Archive for July, 2011

Shopping for Title Insurance

July 19, 2011 at 7:58 am · Filed under Title Insurance ·Tagged ,

The GFE form includes an estimate for title insurance, but you can shop around. Will the savings be worth your time? It depends on where you live. Some states set or regulate title insurance premiums. In other states the charges vary.
In Bankrate’s survey, the average title insurance premium nationwide is $1,653. North Carolina is one of the cheapest places to buy title insurance with an average cost of $993. In comparison, the average title insurance premium in the New York, for the same home value and mortgage amount, is $2,811.
Joseph Eaton, co-author of the 2007 book “The American Title Insurance Industry: How a Cartel Fleeces the American Consumer,” has studied the title industry for more than a decade. He says that if consumers were able to shop for title insurance outside of their states and the rates weren’t fixed in some states, borrowers wouldn’t have to pay as much.
“I’ve asked the question to insurance commissions in some states on why their (title) costs are so much higher than in neighboring states, and the answer is, ‘We don’t compare states,’” he says.
Even if you live in a state where fees and premiums for title services are regulated, it never hurts to do your homework and compare to make sure you are being charged the standard rate.
“We encourage contacting several title companies and asking questions,” says Jeremy Yohe, spokesman for the American Land Title Association. “Cost shouldn’t be the only consideration.”

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What liability insurance provides

July 18, 2011 at 7:04 am · Filed under liability insurance cost ·Tagged ,

Liability insurers have two (or three, in some jurisdictions) major duties: 1) the duty to defend, 2) the duty to indemnify and (in some jurisdictions), 3) the duty to settle a reasonably clear claim.

To defend
The duty to defend is triggered when the insured is sued and in turn “tenders” defense of the claim to its liability insurer. Usually this is done by sending a copy of the complaint along with a cover letter referencing the relevant insurance policy or policies and demanding an immediate defense. At this point, the insurer has three options, to:(1) seek a declaratory judgment of no coverage; (2) defend; or (3) refuse either to defend or to seek a declaratory judgment.
If a declaratory judgment is sought, the issue of the insurer’s duty to defend will be resolved.
If the insurer decides to defend, it has thus either waived its defense of no coverage (later estopped), or it must defend under a reservation of rights. The latter means that the insurer reserves the right to withdraw from defending in the event that it turns out the claim is not covered, and to recover from the insured any funds expended to date.
If the insurer chooses to defend, it may either defend the claim with its own in-house lawyers (where allowed), or give the claim to an outside law firm on a “panel” of preferred firms which have negotiated a standard fee schedule with the insurer in exchange for a regular flow of work. The decision to defend under a reservation of rights must be undertaken with extreme caution in jurisdictions where the insured has a right to Cumis counsel.
The choice to do nothing can be very risk because a later determination that the duty applied often leads to the tort of bad faith. (So, insurers often prefer to defend under a reservation of rights rather than simply do nothing.)
To indemnify
The duty to indemnify means the duty to pay “all sums” for which the insured is held liable, up to a set policy limit.
To settle reasonable claims
In some jurisdictions, there is a third duty, the duty to settle a reasonably clear claim against the insured. The duty is of greatest import during situations in which the settlement demand equals or exceeds the policy limits. In that case, the insurer has an incentive not to settle, since if it settles, it will certainly pay the policy limit. But this interest is at odds with the interest of its insured. The company has incentive not to settle since if the case goes to trial, there are only two possibilities: its insured looses and insurer pays the policy limits (nothing gained nothing lost), or its insured wins, leaving the insurer with no liability. But, if the insurer refuses to settle, and the case goes to trial, the insured might get stuck with a settlement far exceeding the settlement offer.
This is where the duty to settle comes in. To avoid endangering an insured to gain a remote possibility of avoiding paying on the policy, the duty to defend obligates the insurance company to settle reasonably clear claims. The standard judicial test is that an insurer must settle a claim if a reasonable insurer, notwithstanding any policy limits, would have settled the claim.
Effects of breach
An insurer who breaches any of these three duties may be held liable for the tort of insurance bad faith in addition to breach of contract.

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What Is the Most Affordable Type of Life Insurance?

July 16, 2011 at 6:40 am · Filed under life insurance cost ·Tagged , ,

Put simply, the most affordable life insurance is the type that best meets your needs and fits your budget.

