Car insurance is slammed as a rip-off for Islanders

Staten Islanders are being taken for a ride by their auto insurance providers, according to a report released yesterday by City Comptroller William Thompson, which showed Island insurance rates that are unreasonably higher than those upstate.

For instance, a 35-year-old Staten Island man pays $871 for the minimum annual coverage provided by Allstate Insurance for a private passenger car, compared to $205 for a similar man in suburban Rochester. State Farm Mutual charges $1,076 for such a policy on Staten Island, compared to $407 in Rochester.

The revelation was part of a larger report that focused on ballooning rate increases in New York City over the past five years.

"There's no defensible reason why our auto insurance premiums are so high," said Thompson during a news conference in Lower Manhattan. "It creates real hardships for people."

While policy pricing varies across locations according to the firm's losses in that area, Thompson said New York City's numbers are "still way out of whack," particularly since insurance firms' losses in claims payouts have plummeted in New York.

Statewide, drivers paid $10.5 billion in auto insurance premiums in 2005, up 29 percent from 2000, when they paid $8.2 billion. But during the same period, inflation rose by 13.4 percent.

And the percentage of claims paid by companies dropped by 20 percent, to $5.1 billion from $6.4 billion, according to the report. Reasons for the decrease include changes in state regulations that have driven down no-fault filings, and a crackdown on insurance fraud, said Thompson.

Drivers in the Bronx, Brooklyn and Queens have been hardest hit by the increases, while Staten Island rates from the state's four largest insurers have on average have remained flat for the past five years. Those insurers are State Farm, Allstate, Geico and Progressive NE.

"What we're seeing are premium increases that vastly outpace the rate of inflation and in some cases have exceeded 40 percent," said Thompson during a news conference in Lower Manhattan. Noting that companies are reaping excessive profits, Thompson added the industry "is essentially picking the pockets of New Yorkers."

TOPIC Accelerates into Motorsports Insurance Race

ORMOND BEACH, Fla. -- TOPIC Insurance of Ormond Beach, Fla. has expanded on its 11-year involvement in motorsports insurance with the creation of TOPIC Motorsports Insurance (TMI), a new one-stop insurance option for racing tracks, teams and promoters. In the wake of this announcement, TMI has formed an exclusive arrangement with ASA Racing of Daytona Beach, Fla. ASA Racing Member Track owners are now able to purchase general and excess liability, automobile, an expanded ASA exclusive $500,000 participant accident medical, workers compensation and health insurance directly from TMI.

“With more than a century of collective motorsports insurance experience, the team at TMI is able to provide products and coverage for virtually any situation,” said Todd Phillips, president of TMI and a 22-year insurance veteran. “We’re thrilled to be working with ASA Racing and their growing family of tracks.”

According to Dennis Huth, president and managing member of ASA Racing, TMI is in tune with the needs and challenges track owners are dealing with today. “Todd and his group are able to respond with great service and innovative solutions. In the competitive world of insurance, TMI has the team, the talent and the resources we want for our members, sponsors, tracks and tours.”

In addition to the exclusive arrangement with ASA Racing, TMI is one of just four agencies in the country that has been accepted by NASCAR for the 2007 season.

TMI will rely on WSIB Motorsports Insurance for all of its underwriting, supported by the Chubb Group of Insurance Companies, a multibillion dollar global property and casualty insurance firm.

“TMI is ideally suited to handle the insurance needs for the expanding ASA Racing Member Tracks alliance,” said Don DeWitt, CIC, senior vice president of WSIB. “TMI is an agency that delivers the superior client service, first-class products and underwriting capabilities this industry needs.”

Motor insurance provider reveals drivers' fears

Motorists whose job is to drive across the country in various roles have called on the police to improve safety and crack down on the number of drivers risking their motor insurance premiums through driving offences.

Research by Tesco Insurance showed that 42 per cent of working drivers think that increased police visibility would be the best way to combat the problem.

Some 41 per cent of respondents said that they thought speed cameras were ineffective in cutting motoring crimes.

Allan Burns, of motor insurance provider Tesco, said: "Our findings reveal a sizeable majority of motorists feel unprotected on the roads, favouring tougher penalties for those breaking the law and trapped between the increasing cost of motoring and lack of a viable alternative for their regular journeys."

The survey, entitled, Drivers' Attitudes, also showed that 60 per cent of those questioned believed that road pricing would not reduce congestion.

A poll of more than 1,300 company chiefs found that nine in ten bosses support road charges or tolls in combating congestion, the Manchester Evening News reports.

Kwik-Fit Insurance can provide customers with a keep motoring product to help keep them on the road after a theft or accident in which the car is written off.

Coverage & Access | High Cost of Health Insurance Hinders Start-Up Companies

Health insurance costs are "increasingly rattling" start-up companies and, in some cases, keeping "would-be entrepreneurs on the sidelines, especially those with pre-existing medical conditions," the New York Times reports. The "high cost of health insurance" is "even more critical" for entrepreneurs with ventures that are fewer than five years old, as they are in the critical stages of building clientele and profits, according to the Times. In addition, many start-ups have few employees, and the companies cannot receive the discounted insurance rates that larger companies have. A September Kaiser Family Foundation and Health Research and Educational Trust telephone survey of 2,122 companies found that premiums for small companies increased by 8.8% on average, compared with a 7% increase among larger companies with 200 or more employees. According to a 2005 National Association of the Self Employed mail survey of more than 600 small businesses, 51.1% of small-business owners said they did not offer, or plan to offer, health insurance coverage for themselves or their employees. The NASE survey found that 14% of the smallest companies grossing less than $50,000 annually offered health insurance, compared with 70% of companies with annual revenue of at least $500,000. Smaller companies that offered health insurance to workers spent a median 18.7% of their gross sales on health coverage, compared with 2.3% among higher-grossing firms. Kristie Darien, executive director for NASE, said, "The cost of health insurance is definitely a big factor in the decision to move toward self-employment," adding, "Not only is it a huge cost, but it's also very complicated. There's a natural fear among people that you have to do a lot of research and it still can be very confusing." According to Katherine Swartz, an economist at the Harvard School of Public Health, many states are examining ways to reduce health insurance costs for small businesses, such as through high-risk pools that provide subsidized insurance to individuals with pre-existing or chronic conditions (Tahmincioglu, New York Times, 11/30).

