Using Credit Scores in Auto Insurance Rating

From Sun Sentinal

What does your credit score have to do with what you pay for automobile insurance? How about your education or your job?

At a congressional hearing in Washington Florida Insurance Commissioner Kevin McCarty brought the state's long-running battle with the insurance industry over these issues to the forefront. He argued that credit scores are not "fair and valid" criteria for setting auto insurance rates.

Under an exemption from Florida's public records laws, insurers have been able to set policy premiums without revealing their pricing models. That exemption will expire in October, the state will ask auto insurance companies to reveal more about their processes.

The Federal Trade Commission is looking into the issue and Congress is considering two bills that would ban the use of credit scores in auto insurance rate decisions, a nationwide practice that generally results in higher insurance rates for those who have poor credit.

To make sure you are getting the best auto insurance rates, visit insurance.com to compare rates from leading insurance companies like Progressive, Geico, Esurance, Travelers AIG and many more

Economy's Impact on Auto Insurance

Automobile insurance across the state of Massachusetts has dropped dramatically since 2003, but law enforcement officials warn that tough economic times ahead could result in increased fraud (faked accidents, arson etc.)

In Lawrence Massachusetts, auto insurance claims in 2006 were $26 million less than in 2003, according to a new report by the Insurance Fraud Bureau of Massachusetts. Since Lawrence and area law enforcement officials formed the Lawrence insurance fraud task force in 2002, claims are down $31 million. The drop in overall claims is attributed to a reduction in fraudulent ones.

Statewide there has been a $549 million reduction in auto insurance claims in 2006 compared with 2003. The 13 communities like Lawrence with fraud task forces saw claims drop by a total of $273 million compared with 2003.

Fraud affects what auto insurance companies charge customers. This year, rates for good drivers in MA, on average, will go down 7.1% percent, after being slashed an average 11.7% the year before. But those accomplishments are under threat as the economy softens.

2009 HSA Limits Announced

The IRS announced the maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits for high deductible health plans (HDHPs) used in conjunction with HSAs.

Annual contribution levels

For 2009, the maximum annual HSA contribution for an eligible individual is $3,000 and $5,950 for family coverage.

Out-of-pocket spending

The maximum annual out-of-pocket amount for HDHP self-coverage increases to $5,800 and $11,600 for family coverage.

Minimum deductible amounts

For 2009, the minimum deductible for an HDHP increases to $1,150 for self-only coverage and $2,300 for family coverage.

Finding Affordable Health Insurance

Congress should to move toward providing access to guaranteed health insurance coverage to all Americans rather than expanding access to high-deductible health plans tied to health savings accounts that provide little benefit to low-income Americans and those needing the most care, according to a written statement prepared by Consumers Union for the U.S. House Health Subcommittee on Ways and Means.

The release cites a study by the Government Accounting Office finding that people with Health Savings Accounts (HSAs) in 2005 had an average adjusted gross income of $139,000 compared with $57,000 for other filers.

It is unfortunate that current tax policy encourages the creation of a fragmented health insurance market by making contributions to health savings accounts tax deductible. What we need to do instead is find new ways to broadly spread the risk health insurers take on so that costs will be affordable for those consumers who are at highest risk of medical problems and incur the greatest expense. Finding cheap health insurance is not an easy task for those at the highest risk of medical issues.

Children's health insurance in Iowa

As companies trim their health insurance coverage to compensate for rising costs, two studies highlight economy's effects on children's health care.

The first found 16% of the children's parents lost their jobs and 14% lost health insurance coverage.

Children whose parents lost or simply changed jobs were twice as likely to lose their health insurance. Those who had private health insurance fared worse; they were three times more likely to lose health coverage.

the second study looked at 15,447 children for the effects of on-and-off health insurance coverage. The youngsters faced unfilled prescriptions, delayed care, and lack of doctor visits similar to their completely uninsured peers.

But Iowa, high on the list of children's health-insurance rates in the nation, doesn't seem to be hurting yet. In 2006, 93.7 percent of Iowa's children under age 18 had insurance, and most were covered by employment-based private plans, according to the State Data Center of Iowa.