First, specify why you are buying a life insurance policy. is it to provide income replacement (or, as some call it, “lifestyle replacement”) for your dependents if you die? That is the reason most people seek life insurance coverage. They want to make sure that if they die, their spouse and children can keep paying the mortgage (or rent), keep making car payments and credit card payments, and, of course, keep being able to afford day-to-day necessities such as food and clothing. in addition, the benefit of a life insurance policy may be your family’s only hope for continuing to fund your children’s college education.

You may have other plans for your policy. perhaps, you are designating it as the way to pay, after your death, for your hospital or hospice bills, as well as for your funeral and burial or cremation. Medical bills can easily cost hundreds of thousands of dollars. and the cost of a funeral and burial can easily exceed $10,000. you certainly don’t want this burden to fall to your dependents, and at a time when they are most despondent and desperate.

Other people seek a life insurance policy to name their church or their temple or mosque, or simply their favorite charity, as the beneficiary. The death benefit of your life insurance policy is a very thoughtful way to show how much you value and care for a house of worship or for a civic or advocacy organization.

The amount of the benefit depends on your planned use. Obviously, you may want to make sure you provide a sizeable benefit to cover your family’s ongoing needs. Calculate your current expenses. and how old are your children? How much money will your family need to meet your spouse’s lifetime requirements and to meet the needs of your children until they are no longer dependents? Adjust for inflation (figure, conservatively, on 5% per year, just for the sake of simplifying the calculation). Ideally, the benefit from your life insurance policy will more than cover the sum. is the sum $500,000? One million? more? (Remember: The average college education now costs as much as $20,000 to $35,000 per year, depending on whether the school is public or private. if your children are young, know that tuition-plus, naturally, room and board-will rise dramatically between now and then.) That’s how much you need. But how much can you afford?

You might be surprised at just how affordable coverage can be, especially term life insurance (which lasts for a specific “term,” such as 30 years). But first, it is essential to do comparison-shopping. Don’t worry. It’s not painful like it used to be, when you had to go from insurer to insurer, agent to agent, filling out forms at each. Now, you can use a 100% free and unbiased online “quick-quote” service such as save money on life insurance. you just answer a few simple questions then click one button to get quotes from all the leading insurance companies, all at one time. It takes just seconds. Amazing! So what are you waiting for? what is the most affordable type of life insurance? The one that meets your needs and fits your budget…and the one that you find through free, easy comparison-shopping!

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Disadvantages of Complete Life Insurance coverage

July 15, 2011 at 6:52 am · Filed under life insurance cost ·Tagged , , ,

Following are the disadvantages of Complete Life Insurance coverage:

* Not flexible. For example that your situation in life adjustments someday after your purchase entire life insurance. Maybe you decide to retire sooner or an expected supply of earnings disappears. You can’t do anything to vary the whole life insurance aside from to cancel the plan and begin over. And because you are now older, the whole life insurance will value more money.
* Money value. Some insurance coverage specialists consider the money value part of complete life insurance insurance policies is actually a disadvantage as a result of it could discourage some individuals from actively searching for good funding opportunities. The cash earned on the value of entire life insurance premiums is far from the perfect investment return obtainable in the market and people shouldn’t ignore investment alternatives because of the cash value in their entire life insurance policy.
* Loans affect demise benefit. In some complete life insurance policies, loans taken out in opposition to the worth of the coverage can limit the dying benefit till the loan is repaid in full.
* Verycostly. Notably in comparison with time period insurance coverage, the associated fee for complete life insurance may be very high. That’s because it’s all but certain that you will gather on the death profit offered in an entire life insurance policy. In case you are forty and buy entire life safety for $200,000, the only doubt is if you do not proceed to pay the premiums. Then again, a 20-12 months term life insurance coverage at the age of forty will cost a fraction of the quantity as a result of the chances are that the insurance company won’t should pay the demise benefit.

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What is the Average Cost of Car Insurance?

July 14, 2011 at 8:32 am · Filed under car insurance cost ·Tagged , ,

A car insurance with liability coverage may be required in most states before you can even put your hands on the wheel. The average monthly cost of car insurance depends on several factors which all accounts to the level of risk a certain driver is exposed to. This includes the type of car, geographical location, and the driver’s age, gender, credit, and driving history. And it wouldn’t take a very long explanation why either one of these can make your monthly premium soar sky-high or be as low as your magazine subscription. Car insurance for teens can be more expensive than for adults due to higher risk factors.