China urged to fully use 50 bln-yuan unemployment insurance fund

Experts and officials have urged the Chinese government to fully use its unemployment insurance fund to help the jobless.

The country had amassed 51.1 billion yuan (6.4 billion U.S. dollars) of unemployment insurance funds by the end of last year, more than 30 percent up from the previous year.

The government should expand the spending channels of the fund to improve the skills of the unemployed, said Wang Xinjun, director of the insurance and actuarial science research institute with the Shandong University.

A large unemployment insurance fund was inappropriate, as the unused funds may be depreciate in value, said Wang.

China's unemployment insurance fund could subsidize training for the unemployed, with the spending left to the discretion of provincial governments, according to regulations.

However, local financial departments should keep a tight hand on the insurance funds, which are managed as government budgets, said Gao Jing, an official with the employment office of Jinan, capital of the Shandong Province.

The insurance fund had yet to fully play its role in facilitating employment, said Jiao Xuebai, head of the Labor and Social Security Department of north China's Shandong Province.

The government announced in January a three-year pilot project to expand expenditure of the unemployment insurance fund in seven provinces and municipalities to subsidize small secured credit.

At least 13 million urban residents are made jobless annually, said Minister of Labor and Social Security Tian Chengping in a recent interview.

Do I need a commercial auto insurance policy?

WEST ROCKPORT : Do I need a commercial auto insurance policy?
As a businessowner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.

If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.

The Advantages of Pay-As-You-Drive Insurance

In a recent Economic Scene article for The New York Times posted here, Hal Varian explains the benefits of per-mile auto insurance. He also *patiently* answers many of the questions that come up in comments to the post (his answers are here and there are more rounds of questions and answers in the comments to that post complete with supporting models).

In the article, Hal Varian discusses work by Aaron S. Edlin and Pinar Karaca-Mandic from their paper, “The Accident Cost From Driving.” In this article from Economist's Voice, Aaron Edlin summarizes work in this area with a focus on the political advantages of using per-mile auto insurance to reduce gasoline consumption:

If Voters Won’t Go for Taxing Oil to Conserve Energy, How Do We Do It?, by Aaron S. Edlin, Economist's Voice, November, 2006: ...Lowering our dependence on oil would give the United States considerably more flexibility in Middle East policy. It would also help us to fight global climate change. Yet precious little has been done. The obvious solution of European-size taxes on gasoline and other uses of oil is just too unpopular in the United States to become law. ...

What can be done to decrease America’s energy dependence, given the public’s apparently well entrenched fear of increases in the cost of driving? One way forward may be a simple reform to auto insurance: Pay as You Drive.

Pay-as-you drive-insurance: how it would work

Currently, auto insurance is largely, but not entirely, independent of the amount of driving a person does. If an individual drives 5,000 miles per year, instead of 25,000, then her insurance rate is reduced only slightly: often, by 15% or less. ...

Suppose that, instead, ... that auto insurers were required to quote premiums on a per-mile driven basis instead of a per-year basis.

Consider a given class of drivers ... whom insurance companies currently charge $1000 per year, and who currently drive 10,000 miles per year on average. Instead of charging these drivers $1000 per year, insurers might charge 10 cents per mile driven.

The average driver ... would continue to pay the same amount—$1000 per year— assuming no change in driving behavior. However, suppose this driver chooses to cut her driving in half, to 5,000 miles per year... Then she would save $500/year, much more than under the current pricing system. Moreover, if the same driver were to double her driving, she would double her insurance cost... Such a pricing system would give her a significant incentive to reduce her driving. Elsewhere, I have estimated that such pay-as-you-drive insurance could reduce driving and gasoline consumption by 10–15%.

The political advantage of pay-as-you-drive insurance over a gas tax is that it doesn’t increase the total cost of driving, at least on average. ... Prices at the pump, of course, stay the same—making the measure much more palatable... And rather than voters simply fearing negative consequences, they can enjoy some positive ones: lowered insurance prices as a reward for changes in behavior. ...

The change won’t be painless for everyone, of course. Those who drive twice the average will pay twice as much. But that’s only fair: They also cause more accidents, and burden the environment, and worsen our dependence issue, twice as much. And charging high mileage drivers more is exactly what will give people an incentive to drive less.

The peculiar all-you-can-drive way that auto insurance is currently priced

The late Nobel Laureate William Vickrey wrote almost forty years ago that “the manner in which [auto insurance] premiums are computed and paid fails miserably to bring home to the automobile user the costs he imposes in a manner that will appropriately influence his decisions.”

The costs to which Vickrey referred were accident costs, not terrorism, climate, and national security costs. The great thing, though, is that by switching our insurance system to pay-as-you-drive insurance, we can reduce accident costs with more efficient accident pricing, and reduce these other costs as a bonus. ...

Vickrey’s point is that with each mile we drive, there is a cost in the form of accident risk. When we don’t pay the costs we impose, the incentives are obvious: we drive more than is economically efficient, causing accidents as we go. If we paid as we drove, and were charged a per-mile premium we would choose to drive less and there would be fewer accidents. And that would be fair: we would simply be forced to pay for the externalities of our conduct. ...

