Posted by Benji Riggins on February 3, 2012 under Insurance News | 
Rates won’t rise, but some could pay more if they’re below maximum allowed.
Drivers are getting a little good news: Auto insurance rates are not going up this year.
This is the second year in a row that the state’s auto insurers have not sought a rate increase.
The claims data just didn’t support an increase, said Ray Evans, general manager of the N.C. Rate Bureau, which represents 142 insurance companies that write auto policies in North Carolina
Evans said the frequency and severity of accidents has been stable over the past few years. He credited people driving less frequently, improved car safety and more active law enforcement – particularly the ticketing of people who text while driving.
“Those things have an impact, and we’re seeing the graduated driver license training continue to have an effect. … The fatality rate has dropped dramatically,” he said. “The end result is that with things stable there does not appear to be any need for an increase.”
That doesn’t mean some people won’t see an increase. Some companies may not be charging the maximum allowed and will be able to raise rates.
The average annual premium in North Carolina was $595 in 2008, the most recent data available from the Insurance Information Institute.
The Rate Bureau does not get the last word. That belongs to Insurance Commissioner Wayne Goodwin. And no state insurance commissioner has approved an auto insurance rate increase in 15 years, according to the Department of Insurance.
The DOI staff will review the Rate Bureau’s filing and could conclude that a rate decrease is needed. If that happens, the two sides will negotiate to reach a settlement.
That happened in 2009. Insurers had requested a 1.4 percent increase. But Goodwin ordered a rate decrease of one-half percent. Insurers appealed that decision, and in the meantime, as they are allowed to do, implemented a rate increase. After the settlement, insurers had to refund more than $50 million.
By Mary Cornatzer
mcornatzer@newsobserver.com
Read more here: http://www.charlotteobserver.com/2012/02/03/2980841/auto-insurers-seek-no-increase.html#storylink=cpy
Posted by Benji Riggins on January 30, 2012 under Interesting Info |
NEW YORK (AP) — The Cadillac Escalade, a top pick of the rich and famous ranging from Hollywood celebrities to Wall Street executives, is also the favorite choice of thieves.
The luxury SUV, which starts at more than $63,000, is the most likely vehicle to be targeted by crooks, according to a new study by the Highway Loss Data Institute.
The study, based on insurance claims made for model year 2008 through 2010 vehicles, showed that the Escalade is six times more likely to be hit by thieves than the average vehicle, and its overall theft losses are more than 10 times as large.
The rankings are based on vehicles that were stolen, had parts such as stereo systems taken, or had other property inside the car snatched.
Matt Moore, a vice president at the institute, says the Escalade gets hit more often because “It’s so wildly popular as far as pop culture goes. Watching the TV you see professional athletes coming in and out of them and other celebrities too. It’s a status symbol.”
HLDI, which is part of the Arlington, Va.-based Insurance Institute for Highway Safety, calculated the rankings based on the number of thefts per insured vehicle on the road.
The data doesn’t include uninsured vehicles or those covered by the 20 percent of insurance companies that don’t report their numbers to the institute.
A total of 10.8 claims were filed for every 1,000 insured Escalades, resulting in average loss payments of $10,555 per claim by insurance companies to the affected drivers, the study said.
The Escalade’s ranking isn’t anything new. When combined, the four versions of the SUV have ranked at the top of the list for several years, the group says.
Pickup trucks are also a favorite of thieves, taking the next four spots in the rankings, including the Ford F-250 crew cab four-wheel drive, the Chevrolet Silverado 1500 crew cab, the Ford F-450 crew cab four-wheel drive and the GMC Sierra 1500 crew cab. Crew cabs are pickups with a second row of seats.
Moore thinks that many of the pickup theft claims resulted from equipment or other items being stolen from truck beds while the vehicles were parked at work sites.
The Chrysler 300 sedan was the sixth most likely vehicle to be targeted and the only car on the list, with 7.1 claims filed for every 1,000 insured cars and an average loss payment of $5,509, the group said.
The vehicle least likely to be hit by thieves was the Audi A6 four-wheel drive, a luxury sedan. But its average loss payment per claim was $16,882. That’s 60 percent higher than that of the Escalade, according to the study.
The A6 was followed by the Mercury Mariner, a small SUV, and the Chevrolet Equinox, a midsize SUV.
The average vehicle in the study had 1.7 claims reported per 1,000 insured vehicles and an average loss payment per claim of $6,767, the study said.