Factors that Affect Cost
The cost of car insurance may largely depend on the information provided by the driver about himself. It is a fact that the younger the driver is, the more chances of him getting into an accident. Older drivers tend to be more cautious when driving. This is not only an assumptive generalization but is also a fact supported by the high number of teenager-related car accidents per year. Gender is also a factor. Note that these factors are not made-up postulations but are factual possibilities derived by insurance companies from historical data based on claims classified into different categories, stretching of up to twenty years. Your credit worthiness also matters, and your driving history and your likelihood to get into an accident is something that insurance companies would probably first ask about. Just like when you are applying for a credit card, a loan or a mortgage. They will be checking if you are a good investment or a bad one, or if your risk level is just too high. It’s a possibility that they may refuse to provide you the insurance you are asking for. But in most cases, you’ll just have to pay a higher premium than everyone else. Your risk level is classified into three categories, namely: preferred, standard or non standard (a business euphemism to mean that you are high-risk).
The type of car that you are driving will also be evaluated for crash worthiness, safety features, cost to repair, age and even its popularity to thieves. Some models are recorded to have experienced more collision than others. So when you are still looking for a good car, try to search for the model with the least likelihood of getting into an accident. Yes, it would always depend on the driver if he consistently drives inebriated or prefers to just get a taxi when he has had too much to drink. But the car model’s safety feature can also be accounted for. The age of the car may indicate a higher possibility of engine malfunction, and one thing leads to another. Some cars have greater propensity of attracting thieves than others, and if your car is one on the list, you might as well prepare yourself for a higher premium.
The usual usage of the car is also one thing that tells the same story, if your car is used for pleasure, e.g. to visit grandma on the countryside or to go to the Grand Canyon every spring, expect a lower premium. Cars used for business, on the other hand, may require a higher premium. This is because the higher the mileage your car takes a year, the higher the risk of it getting into an accident. As you may have noticed by now, it’s all about the risk.

Types of Coverage
Liability coverage comes as a default feature to any car insurance. It’s the part of it that allows you to make amends and, so to speak, bury the hatchet with someone’s garden gnome. Comprehensive and collision coverage can come as an add on which may result to you paying a higher premium, and like any other insurance, you can always go ala carte with it.
The estimated cost of car insurance can go up to $150 a month with a clean driving history for a multi-car family; the cost for an individual car insurance which the same risk level may cost as low as $50. The state with the lowest average car insurance cost is Illinois while New York is the most costly. On that note, we can all leave it as self-explanatory.
Find the average cost of car insurance in your area by entering your zip code in the box above. Your monthly premiums will be different than your neighbors but now that you understand some of the factors that come into determining the average car insurance cost, you’ll be able to be a more informed consumer.

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Insurance firm penalised for denying vehicle claim

July 13, 2011 at 6:32 am · Filed under Others ·Tagged , ,

The Chandigarh Consumer Disputes Redressal Forum-I has directed the National Insurance Company Limited to pay Rs 60,000 to Bunty Goel, a resident of Sector 17, Panchkula, for denying his valid vehicle insurance claim.

In addition, President of the Forum P D Goel and Members Rajinder Singh Gill and Madanjit Kaur Sahota have also directed the firm to pay Rs 25,000 to Goel as compensation for mental agony and harassment caused to him, and Rs 11,000 as cost of litigation.

In his complaint, Goel had stated that he got his Mahindra Pick-up insured with the company from December 2008 to December 2009, after paying the requisite premium. He appointed Ajay Chaudhary as driver on the vehicle, who had a valid and effective driving licence. Soon after, the vehicle met with an accident and was badly damaged. The Surveyor appointed by the company told Goel to get the vehicle repaired and submit the bill for passing the claim. However, the later the bills were not cleared on the ground that driver did not have a valid driving licence at the time of accident.

In its reply in the court, the company stated that the driver had a licence for driving a Light Motor Vehicle (LMV), but there was no endorsement for driving a transport vehicle. Hence, the insurance claim was not payable, said the company.

However, the Forum observed that in the registration certificate of the vehicle, it was recorded that a vehicle is an LMV. In this light, the Forum upheld Goel’s insurance claim, and directed the company to compensate him accordingly.

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Giving Americans Better Health Insurance Choices

July 12, 2011 at 1:33 am · Filed under health insurance cost ·Tagged ,

For nearly 180 million Americans whose health insurance today is provided by their workplace, getting coverage is pretty straightforward. They can choose from a range of plans offered by their employer that fit their needs and family budget. And for the most part, these plans include strong patient protections.