If Americans are successfully incentivized to drive less by pay-as-you-drive insurance, [accident] costs will fall appreciably... Several insurance carriers have begun to experiment with pay as you drive insurance, but they have not rushed to charge per-mile premiums on their own. Too many of the gains would not be captured by the company changing the policies. They need some encouragement.

The political salability of mandating pay-as-you-drive

...Per-mile premiums ... could lower the cost of driving for most people because most people drive less than the average. (Because driving quantities follow a skewed distribution, the median is considerably lower than the mean). Moreover, such premiums give drivers additional control over their costs, so they can choose to lower them still further.

There would, of course, be opposition. Although more than 50% of people drive less than the arithmetic average, many obviously drive more ... and would tend to oppose the change, at least if they vote their pocket books. Moreover, oil companies, the highway lobby and gas stations can be expected to oppose any change that leads to less driving. ...

[A] full-scale national shift to pay-as-you-drive insurance is too much to hope for. Still, a shift could be made in stages: if each insurance carrier had to issue 5% of its policies at per-mile rates, no carrier would be at a competitive disadvantage. ...

There are many pieces to a sound national energy policy, but per-mile premiums should be high on the list. What is needed is a jump start.

Short Term Health Insurance

If you are between jobs or are awaiting another health insurance policy to come into effect you may find that you have a gap in your health insurance coverage. This period is a high risk as you are effectively uninsured when it comes to health insurance. So what are you to do in this interim period? Well one of the best options in such situations is to consider taking out a short-term health insurance policy. This will cover you for a limited or fixed term.

Usually, short-term health insurance policies last for periods of less than six months. There are policies that will cover you for up to twelve months also however. If you need coverage for periods longer than this, you should probably be considering standard individual or family health insurance plans.

Application is Simple

One of the benefits of short-term health insurance is that the application process is somewhat more straightforward. These policies are really designed to cover unforeseen accidents and other emergency situations and are not recommended for comprehensive health protection. They will therefore generally not cover such advanced features as preventive treatments, physical and diagnostic tests, immunizations, dental and vision expenses which you should try to avoid for the period under which you are covered by the short term plan.
null

The main concern, and something you should be aware of if you are considering a short term plan is that they will make you ineligible for guaranteed issue health plans. These plans are most commonly referred to as HIPAA plans. They can be very expensive and are used in cases where the insured has existing medical conditions, which would otherwise make it very difficult for you to obtain health insurance. If you think you will need eligibility for a HIPAA plan, you should not purchase short-term health insurance. The Health Insurance Portability and Accountability Act or HIPAA, and state health insurance rights are important protections and you should seek advice from a benefits advisor in these regards.

Are you covered?

Short-term health insurance plans will not cover existing medical conditions. While the exact definition depends on your circumstances and on state laws, what this means is that if you have been diagnosed in the last three to five years or have been receiving treatment for a condition, it will be a pre-existing condition and you will not get coverage for it under your short term plan. Therefore, if this applies to you, it is recommended that you extend your current comprehensive policy rather than switch to a short-term plan.

Special session to cover insurance

There may yet be insurance relief for homeowners and businesses.

A special legislative session will be held in January to begin efforts to address the insurance crisis in Florida, Governor-elect Charlie Crist and legislative leaders announced Wednesday.
Special session

Insurance proposals up for consideration

• Increasing the size of state program to offer grants and loans to help residents make their homes more resistant to hurricanes, reducing potential losses from a major storm.

• Allowing insurers to buy more reinsurance -- insurance for insurance companies -- from the state's hurricane catastrophe fund.

• Allowing Citizens Property Insurance Corp. wind-only policyholders to also buy their fire and theft coverage from Citizens rather than from private companies. Citizens officials are currently required to take on only high-risk wind policies and send the more profitable fire and theft lines to private companies.

• Increasing funding to a state program that provides low-cost loans for start-up insurance companies or existing companies that agree to take on more policyholders.

• Allow consumers to buy homeowner insurance policies without coverage for destruction of furniture and other personal belongings.

Gotcha Covered
Chat about the maddening twists of homeowners insurance on our blog.


The news comes as a relief to thousands of Floridians who have faced steady increases in insurance premiums since 2004's and 2005's vicious back-to-back hurricane seasons. Though observers caution against high hopes of significant change, it at minimum provides a forum for leadership to try to solve one of the state's most vexing issues.

Gov. Jeb Bush, who leaves office on Jan. 2, raised the possibility of a special session months ago.

However, as recently as last week, Bush said he saw no point in pulling legislative leaders together to deal with insurance issues unless they were in agreement on a course of action. As of Wednesday, there was no such agreement.

Instead, Bush put the 50 recommendations developed by the Property and Casualty Insurance Reform Committee he created into a bill to be considered during the special session that begins Jan. 16.

The scheduling of the session follows an announcement earlier this week that a conference on property insurance would be held in Tallahassee next week to educate legislators on "fundamentals that drive the property insurance issue."

Any real change would happen at the special session. ''I hope the report and draft legislation will serve as a starting point for consensus and swift action in January,'' Bush said. ''No time should be lost in stabilizing the marketplace for consumers," he said in a statement.

Crist, Senate President Ken Pruitt, R-Port St. Lucie, and House Speaker Marco Rubio, R-Miami, offered no specifics as to how they plan to reverse rising rates and get private insurers to start writing policies again. The announcement of a special session was made in a statement without any of the men making themselves available for interviews.

