We’ve all heard the nightmarish tales of people losing their jobs and having their identity stolen because of social networking sights (e.g. Facebook, Twitter, Myspace). However, one thing that you may not know is that more and more insurance companies are using these websites as a source of underwriting. This means that users who post their whereabouts or adventuresome pictures will be seeing a hike in their premiums in everything from homeowners to life insurance. Posting your whereabouts on social networks alerts criminals to the fact you're not at home, and therefore increases your chances of getting robbed. This increased chance of burglary has a direct relationship with your homeowner insurance and some users will reportedly see their premiums increase by as much as 10%. Another no-no in the world of social networking websites is posting pictures of yourself engaging in hazardous activities such as bungee jumping, rock climbing, or binge drinking. It is exactly these activities that insurance companies view as ‘high risk’ and, ultimately, may lead to higher life insurance rates. Many larger insurance companies have also stated that they will review these social networking websites after a claim is filed to see if the insured was at all negligent. Aside from the above mentioned tips to keep your insurance premiums at a minimum, it is also recommended that users never post any personal information on these websites. This includes home addresses, personal telephone numbers, and your date of birth. Although these may seem like insignificant pieces of information, when put together they can provide any would-be burglar with just the right information to make you a prime target. Tips for keeping insurance premiums at a minimum: 1. Turn off location-based services on Twitter and Facebook unless you absolutely need to use them 2. Don't follow people you don't know on social networks and use block others from seeing your profile if you don't know them 3. Never post any personal information on these websites (home address, phone number, date of birth, etc…) 4. Never post pictures of yourself engaging in reckless activities Written By: Charles Lowe, Account Manager STORM CHASERS 08/17/2010
Every summer, scam artists who pose as contractors take thousands of dollars from unsuspecting Ohio residents. State Rep. Matt Patten, D-18, of Strongsville has introduced legislation that he hopes will protect homeowners from criminals, known as “storm chasers.” Patten and Rep. Dennis Murray, D-80, of Sandusky recently introduced legislation that will increase protection for homeowners whose homes are damaged by severe weather. The bill protects not only homeowners but it also protects local contractors from having their reputations ruined. The legislation targets the storm chasers who are often from out-of-state and usually pose as contractors. They usually come into areas that have been affected by severe weather, such as tornadoes, lightning hail and high winds. Oftentimes, storm-chasers secure the goodwill of another contractor and work under their name. The storm chasers then usually go around to the storm-damaged homes and offer their services to the family. They secure a deposit for their work and usually leave town before the work is completed or before they ever even start the work. The bill will establish several consumer protections in home improvement contracts. It requires contracts to be in writing and detail the identity of the contractors. Further, it will limit the amount that a homeowner will have to pay as a down payment or deposit for work yet to be completed and requires contractors to maintain a minimal level of insurance. Patten would also like the bill to require that contractors have licenses, but the final details have not yet been established. The bill will be placed in committee and the final details of the bill will be pushed. (Article taken from www.cleveland.com) •Reduce coverage for an older vehicle. If the economic downturn has forced you to hold on to a car that's held together by duct tape and prayer, make sure you're not insuring it for more than it's worth. If your car is totaled, all your insurer will cover is the current value of the car. You can reduce your premium by 40% or more by getting rid of collision and comprehensive coverage. Trouble is, it's not always easy to determine when it's time to ditch this coverage. These days, even a 5-year-old car that originally cost $50,000 could still be worth a lot of money, says Brad Cooper, senior vice president for InsWeb. Here's a good rule of thumb from the Insurance Information Institute: Drop collision and comprehensive coverage if your vehicle is worth less than 10 times the premium. You can get an estimate of your vehicle's current value at Kelley Blue Book, www.kbb.com. •Raise your deductible. Increasing your deductible to $1,000 from $250 could reduce your monthly premiums by up to 40%, InsWeb says. "You have to ask yourself, based on your current financial position, how likely can you come up with $500 or $1,000 in the event of an accident," Cooper says. "If you can do it fairly easily, and you're a safe driver, you're probably better off raising your deductible." •Factor in the cost of insurance before buying a new car.Eventually, you're going to have to retire your junker, and car dealers will be delighted to help you find a replacement. They'll probably shower you with incentives, too. What they probably won't tell you is how much your insurance costs will increase. Depending on the type of vehicle you buy, your insurance premiums could increase by $100 a month or more, Cooper says. Most consumers don't find that out until after they've transferred their new car to their policy. Price is just one factor used to determine auto premiums. Repair costs, the vehicle's safety record, and the likelihood of theft also affect the amount you'll pay. To avoid premium shock, research insurance costs before you sign the papers. Talk to your insurance agent, or get quotes from sites