But for Americans who work for smaller companies, or buy insurance on their own, or are uninsured, the insurance market is much more treacherous. Insurers usually charge a lot more — small employers pay an average of 18 percent more for coverage than their larger competitors — and plans come with more strings attached. Rates can jump by double digits without much warning. Finding and enrolling in coverage is often complicated and confusing. And in the individual market in most States, coverage can be denied based on a person’s health.

Starting in 2014, the Affordable Care Act will provide a new alternative for those in this broken market. Discrimination against people with pre-existing conditions will be illegal. And individuals and small business owners will be able to purchase private health insurance through state-based competitive marketplaces called Affordable Insurance Exchanges.

Exchanges will give Americans competition, choice, and clout in the health insurance market. They’ll be transparent marketplaces where insurers will compete on the basis of cost and benefits. They’ll allow individuals and small business owners to pool their resources so they have the clout that big businesses have today. And people will have a choice of health plans to fit their needs.

These Exchanges will share some key features.

First, they will serve as a one-stop shop where you can easily see your private insurance options, compare prices and benefits, and pick the plan that’s right for you and your family.

Second, Exchanges will set conditions to ensure that insurers compete only on price and quality. Today, some insurance companies try to avoid enrolling sick people or skimp on care to keep their costs down. Exchanges will help prevent that from happening and be able to set standards for health plans on quality, coordination of care, and costs.

Third, they’ll ensure a basic level of coverage. All plans sold in the marketplaces will offer a minimum package of benefits similar to those offered by employers today, so you can be confident the plan you buy will protect you if you get sick. And you will have the freedom to choose from a range of plans to find the one that includes your doctor and meets your needs.

This is how Members of Congress get their health insurance today. And once these reforms are fully in place, buying insurance will become much more like buying a home appliance or an airline ticket. The insurance customer — not the insurance company — will be in the driver’s seat.

We are well on the way to this new reality, with states led by both Democratic and Republican Governors moving forward to establish Exchanges. Altogether, 49 states have accepted grants to help plan and operate their Exchanges, and over half of states have taken additional action such as passing legislation or taking administrative action to begin building Exchanges.

Bipartisan support for Exchanges isn’t surprising. When they are up and running, state Exchanges will save money for their residents by making the health insurance market more competitive and accessible, a goal that leaders from both parties can get behind. In fact, our nation’s first Exchanges were established by Republican governors in Massachusetts and Utah.

Today, we will be releasing draft proposals that set minimum requirements for Exchanges while giving states the flexibility they need to design an Exchange that works for them. These proposals build on over a year’s worth of work. In developing them, we looked at the models of Utah and Massachusetts, held countless meetings with stakeholders, and consulted closely with state leaders, consumer advocates, employers and insurers. But we want to hear more, so we will be traveling across the country to gather input, and we fully expect to modify our proposals based on what we hear from the American people.

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Boat Insurance

July 9, 2011 at 9:26 am · Filed under Boat Insurance ·Tagged ,

A boat owners insurance policy can insure you against most risks of owning and operating your boat, its motor and its trailer.
These risks may include:
Sinking
Fire
Storms
Theft
Capsizing
Stranding
Collision
Explosion
The property covered under boat insurance includes equipment permanently attached to the boat as well as:
Anchors
Oars
Electric trolling motors
Extra fuel tanks
Tools
Detachable canopies
Seat cushions
Life preservers
Skis and their tow ropes
Dinghies.
It can also protect you against liability lawsuits, should you injure someone with your boat or damage their property.
Boat Liability Insurance coverage includes:
Boat liability coverage provides protection for legal liability because of an accident resulting from the ownership, maintenance, or use of your watercraft, including bodily injury, property damage and legal defense.
Boat medical payments coverage pays medical expenses up to the limits in the policy for you, your resident relatives and other occupants of the boat injured by an accident arising out of the ownership, maintenance, or use of the watercraft.
Additional boat insurance coverages include those for:
Newly acquired watercraft covers your newly acquired watercraft for damage caused by an insured loss. Must be replacing the existing State Farm insured boat and all boats owned need to be insured with State Farm.
Reasonable repairs covers repairs incurred to protect covered property from further damage.
Emergency service pays up to $500 for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
Wreck removal pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction of the wreck of your boat when damage is caused by an insured loss and removal or destruction is required by law.