By Bree Fowler, AP Auto Writer
Posted by Benji Riggins on January 28, 2012 under Interesting Info |
The Insurance Corporation of British Columbia, a Canadian auto insurer, released last week a list of top excuses from local motorists when they were caught using handheld cellphones while driving.
The insurer compiled the information with help from the local police department, which went on a month-long crackdown in September on distracted driving. Police estimate they issued more than 3,500 tickets.
Motorists getting distracted by holding a cellphone in one hand and making or receiving calls while driving is also a common problem in the United States.
Since the first law was passed in New York in 2001 banning handheld cellphone use while driving, there has been debate as to the degree of hazard, according to the New York-based Insurance Information Institute.
A survey conducted by State Farm in November 2010 found that 74 percent reported making or receiving calls at least once a week while driving.
Here are the top 10 excuses the Insurance Corporation of British Columbia compiled of local drivers who were caught using handheld phone devices while driving:
1. This is a bogus law.
2. It was my boss on the phone – I had to answer it.
3. I wasn’t using it – I just like to hold it.
4. Sorry officer, I didn’t see you trying to pull me over because I was on my phone.
5. But it was an emergency call to my wedding planner.
6. My Bluetooth died.
7. Driver: I’m using my speakerphone. Police officer: No, you’re holding your phone in one hand and steering with the other.
8. I’m not driving; I was stopped at a red light.
9. I wasn’t talking, I was checking my messages.
10. I was just checking the time.
Posted by Benji Riggins on January 25, 2012 under Interesting Info |
Nearly six in 10 Americans favor a federal law that would impose driving restrictions on teen drivers and institute a graduated driving license system.
A recent national survey from Allstate Insurance shows that support for a national graduated driver licensing (GDL) law corresponds with low opinions about teen driving skills, which received the lowest ranking among all ages surveyed.
Currently, the Safe Teen and Novice Driver Uniform Protection (STANDUP) Act is pending in Congress as part of a broader bill known as Mariah’s Law, named after an Arkansas teen killed in a crash involving texting.
STANDUP would restrict nighttime driving, limit the number of passengers in a teen’s car, prohibit the use of cell phones while driving, and issuance of permits and licenses with specific age requirements through a gradual, multi-phased process.
When asked about the specific provisions included in the STANDUP Act, Americans said they favor the policies. Findings include:
Seventy-six percent back a minimum age of 16 to receive a learner’s permit, and 69 percent favor requiring three stages of licensing.
Seven in 10 Americans favor restricting unsupervised nighttime driving for those under age 18, and 65 percent support restricting the number of non-family passengers for drivers under 18.
When asked about the prohibition of cell phones or texting while driving for younger drivers, 81 percent are in favor.
Support for STANDUP and its individual provisions crosses all age groups, geographic regions, and political affiliation.
American drivers are highly critical of teenage drivers, giving them the lowest rating of all age groups. Eighty-one percent rate teenagers as “average” or “poor” drivers.
“Results from this survey show that Americans clearly understand that GDL laws can help save lives, and that a majority of them support a legislative solution that safely introduces teen drivers to the road,” said Bill Vainisi, senior vice president and deputy general counsel, Allstate. “What’s needed now is national leadership in the form of uniform standards for those GDL laws.”
The survey of 1,000 American adults was conducted July 13, 14, 16 and 17 via landline and cell phone and has a margin of error of +/- 3.1 percent. Of the 1,000 adults, the survey identified 848 drivers who hold a license and drive at least occasionally.
Posted by Benji Riggins on January 20, 2012 under Flood |
If you don’t think your home is at risk for flooding, think again.
People outside of high-risk flood areas receive one-third of disaster assistance for flooding and file more than 20 percent of flood insurance claims, the National Flood Insurance Program says. Floods happen in all 50 states — not just hurricane-prone coastal areas — and are the most common natural disaster in the United States.
“Maybe if you lived on top of a mountain along the Continental Divide, maybe then you wouldn’t need flood insurance, but that’s about the only place you don’t need it,” says J. Fletcher Willey Jr., president of The Willey Agency in Nags Head, N.C.
Yet flood insurance is one of the most misunderstood types of insurance coverage. Here are eight facts to clear up some of the most common misconceptions about coverage through the National Flood Insurance Program:
1. No flood coverage under home insurance
Many people still assume standard renters and home insurance covers floods, says Larry Case, executive vice president of the Missouri Association of Insurance Agents. But you must purchase a separate flood insurance policy to protect your home and belongings from flood damage.
