Low Rates for North Carolina Car Insurance

North Carolina auto insurance is easy to find, as most people have discovered. However, finding the lowest and best rates for a policy is where most motorists run into confusion because they don’t know where to go to locate it. This frustration usually leads to a motorist giving up on their search and settling for the current policy they are unhappy with. Fortunately, there are other alternatives to just staying with an existing insurer because we have a way for residents of North Carolina to not only locate a great insurance policy for the vehicle, but there is also a way for them to purchase that found policy instantly online. We can also provide a wealth of knowledge to any driver, novice or experienced, that can help them look for ways to save on their policy’s premium cost.

North Carolina State Requirements
To begin, drivers need to know what insurance is required of them in order to legally drive on the streets of North Carolina. State law requires all drivers to have a 30/60/25 policy, and any additional coverage is optional after that. This means that drivers need to have $30,000 in bodily injury liability per person and $60,000 in bodily injury liability per accident. This coverage will pay for the medical bills that are a result of an accident the policyholder (or member) has caused to the other driver. This does not in any way cover the policyholder (or member) or his/her passengers at the time of the accident. The “25” in the state required amount stands for $25,000 of property damage liability. When the policyholder (or member) causes damage to another person’s property, the insurer will pay up to that amount to repair the damage. And, as with bodily injury liability, property damage liability does not cover the repairs of the policyholder’s property.

Additional Coverage in NC
There are many other options that can be purchased to get full coverage on a driver and vehicle. For instance, when a policyholder wants their vehicle to be covered no matter what caused damage to it, they should purchase comprehensive and collision coverage. Between the two of these, the policyholder’s vehicle will be covered even if it is damaged by an animal, weather, or another vehicle regardless of whose fault the accident was. To be covered even when the other driver has no insurance, the policyholder can purchase uninsured or underinsured motorist liability. By doing so, the policyholder can expect their own insurer to pay for any damages that occur by a motorist who either does not carry a lot of insurance or none at all. To cover medical expenses, policyholders will want to look at what they have in their healthcare plans and then act according to the additional needs that could possibly arise. Personal injury protection and medical payment coverage will cover the policyholder, policy members, and possibly passengers in the policyholder’s vehicle at the time of the accident. Each insurer may vary on their exact terms of coverage, but this would be a wise purchase for anyone without health insurance or for people who frequently host carpools.

Cheap NC Car Insurance
The only way to know if you are getting the lowest price on a product is to find out the price other retailers are selling the product to consumers for. A car insurance policy is no different – it’s a product and motorists should compare the prices being offered for the same policy from different companies. These motorists can dust off the old phone book and find the names of the local companies and then drive to each location or call to ask what they would charge for their ideal policy. We know that not every person has this much spare time on their hands and would need a quicker, more effective way of collecting these prices. One suggestion would be to use our quote comparison tool to get estimates for North Carolina auto insurance.

To begin the process, simply locate the white box at the top of our homepage asking to enter a local zip code. We need to know which part of North Carolina the applicant lives in to provide them with quotes from local companies. Next, a new webpage will open that will begin a short series of questions that are asking for the information about the vehicle, the driver and the coverage wanted. This questionnaire does not take much time at all; maybe 10 to 20 minutes depending on whether or not the applicant knows the answers to these questions quickly. If the applicant needs to search for the information, that will take longer than knowing the info right away. Compare this minimal amount of time answering one set of questions to get a list of quotes to the time it would take to ask the insurer (or have the insurer ask you) a list of questions, only to find that each individual insurance company would be asking the same questions repeatedly.

When the answers to the short list of questions is complete and submitted, we will provide a list of quotes and the companies who are offering them. At this point, the applicant has a few choices. They can disregard the entire list and keep their current insurance policy. Or, they can look into these quotes and find out how much they would be saving by switching to a new policy. After looking over the numbers, some applicants may feel the need to look into the companies who are providing the quotes. A few things to look at while comparing companies is their financial strength, their customer service abilities, and what they offer to their customers to make auto insurance as simple as possible.

When the applicant has chosen a policy, they can purchase that policy right from the list with the use of a credit card. In some cases, proof of insurance can be printed from the computer right away.

Never put off looking for a cheaper policy, especially when it only takes a few minutes to see what other companies are providing to fellow North Carolina neighbors. Don’t settle for anything less than your expectations, which probably include a low price for a great policy.

Read More..

Low Rates for North Carolina Car Insurance

North Carolina auto insurance is easy to find, as most people have discovered. However, finding the lowest and best rates for a policy is where most motorists run into confusion because they don’t know where to go to locate it. This frustration usually leads to a motorist giving up on their search and settling for the current policy they are unhappy with. Fortunately, there are other alternatives to just staying with an existing insurer because we have a way for residents of North Carolina to not only locate a great insurance policy for the vehicle, but there is also a way for them to purchase that found policy instantly online. We can also provide a wealth of knowledge to any driver, novice or experienced, that can help them look for ways to save on their policy’s premium cost.

North Carolina State Requirements
To begin, drivers need to know what insurance is required of them in order to legally drive on the streets of North Carolina. State law requires all drivers to have a 30/60/25 policy, and any additional coverage is optional after that. This means that drivers need to have $30,000 in bodily injury liability per person and $60,000 in bodily injury liability per accident. This coverage will pay for the medical bills that are a result of an accident the policyholder (or member) has caused to the other driver. This does not in any way cover the policyholder (or member) or his/her passengers at the time of the accident. The “25” in the state required amount stands for $25,000 of property damage liability. When the policyholder (or member) causes damage to another person’s property, the insurer will pay up to that amount to repair the damage. And, as with bodily injury liability, property damage liability does not cover the repairs of the policyholder’s property.

Additional Coverage in NC
There are many other options that can be purchased to get full coverage on a driver and vehicle. For instance, when a policyholder wants their vehicle to be covered no matter what caused damage to it, they should purchase comprehensive and collision coverage. Between the two of these, the policyholder’s vehicle will be covered even if it is damaged by an animal, weather, or another vehicle regardless of whose fault the accident was. To be covered even when the other driver has no insurance, the policyholder can purchase uninsured or underinsured motorist liability. By doing so, the policyholder can expect their own insurer to pay for any damages that occur by a motorist who either does not carry a lot of insurance or none at all. To cover medical expenses, policyholders will want to look at what they have in their healthcare plans and then act according to the additional needs that could possibly arise. Personal injury protection and medical payment coverage will cover the policyholder, policy members, and possibly passengers in the policyholder’s vehicle at the time of the accident. Each insurer may vary on their exact terms of coverage, but this would be a wise purchase for anyone without health insurance or for people who frequently host carpools.