such as InsWeb.com, Insurance.com and Insure.com. •Compare rates for a teenage driver's policy. Instead of adding your child to your own insurance policy, you may save money by buying a separate policy for your teenager, Cooper says. Some large insurers don't want to take on the risk of covering a teenage driver and charge significantly higher rates as a disincentive, he says. Insurers that specialize in insuring high-risk drivers may offer you a lower rate, he says. But a separate policy isn't always a better deal, says Sam Belden, vice president for Insurance.com, an online insurance site. Some insurers will give parents who have a good driving record a discount on their child's coverage, he says. And some are eager to cover teenage drivers because they want to keep them as long-term customers, Belden adds. Most parents add their children to their own policies, but it makes sense to look into both types of coverage, says Jeanne Salvatore, spokeswoman for the Insurance Information Institute. •Look into discounts. If you're working from home or taking public transportation to work, you may qualify for a low-mileage discount. Insurers also offer discounts for policyholders with good driving records, longtime customers and policyholders who drive cars with specific safety or security features. Salvatore recommends reviewing your policy once a year, or more often if there's been a change in your family's driving habits. For example, suppose your teenager is headed to college this fall and will only use the family car during the holidays. You should be able to get a discount on the cost of covering that child, Salvatore says. Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays. COLUMBUS, Ohio – April 26, 2010 – The State Auto Insurance Group has reached a significant milestone in its sales of personal lines insurance: one million policies and one billion dollars in premium. State Auto offers auto, home and other personal lines insurance products in 33 states. The company has experienced considerable growth in Arizona, Colorado, Connecticut and Texas, where State Auto most recently began offering personal lines products. “Success in our expansion states, along with new products and best-in-class automation for our agency partners is playing a significant role in our growth,” said Vice President and Director of Personal Insurance Joel Brown. “We’re honored by this achievement and grateful to the independent insurance agencies who represent State Auto and the individuals and families who have placed their trust in us. “While we’ve certainly grown as a company over the past 90 years, our tradition of compassion, integrity and superior service has not changed,” said Brown. “What was as important to our founder, Robert Pein, remains important today – treating our customers as we ourselves would want to be treated.” By the end of 1921, its first year of operation, State Automobile Mutual Insurance Company had written $18,005.30 in auto insurance – then its only line of business. Today, the State Auto Group exceeds $1.5 billion in premium, with products that include auto, home, business and specialty lines insurance. Ohio's Uninsured Driver Facts 03/05/2010
Responsibility (FR). It’s also illegal for any motor vehicle owner to allow anyone to drive the owner’s vehicle without maintaining FR. Ohio’s FR law applies to: • Owners of registered vehicles in Ohio • Those with Ohio driver licenses or those applying for any type of Ohio drivers license, including a probationary license • Motorists leasing vehicles from licensed dealers 1. Maintaining and monitoring FR enforcement FR proof is monitored and verified in several ways. Because these are ongoing verification efforts, violators are caught in the act, eliminating loopholes in the enforcement of the law. Proof of FR is required in the following circumstances: • Stopped for a moving violation, a vehicle safety inspection or involvement in a traffic accident • Upon BMV request for FR proof if involved in a crash causing injury, death or more than $400 in property damage and a Motor Vehicle Crash Report was filed by another driver • Involved in a violation requiring a court appearance • When contacted by mail through the Ohio BMV random verification program The Ohio BMV administers Ohio’s random verification program. It’s a cost-effective enforcement mechanism with little chance of evasion by those who are notified and are asked to provide FR proof. The FR random verification program, which went into effect in December 1998, ensures greater compliance with the state’s FR law. 5% of Ohio’s registered vehicle and noncommercial truck owners are randomly selected and mailed FR verification letters (about 5,400 weekly or 280,000 annually). Recipients are given 21 days to respond to this first request for FR proof. How it works: • The Ohio BMV sends a letter requesting FR proof. Recipients are required to send the BMV within 21 days a copy of one of the following: Auto insurance policy’s declaration page auto insurance ID card or a copy of the authorized FR bond. • If not provided, the BMV allows up to 10 days before mailing a “Notice of Suspension.” The notice provides a 60-day grace period for the recipient to provide FR proof. • A second notice of suspension is sent via certified mail 42 days prior to the suspension date. According to the Ohio Department of Public Safety, motorists are given up to 90 days to provide FR proof. Owners of seasonally driven vehicles can satisfy program requirements by providing a letter from their insurance agent or company stating that the vehicle is insured on a seasonal basis. This information should be mailed to: Ohio BMV, P.O. Box 390, Richfield, OH 44286-0390. For online information, go to: www.bmv.ohio.gov/financial_responsibility/random-selection.htm. 2. Ohio uninsured motorist statistics Through Ohio’s random verification program, those found in violation of the law have their drivers license suspended, among other penalties. These figures provide the basis of determining the number of uninsured motorists (UM) in Ohio. According to the BMV, Ohio’s random verification program has found that about 9% of Ohio drivers are either uninsured or not in compliance with Ohio’s FR law, on average, for the past few years. With the exception of 2006 when the BMV changed vendors for its program, 280,000 Ohio drivers have been randomly selected for FR verification annually. Suspensions generated by year as a result of this program and the percentage of uninsured they represent are: 2005 27,655 9.9% *2006 19,313 N/A 2007 23,846 8.5% 2008 24,866 8.9% * BMV changed vendors for its program in 2006 and fewer notices were mailed during the transition. Annual percentage rate of uninsured is not available. 