remember to add them to your home inventory, too. Include as many details as you can and take a photo of each item. Most basic home insurance policies have standard limits for big-ticket items like electronics, art, jewelry or sporting equipment. You may need special coverage, so be sure to call your agent as soon as possible to discuss changes for your policy.   If you want to review your insurance policy or declarations page before talking with your agent, take a look at this consumer alert to help understand the terminology.   Auto Insurance Winter can be a challenge for all drivers. Whether you are trying to escape the weather for someplace warmer or just preparing for the first drive to work in the snow, there are a few insurance items you should review.   To make sure you are winter-ready, check your auto insurance policy. Here is a quick reference on how to read your declarations page.   Make sure your coverage is appropriate for your life situation. Liability is the part of the policy that pays for any injury or damage if you cause an accident. If your liability insurance is too low, it is possible that you could be sued for any damages above your liability limits.   Also take a look at your deductibles for comprehensive and collision coverage. This is the amount you will pay if your car is damaged or totaled without fault of another driver. Raising or lowering this amount can affect your premium.   Before hitting the road, make sure you have a copy of your insurance card and your insurance agent or company's number in the car. It is also a good idea to have a way to record details of an accident if you are in one. The NAIC smartphone application WreckCheck walks you through the process of gathering information following an accident. You can then email your notes directly to your agent. Download the free app from iTunes or Google Play.   Health Insurance Many families recently went through the open enrollment process for their health insurance at work or Medicare Open Enrollment, which means you may have new insurance cards and paperwork coming in the mail. It is a good idea to get all this information together before winter illness or accidents happen.   Make sure to check your provider lists to verify visits to your doctor and any specialists are still covered by your policy, as in-network or preferred provider lists change from year to year. Also read through your documents and make note of your copays for in-network and out-of-network providers so you are not surprised later.   When you're planning a vacation away from home, check with your insurance carrier to identify urgent care centers and hospitals that accept your insurance coverage near your destination and along the way. Be sure to ask your carrier about applicable co-pays and deductibles if care is needed.   Click here for the explanation of some of the terms you may find on your health insurance paper work.

Connecticut is only state enrolling more in private insurance than Medicaid under Obamacare

Connecticut is the only state in the country in which more people have applied for private coverage than Medicaid through the health insurance exchange, an exchange official said Tuesday.

 

James Wadleigh, Access Health CT’s chief information officer, said the state’s exchange has taken more than 11,000 applications for individual and small-business coverage. About 6,000 are for private insurance customers, and about 4,700 will receive Medicaid.

 

As part of the health law commonly known as Obamacare, the Medicaid program in Connecticut and many other states will expand Jan. 1 to cover more adults without minor children. In addition, exchanges like Access Health are selling private insurance plans that, for many people, are expected to come with discounted premiums, subsidized by the federal government.

 

A major reason for Connecticut’s unique balance of applicants, Wadleigh said, is that the state began expanding Medicaid in 2010, shortly after the health law passed. That means fewer people are becoming eligible for Medicaid in Connecticut than in other states.

 

Connecticut currently provides Medicaid coverage to adults without minor children earning up to 56 percent of the poverty level. As of Jan. 1, that level will rise to 138 percent. Officials expect that will add between 55,000 and 60,000 more people to the program. (For adults with minor children, the income limit for Medicaid is already higher, and that will remain largely unchanged.)

 

Wadleigh reported the state’s enrollment trends during a meeting Tuesday morning of the state’s Health Care Cabinet.

 

Of the private insurance customers so far, 27 percent have selected “gold” plans, which have the highest premiums but pay the highest share of members’ medical costs. The majority, 55 percent, have selected the midlevel “silver” plans, while 16 percent have chosen “bronze” plans, which have the cheapest premiums available to most customers but leave them with higher expenses if they seek medical care.

 

Two percent of the customers chose catastrophic plans, which are available to people under 30 and carry low premiums but high out-of-pocket costs for most medical care.

 

Wadleigh said that of the people signing up for coverage, 19 percent are between ages 18 and 34. He did not say whether that referred to people signing up for Medicaid and private insurance, or just private insurance. Figures released last month showed that most of the young enrollees were signing up for Medicaid.

 

Access Health also provides coverage options for small businesses, but that portion of the exchange’s activity has been smaller than expected, Wadleigh said.

 

People can sign up for private insurance through Access Health through March 31, but the deadline for getting coverage that begins Jan. 1 is Dec. 15. Lt. Gov. Nancy Wyman asked whether there has been talk of extending the application deadline for getting coverage that takes effect Jan. 1. Wadleigh said there has been talk of doing that, including during a conference call with the White House last week, but said there's been nothing definitive.

Rising Flood Insurance Rates Take Effect Amid Government Shutdown

Land-owners in low-lying flood zones were dealt a huge blow on. Oct. 1, as current law is letting National Flood Insurance rates rise as high as 25-percent a year over the next five years, unless the government moves on the law it passed last year. Despite the lapse of the new rates, a bipartisan group of U.S. Senators and Reps, including members of Louisiana's delegation, has pledged to continue to fight for lower flood insurance rates.