Cheap NC Car Insurance
The only way to know if you are getting the lowest price on a product is to find out the price other retailers are selling the product to consumers for. A car insurance policy is no different – it’s a product and motorists should compare the prices being offered for the same policy from different companies. These motorists can dust off the old phone book and find the names of the local companies and then drive to each location or call to ask what they would charge for their ideal policy. We know that not every person has this much spare time on their hands and would need a quicker, more effective way of collecting these prices. One suggestion would be to use our quote comparison tool to get estimates for North Carolina auto insurance.

To begin the process, simply locate the white box at the top of our homepage asking to enter a local zip code. We need to know which part of North Carolina the applicant lives in to provide them with quotes from local companies. Next, a new webpage will open that will begin a short series of questions that are asking for the information about the vehicle, the driver and the coverage wanted. This questionnaire does not take much time at all; maybe 10 to 20 minutes depending on whether or not the applicant knows the answers to these questions quickly. If the applicant needs to search for the information, that will take longer than knowing the info right away. Compare this minimal amount of time answering one set of questions to get a list of quotes to the time it would take to ask the insurer (or have the insurer ask you) a list of questions, only to find that each individual insurance company would be asking the same questions repeatedly.

When the answers to the short list of questions is complete and submitted, we will provide a list of quotes and the companies who are offering them. At this point, the applicant has a few choices. They can disregard the entire list and keep their current insurance policy. Or, they can look into these quotes and find out how much they would be saving by switching to a new policy. After looking over the numbers, some applicants may feel the need to look into the companies who are providing the quotes. A few things to look at while comparing companies is their financial strength, their customer service abilities, and what they offer to their customers to make auto insurance as simple as possible.

When the applicant has chosen a policy, they can purchase that policy right from the list with the use of a credit card. In some cases, proof of insurance can be printed from the computer right away.

Never put off looking for a cheaper policy, especially when it only takes a few minutes to see what other companies are providing to fellow North Carolina neighbors. Don’t settle for anything less than your expectations, which probably include a low price for a great policy.

Read More..

California Health Insurance

In 2007, 87% of Californians had some form of health insurance. Services in California range from private offerings: HMOs, PPOs to public programs: Medi-Cal, Medicare, and Healthy Families (SCHIP).

At times, it is difficult to navigate the complex health insurance system. California developed a solution to assist people across the State and is one of the only States to have an Office devoted to giving people tips and resources to get the best care possible. California's Office of the Patient Advocate was established July 2000 to publish a yearly Health Care Quality Report Card on the Top HMOs, PPOs, and Medical Groups and to create and distribute helpful tips and resources to give Californians the tools needed to get the best care.

Additionally, California has a Help Center that assists Californians when they have problems with their health insurance. The Help Center is run by the Department of Managed Health Care, the government department that oversees and regulates HMOs and some PPOs. The number to call is 1.888.466.2219, they have staff on hand to help you through the process of filing a complaint, or just figuring out what to do next.

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United States

The United States mixed economy health care system relies heavily on private (for profit) and not-for-profit health insurance, which is the primary source of coverage for most Americans. According to the United States Census Bureau, approximately 84% of Americans have health insurance; some 60% obtain it through an employer, while about 9% purchase it directly.[38] Various government agencies provide coverage to about 27% of Americans (there is some overlap in these figures).

Public programs provide the primary source of coverage for most seniors citizens and for low-income children and families who meet certain eligibility requirements. The primary public programs are Medicare, a federal social insurance program for seniors and certain disabled individuals, Medicaid, funded jointly by the federal government and states but administered at the state level, which covers certain very low income children and their families, and SCHIP, also a federal-state partnership that serves certain children and families who do not qualify for Medicaid but who cannot afford private coverage. Other public programs include military health benefits provided through TRICARE and the Veterans Health Administration and benefits provided through the Indian Health Service. Some states have additional programs for low-income individuals.

In 2006, there were 47 million people in the United States (16% of the population) who were without health insurance for at least part of that year.[39] About 37% of the uninsured live in households with an income over $50,000.

In 2004, U.S. health insurers directly employed almost 470,000 people at an average salary of $61,409. (As of the fourth quarter of 2007, the total U.S. labor force stood at 153.6 million, of whom 146.3 million were employed. Employment related to all forms of insurance totaled 2.3 million. Mean annual earnings for full-time civilian workers as of June 2006 were $41,231; median earnings were $33,634.) The insurance industry also represents a significant lobbying group in the United States. For 2008 insurance was the 8th among industries in political contributions to members of Congress, giving $28,654,121, of which 51% was given to Democrats and 49% to Republicans, with the top recipient of insurance industry contributions being Senator John McCain (R-AZ). The leading contributor from the insurance industry — as measured by total political contributions — was AFLAC, Inc., which contributed $907,150 in 2007.

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United Kingdom

The UK's National Health Service (NHS) is a publicly funded healthcare system that provides coverage to everyone normally resident in the UK. It is not strictly an insurance system because (a) there are no premiums collected, (b) costs are not charged at the patient level and (c) costs are not pre-paid from a pool. However, it does achieve the main aim of insurance which is to spread financial risk arising from ill-health. The costs of running the NHS (est. £104 billion in 2007-8) are met directly from general taxation. The NHS provides the majority of health care in the UK, including primary care, in-patient care, long-term health care, ophthalmology and dentistry.

Private health care has continued parallel to the NHS, paid for largely by private insurance, but it is used by less than 8% of the population, and generally as a top-up to NHS services. There are many treatments that the private sector does not provide. For example, health insurance on pregnancy is generally not covered or covered with restricting clauses. One of the major insurers, BUPA, excludes many forms of treatment and care that most people will need during their lifetime or specialist care most of which are freely available from the NHS. These include:

ageing, menopause and puberty; AIDS/HIV; allergies or allergic disorders; birth control, conception, sexual problems and sex changes; chronic conditions; complications from excluded or restricted conditions/ treatment; convalescence, rehabilitation and general nursing care ; cosmetic, reconstructive or weight loss treatment; deafness; dental/oral treatment (such as fillings, gum disease, jaw shrinkage, etc); dialysis; drugs and dressings for out-patient or take-home use† ; experimental drugs and treatment; eyesight; HRT and bone densitometry; learning difficulties, behavioural and developmental problems; overseas treatment and repatriation; physical aids and devices; pre-existing or special conditions; pregnancy and childbirth; screening and preventive treatment; sleep problems and disorders; speech disorders; temporary relief of symptoms. († = except in exceptional circumstances)

BUPA's competitors include, among others, AXA, Aviva, Groupama Healthcare and Pru Health.