3. Compulsory insurance vs. FR law, what’s best for Ohio drivers? If you’ve ever been involved in a crash with an uninsured motorist, you might wonder why Ohio doesn’t require auto insurance. Many states that require proof of insurance upon vehicle or driver registration have higher auto insurance premiums than Ohio. Drivers in the Buckeye state maintain auto insurance premiums that are $163 lower than the US average, based on 2006 premiums. Also, there is no guaranty that a person in a mandated insurance law state maintains auto insurance after license renewal. A person may choose to cancel his/her insurance after applying or renewing a license, skirting the mandatory insurance law. Also fake insurance ID cards are easily obtainable by those choosing to evade state laws. A case in point: Alabama. Legislation passed in 1999 initially required Alabama drivers to show proof of insurance when registering vehicles, but a revision the following year struck this requirement down. Critics said it would have created logistical nightmares in government offices and allowed people to cancel their policies once they got their tags. Requiring coverage for those with few assets to protect is becoming less and less effective. Poorer states historically tend to have a greater percentage of uninsured drivers in part because those on the lower end of the income scale have less to protect and more immediate financial needs than auto insurance coverage. This is becoming in more prevalent nationally given the instability of the US economy and employment outlook. 4. Financial Responsibility of Ohio drivers in crashes (2000-07) The following information is provided to further explain the chances of involvement in a crash with an uninsured driver in Ohio. An average of only 4.2% of drivers involved in crashes for the years 2000-07 were uninsured, and 3% were found to be at-fault. CLICK HERE for a chart that includes: • Number of crashes in Ohio by year (2000-07) • Number of drivers involved in crashes found to be in FR compliance through insurance or other means • Number of drivers involved in crashes not stating FR compliance • Number of drivers in crashes who were uninsured or in violation of Ohio’s FR law • Uninsured drivers as a percentage of drivers in all crashes • The number of UM drivers who were at fault (in error) in crashes • Drivers who were at-fault and uninsured as a percentage of all crashes 5. Uninsured motorist coverage - An effective means of protecting drivers Most Ohio drivers choose to meet their financial responsibility obligations by purchasing auto insurance. Ohio’s insurance marketplace is vibrant and competitive with more auto insurance carriers than all but one state, Illinois. (Source: A.M. Best) Ohio’s auto insurance market offers a variety of coverages and limits of liability to fit everyone’s needs while charging some of the lowest average premiums in the country. Uninsured and underinsured motorist coverage (UM/UIM) – which protects drivers from uninsured drivers or drivers carrying low limits – is widely available and affordable. The cost of UM/UIM coverage is $40-50 annually based on the limits of coverage and insurance carrier. 6. Protection afforded Ohio drivers involved in crashes with at-fault, uninsured motorists Ohio law prohibits insurers from increasing the cost of an insured's private passenger auto insurance policy for involvement in one or more accidents with uninsured or underinsured motorists. This applies if the insured's actions were not the proximate cause of any loss, damage, injury or death arising out of such accidents and if the insured has not been convicted of, pleaded guilty to, or pleaded no contest to, a violation of law in these accidents. Six Ways to Save on Homeowners Insurance 02/04/2010
Smart Money’s Six Ways to Save on Homeowners Insurance Smart Money recently published an article listing six ways to save on your homeowner’s insurance. Homeowner’s insurance is one of the annual costs homeowners face and it’s one of the great places to turn to if you want to save a little extra money. You should always be re-evaluating your insurance needs every single year because you never know how much you can save. It doesn’t take long at all and homeowner’s insurance is one of the simplest insurances available (unlike car insurance or medical insurance). The six ways you can save are:
In 2008, the American Association for Justice released a 29-page report entitled “The Ten Worst Insurance Companies In America.” The report was the result of a comprehensive investigation of a blizzard of court documents, FBI records, state insurance department complaints and investigations, news stories from around the nation, and testimony and depositions from former insurance agents and adjusters. http://russlongcore.wordpress.com/2009/02/18/worst-insurance-companies-the-top-ten-worst-insurance-companies-in-america/ Home Owner Inurance 10/30/2009
At this point in your life, your home is very likely your biggest asset – as well as a major cost item in your budget. You may move to a larger house, build an addition or replace that child-stained sofa and inexpensive wall decorations with pricier furnishings and artwork.
| Daniel VucenovicManaging Principal, ArchivesSeptember 2010  |
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