There are no shortage of ideas to tackle the property insurance issue, but that may be part of the problem in reaching agreement during the special legislative session.

''Gov. Bush's insurance reform task force came up with 50 proposals and then each of the 160 legislators has their own idea as to how to solve the problem,'' said Sen. Bill Posey, R-Rockledge, who is serving as Pruitt's point man on insurance.

Posey also wasn't optimistic that a special session could led to lower rates in the near future. He said only one thing is certain: "Absolutely, positively, there is not a silver bullet that we are going to do, that will lower rates.''

What lawmakers need to do during the special session is start developing consensus as to proposals that can be agreed on quickly and implemented soon, Posey said.

He also said that recommendations from Bush's task force, such as allowing insurance companies to buy more reinsurance from a state fund to hedge their risk or expanding a grant and loan program for homeowners who hurricane-proof their homes, would be a good start in fixing the property insurance marketplace. Such a fix will provide consumers lower rates in the long term, he said.

The state fund, called the Florida Hurricane Catastrophe Fund, sells reinsurance at lower rates than private-market companies.

Crist, a Republican, made lowering property insurance rates one of key parts of his gubernatorial platform. He reiterated that commitment and the need for a special session in the joint statement issued Wednesday.

"Florida families are suffering from the devastating effects of skyrocketing rates and cancelled insurance problems, and they desperately need relief,'' Crist said. "I am optimistic that we can find solutions that will address not only our immediate needs, but will also yield a better system to address future storms that are predicted to make landfall in Florida."

Posey said he is concerned about Crist's plan to require insurance companies that want to sell auto insurance policies in the state also to write homeowners policies, saying the effect would be to increase the exodus of homeowner insurers from Florida.

Crist said he wanted to limit the ability of insurance companies operating in the state to "cherry-pick," selling the most profitable types of insurance and cancelling those with greater risk.

Meanwhile, Democratic leaders expect more support for their plan to make the state the primary insurer of the bulk of the first $100,000 of hurricane damage to a home.

State voters gave Democrats seven new House seats in the election this month, which means Republicans now hold a 79-41 majority.

"The House was jolted by this last political season because people were talking about dinner-table issues like wind insurance rates," said Minority Leader Dan Gelber, D-Miami Beach. "Political reality is coming fast upon our Republican colleagues and I suspect they will continue to move closer to our position."

Crist has met with Democrats since being elected after criticizing various proposals on the campaign trail.

But one insurance industry official says politicians from both sides of the aisle are misleading Florida residents about lower property rates.

Bob Hartwig, an economist with the Insurance Information Institute, an industry-funded group, said politicians are offering home and business owners false hopes that rates will go down. As development of the Florida coast line continues, insurers face the potential of higher and higher losses from a major hurricane, Hartwig said.

''In reality, short of towing Florida to the North Atlantic Ocean, there is nothing that can change the path of higher losses from hurricanes,'' he said.

The 2006 hurricane season passed without major incident, but in a best-case situation, there would be several more windstorm-free years, he said. Only that could lead to a stabilization of rates, said Hartwig. However, he added that such a positive weather cycle doesn't negate the overall forecast of an increased hurricane cycle during the next two decades.

Critics say that past legislatures have done what the insurance industry has wanted and it has not stabilized the situation. They argue that by giving in to insurers, the government has unwittingly created an environment beneficial to the industry and onerous to state residents.

For instance, under state law, Citizens Property Insurance Corp., the state-run insurer of last resort, is required to charge the highest rates of any insurer so as not to compete with private companies. Although that might have made sense at one time, many insurers have fled anyway, leaving Citizens as the only game in town for a lot of homeowners.

Special session to cover insurance

There may yet be insurance relief for homeowners and businesses.

A special legislative session will be held in January to begin efforts to address the insurance crisis in Florida, Governor-elect Charlie Crist and legislative leaders announced Wednesday.
Special session

Insurance proposals up for consideration

• Increasing the size of state program to offer grants and loans to help residents make their homes more resistant to hurricanes, reducing potential losses from a major storm.

• Allowing insurers to buy more reinsurance -- insurance for insurance companies -- from the state's hurricane catastrophe fund.

• Allowing Citizens Property Insurance Corp. wind-only policyholders to also buy their fire and theft coverage from Citizens rather than from private companies. Citizens officials are currently required to take on only high-risk wind policies and send the more profitable fire and theft lines to private companies.

• Increasing funding to a state program that provides low-cost loans for start-up insurance companies or existing companies that agree to take on more policyholders.

• Allow consumers to buy homeowner insurance policies without coverage for destruction of furniture and other personal belongings.

Gotcha Covered
Chat about the maddening twists of homeowners insurance on our blog.


The news comes as a relief to thousands of Floridians who have faced steady increases in insurance premiums since 2004's and 2005's vicious back-to-back hurricane seasons. Though observers caution against high hopes of significant change, it at minimum provides a forum for leadership to try to solve one of the state's most vexing issues.

Gov. Jeb Bush, who leaves office on Jan. 2, raised the possibility of a special session months ago.

However, as recently as last week, Bush said he saw no point in pulling legislative leaders together to deal with insurance issues unless they were in agreement on a course of action. As of Wednesday, there was no such agreement.

Instead, Bush put the 50 recommendations developed by the Property and Casualty Insurance Reform Committee he created into a bill to be considered during the special session that begins Jan. 16.

The scheduling of the session follows an announcement earlier this week that a conference on property insurance would be held in Tallahassee next week to educate legislators on "fundamentals that drive the property insurance issue."

Any real change would happen at the special session. ''I hope the report and draft legislation will serve as a starting point for consensus and swift action in January,'' Bush said. ''No time should be lost in stabilizing the marketplace for consumers," he said in a statement.