Recently the private sector has been used to increase NHS capacity despite a large proportion of the British public opposing such involvement. According to the World Health Organization, government funding covered 86% of overall health care expenditures in the UK as of 2004, with private expenditures covering the remaining 14%.

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Netherlands

In 2006, a new system of health insurance came into force in the Netherlands. This new system avoids the two pitfalls of adverse selection and moral hazard associated with traditional forms of health insurance by using a combination of regulation and an insurance equalization pool. Moral hazard is avoided by mandating that insurance companies provide at least one policy which meets a government set minimum standard level of coverage, and all adult residents are obliged by law to purchase this coverage from an insurance company of their choice. All insurance companies receive funds from the equalization pool to help cover the cost of this government-mandated coverage. This pool is run by a regulator which collects salary-based contributions from employers, which make up about 50% of all health care funding, and funding from the government to cover people who cannot afford health care, which makes up an additional 5%.

The remaining 45% of health care funding comes from insurance premiums paid by the public, for which companies compete on price, though the variation between the various competing insurers is only about 5%. However, insurance companies are free to sell additional policies to provide coverage beyond the national minimum. These policies do not receive funding from the equalization pool, but cover additional treatments, such as dental procedures and physiotherapy, which are not paid for by the mandatory policy.

Funding from the equalization pool is distributed to insurance companies for each person they insure under the required policy. However, high-risk individuals get more from the pool, and low-income persons and children under 18 have their insurance paid for entirely. Because of this, insurance companies no longer find insuring high risk individuals an unappealing proposition, avoiding the potential problem of adverse selection.

Insurance companies are not allowed to have co-payments, caps, or deductibles, or to deny coverage to any person applying for a policy, or to charge anything other than their nationally set and published standard premiums. Therefore, every person buying insurance will pay the same price as everyone else buying the same policy, and every person will get at least the minimum level of coverage.

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France

The French model of health insurance has been ranked by the World Health Organization as the best in the world, because it permits a high quality of care and nearly total patient freedom. The national system of health insurance was instituted in 1945, just after the end of the Second World War. It was a compromise between Gaullist and Communist representatives in the French parliament. The Conservative Gaullists were opposed to a state-run healthcare system, while the Communists were supportive of a complete nationalisation of health care along a British Beveridge model.

The resulting programme is profession-based: all people working are required to pay a portion of their income to a health insurance fund, which mutualises the risk of illness, and which reimburses medical expenses at varying rates. Children and spouses of insured people are eligible for benefits, as well. Each fund is free to manage its own budget, and used to reimburse medical expenses at the rate it saw fit, however following a number of reforms in recent years, the majority of funds provide the same level of reimbursment and benefits.

The government has two responsibilities in this system.

* The first government responsibility is the fixing of the rate at which medical expenses should be negotiated, and it does this in two ways: The Ministry of Health directly negotiates prices of medicine with the manufacturers, based on the average price of sale observed in neighboring countries. A board of doctors and experts decides if the medicine provides a valuable enough medical benefit to be reimbursed (note that most medicine is reimbursed, including homeopathy). In parallel, the government fixes the reimbursment rate for medical services: this means that a doctor is free to charge the fee that he wishes for a consultation or an examination, but the social security system will only reimburse it at a pre-set rate. These tariffs are set annually through negotiation with doctors' representative organisations.
* The second government responsibility is oversight of the health-insurance funds, to ensure that they are correctly managing the sums they receive, and to ensure oversight of the public hospital network.

Today, this system is more-or-less intact. All citizens and legal foreign residents of France are covered by one of these mandatory programs, which continue to be funded by worker participation. However, since 1945, a number of major changes have been introduced. Firstly, the different health-care funds (there are five: General, Independent, Agricultural, Student, Public Servants) now all reimburse at the same rate. Secondly, since 2000, the government now provides health care to those who are not covered by a mandatory regime (those who have never worked and who are not students, meaning the very rich or the very poor). This regime, unlike the worker-financed ones, is financed via general taxation and reimburses at a higher rate than the profession-based system for those who cannot afford to make up the difference. Finally, to counter the rise in health-care costs, the government has installed two plans, (in 2004 and 2006), which require insured people to declare a referring doctor in order to be fully reimbursed for specalist visits, and which installed a mandatory co-pay of 1 € (about $1.45) for a doctor visit, 0,50 € (about 80 ¢) for each box of medicine prescribed, and a fee of 16-18 € (20-25 $) per day for hospital stays and for expensive procedures.

An important element of the French insurance system is solidarity: the more ill a person becomes, the less the person pays. This means that for people with serious or chronic illnesses, the insurance system reimburses them 100 % of expenses, and waives their co-pay charges.

Finally, for fees that the mandatory system does not cover, there is a large range of private complementary insurance plans available. The market for these programs is very competitive, and often subsidised by the employer, which means that premiums are usually modest. 85% of French people benefit from complementary private health insurance.

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Canada

Most health insurance in Canada is administered by each province, under the Canada Health Act, which requires all people to have free access to health care. Collectively, the public provincial health insurance systems in Canada are frequently referred to as Medicare. Private health insurance is allowed, but the provincial governments allow it only for services that the public health plans do not cover; for example, semi-private or private rooms in hospitals and prescription drug plans. Canadians are free to use private insurance for elective medical services such as laser vision correction surgery, cosmetic surgery, and other non-basic medical procedures. Some 65% of Canadians have some form of supplementary private health insurance; many of them receive it through their employers. Private-sector services not paid for by the government account for nearly 30 percent of total health care spending.

In 2005, the Supreme Court of Quebec ruled, in Chaoulli v. Quebec, that the province's prohibition on private insurance for health care already insured by the provincial plan could constitute an infringement of the right to life and security if there were long wait times for treatment as happened in this case. Certain other provinces have legislation which financially discourages but does not forbid private health insurance in areas covered by the public plans. The ruling has not changed the overall pattern of health insurance across Canada but has spurred on attempts to tackle the core issues of supply and demand and the impact of wait times.

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Australia

The public health system is called Medicare. It ensures free universal access to hospital treatment and subsidised out-of-hospital medical treatment. It is funded by a 1.5% tax levy on all taxpayers, an extra 1% levy on high income earners, as well as general revenue.

The private health system is funded by a number of private health insurance organisations. The largest of these is Medibank Private, which is government-owned, but operates as a government business enterprise under the same regulatory regime as all other registered private health funds. The Coalition Howard government had announced that Medibank would be privatised if it won the 2007 election, however they were defeated by the Australian Labor Party under Kevin Rudd which had already pledged that it would remain in government ownership.

Some private health insurers are 'for profit' enterprises, and some are non-profit organizations such as HCF Health Insurance and GMHBA Health Insurance. Some have membership restricted to particular groups, but the majority have open membership. Membership to most health funds is now also available through comparison websites like moneytime and iSelect. These comparison sites operate on a commission-basis by agreement with their participating health funds.