Most flood insurance is provided through the National Flood Insurance Program, administered by the Federal Emergency Management Agency. You can buy federal flood insurance from companies and agents certified to sell it if your community participates in the National Flood Insurance Program.
2. Flood insurance has caps
The amount of coverage you can buy through the NFIP is capped at $250,000 for a home’s structure and $100,000 for contents.
If you want more coverage, you have to buy excess flood insurance, which is sold by private insurance companies. The excess policy covers the cost of flood damage over and above the $250,000/$100,000 caps.
3. Coverage limited in basements
The distinctions can be tricky, so read the policy for details. Some structural elements in the basement are covered, such as central air conditioners, foundation walls, electrical outlets, furnaces and hot water heaters. However, carpeting and floor tile are not covered.
Some appliances in the basement are covered, such as washers and dryers, portable air conditioners and freezers. But refrigerators are not covered. Most personal belongings–including furniture, clothing and electronic equipment–are not covered when they’re in the basement.
4. Building and contents insurance required
A standard home insurance policy automatically covers personal belongings up to a certain percentage of the home’s insured value. With flood insurance, you must purchase contents coverage as well as building coverage to get both.
5. No additional living expenses provided
If your home is destroyed by fire, homeowner insurance pays for the cost to rent comparable living quarters until the house is rebuilt. But flood insurance does not include coverage for additional living expenses. You foot the bill to rent a place to live while your home is being repaired after a flood.
6. No replacement cost coverage for personal belongings
Unlike standard home insurance, which lets you purchase replacement cost coverage for personal belongings, flood insurance features only actual cash value coverage for possessions.
Replacement cost coverage reimburses you for the cost to buy a new item to replace a destroyed belonging. Actual cash value coverage takes depreciation into account and reimburses you for the value of the item at the time it was destroyed. So if a flood destroys your 3-year-old television, flood insurance reimburses you for the value of a used TV–not for the cost to buy a new one.
To qualify for replacement cost coverage to rebuild part of a destroyed building, the home must be your principal residence, and you must have insured it for at least 80 percent of the cost to rebuild or up to the $250,000 cap. Otherwise, reimbursement for rebuilding is based on the actual cash value.
7. Limited coverage on valuables
The coverage for valuables, such as furs and fine art, is limited to $2,500. Currency, precious metals and valuable papers, such as stock certificates, are not covered at all.
8. No flood coverage for hot tubs and swimming pools
Flood insurance doesn’t cover property and belongings outside the home. That includes hot tubs, swimming pools, decks, patios, fences, landscaping, walks, wells and septic systems.
Likewise, flood insurance pays for removal of debris in or on the home’s structure, but not in the yard, Willey says.
Finally, don’t wait until water is lapping at the front door to purchase a policy. Flood insurance has a 30-day waiting period from the date of purchase until the time it goes into effect. The only exceptions are if you’re buying additional insurance when renewing a policy or as a result of a map revision, or if a lender requires flood insurance for a home loan.
Read more: http://www.foxbusiness.com/personal-finance/2011/11/01/flood-insurance-misconceptions-8-facts-should-know/#ixzz1ckCWMw4n
By Barbara Marquand
Posted by Benji Riggins on January 17, 2012 under Interesting Info |
New federal safety data shows texting while driving increased 50 percent last year, despite a rush by states to ban the practice.
The National Highway Traffic Safety Administration does an annual survey that watches drivers’ behavior at selected intersections. The latest study caught less than 1 percent texting or manipulating hand-held devices. But it shows that activity increased to 0.9 percent last year, up from 0.6 percent the year before.
The share of drivers speaking in headsets also increased, although hand-held cellphone use remained flat.
The increase in texting while driving came despite bans on the practice in many states. Last month, Pennsylvania became the 35th state to impose a ban.
Tags: auto ins, car ins, driver safety, home ins, homeowner ins, homeowners ins, insurance agency, insurance agent, text, texting, vehicle ins
Posted by Benji Riggins on January 12, 2012 under Insurance News |
One of North Carolina’s largest homeowners’ insurers says it is considering canceling the coverage of up to 70,000 homeowners unless the state Legislature makes changes allowing it to charge higher rates.