Crist, Senate President Ken Pruitt, R-Port St. Lucie, and House Speaker Marco Rubio, R-Miami, offered no specifics as to how they plan to reverse rising rates and get private insurers to start writing policies again. The announcement of a special session was made in a statement without any of the men making themselves available for interviews.

There are no shortage of ideas to tackle the property insurance issue, but that may be part of the problem in reaching agreement during the special legislative session.

''Gov. Bush's insurance reform task force came up with 50 proposals and then each of the 160 legislators has their own idea as to how to solve the problem,'' said Sen. Bill Posey, R-Rockledge, who is serving as Pruitt's point man on insurance.

Posey also wasn't optimistic that a special session could led to lower rates in the near future. He said only one thing is certain: "Absolutely, positively, there is not a silver bullet that we are going to do, that will lower rates.''

What lawmakers need to do during the special session is start developing consensus as to proposals that can be agreed on quickly and implemented soon, Posey said.

He also said that recommendations from Bush's task force, such as allowing insurance companies to buy more reinsurance from a state fund to hedge their risk or expanding a grant and loan program for homeowners who hurricane-proof their homes, would be a good start in fixing the property insurance marketplace. Such a fix will provide consumers lower rates in the long term, he said.

The state fund, called the Florida Hurricane Catastrophe Fund, sells reinsurance at lower rates than private-market companies.

Crist, a Republican, made lowering property insurance rates one of key parts of his gubernatorial platform. He reiterated that commitment and the need for a special session in the joint statement issued Wednesday.

"Florida families are suffering from the devastating effects of skyrocketing rates and cancelled insurance problems, and they desperately need relief,'' Crist said. "I am optimistic that we can find solutions that will address not only our immediate needs, but will also yield a better system to address future storms that are predicted to make landfall in Florida."

Posey said he is concerned about Crist's plan to require insurance companies that want to sell auto insurance policies in the state also to write homeowners policies, saying the effect would be to increase the exodus of homeowner insurers from Florida.

Crist said he wanted to limit the ability of insurance companies operating in the state to "cherry-pick," selling the most profitable types of insurance and cancelling those with greater risk.

Meanwhile, Democratic leaders expect more support for their plan to make the state the primary insurer of the bulk of the first $100,000 of hurricane damage to a home.

State voters gave Democrats seven new House seats in the election this month, which means Republicans now hold a 79-41 majority.

"The House was jolted by this last political season because people were talking about dinner-table issues like wind insurance rates," said Minority Leader Dan Gelber, D-Miami Beach. "Political reality is coming fast upon our Republican colleagues and I suspect they will continue to move closer to our position."

Crist has met with Democrats since being elected after criticizing various proposals on the campaign trail.

But one insurance industry official says politicians from both sides of the aisle are misleading Florida residents about lower property rates.

Bob Hartwig, an economist with the Insurance Information Institute, an industry-funded group, said politicians are offering home and business owners false hopes that rates will go down. As development of the Florida coast line continues, insurers face the potential of higher and higher losses from a major hurricane, Hartwig said.

''In reality, short of towing Florida to the North Atlantic Ocean, there is nothing that can change the path of higher losses from hurricanes,'' he said.

The 2006 hurricane season passed without major incident, but in a best-case situation, there would be several more windstorm-free years, he said. Only that could lead to a stabilization of rates, said Hartwig. However, he added that such a positive weather cycle doesn't negate the overall forecast of an increased hurricane cycle during the next two decades.

Critics say that past legislatures have done what the insurance industry has wanted and it has not stabilized the situation. They argue that by giving in to insurers, the government has unwittingly created an environment beneficial to the industry and onerous to state residents.

For instance, under state law, Citizens Property Insurance Corp., the state-run insurer of last resort, is required to charge the highest rates of any insurer so as not to compete with private companies. Although that might have made sense at one time, many insurers have fled anyway, leaving Citizens as the only game in town for a lot of homeowners.

Top 10 Things to Know About Life Insurance

We all recognize the importance of life insurance. After all, we want to make sure that our loved ones are taken care of when we die. But before you run out and purchase a policy, do some research ahead of time. That way, you'll be sure to get the best possible coverage at the right price. Here are some helpful tips to get you started:

1. Shop around
2. Never buy more coverage than you need
3. The healthier you are, the better the rates
4. Buy sooner rather than later
5. Realize the importance of periodically reviewing your coverage
6. You don't necessarily have to pay a commission
7. You may be paying more for monthly premium payments
8. Don't rely solely on the life insurance offered by your employer
9. Tell the whole truth and nothing but the truth
10. Buying more is sometimes cheaper

Shop around
When it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. Try out one of the many insurance websites that can provide you with instant quotes. Make sure the website you shop from takes into consideration the factors in your medical history that can affect the premiums.

Never buy more coverage than you need
The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you'll be paying unnecessarily for higher premiums. On the other hand, it's important not to have too little coverage, resulting in you being underinsured.

The healthier you are, the better the rates
It's true – healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., if you smoke, take medications regularly, are overweight, have a bad driving record).

Buy sooner rather than later
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be.

Realize the importance of periodically reviewing your coverage
Any life change signals the need for a review of your overall financial plan. When it comes to life insurance coverage, you'll want to make sure that this major life event (e.g., birth of a child, children are grown) won't leave you underinsured or overinsured.

You don't necessarily have to pay a commission
One of the reasons for higher premiums is that most life insurance policies pay commissions to the agent/broker. However, you may be able to purchase a no-load policy through an insurer that sells no-load policies directly to consumers.