Most aspects of private health insurance in Australia are regulated by the Private Health Insurance Act 2007.

The private health system in Australia operates on a "community rating" basis, whereby premiums do not vary solely because of a person's previous medical history, current state of health, or (generally speaking) their age (but see Lifetime Health Cover below). Balancing this are waiting periods, in particular for pre-existing conditions (usually referred to within the industry as PEA, which stands for "pre-existing ailment"). Funds are entitled to impose a waiting period of up to 12 months on benefits for any medical condition the signs and symptoms of which existed during the six months ending on the day the person first took out insurance. They are also entitled to impose a 12-month waiting period for benefits for treatment relating to an obstetric condition, and a 2-month waiting period for all other benefits when a person first takes out private insurance. Funds have the discretion to reduce or remove such waiting periods in individual cases. They are also free not to impose them to begin with, but this would place such a fund at risk of "adverse selection", attracting a disproportionate number of members from other funds, or from the pool of intending members who might otherwise have joined other funds. It would also attract people with existing medical conditions, who might not otherwise have taken out insurance at all because of the denial of benefits for 12 months due to the PEA Rule. The benefits paid out for these conditions would create pressure on premiums for all the fund's members, causing some to drop their membership, which would lead to further rises, and a vicious cycle would ensue.

There are a number of other matters about which funds are not permitted to discriminate between members in terms of premiums, benefits or membership - these include racial origin, religion, sex, sexual orientation, nature of employment, and leisure activities. Premiums for a fund's product that is sold in more than one state can vary from state to state, but not within the same state.

The Australian government has introduced a number of incentives to encourage adults to take out private hospital insurance. These include:

* Lifetime Health Cover: If a person has not taken out private hospital cover by the 1st July after their 31st birthday, then when (and if) they do so after this time, their premiums must include a loading of 2% per annum for each year they were without hospital cover. Thus, a person taking out private cover for the first time at age 40 will pay a 20 per cent loading. The loading is removed after 10 years of continuous hospital cover. The loading applies only to premiums for hospital cover, not to ancillary (extras) cover.

* Medicare Levy Surcharge: People whose taxable income is greater than a specified amount (currently $70,000 for singles and $140,000 for couples) and who do not have an adequate level of private hospital cover must pay a 1% surcharge on top of the standard 1.5% Medicare Levy. The rationale is that if the people in this income group are forced to pay more money one way or another, most would choose to purchase hospital insurance with it, with the possibility of a benefit in the event that they need private hospital treatment - rather than pay it in the form of extra tax as well as having to meet their own private hospital costs.
* The Australian government announced in May 2008 that it proposes to increase the thresholds, to $100,000 for singles and $150,000 for families. These changes require legislative approval. A bill to change the law has been introduced but was not passed by the Senate.
* An amended version was passed on 16 October 2008. There have been criticisms that the changes will cause many people to drop their private health insurance, causing a further burden on the public hospital system, and a rise in premiums for those who stay with the private system. Other commentators believe the effect will be minimal.

* Private Health Insurance Rebate: The government subsidises the premiums for all private health insurance cover, including hospital and ancillary (extras), by 30%, 35% or 40%, depending on age. The Rudd Government announced in May 2009 that as of July 2010, the Rebate would become means-tested, and offered on a sliding scale.

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Comparison

See also: Health care systems
The Commonwealth Fund, in its annual survey, "Mirror, Mirror on the Wall", compares the performance of the health care systems in Australia, New Zealand, the United Kingdom, Germany, Canada and the U.S. Its 2007 study found that, although the U.S. system is the most expensive, it consistently under-performs compared to the other countries. One difference between the U.S. and the other countries in the study is that the U.S. is the only country without universal health insurance coverage.

Health care systems (Health care systems are designed to meet the health care needs of target populations. There are a wide variety of health care systems around the world. In some countries, the health care system has evolved and has not been planned, whereas in others a concerted effort has been made by governments, trade unions, charities, religious, or other co-ordinated bodies to deliver planned health care services targeted to the populations they serve. However, health care planning has often been evolutionary rather than revolutionary)

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Inherent problems with multiple insurance funds and optional insurance

The basic concept of insurance, as described by Wikipedia's Insurance article, is population solidarity. There are inherent risks in a population but the population absorbs the cost of risks to an individual by spreading the impact of incurred costs amongst the insured population. However, if the population is split into insured and uninsured groups, or into selectively groups (as with private insurance with pre-insurance selection either by the insurance company or the insured) the concept of population solidarity breaks down. Insurance systems must then typically deal with two inherent challenges: adverse selection and ex-post moral hazard.

Some national systems with compulsory insurance utilize systems such as risk equalization and community rating to overcome these inherent problems. Proponents of single-payer health care in the United States aim to provide the population of the country with health care from a single fund and thus avoid problems and costs associated with adverse selection, moral hazard, and private profiteering from insurance.

Although the general principle of insurance is population solidarity, the economic behavior of insurance companies that are run for profit often seems to go against this very principle. This is exemplified in an Urban Institute paper which argues that the whole medical insurance industry in the United States is geared to managing two groups that it tries to keep from overlapping: the group of people who are healthy and will make only very small claims as policy holders (which it seeks to attract), and the group of people who will make above average claims (which the companies will do all they can to avoid paying out for — by exclusions, higher co-pay rates, etc). The authors say that these activities are antithetical to the whole concept of insurance (which is that the fortunate healthy should meet the health care costs of the unfortunately ill). The paper argues that American insurers are so focused on the process of managing these groups that they forget that their primary aim ought to be to buy cost-effective, efficiently delivered care on behalf of their clients. On the other hand, insurance companies might argue that they are trying to achieve fairness to policy holders given the fact that the split nature of the market means that risks are not evenly distributed between the various funds.


Adverse selection

Insurance companies use the term "adverse selection" to describe the tendency for only those who will benefit from insurance to buy it. Specifically when talking about health insurance, unhealthy people are more likely to purchase health insurance because they anticipate large medical bills. On the other side, people who consider themselves to be reasonably healthy may decide that medical insurance is an unnecessary expense; if they see the doctor once a year that's much better than making monthly insurance payments.