Flood insurance for Louisiana homeowners (and many other areas in the Gulf states) is simply a fact of life. But as the increase of incident continues to rise, the costs associated with repairing and reimbursing for flood damage has gone up. So says the numbers compiled by the Government, and indirectly led to the Biggert-Waters Flood Insurance Reform Act, passed last year.

"After 45 years, flood risks continue and the costs and consequences of flooding are increasing dramatically," says the FEMA fact sheet on the 2012 legislation. "[So] In 2012, Congress passed [Biggert-Waters Act] which calls on FEMA to make a number of changes to the way the NFIP is managed...Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how FIRM updates impact policyholders."

 

These updates have come up often over the last year, as Louisiana and other federal legislators have fought to reign in those rates, mostly with success. But now the fight over flood insurance rates stalled right along with the budget bill that wrought the current government shutdown, meaning that many homeowners could see their rates continue to rise by as much as 25-percent per year, until the newly calculated risk is met.

Louisiana finds both Sen. Mary Landrieu and Sen. David Vitter looking to recalculate the risk, and more importantly, the out of pocket expense for homeowners of the region.

"Our message is very clear today: The government may be in the process of shutting down, but my colleagues and I have our eyes on finding a solution for the five-million Americans—and almost 500,000 Louisianians—who have flood insurance policies that are facing significant rate increases today," said Sen. Landrieu at a press conference held this week. "Our flood insurance program is not functioning the way it should and is putting a great number of people at risk."

Landrieu pointed out that this problem was manufactured by Congress—and partly by the FEMA elevated flood zones–and that is needs to be fixed by Congress.

"My colleagues and I are working very hard and across party lines to find a solution. Whatever solution we find and agree to, we want to make it retroactive to help homeowners who are facing rate increases today. They should not be punished because Congress has not fixed this problem."

Did You Know...

FRACKING DAMAGE IS NOT COVERED

 

 

This article was released in 2012:

 

Nationwide Mutual Insurance Co. has become the first major insurance company to say it won't cover damage related to a gas drilling process that blasts chemical-laden water deep into the ground.

 

The Columbus, Ohio-based company's personal and commercial policies "were not designed to cover" risk from the drilling process, called hydraulic fracturing, or fracking, Nationwide spokeswoman Nancy Smeltzer said Thursday.

 

The process injects chemically treated water into wells to fracture shale thousands of feet underground and release trapped gas or oil. There are rich shale deposits in parts of Pennsylvania, New York, Ohio, West Virginia and elsewhere.

 

Health and environmental groups claim fracking can contaminate drinking water. The gas industry says it's safe if done properly. Nationwide said risks involved in fracking operations "are too great to ignore" and apply to policies of commercial contractors and landowners who lease property to gas companies.

 

The Nationwide policy first came to light when an internal memo detailing underwriting guidelines was posted on websites of upstate New York anti-fracking groups and landowner coalitions seeking gas leases. Smeltzer confirmed that the memo was genuine but said it wasn't intended for public dissemination.

 

The memo reads: "After months of research and discussion, we have determined that the exposures presented by hydraulic fracturing are too great to ignore. Risks involved with hydraulic fracturing are now prohibited for General Liability, Commercial Auto, Motor Truck Cargo, Auto Physical Damage and Public Auto (insurance) coverage."

 

It said "prohibited risks" apply to landowners who lease land for shale gas drilling and contractors involved in fracking operations, including those who haul water to and from drill sites; pipe and lumber haulers; and operators of bulldozers, dump trucks and other vehicles used in drill site preparation.

A spokesman for a research and outreach program of the Independent Petroleum Association of America, whose members drill most of the nation's oil and gas wells, said nothing in what Nationwide said represented a change in policy for the company. Simon Lomax, the research director for Energy In Depth, said insurers don't sell products specific to individual steps of the oil and gas development process.

 

"But practical implications aside, the fact that the company would send out a statement this reckless, and this uninformed, should tell us a lot," Lomax said in an emailed statement. "For starters, it tells me that I won't be buying home and car insurance from this company."

 

Opponents of fracking point to some highly publicized accidents that resulted in contamination.

 

In late 2010, Houston-based driller Cabot Oil & Gas Corp. settled for $4.1 million with residents of Dimock, Pa., over gas found in their water. State environmental regulators determined Cabot contaminated the aquifer underneath homes with explosive levels of methane. A Cabot spokesman said levels of contaminants found didn't pose a threat to human health or the environment.

 

Jeffrey Hanneman, the Texas-based director of environmental practice at the insurance broker Aon Risk Solutions, said the Nationwide move was "really unique" and he doesn't expect it will be the beginning of a trend.

 

"To date, all we've seen are some that were hesitant to write environmental coverage," Hanneman said. "But the Nationwide is sort of a broader ban on all the ancillary services related to it (fracking)."