And Iowa is an "interesting" case: High numbers of self-insured and self-employed individuals (i.e., farmers) are "doing a good job of covering their families," said Peter Damiano, a UI professor and the director of the Public Policy Center.

PA Health Insurance Reform Plan

A Pennsylvania health insurance reform plan adopted by the state House could cover almost 300,000 uninsured Pennsylvania residents affordably within 10 years

The Access to Basic Care program passed by the House, known as the PA ABC bill, utilizes private health insurance companies and offers health insurance coverage to eligible small businesses and low to middle income families. An estimated 767,000 adults are uninsured in Pennsylvania.

Adults without health insurance in Pennsylvania regardless of employment status will be able to buy health insurance on a first-come, first-served basis through the ABC program.

Total program costs would begin at just $501 million during fiscal year 2009 and would reach nearly $1.4 billion by fiscal year 2018.

Allstate Auto Insurance rates in California

California automobile insurance rates from Allstate Corp will be almost 16% lower as of May 12, as Allstate complies with a state mandate.

The reduction comes as California Insurance Commissioner Steve Poizner warned he would not accept further delays to his rate-cut order made earlier this year.

Allstate, the largest publicly traded car and home insurer in the United States, had earlier contested the order.

Poizner had ordered the rate reductions in March after determining Allstate's automobile insurance rates were excessive. The cuts were ordered to take effect on April 28.

The auto insurance rate cuts will save consumers an estimated $250 million a year and average approximately $124 per year for Allstate customers.

A great place to compare california auto insurance rates online is insurance.com.

Uninsured Kids

Both poor & middle class kids under age 18 share at least one thing in common: If they do not have health insurance coverage, they are likely to go without any health care... period.

New research from the University of Rochester Medical Center said more than 40% of children in families earning between $38,000 and $77,000 annually without health insurance for 1 year see no physicians and have no prescriptions during that time.

The percentage is as high as 55% for uninsured children in families earning less than that.

Nearly 3 million uninsured children in the country received no medical care or prescription use for a full year, according to an analysis of nationally representative data from a 2004 survey. About 1.6 million of those children may qualify for public health coverage but are not enrolled for coveage.

Since 1997, the U.S. State Children's Health Insurance Program has provided health insurance to low-income children who are not eligible for Medicaid and do not have private coverage.

Auto Insurance Rates

The state of California has saved its residents $62 billion over the past 20 years or so do to theitr unique auto insurance rules.

New Jersey, Hawaii, New Hampshire and Pennsylvania also have served their drivers well by keeping auto insurance rates relatively low, but drivers in other states have watched their costs skyrocket.

California ramped up its automobile insurance regulatory system in the late 1980s, making it tougher for companies to raise their insurance rates.

Nationwide, the average cost of auto insurance jumped by 50% between 1989 and 2005. Other states where price hikes were held down, relatively speaking, included New Jersey with a 20% increase in that time period; Hawaii, 25%; New Hampshire, 30%; and Pennsylvania, 31%.

With the exception of New Hampshire, those states have systems in which insurers cannot put auto insurance rate changes into effect without state approval.

States with the steepest rate changes were Nebraska, where average per-car costs surged 118% and South Dakota, where costs jumped 107%.

Other high-increase states include: Montana, 104%; Wyoming, 101%; and Kentucky, 100%.

Compare auto insurance rates in all 50 states and save money with insurance.com

Oklahoma Health Insurance Rates

Family health insurance rates in Oklahoma rose 50% between 2001 and 2005 while the income of Oklahoma policyholders remained flat. Oklahoma led the nation in increased health insurance rates paid by employees of companies which offer health insurance coverage to their employees. The national average increase was 30% over that same period.

The average cost of family health insurance coverage jumped almost $2,500 across the nation, (from $8,281 in 2001 to $10,728). In Oklahoma, the cost of health insurance soared $3,664 (from $7,322 to $10,985)

Comparatively, the increase in health insurance premiums in surrounding states ranged from 8% in Kansas, 14.4% in Arkansas and 40% in Texas.