The fundamental concept of insurance is that it balances costs across a large, random sample of individuals (see risk pool). For instance, an insurance company has a pool of 1000 randomly selected subscribers, each paying $100 per month. One person becomes very ill while the others stay healthy, allowing the insurance company to use the money paid by the healthy people to pay for the treatment costs of the sick person. However, when the pool is self-selecting rather than random, as is the case with individuals seeking to purchase health insurance directly, adverse selection is a greater concern.[15] A disproportionate share of health care spending is attributable to individuals with high health care costs. In the U.S. the 1% of the population with the highest spending accounted for 27% of aggregate health care spending in 1996. The highest-spending 5% of the population accounted for more than half of all spending. These patterns were stable through the 1970s and 1980s, and some data suggest that they may have been typical of the mid-to-early 20th century as well. A few individuals have extremely high medical expenses, in extreme cases totaling a half million dollars or more. Adverse selection could leave an insurance company with primarily sick subscribers and no way to balance out the cost of their medical expenses with a large number of healthy subscribers.

Because of adverse selection, insurance companies employ medical underwriting, using a patient's medical history to screen out those whose pre-existing medical conditions pose too great a risk for the risk pool. Before buying health insurance, a person typically fills out a comprehensive medical history form that asks whether the person smokes, how much the person weighs, whether the person has been treated for any of a long list of diseases and so on. In general, those who present large financial burdens are denied coverage or charged high premiums to compensate. One large U.S. industry survey found that roughly 13 percent of applicants for comprehensive, individually purchased health insurance who went through the medical underwriting in 2004 were denied coverage. Declination rates increased significantly with age, rising from 5 percent for individuals 18 and under to just under a third for individuals aged 60 to 64. Among those who were offered coverage, the study found that 76% received offers at standard premium rates, and 22% were offered higher rates. On the other side, applicants can get discounts if they do not smoke and are healthy.


Moral hazard
Main article: Moral hazard

Moral hazard occurs when an insurer and a consumer enter into a contract under symmetric information, but one party takes action, not taken into account in the contract, which changes the value of the insurance. A common example of moral hazard is third-party payment—when the parties involved in making a decision are not responsible for bearing costs arising from the decision. An example is where doctors and insured patients agree to extra tests which may or may not be necessary. Doctors benefit by avoiding possible malpractice suits, and patients benefit by gaining increased certainty of their medical condition. The cost of these extra tests is borne by the insurance company, which may have had little say in the decision. Co-payments, deductibles, and less generous insurance for services with more elastic demand attempt to combat moral hazard, as they hold the consumer responsible.


Other factors affecting insurance prices

A recent study by PriceWaterhouseCoopers examining the drivers of rising health care costs in the U.S. pointed to increased utilization created by increased consumer demand, new treatments, and more intensive diagnostic testing, as the most significant driver. People in developed countries are living longer. The population of those countries is aging, and a larger group of senior citizens requires more intensive medical care than a young healthier population. Advances in medicine and medical technology can also increase the cost of medical treatment. Lifestyle-related factors can increase utilization and therefore insurance prices, such as: increases in obesity caused by insufficient exercise and unhealthy food choices; excessive alcohol use, smoking, and use of street drugs. Other factors noted by the PWC study included the movement to broader-access plans, higher-priced technologies, and cost-shifting from Medicaid and the uninsured to private payers.

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Comprehensive vs. scheduled

Comprehensive health insurance pays a percentage of the cost of hospital and physician charges after a deductible (usually applies to hospital charges) or a co-pay (usually applies to physician charges, but may apply to some hospital services) is met by the insured. These plans are generally expensive because of the high potential benefit payout — $1,000,000 to 5,000,000 is common — and because of the vast array of covered benefits.

Scheduled health insurance plans are not meant to replace a traditional comprehensive health insurance plans and are more of a basic policy providing access to day-to-day health care such as going to the doctor or getting a prescription drug. In recent years, these plans have taken the name mini-med plans or association plans. These plans may provide benefits for hospitalization and surgical, but these benefits will be limited. Scheduled plans are not meant to be effective for catastrophic events. These plans cost much less than comprehensive health insurance. They generally pay limited benefits amounts directly to the service provider, and payments are based upon the plan's "schedule of benefits". Annual benefits maximums for a typical scheduled health insurance plan may range from $1,000 to $25,000

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Health plan vs. health insurance

Historically, HMOs tended to use the term "health plan", while commercial insurance companies used the term "health insurance". A health plan can also refer to a subscription-based medical care arrangement offered through HMOs, preferred provider organizations, or point of service plans. These plans are similar to pre-paid dental, pre-paid legal, and pre-paid vision plans. Pre-paid health plans typically pay for a fixed number of services (for instance, $300 in preventive care,

a certain number of days of hospice care or care in a skilled nursing facility, a fixed number of home health visits, a fixed number of spinal manipulation charges, etc.) The services offered are usually at the discretion of a utilization review nurse who is often contracted through the managed care entity providing the subscription health plan. This determination may be made either prior to or after hospital admission (concurrent utilization review).

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How health insurance works

A health insurance policy is a contract between an insurance company and an individual or his sponsor (e.g. an employer). The contract can be renewable annually or monthly. The type and amount of health care costs that will be covered by the health insurance company are specified in advance, in the member contract or "Evidence of Coverage" booklet. The individual insurered person's obligations may take several forms:

* Premium: The amount the policy-holder or his sponsor (e.g. an employer) pays to the health plan each month to purchase health coverage.

* Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, a policy-holder might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer. It may take several doctor's visits or prescription refills before the insured person reaches the deductible and the insurance company starts to pay for care.
* Copayment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 copayment for a doctor's visit, or to obtain a prescription. A copayment must be paid each time a particular service is obtained.
* Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a copayment), the co-insurance is a percentage of the total cost that insured person may also pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%. If there is an upper limit on coinsurance, the policy-holder could end up owing very little, or a great deal, depending on the actual costs of the services they obtain.
* Exclusions: Not all services are covered. The insured person is generally expected to pay the full cost of non-covered services out of their own pocket.
* Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount. The insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition, some insurance company schemes have annual or lifetime coverage maximums. In these cases, the health plan will stop payment when they reach the benefit maximum, and the policy-holder must pay all remaining costs.
* Out-of-pocket maximums: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, and the health company pays all further covered costs. Out-of-pocket maximums can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year.
* Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer.
* In-Network Provider: (U.S. term) A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or copayments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers.
* Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assume it matches what was authorized. Many smaller, routine services do not require authorization.
* Explanation of Benefits: A document sent by an insurer to a patient explaining what was covered for a medical service, and how they arrived at the payment amount and patient responsibility amount.

Prescription drug plans are a form of insurance offered through some employer benefit plans in the U.S., where the patient pays a copayment and the prescription drug insurance part or all of the balance for drugs covered in the formulary of the plan.