 

Hanneman noted that there haven't been any substantial claims that targeted companies other than those that own and operate the wells or the contractors who do the drilling. And even those claims have been few and far between.

 

He said one factor that may be driving Nationwide's decision is that increasing publicity — much of it negative — surrounding fracking makes it possible that any damage claims would go beyond the big oil and gas companies to include the hundreds of supporting businesses such as haulers.

 

Mike Elmendorf, president of the general contractors' group Associated General Contractors of New York State, said the Nationwide decision was unwelcome news for his members who do work for the gas industry and was not based on facts.

 

With a record of shale gas development having been done safely, "it is hard to fathom the rationale for this decision," Elmendorf said. "It would seem Nationwide is not on job creation's side."

Back-To-School Insurance?

For many families preparing to send their sons and daughters to college this September, the cost of tuition is an investment that is second in size only to a home mortgage. A four-year undergraduate program now averages between $15,213 and $35,636 for one year.

 

And yet, according to a 2009 study by Student Monitor, 27 percent of students (or someone they know) had to withdraw from college mid-semester due to health issues or a death in the family. Until now, tuition insurance was typically available only at select private colleges and universities.

 

A first-ever national group policy from GradGuard ™, a service of Next Generation Insurance (NGI) Group, LLC. marks the first time that tuition insurance is available to any student enrolled in an accredited higher education institution across the country.

 

Parents may mistakenly believe that colleges refund tuition in the case of unexpected illness, injury or even death. In fact, the organization known as College Parents of America reports that most colleges and universities do not provide a full refund if a student is forced to withdraw from school for medical reasons. Through GradGuard, all parents and students now have the opportunity to protect their investment in education.

 

The GradGuard plan is available to students nationwide and covers verifiable losses connected to the cost of attendance. This includes not only the loss of non-refunded tuition payments, but also academic fees, room and board, books and travel to and from the academic program.

 

Send a student back to school? GradGuard also offers a Student Protection Plan ™, a bundle of insurance and lifestyle benefits designed to protect college students including emergency medical evacuation insurance, identity theft protection and resolution services, and protection for their personal computers.

 

To get a Term Life Insurance Quote or Research how to Buy Life Insurance Online visit Efinancial.com

Smart Insurance Coverage This Summer

Sure, the risk of severe storms and natural disasters increases during the summer months, but there are also plenty of "hidden dangers" you may not always consider. If you're not adequately protected against them, you could find yourself in the middle of an insurance storm.

 

Property Insurance Covers More Than Your Home

Home damage caused by intense thunder storms accounts for many homeowner's insurance claims over the warmer months, but so much more can go wrong in and around your home.

 

Things like bicycles, high-end camping gear, and the cameras you use to record your adventures are expensive items that can be damaged in a catastrophe or fall victim to theft. Luckily, they're often covered by your homeowners insurance or renters insurance policy. But as you accumulate these kinds of goodies over time, it's important to verify that your coverage levels still meet your needs—speaking to your insurance agent is an easy way to make sure your coverage is keeping up with your lifestyle.

 

Should the unexpected occur, you'll want to have all the information you need to file your claim.

 

Going Above and Beyond Your Policy Limits

 

What if a wayward sparkler on the 4th of July caused a burn or set a flammable item on fire? Or how about a backyard BBQ where a faulty grill leads to mayhem?

 

Consider the additional level of protection that comes with a Personal Umbrella Policy. A personal umbrella policy provides liability coverage over and above your standard auto insurance or homeowners insurance. Basically, it offers protection against large and potentially devastating liability claims or judgments, kicking in right where your other liability coverage stops.

 

A personal umbrella policy's added protection is a great safeguard if you own a pool, but don't ignore the other potential dangers lurking around your house.

 

Two-Wheeled Trips Call for Motorcycle Insurance

 

As the weather gets warmer, the open road calls. Unfortunately, so do nearly 100,000 annual motorcycle accidents and injuries. One way to protect yourself is making sure you use the right safety gear every time you ride.

 

Your auto insurance won't help you on a motorcycle. You'll need motorcycle insurance that protects your bike—and also protects you.

 

Your Home on Wheels Needs Fixed Protection

 

If your summer travel plans include an RV or motor home, remember that these special vehicles fall outside the coverage of your regular auto insurance. The good news is that motor home insurance offers specialized protection for you and your family, and even the contents inside.

 

Plan for Your 4-Wheeled Fun

 

Many people don't think to insure their all-terrain and off-road vehicles. While their relative size may be small, they can come with outsized price tags. And with so many dips, jumps, turns, and outdoor hazards (like tree limbs!), there's no shortage of things that can go wrong. Off-road vehicle insurance can help protect your investment whether you're riding on back trails in the woods or on the back.

 

Get Covered Before You Get Drenched

 

When you set out to boat, you've got more than just fueling your tank to think about. Fun on the water also means having the right safety equipment, emergency service plan, and wreck coverage ready in case you need it.

 

Head over to the Boccarossa Insurance Agency to find out how we can provide you with the coverage that fits your needs.