North Carolina Farm Bureau Executive Vice President Steve Carroll recently told state lawmakers that the insurer may have to cancel the policies in order to reduce its exposure and make its homeowners’ book of business profitable.
He said that the insurer needs more leeway to enact higher rates, especially given the rising cost of reinsurance, which he said is expected to double as a result of the losses incurred from Hurricane Irene and the spate of tornadoes that touched down in the state last spring.
Carroll estimated that 40 percent of the insurer’s premiums will go towards purchasing reinsurance next year.
“To continue to write property insurance the way we have in North Carolina, we have to have higher rates,” said Carroll.
The North Carolina Rating Bureau negotiates rates on behalf of the 621 property insurers in the state. The proposed rates are then approved, disapproved or modified by the insurance commissioner.
Speaking before a joint legislative Committee on Property Insurance Rate Making, Farm Bureau’s Carroll said the current regulatory structure is workable. However, he said, more emphasis needs to be placed on reinsurance costs and the use of computer models when developing loss estimates.
The Raleigh, North Carolina based-insurer is already making other underwriting changes that could leave an additional 28,000 homeowners scrambling for coverage elsewhere.
Effective January 1, the insurer is following the trend of other carriers to cancel homeowners if they insure their automobiles through another company. The insurer is also canceling homeowners who filed a claim within the last five years.
If the insurer follows through and drops the 70,000 homeowners in addition to the 28,000 policies it is already non-renewing, it would lose about 20 percent of its homeowners’ book of business.
According to the department of insurance, the North Carolina Farm Bureau is the third largest homeowners’ insurer in the state with a 13.9 percent market share.
By Michael Adams | December 29, 2011
Posted by Benji Riggins on January 9, 2012 under Insurance News |
Residents in North Carolina will see a rate decrease when it comes to their dwelling fire coverage while at the same time seeing no change in the cost of their dwelling extended coverage.
North Carolina Insurance Commissioner Wayne Goodwin has ordered a statewide average 7.3 percent reduction in the state’s dwelling and fire policies, which are offered to non-owner occupied residences including rental properties, investment properties, and places not occupied full-time by the property owner. A dwelling fire policy typically does not include liability coverage.
Goodwin also denied a request from the state North Carolina Rate Bureau, which sought a statewide average 36.1 percent increase in extended coverage. The extended coverage policies generally cover physical damage due to wind, hail, fire, smoke, riot, civil commotion, aircraft, and vehicle damage.
After holding several public hearings, Goodwin said he was comfortable with his decisions.
“I found that that the requested increase in extended coverage rates for properties is not warranted and I disapproved the request because it would have led to excessive and unfairly discriminatory rates,” Goodwin said. “Additionally, dwelling policyholders will have the benefit of decreased fire rates.”
By Michael Adams |
Posted by Benji Riggins on January 4, 2012 under Safety |
Brake Failure Investigations
Many drivers can recall a near miss saved by the quick application of brakes, while a smaller number remembers pounding the brake pedal too late and crashing. What does this subset have in common? Significant numbers of them will blame their accidents on brake failure. Most of them will be wrong.
The reality is drivers judge distances poorly, especially when traveling at freeway speeds. Typically, they have no idea how their brakes behave in critical situations and consequently believe crashes result from mechanical malfunction, when in truth their brakes performed as designed, but their following distances were too short for their speeds. The standardization of electronically controlled antilock braking systems (ABS), which prevent wheel lockup and skidding during heavy braking, has compounded the problem because ABS can make strange grinding noises when it activates, leading untutored drivers to suspect braking issues. When coupled with a human tendency to avoid blame, brake failure becomes the commonplace excuse for many crashes.
As a result, a significant percentage of the workload for forensic automotive investigators is brake-failure examinations. Despite the frequency of the claims, actual malfunctions in these complex systems are rare, although they can happen. Investigation requires the input of a trained automotive specialist who knows where to look for problems in braking components to find the telltale evidence of failure. Often issues associated with neglectful maintenance by owners impede brake function, especially when optimal performance is required.
Brake Physiology
In a typical automotive disc-brake system, when the driver depresses the brake pedal, that pressure is transferred to a system of fluid-filled brake lines. The fluid then transmits the pressure to the calipers, clamping the brake pads against the brake rotors, which are attached to the wheels. The friction generated between the pad and the rotor provides the force that stops the vehicle. Loud squeaking from the brakes when applied usually signals brake pads that are reaching the end of expected use.