Some, if not most, health care providers in the United States will agree to bill the insurance company if patients are willing to sign an agreement that they will be responsible for the amount that the insurance company doesn't pay. The insurance company pays out of network providers according to "reasonable and customary" charges, which may be less than the provider's usual fee. The provider may also have a separate contract with the insurer to accept what amounts to a discounted rate or capitation to the provider's standard charges. It generally costs the patient less to use an in-network provider.

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History and evolution of healt insurance

History and evolution
Main article: History of insurance

The concept of health insurance was proposed in 1694 by Hugh the Elder Chamberlen from the Peter Chamberlen family. In the late 19th century, "accident insurance" began to be available, which operated much like modern disability insurance. This payment model continued until the start of the 20th century in some jurisdictions (like California), where all laws regulating health insurance actually referred to disability insurance.

Accident insurance was first offered in the United States by the Franklin Health Assurance Company of Massachusetts. This firm, founded in 1850, offered insurance against injuries arising from railroad and steamboat accidents. Sixty organizations were offering accident insurance in the U.S. by 1866, but the industry consolidated rapidly soon thereafter. While there were earlier experiments, the origins of sickness coverage in the U.S. effectively date from 1890. The first employer-sponsored group disability policy was issued in 1911.

Before the development of medical expense insurance, patients were expected to pay all other health care costs out of their own pockets, under what is known as the fee-for-service business model. During the middle to late 20th century, traditional disability insurance evolved into modern health insurance programs. Today, most comprehensive private health insurance programs cover the cost of routine, preventive, and emergency health care procedures, and most prescription drugs, but this was not always the case.

Hospital and medical expense policies were introduced during the first half of the 20th century. During the 1920s, individual hospitals began offering services to individuals on a pre-paid basis, eventually leading to the development of Blue Cross organizations.[5] The predecessors of today's Health Maintenance Organizations (HMOs) originated beginning in 1929, through the 1930s and on during World War II.

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Health insurance

Health insurance
Health insurance is insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long-term nursing or custodial care needs. It may be provided through a government-sponsored social insurance program, or from private insurance companies. It may be purchased on a group basis (e.g., by a firm to cover its employees) or purchased by individual consumers. In each case, the covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses.

Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government.

By estimating the overall risk of healthcare expenses, a routine finance structure (such as a monthly premium or annual tax) can be developed, ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.

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Life Insurance : Life insurance makes sense whether you're just getting started or in your prime earning years.

Life insurance can help you financially, whether it's funding your children's education or planning for a comfortable future. Progressive has teamed up with Efinancial,* a life insurance agency that offers 24/7 online availability.

Efinancial helps you shop for life insurance any time, no matter where you're located. Just complete a life insurance quote online, and Efinancial will show you up to 12 competitively priced term life insurance policies from America's most trusted insurance providers.

When you shop for term life insurance with Efinancial, you get:

• free instant life insurance quotes
• low prices
• quick and easy life insurance applications
• superior customer service

What is term life insurance?

Term life insurance differs from whole life insurance because you purchase coverage for a specific period of time rather than an indefinite one. Generally, you can buy term life insurance for periods of five years or more, and your policy is active until that period passes.

Efinancial offers term life insurance quotes from many of the nation's top life insurance companies, so you have several options to find the right life insurance company and policy for your budget.

Why buy life insurance?

Life insurance is something to consider, regardless of your age. Rather than thinking it's morbid, look at life insurance as a smart way to plan for others so they're not left floundering. If you're single, married, a parent, or a grandparent, you can find the right life insurance policy to suit your needs.

With term life insurance, you can match the length of your policy to your specific needs — something many people may not consider. For instance, if your mortgage will be paid off in 15 years, you want to make sure your life insurance policy adequately covers that period. However, after it's paid off, you can adjust your life insurance policy to match your needs at that time.

How much life insurance do you need?

An ideal time to buy life insurance is when you're healthy because you'll pay less. As the years pass, keep in mind that rates change, so even if you already have life insurance, you can get the same — or more — coverage for less money.

Other factors to consider when you're deciding on life insurance include:

• medical expenses
• your children's age
• whether you're the sole income earner
• funeral expenses

Planning for life insurance doesn't have to be an unpleasant experience. In fact, it can be quite comforting to know that you've considered all aspects of your life and are ensuring your loved ones are in good hands. Efinancial makes it convenient for you by offering instant online life insurance quotes that can save you both time and money.

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Health Insurance: Have a Healthy Breakfast Before You Hit the Road

Having a good health insurance policy is absolutely essential to maintaining a healthy lifestyle. But along with scheduling regular checkups and practicing preventive medicine, there are some simple things you can do to ensure your good health. Eating a healthy breakfast is one of them.

You heard it over and over again when you were a kid and, like it or not, now that you're all grown up, your doctor and the medical community at large will tell you the same thing: breakfast is indeed the most important meal of the day.

Why? It's quite simple- your body hasn't had food or water for at least 8 hours and you need to "break your fast." Combine that with the fact that you have the whole day in front of you- a day filled with hectic schedules and crazy deadlines- and it's easy to see why it's so important to fuel up on healthy stuff first thing in the morning.

Before you head out to face your busy day, take at least a few minutes to supercharge your system with a quick and healthy breakfast. We've compiled a list of fast and easy good-starts below.

• Happy trails. Keep trail mix on hand for those mornings when you hit the snooze button one (or three) too many times. Nuts are a great source of protein and are generally high in dietary fiber, calcium, and iron, as well as Vitamins A, B, and C. Add raisins for healthy sugars, fiber and a small amount of Vitamin B Complex. You'll be energized and ready to go.
  
  
• A fruitful start. Smoothies are a quick, easy and delicious way to get a healthy serving of fruit first thing in the morning. If you don't have time to whip them up before work, consider making them the night before and storing them in the fridge or freezer. In the morning you can just pour and go. Add plain, nonfat yogurt for extra nutritional value.
  
  
• Granola is good. Forget all your "peace, love and granola" hang-ups. In spite of its reputation, granola is great way to get an energetic start on the day. High in fiber and complex carbohydrates, granola is a known energy booster, and is a favorite with athletes and health nuts alike. Don't have time for a bowl of cereal? That's what granola bars are for! Grab one and go.
  
  
• Have an egg. Though sometimes given a bad rap, eggs are actually extremely nutritious and offer essential amino acids, vitamins, and minerals. In addition, eggs contain protein and Vitamin D and are relatively low in fat. Few of us have time for Quiche Lorraine or a Denver Omelet before we jet off to work, so keep it simple with hard-boiled eggs. Boil a dozen on Sunday night and place them back in their carrier in the fridge. Have one each morning for a quick, nutritious start.
  
  
• The muffin man. Muffins can be an easy and delicious way to begin the day. You probably don't have time to make muffins in the morning, but you can make a batch in advance for a quick grab-and-go in the morning. Use whole wheat and add nuts and raisins for extra nutrition. If you need a change of pace, consider savory muffins with tomato, Canadian bacon and bell peppers.
  