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Potential Fraud Schemes with Health Insurance

July 8, 2011 at 6:08 am · Filed under health insurance cost ·Tagged , ,

In the event of a severe illness or injury, recovery often requires care, surgery, or diagnostic testing that can be extremely expensive. As a result, individuals purchase health insurance policies which protect them financially in the event of an unforeseen accident. While many company sponsored plans are entirely legitimate, people forced to purchase individual health insurance can on occasion find themselves dealing with a disreputable company. Most of these insurance companies take advantage of the myriad of complexities involved in the practice of medicine, and finding a truly comprehensive and fair coverage requires a certain level of diligence and common sense.

Denial for Pre-Existing Conditions
Many insurance companies will promise coverage of a wide umbrella of ailments, only to deny your claim based on the fact that it was a pre-existing condition. As the time frame of when you contracted a disease and when you developed symptoms can be sketchy, insurance companies can use these ambiguity to deny you benefits. When searching for cheap health insurance quotes online, be sure the policy covers pre-existing conditions.

Fine Print
Some policies promise comprehensive coverage, yet do not cover specialists, separate diseases caused by the original illness, and more expensive diagnostic tests. Many individuals who are healthy and shopping for individual health insurance don’t anticipate the wide variety of costs associated with a serious malady. Be meticulous in researching what areas are not covered by a policy, and determine in advance if you are comfortable with such limitations.

Fake Government Health Care
As many are still unaware as to how the new health care legislation works, scam artists are using this ignorance to take advantage of everyday citizens. Scam artists set up phony associations in the name of government health care, either offering full health insurance plans or special discount cards on doctor visits. With rising health care costs often suffocating the average citizen, it provides the perfect environment to offer deals that are too good to be true. Individuals interested in government health care should contact the appropriate federal agency for more information, and never reply to direct solicitations.

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Saving Money on Any Insurance

July 7, 2011 at 9:31 am · Filed under Others ·Tagged , ,

There are some forms of insurance you just can’t live without. Car insurance is mandatory in all states, homeowners insurance is required if you carry a mortgage, and any parent will tell you that medical insurance is crucial. With rising costs hitting all of these necessary protections, it pays to make the most of every dollar.

Car Insurance
Since you have absolutely no choice about having car insurance, you may as well shop around to find the best deal. I know that there are many advertisements trying to entice you to change companies, but before you do that, compare what you are getting right now to what they are offering. Frequently companies “save” you money by providing lesser coverage; in my book that is no savings. Shop around and do it early, insurance companies will almost always match any legitimate offers you find.
The quickest and easiest way to drop those premiums is to raise your deductible. By increasing your deductible from $200 to $500 dollars, you can save 30% on your insurance premiums. Make sure to set aside the money needed if you do have an accident and need to produce the higher premium.
Ask about discounts. Teen drivers usually get a discount for good grades or certain types of driver’s education programs. If you don’t drive much, or your job is just a couple of miles from home, you may be able to get a low-mileage deduction. Also, consult your insurance agent when purchasing a new car so you know in advance which ones cost less to insure. Some companies offer lower deductibles for each year you go without having a claim, so make sure you ask that because it could save you money long term.

Homeowners Insurance
Just like auto insurance, increasing your deductible will decrease your premiums. Many companies will offer discounts to customers who purchase multiple policies with them, so bundle your car and homeowners insurance to save some money.
Only insure your home, not the land for replacement costs in case of disaster. This common mistake costs many people money. You won’t have to replace the land, just the building, so check your policy to make sure you are insuring only what you need.
Another thing to consider is staying with a company for the long haul since many offer loyalty discounts. Improving your home’s security and disaster resistance will generally garner you some deductions as well.

Medical Insurance
Many people simply can’t afford private medical insurance. Before you raise your hands in frustration and walk away, consider that a major medical bill will bankrupt your family, so even something is better than nothing. Many States now offer basic health insurance based upon income levels; call your state offices and ask if you can get insurance that way.
Again, raising your deductible will help if you have insurance but are struggling to pay for it. See what kinds of plans your company offers, and if you can get insurance through work. Compare the plans and make sure you are comparing apples to apples, even with the complicated wording of many policies. Also, take advantage of medical savings accounts that let you put aside money to pay for medical expenses, tax free.
Keeping on top of your insurance costs and options will save you money immediately and in the long run. The key is to comparison shop often so you always get the best discounts.

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