You may be paying more for monthly premium payments
You may not realize it, but you may be paying more for your life insurance if you pay your premium in monthly installments. Many insurance companies charge extra fees if you make monthly premium payments instead of paying the annual premium.

Don't rely solely on the life insurance offered by your employer
Many employers offer their employees some sort of group life insurance. But this amount of coverage is usually not enough to adequately meet your life insurance needs. In addition, group life insurance policies are not portable, meaning that if you leave your job, you can't take your life insurance coverage with you.

Tell the whole truth and nothing but the truth
If you're thinking about lying on your insurance application, think again. If your insurance company finds out that you lied about a health-related condition or your lifestyle (e.g., smoking habit), they may be able to terminate your coverage.

Buying more is sometimes cheaper
Life insurance usually costs less per thousand dollars once you get into higher coverage amounts (e.g., $250,000). If the numbers work out, you may be able to pay a lower premium while increasing your coverage.

Profile of a bad driver: Are you one?

Surely you've seen them on the road: They're swerving in and out of lanes, ignoring rules of the road, and engaging in other rude — and dangerous — behavior. Or maybe you are that bad driver?

A focus group of 30 drivers from Boston who have collectively been involved in 84 accidents over the past three years, and have received 49 speeding tickets, 39 moving violations, and 92 parking tickets, indicates there are some common characteristics to bad drivers. Take a look at these questions to find out if you fit the profile.

1. When you reach a stop sign and no one is coming from another direction, do you roll through instead of stopping?

An overwhelming majority (87 percent) of the bad drivers say they should be able to speed, go through stop signs, and break other driving rules and regulations as long as no one gets hurt.

2. Do you talk on the cell phone while driving instead of pulling off and stopping to talk?

A total of 77 percent of bad drivers say they do this either frequently or occasionally. Only 13 percent say they never talk on a cell phone while driving.

3. Do you take your coffee and muffin or other food and drink on the road with you, driving with one hand while using the other to eat?

Sixty percent of those in the study say they either frequently or occasionally eat while they're driving. In fact, several of the participants say they have spilled drinks and attempted to clean up the spill while driving.

4. If you're out shopping in a crowded area and are looking for a parking space, do you get so focused on your search that you lose sight of the cars and pedestrians around you?

More than half of the participants say that when they're trying to find a parking space in a crowded area, they can become so focused that they become oblivious to other drivers and pedestrians and often get into accidents, whether on the street or in a parking lot.

5. Do you hate driving behind SUVs or other large vehicles that obstruct your view?

More than 60 percent of bad drivers say they are frustrated driving behind SUVs because they are wide and tall and block their vision. In fact, more than 70 percent believe SUVs should be required to drive in a separate lane on the highway.

6. Does your driving change when you go into areas with higher police presence?

Nearly all of the participants strongly agree with the statement that they drive more carefully when they know police are in the area. In addition, most participants say they check their rearview mirrors regularly for police cars.

7. Does listening to music while you drive sometimes leave you oblivious to all but the music?

Ninety-three percent of participants say they listen to the radio while driving, and 73 percent of them listen to music. Most say listening to the radio has often caused them to become distracted and in some cases they say listening to loud music has caused them to be more aggressive on the highway.

8. Do you find yourself in confrontations on the road, either through verbal arguments or hand gestures, because of either your own driving habits or the habits of others?

While 87 percent of the bad drivers consider themselves at least somewhat courteous drivers if not very courteous, at least half also admit to making obscene or rude gestures or comments to other drivers, particularly those who cut in front of them on the highway. Participants also say, however, that they appreciate a thank-you gesture for letting another driver into their lane, and often give a wave of thanks themselves when they cut into traffic.

9. Does your "work hard, play hard" lifestyle leave you sleepy behind the wheel at times?

Fifty percent of those in the study say they have almost fallen asleep while driving and an additional 10 percent say they have wanted to shut their eyes while driving and almost did. The study found that most participants lead a busy lifestyle that sometimes leaves them sleep-deprived.

10. When you're driving with passengers, do you turn around to talk, taking your eyes and mind off the road?

Nearly all group members acknowledged that they are distracted when they have passengers in their vehicles, and most say during conversations they'll turn their heads and stop paying attention to the road. This held true especially for drivers with small children.

If your answers agree with the answers from the focus group, it's likely you tend to be a more aggressive driver than average. Like members of the study, you may also pay more for your auto insurance. Within the study group, 53 percent pay a surcharge on their auto insurance because of their driving records.

These bad drivers have other characteristics that you may recognize in your own life. Most say they lead very stressful lives without enough time to accomplish all their activities in a day. They all consider themselves either somewhat or very outgoing and all have a fair to great amount of confidence in the way they behave. And 90 percent say they've told a "little white lie" to protect someone's feelings.

The group was broken down into three age groups, from 18 to 25 years old, 26 to 45 years old, and 46 to 59 years old. There were 19 men and 11 women in the study, commissioned by RightFind Technology, a company developing new products to help insurers make better decisions on auto insurance premium rates for specific drivers.

While the study is based on a small group and should be considered a hypotheses rather than a conclusion, "our study identified several personality attributes that seem clearly linked to accident involvement,” says Donald Bashline, one of the owners of RightFind. "Witnessing these focus groups was a revelation."

The Consequences of Not Having Auto Insurance

When young adults graduate college they have aspirations of starting their first "real world" job, getting their own place and buying a brand new car - one that does not need a screwdriver to start. However, college students are also graduating with much more than just a college degree and a dream, they are graduating with a substantial amount of debt. In fact, many students graduate with an average of $3,262 in credit card debt - 10 percent of that group owing more than $7,000 in credit card charges.