  
• Something is better than nothing. Let's face it– most of us rarely have time for an elaborate breakfast, but remember that eating something is generally better than eating nothing at all. A piece of toast with peanut butter, a banana or a handful of raisins will at least get you started on the right foot.
  
  

Don't rush out the door in the morning, without first having a quick and healthy bite to eat. Like mom always said, "Your body is like a car; it won't run if you don't put gas in it!"

And don't forget: as important as breakfast is, it's not nearly as important as having health care coverage that meets your needs. Whether you need individual, family or short-term coverage, get your fast.

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Auto Insurance Coverage Counselor

Auto Insurance Coverage Counselor
Need some help choosing your auto insurance coverage levels? Well, secret agents aren’t the only ones with cool gadgets! Esurance developed Coverage Counselor, an interactive auto insurance planning tool, to help drivers from all walks of life figure out the amount of auto insurance coverage they should have.

What to Expect

Our auto insurance Coverage Counselor planning tool gives you suggestions about which insurance coverages, limits, and deductions may be right for you. All you have to do is answer a few basic questions and our Coverage Counselor will provide suggestions for your auto insurance coverage.

Review. Return. Relearn!
Your auto insurance needs can change over time. Make sure you revisit our Coverage Counselor when you have significant changes in your life that could affect your auto insurance policy. Some events you may want to adjust your coverage for include life changes like: getting married, becoming a homeowner, or getting a new job.

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New Car Smell, New Car Insurance

Nothing would make a proud American smile than a newly purchased car. Next to a house, a vehicle is the most expensive investment than any American would acquire. But with the nation’s consumerism and credit card society, driving off to the sunset with a shiny new set of wheels is impossible.

A new car can mean many things for a car owner. For one, he or she will enjoy mobility. Bragging rights and sex appeal can even be included. And then of course there are the expenses. Car loans are not cheap. And so is car insurance. With all but two states requiring auto insurance, many car owners sometimes feel that having a vehicle has become more of a liability than a privilege.

Car owners have to contend with new car insurance and other expenses. Ideally, tough competition between insurance companies should keep costs down. This is not always the case, though. Providers have to consider many factors before revealing to car owners just how much they have to pay each year.

Perhaps one of the most important, if not the most important factor that affects insurance costs, is the new car itself. Vehicles that have powerful engines and classified as sports cars can mean higher premiums. Because these cars can outperform most of the regular vehicles on the road, they are more prone to car crashes. A higher possibility of accidents means higher new car insurance costs.

Sporty vehicles can be much more expensive to insure especially if the owners or drivers are younger. An inexperienced driver behind the wheel of a powerful car is a recipe for a potential disaster. Worse, a bad driving record would obviously point out to a higher risk for car crashes. Insurance providers are inherently allergic to lead-footed motorists driving sports cars.

Even if the new vehicle is a lumbering SUV, new car insurance can be more costly compared to smaller cars. Recent studies have revealed that certain large SUVs are prone to flipping over if drivers lose control while at moderate to high speeds. The car industry is rife with news about SUVs turning turtle because of sudden tugs at the wheel.

New car owners also have to realize their insurance costs will be greatly affected by accessories or features they install on their vehicles. Safety and security features like anti-lock brake systems and side airbags can help keep new car insurance costs down. Installing anti-theft systems and alarms should also make insurance more affordable for new car owners.

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Internet Makes Instant Car Insurance Possible

The advent of modern technology has made life much easier. Like any other goods or services sold in shopping websites, instant car insurance may also be bought via the Internet.

A vehicle owner who cannot afford to spend so much time in looking for the right policy for his or her car may find the Internet friendly. Most legitimate insurers maintain websites, where they post quotations for various surety products. By visiting these sites, one can get quotations and buy the chosen surety policy in an instant.

A much easier way of comparing quotations from different surety companies–instead of visiting each of their websites, is to log on to just one site that already contains quotations from several insurers. One may consult Google or any other search engine to find a site that offers this type of service. Visiting just one site instead of many helps one save time and effort.

Buying an instant car insurance may have been an unimaginable concept prior to the Internet age, but technology has already made it possible. Gone are the days when one is required to personally visit offices of insurers just to be able to get quotations and buy surety products.

To choose the instant car insurance ideal for a vehicle owner, he or she should first make a shortlist of the policies that are initially deemed to provide the desired coverage. Then, the individual should carefully study the provisions of each policy in the shortlist to make a much better comparison and choose the right policy for him or her.

Buyers must make sure that the policies they will choose contain the services that they need depending on their lifestyle. Those who own brand-new vehicles may find it worthy to buy a surety policy that offers a comprehensive coverage, while others may only want to buy a policy that covers third-party liability. Some may be willing to pay additional cost to get fringe benefits offered by an insurer, while others may want to get the cheapest product.

Most insurers that maintain their own websites allow online purchasing of their products. As long as a potential client has a functioning credit or debit card, he or she may buy an instant car insurance online.

People who are not Internet savvy may think it is complicated to buy a surety policy or any other product online. Individuals of this type, which may include many senior citizens, may ask assistance from friends or family members who are familiar with the Internet to educate them on its use. Eventually, they will realize that there is nothing complicated about online shopping. In fact, it is a worthwhile activity.

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Insurance Money-saving Tips Revealed

Studies have revealed that a growing number of American car owners are making use of new ways and technology to find auto insurance. Industry sources say that the number of applicants have increased significantly in recent years, thanks largely to the internet.

Most insurance providers now have fully functional websites that cater to the needs of potential clients. Majority of these companies also sell insurance policies online. The internet has also given insurers an edge over competitors, especially since more and more drivers are choosing to shop around for better premiums, rather than stay with their providers. This has generated considerable demand for online services.

Industry analysts predict that more car owner will turn to the World Wide Web for their insurance needs. Because of this, they have revealed several recommendations for policyholders and insurance-seekers to save money.

While most insurance providers use the same rating factors to determine the premiums, not all companies are the same. Some place heavier emphasis on driving records while others give credit ratings more importance. Experts say that car owners have to pay attention to these factors to find the best insurers for their specific situation and needs. For example, they add, motorists with relatively clean driving records are better off with providers that place more importance on how safe policyholders are on the road.

Drivers can also choose to purchase coverage from smaller, local-based companies. Analysts say that large insurance providers are currently acquiring local insurers to tap into their markets. Because of this, competitive independent local providers usually offer lower premiums. Aside from that, they also cover special risks that many larger firms avoid.