Wear and Tear
Pad or shoe wear from normal usage is the most common brake maintenance issue, and examining the parts of the braking system is typically the first step for a forensic investigator. He or she will look for unusual wear in the pads or shoes. That effort entails removing the vehicle’s wheels to access the brake pads and may require removing the pads for more precise measurement.
When an investigator removes the brake pads, he can also inspect the pad surface. A smooth, reflective quality may indicate “glazing” caused by overheating, which decreases stopping power. Overheating may also result in brake rotor discoloration, and is usually caused by excessive brake “riding” by the driver.
Less commonly, brake failures may be caused by excessive rotor or drum wear. With the wheels removed for the pad inspection, the brake rotors or drums can then be checked for thickness, diameter, and warping to ensure that they are within manufacturer specifications. Rotors and drums need replacement less frequently than pads and shoes, but excessive wear can contribute to brake failure, especially if the pads or shoes are similarly worn.
Examining Fluid Issues
In a typical hydraulic brake system, a brake fluid leak can result in complete brake failure if the fluid level drops too low. Such leaks can develop from excessive wear because of vibration or age, or from collision or roadway hazard damage. For example, an investigation of a suspected brake failure in a medium-duty truck that sustained significant crash damage in a freeway accident revealed that the truck had a brake-line design that allowed the primary fluid lines to rub against one another. The constant friction of the rubbing lines culminated in a sudden fluid leak and a complete loss of braking power.
Inspection for fluid leaks is simple and should be done by mechanics as part of routine maintenance. A forensic investigator examining a crashed vehicle will have little trouble spotting a leak, but determining its cause may be more complex, sometimes requiring laboratory examination with advanced equipment.
Another fluid-related cause of brake failure is the introduction of small air bubbles into the brake lines. Air bubbles occur when overheating brake fluid reaches the boiling point (brake fluid ages and has a limited usage life) or a slow leak allows air into the system. (A boiling point or other chemical test can determine if the vehicle’s brake fluid has exceeded its useful life.) The resulting bubbles interfere with the brake system’s ability to transmit braking force to the wheels, causing the brake pedal to feel softer than normal and making it very difficult to apply maximum braking effort.
Such a condition can contribute to an accident if a driver does not have sufficient stopping distance when facing a hazard. Once again, the way to avoid failures because of tainted or deficient fluid brake failures is proper preventative maintenance practices by the vehicle owner. This may include changing the brake fluid in accordance with manufacturer recommendations and regular brake bleeding to eliminate any air introduced into the system.
Potential Mechanical Problems
The most unexpected cause of brake failure that investigators may encounter is a mechanical failure in the brake pedal assembly. In rare cases it is possible for the master cylinder (the component that distributes the brake pedal force to the wheels) to become detached from the pedal linkage. This condition is immediately obvious to an inspecting investigator, so the real item of interest will be pinpointing the cause of the linkage failure, whether it is rust, tampering, or metal fatigue.
Tapping Accident Data
Increasingly, crash data retrieved from a damaged vehicle’s event data recorder (EDR) is providing useful insight to accident investigators. If the module is accessible in a brake failure examination and has collected the crash event data, then the forensic investigator can gain insight about driver actions in the seconds that preceded and followed impact. A brake failure allegation could wither away if that data reveals that the driver never engaged the brakes prior to a collision. More likely, the data will deliver the context that will guide the further investigation of a brake failure allegation.
Perhaps the record will show that the driver was not speeding and applied the brakes suitably, but did not stop quickly enough to avert disaster. That could open the possibility of a brake problem that should be identified in the claims resolution process.
A brake failure from a maintenance issue could implicate a repair shop, thus identifying a subrogation opportunity, whereas an original equipment failure could result in a product liability action.
Managing Brake Failure Claims
While brake failure is probably the most common excuse for a crash, cumulative experience shows that driver error probably trumps actual brake malfunctions as the primary cause of accidents because of braking issues. Although it is easy to be swayed by a dramatic recitation of the crash story, if there is any doubt about the logic or sense of the event sequence, consult an automotive expert.
By Ryan L. Devine, Gregory J. Quan
December 16, 2011
Tags: auto ins, auto safety, brake failure, brakes, car ins, car safety, driving safety, insurance agency, insurance agent, Safety, stopping power, vehicle ins