Students forget to factor in other life costs, such as health care, 401K deductions, income taxes, car payments, auto insurance, rent, utility bills, student loans, credit card bills and food expenses into their monthly budget. "After you graduate and land your first job, you do not think about having to pay for all of these expenses," stated a graduate from Ohio University. "Unfortunately, reality sets in pretty fast and you realize you do not have the money to make ends meet - it is a hard lesson to learn!"

College Debt
Why is there so much credit card debt among college students? "Many credit card companies set up kiosks on college campuses offering free pizzas and t-shirts to try and entice students to sign up for a credit card," noted David Roush, CEO of Insurance.com. "The problem is many college students do not have the income or financial knowledge to manage a credit card - a problem that is leading students into a lifetime of financial despair."

In addition to the outrageous credit card bills, students are also graduating with student loans ranging from $10,000 to $52,000 or more. Often students figure they will be able to pay everything off once they get a job and start making "real" money, but that simply is not the case.

Not only are credit card and student loan bills financially crippling to many new graduates, it is also forcing grads to cut back on other necessary expenses, such as auto insurance - one bill you legally cannot drive without! "Driving without auto insurance is illegal in all 50 states, however, many young adults elect to go without auto insurance because they think they cannot afford to have it," stated Roush. "A scary thought when 15.3% of all automobile accidents are caused by drivers between the ages of 20 - 24."

While deciding not to pay for auto insurance may seem like a good idea at the time, graduates are not considering the expense of getting caught without auto insurance or the cost of getting into an automobile accident. "Imagine if you had to pay the medical bills of someone who gets injured in car accident when you are at fault - suddenly paying for car insurance does not seem so bad," says Roush.

The Penalty of Driving Without Auto Insurance
According to the Insurance Information Institute, the cost of driving without auto insurance can vary from state to state, depending on the percentage of drivers who are uninsured in that state. For instance, in Massachusetts residents can be charged anywhere from $500 to $5,000 in fines and receive a one-year jail sentence. In Florida, Louisiana, Connecticut and New Jersey, drivers operating a vehicle without the state required minimum will have their vehicles impounded - which can cost you thousands depending on how long it takes you to get your car out.

To find out the auto insurance state minimum and fines and penalties for driving without insurance in your state, visit the Department of Motor Vehicles' website.

How to Budget For Auto Insurance
As you look for auto insurance, make sure to check if the insurer offers a 6-month or 12-month payment plan to help you manage your auto insurance payments better. In addition, many auto insurance providers offer a variety of discounts, including alumni discounts. So make sure to ask if your college or university is eligible for a discount, because every bit helps when you are first starting out on your own.

To help make researching auto insurance rates easier, Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the best auto insurance coverage for your newly graduated budget.

Avoid Social Host Liability and Keep Drivers Safe

Did you know that at least 50 percent of all holiday traffic fatalities are alcohol related? In fact, that is why December is designated National Drunk and Drugged Driving Prevention Month. Definitely a sobering thought if you are hosting or attending a holiday party this year!

Another thought that just might have you rethinking your company's "open bar" policy is that if an employee or guest leaves your party drunk and gets into an accident, your company could be liable - even if that person may have went to another party or to a bar after leaving your party. If you don't think your company can be found liable - think again! Most states have some form of "social host" laws in place, specifically targeting employer-hosted events.

Why so much focus on company hosted parties? Many courts feel that employees have a greater obligation to attend company gatherings, as opposed to social gatherings hosted by friends or family members. Kind of makes you reconsider having that "attendance mandatory" notice on your holiday invitations.

Company Sponsored Parties
Planning your company's holiday party this year? If so, consider incorporating some, or all of these holiday party suggestions into your company's festivities.

* Host your party at a local hotel and arrange for discounted or complimentary rooms so employees won't have to drive home impaired.
* Hire a cab company or limousine service to provide complimentary rides for employees that are too drunk to drive home.
* Check employees' coats and keys at the door. This will help you regulate who is too drunk to drive and who is able to provide rides home.
* Hire a bartender to serve the drinks, rather then letting employees and guests serve themselves.
* Provide plenty of non-alcoholic drinks and juices.
* Designate a person to keep an eye on everyone and the amount of alcohol they are consuming.
* Discourage guests from drinking excessively and stop serving anyone who appears intoxicated.
* Include a disclosure on your holiday invitations that notes your company's position on drinking and driving and that the company supports and practices the designated driving law.
* Pass out designated driver stickers to all attendees participating in the program.
* Close the bar 90 minutes before the party has ended.
* Serve a variety of nutritious foods to help balance and absorb any alcohol guests may have consumed.

Hosting a Holiday Party
Planning a family gathering or holiday party at your house? Then you too could be potentially liable for any guests that leave your home drunk. If your guests get into an accident because they had too much to drink at your party, the finger could be pointed at you. The best solution is to have a dry party filled with holiday foods, games, prizes, and non-alcoholic beverages. However, if you still want to have a holiday party with alcoholic beverages, then we suggest practicing the following tips.

* Ask friends to designate a driver before the party begins.
* Collect everyone's coats and keys as they arrive.
* Encourage lively conversations and group activities that focus on fun and not alcohol.
* Make food and non-alcoholic drinks easily available.
* Provide plenty of food so the focus is not solely on alcohol.
* Never serve alcohol to anyone under the age of 21.
* If someone has had too much to drink, offer to have them spend the night or call a cab - don't let them drive home drunk.

Drinking and Driving Myths
Think you know everything there is to know about drinking and driving - think again!

1. Coffee or a cold shower will sober you up.
False: Only time can sober you up.

2. If you avoid liquor and stay with beer and wine you will be fine.
False: A 12 oz. beer and a 5 oz glass of wine have as much alcohol as a 1.5 oz glass of whisky.