Online-only car insurance companies are also a good alternative to conventional providers. Specialists point out that most regular insurance companies often pass on overhead costs and operational expenses to their clients. With online insurance firms, however, car owners can expect lower premiums. These providers usually have fewer employees and operational costs, resulting in more affordable coverage.

Drivers with aging cars can also drop comprehensive and collision coverage to cut on insurance expenses. Typically, these additional options are useful only when a vehicle is newly bought. Getting rid of added coverage and unnecessary riders can slash premium significantly.

It would also be good for car owners to periodically check the internet for new insurance quotes and rates every once in a while. Ideally, policyholders should check for new rates and quotes every six months. Most experts agree that this is enough time for car owners to see if they can consider other companies for their insurance needs.

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Student Auto Insurance Myths Debunked

Rising tuition fees, growing credit card debt, and a weak economy are forcing many parents and college students to skimp on car insurance. With the assumption that auto insurance for young drivers is too expensive, many Americans are actually getting themselves in more trouble. Experts argue that car insurance is even more important for inexperienced young motorists because they have yet to build up good driving records.

To help parents scale back their expenses for their children’s car insurance policies, industry sources have come up with answers and explanations for popular misconceptions and inaccurate notions.

Contrary to popular belief, college students do not need to have auto insurance policies of their own. Policyholders can actually add young motorists in the family as additional drivers. While the parents may have to add a few hundred dollars, this option can save them thousands. On average, a new insurance policy for a college student with no prior driving experience can reach the $2,000-mark. Of course, the additional driver should list the same address as their primary residence.

College students who do not have cars of their own are highly recommended by experts to get car insurance anyway. According to experts, most Americans fail to understand that auto insurance covers the policyholder, and not the actual cars themselves. With car insurance coverage, college students will be protected at all times, especially when they use their friends’ cars. Buying a young motorist insurance later on can reduce the likelihood of him or her getting better premiums in the future. Providers always look at a policyholder’s driving record to come up with rates. More extensive driving experience can mean better premiums.

Parents who want to save on insurance usually purchase “liability only” coverage for their young drivers. While sufficient to cover the minimum liability amount required by law, this particular option can result to more out-of-pocket expenses if there is a need for repairs or hospitalization. Newer cars must also be given collision and comprehensive coverage to protect policyholders from paying substantial amounts if they get into accidents. Policyholders can end up shelling out thousands of dollars for repairs if the amount of damage exceeds the maximum liability limit covered by the insurance company. To avoid this, experts advise buying additional coverage options.

Car insurance for college students need not be too expensive, experts contend. Students who do well in school and have grades to prove it can qualify for “good student” discounts. This discount is often offered to young drivers considered responsible enough to be entrusted with a car.

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Options Bared for Rental Car Insurance

Experts agree that the large volume of cars on American roads and highways this summer can lead to more accidents and consequently, more insurance claims. Most providers have anticipated this and have implemented sweeping changes to their premiums, raising some rates considerably. To avoid the inconvenience of bringing their own cars during lengthy trips, a growing number of Americans are choosing to rent cars from rental companies.
While convenient, rental cars can give drivers more problems. The question of insurance often comes into mind whenever motorists rent vehicles for business or pleasure. To allay these fears, most rental companies offer customers with various forms of auto insurance. Some experts warn that these added options are nothing more than waivers that release the customer from any liability should the cars receive damage.

Recently, however, experts have expressed support for the waivers rental companies offer their customers. The most popular type, the Collision Damage Waiver (CDW), releases the driver from any financial obligation regarding damage repairs to the vehicle. To avoid paying for stolen rental cars, motorists can also pay for a loss damage waiver (LDW).

Other, newer options cover a wider range of loss or damage. The liability insurance supplement, for example, takes care of any liability claims against the customer. Drivers can even opt for personal accident insurance (PAI) for added protection in the even they suffer physical injuries or loss of income. Lastly, the personal effects coverage (PEC) will ensure that drivers get reimbursed for any personal belongings that may have been damaged or destroyed in a car crash.

Some analysts, on the other hand, say that purchasing all these extra coverage and protection can further burden motorists because of their expensive costs. To save money, expert say that motorists should first consult with their insurance providers to see if the companies offer rental car coverage. Most insurers offer coverage of one form or another for policyholders fond of renting vehicles. For some providers, extra protection can be added by clients, depending on the need and urgency of the situation.

Already, several large insurance companies are beginning to market temporary car insurance policies for clients who have the need for full auto insurance coverage for shorter periods of time. Temporary auto insurance allows policyholders to get the same level of protection as conventional insurance at shorter periods, making it one of the best alternatives to waivers.

Drivers can also ask their card companies if they offer rental car insurance. According to experts, however, card issuers are only secondary providers, meaning, primary auto insurers have to shell out money first.

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Parents Look for Ways to Save on Car Insurance

With the economy showing very little signs of recovery, many American parents with teen drivers are turning to just about anyone for insurance advice. Because young motorists are more costly to insure than regular adults, families often cut back on other basic needs and unnecessary expenses.
The economic slowdown, however, has inevitably changed how Americans prioritize their expenses. For once, a growing number of car owners are starting to increase deductibles, with some even dropping policies altogether.

Industry experts, on the other hand, strongly recommend finding other alternatives to getting rid of insurance. Driving without insurance is illegal in 48 states, with Wisconsin and New Hampshire expected to follow suit in the next year or so. Most states have stiff penalties for convicted drivers. Insurance specialists also add that uninsured drivers who get in an accident can end up paying thousands of dollars or worse, lose their personal assets.

However, there are some steps that families can take to slash premiums for their young motorists. Having a straight-A report card can qualify a teen driver for a “good student” discount from their insurance company. Providers often consider well performing students as more responsible drivers. Young drivers with 3.0 GPAs or higher can also apply for substantial discounts from their insurers.

Families can also save on auto insurance by purchasing multiple vechile insurance. Instead of buying each car its own insurance coverage. car owners can buy insurance by the bulk for any number of vehicles, as long as they are from the same address. Some providers would even allow changes to policies if the policyholder’s cars are not of the same kind.

Teen drivers can also take defensive driving classes or re-education driving courses to get huge discounts. Provider often have accredited programs or schools that young motorists can enroll in. These courses serve as additional “insurance” for teens that have yet to gain sufficient driving experience. Experts contend that lack of experience often means higher premiums for teen motorists. The fact that most teen fatalities are the result of car crashes also cements the insurance industry’s justification for more expensive insurance.

The best thing that parents can do, according to specialists, is to teach their children how to drive responsibly and exercise caution at all times. Drivers who avoid getting in accidents for at least five years can get great car insurance deals. Aside from that, their driving records will also remain spotless, paving the way for better insurance premiums.

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