3. As long as you roll down the windows and turn up the radio, you will be okay to drive home.
False: Neither of these will help enhance your alertness, motor skills or judgment.

4. By driving slow, you will avoid getting into an accident.
False: Driving too slow could potentially cause an accident and besides, driving under the influence is never a good idea at any speed.

DUI
A DUI could do more than potentially harm innocent people; it could also affect your auto insurance coverage. While insurance companies are not allowed to deny coverage to policyholders because of race, religion, residence, age or occupation - they are allowed to cancel your policy for having your driver's license suspended or being convicted of a crime, such as a DUI. That is something to think about before you pick up that next drink at a holiday party!

These holiday party safety tips were provided by Insurance.com, the nation's largest online auto insurance agency. If you are in the market for auto insurance or are thinking about switching auto insurance carriers, visit Insurance.com's auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers, helping you save time and money on your auto insurance.

Car Safety Tips for the Holiday Shopping Season

On your mark, credit cards set and go…to the nearest mall, because it is holiday shopping time. That's right; soon millions of consumers will be flooding the malls in search of the perfect gifts for everyone on their shopping list. But before you hop in your car and drive to the nearest mall, you may want to check out our Holiday Shopping Car Safety Tips - it just might make the difference between a happy holiday season and a disastrous one.

Holiday Mall Parking Lot
Many things can happen to your vehicle in a mall parking lot while you are inside happily holiday shopping away. For instance, your car can get damaged by opening doors, rolling shopping carts or testy drivers trying to fit into tight parking spots. While this may seem like the price your car has to pay for trying to go to the mall during the holidays - it doesn't have to be. There are many things you can do to help keep you and your car safe while at the mall this holiday season.

Popular Shopping Malls
After work and weekends are the most popular times for people to go holiday shopping. With that being said, consider shopping during the day or before noon on weekends. This will not only help you avoid over crowded mall parking lots, it will also help you to get in and out of stores quickly!

In addition, avoid going to popular malls in your area during peak shopping hours. This will help reduce the amount of cars and people you have to dodge and help keep your car safe from potential theft and damage. To help identify the most popular malls in your area, we have listed the Top 10 Largest Shopping Malls in the United States - so you can avoid what could potentially turn into a holiday shopping nightmare.
Largest Shopping Malls in the United States

1. South Coast Plaza, Orange County, CA
2. King of Prussia Mall, Philadelphia, PA
3. Sawgrass Mills, Ft. Lauderdale, FL
4. Del Amo Fashion Cetner, Los Angeles, CA
5. Mall of America, Minneapolis-St Paul, MN
6. Grand Canyon Parkway, Las Vegas, NV
7. The Galleria, Houston, TX
8. Woodfield Mall, Chicago, IL
9. Plaza Las Americas, San Juan, PR
10. Roosevelt Field Mall, New York, NY

Stay Safe During The Holiday Season
No matter when or where you go holiday shopping, safety should always be your first priority - especially when it comes to your car. That's because mall and shopping center parking lots are prime targets for car theft, car vandalism and robberies.

To help prevent this from happening to you, Insurance.com has provided some helpful Holiday Shopping Safety Tips to keep you and your car safe and secure during the holiday season.
Holiday Shopping and Driving Safety Tips

* Always park in a spot where there is plenty of light and if possible, park close to your destination.
* Avoid parking next to vans, trucks with camper shells, or cars with tinted windows.
* Close all windows and lock all doors.
* Take note of where you parked your car and what store entrance it is closest to.
* Shop with a friend or family member - having a friend walk to and from the parking lot with you will help keep you both safe and sound.
* Place your packages in your trunk or under your seat where no one can see them.
* Condense your packages into one or two bags to create the illusion that you did not purchase so many valuable (and theft-worthy) items.
* If you run out to your car to drop off packages while shopping, make sure to move your car to a new location before heading back into the mall. This will help lead anyone that is watching you to believe that you and your packages have headed home for the night.
* Leave your most expensive purchases until the end of the day when you can quickly hop in your car and go directly home.
* Request for a security guard to escort to your car.
* When walking to your car have your head up and your keys ready, the last thing you want to do is appear vulnerable to criminals. In addition, make sure to look under and in front of your car to make sure that no one is waiting to attack you.
* Do not approach your car alone if there are suspicious people in the area.
* Be aware of your surroundings. Often thieves will disguise themselves as normal shoppers who accidentally bump into you stealing your purse, wallet, packages, car keys or even worse, attacking you.
* When entering your car, make sure to check your front seat and back seat for anyone that could potentially be hiding in the car.
* Get into the car, lock the doors and exit the area immediately. Criminals prey on shoppers who sit in their cars to make phone calls or review their purchases for the day. Don't leave yourself susceptible to such a risk.

What Your Auto Insurance Coverage Won't Cover
Through the course of a shopping day, many people will take packages to and from their car to lessen the load while they are walking through the mall. Even though this may seem like a great idea at the time, it is not if the gifts are stolen from your car. That's because many auto insurance company will not cover holiday packages stolen from a policy holder's car - even if they were securely stored in your trunk. However, if you paid for your gifts with a credit card you might be in luck! Some credit card companies will cover stolen purchases if they were paid for with their credit card, but if you paid with cash or check, you are out of luck.

Regardless of how you paid for your gifts, you should always file a police report to help alert police of the incident and to potentially prevent this crime from happening to someone else.

Upgrade or change Your Auto Insurance
If your auto insurance policy does not cover stolen property from your vehicle and you would like to find an auto insurance company that does, log on to Insurance.com's auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the best auto insurance coverage for you and your holiday shopping needs.