By Michelle Megna | insurance.com

Posted : 05/14/2012

Everyone’s had that feeling of dread when you see the flashing lights of a cop car in the rearview mirror. Maybe you slowly rolled past a stop sign. Perhaps you forgot to buckle up, or you didn’t realize you were speeding. In addition to getting a ticket, you’re likely to see a hike in your car insurance premiums. But how much?

Insurance.com’s  new interactive tool, the “Uh-Oh! Calculator,” allows you to compute the average percent increase to your auto insurance rate for 14 common violations.

Insurance.com’s data analysis of more than 490,000 auto insurance quotes given to drivers reveals the following:

• Reckless driving is the most expensive violation among the 14 infractions we surveyed, with an average rate increase of 22 percent. At the other end of the spectrum, driving without a seat belt triggers a relatively small 3 percent uptick.

• Insurance rate hikes due to violations are sometimes higher for divorced drivers than for single and married people. For example, if you’re divorced and are ticketed for reckless driving, your annual premium may increase an average of 7 percent more than a single person’s, and 4 percent more than those who are married.

• Condo owners sometimes see higher rate increases for violations than do renters, single-family homeowners and those who live with their parents. In some cases, such as tickets for tailgating, condo owners’ average rates go up 10 percent more than those of renters and people who reside with Mom and Dad, and 4 points more than those of homeowners. 

How much a ticket will raise your car insurance rate

Based on Insurance.com’s analysis, here’s how much common infractions will impact your rates, on average:

1. Reckless driving: 22 percent

2. DUI first offense:  19 percent

3. Driving without a license or permit:  18 percent

4. Careless driving:  16 percent

5. Speeding 30 mph over the limit: 15 percent

6. Failure to stop:  15 percent

7. Improper turn:  14 percent

8. Improper passing:  14 percent

9. Following too close/tailgating: 13 percent

10. Speeding 15 to 29 mph over limit: 12 percent

11. Speeding 1 to 14 mph over limit: 11 percent

12. Failure to yield: 9 percent

13. No car insurance: 6 percent

14. Seat belt infractions: 3 percent

Getting the bad news, customized

For more tailored results, use the “Uh Oh!” Calculator to enter your own age, type of dwelling, state, marital status, and length of time you’ve been with your car insurance carrier.

No one’s perfect: Save money on car insurance, despite your record

If you do get a ticket, don’t fret: There are ways to save money on car insurance, regardless of your driving record.

To get the most affordable car insurance for your particular situation, it pays to shop around, to dig for discounts and to drop unnecessary coverage.

Review your policy each year, and get at least three quotes when doing an auto insurance quotes comparison.

It’s also prudent to research bundling your auto and home policies, as many insurers will offer lower rates if you buy two or more types of coverage. 

Ask your insurer if you, or any of the family members on your policy, qualify for low-mileage or good-student discounts. You may also get a lower rate for vehicle-safety features such as car alarms or anti-lock brakes.

Another option: You can raise your deductible from $250 to $500 on collision and comprehensive coverage, which typically means that you can cut that portion of your premium by up to 30 percent.

In addition, it may make financial sense to drop comprehensive and collision coverage if the value of your car is less than a $1,000. If you total your car, you receive the actual cash value of the car. So for older models that aren’t worth that much on the market, it may not make sense to pay premiums for comprehensive and collision coverage.

Methodology

Insurance.com analyzed more than 490,000 auto insurance quotes provided to Insurance.com users from 14 carriers between January 2009 and January 2011. We looked at quotes given to drivers with the 14 most common infractions recorded and compared them to quotes given to drivers with no violations. We used a model to estimate the annualized premium expected for certain combinations of personal attributes (residence, state, time with prior carrier, marital status and age) along with 14 violations. This ranking is not inclusive of all possible driving violations. Rates shown are averages; your own rate will depend on your personal factors. State laws governing traffic violations are subject to change.

<Article originally titled ‘Ticket? Uh-oh! Auto insurance rate increases for common driving violations’ appeared on insurance.com on May 14, 2012>

From April 2012 By Mark Orwoll Appeared as “Staying Covered in Europe” in T+L Magazine

It was one dinged-up rental car. Smashed driver’s-side mirror; sizable dent in the passenger-side aft bumper. And no, it wasn’t my fault—at least, not entirely. The Dublin rental agency never asked about damage when I returned the car, but I spent that night agonizing about how much insurance I had purchased and the potential hit on my wallet. Ten years later, I’m still half expecting a bill.

That incident taught me a lesson: always have comprehensive insurance when renting abroad—especially in Europe, where your personal car insurance is unlikely to be valid and deductibles are high. But rental insurance in Europe is tricky. “There are different rules for different countries,” says Paula Lyons, who runs the website best-car-rental-tips.com. “It can be confusing.”

To begin with, most rental rates in Europe include liability insurance, which covers damage to anything outside the car—but not to the vehicle itself. For that you need a collision damage waiver (CDW). Some companies include a CDW in the rental rate, while others sell it for $15–$30 a day; it may also be offered through your credit card provider. Whether included in the rental rate or acquired separately, a CDW in Europe carries a deductible of around $1,000–$2,000—even if the damage wasn’t your fault. And a CDW doesn’t cover your tires, windows, roof, undercarriage, or interior. Nor does it include theft (also called “loss”) insurance, which costs an extra $5–$12 a day. If your car is stolen and you don’t have coverage, you could be liable for the full value.

As if all that weren’t confusing enough, there’s something known as “super” CDW, also called “extended,” “top-up,” or “excess” CDW. These lower your deductible to nearly zero for an extra $20–$30 per day. Avis’s Super Cover policy, for example, both nixes the deductible and protects against loss. “It relieves any financial responsibility in case of accident or theft,” says John R. Barrows, a company spokesperson.

Finally, a car-rental agent may suggest that you buy personal accident insurance. This provides injury and death benefits for the driver and any passengers. You already may be covered for this by your credit card or travel insurance.

You can buy all of the above coverage from the rental-car company, but it might run as much as $80 a day with advance purchase, or even more if you buy it at the counter. Alternatively, you can rely on the coverage provided by some credit cards, but beware that these policies come with restrictions.

Another option: get a CDW from a third-party insurer; they often charge less than rental companies. Travel Guard, for one, offers a low-deductible CDW for $9 a day. But these still may not cover theft and personal accidents.

“Like any insurance, it can be expensive,” Lyons says. “That is, until you need to use it—then you’re very glad you have it.”

• When you purchase a collision damage waiver (CDW), tell the insurer all the countries you’ll be visiting. Some European nations have different insurance requirements than others.
• In Italy, you must buy CDW and theft-protection insurance from the rental agency.
• Many credit cards don’t insure rentals in Ireland or certain vehicles (pickups; cars valued above $50,000). 
• Paula Lyons of best-car-rental-tips.com says you are likely to get better CDW prices through an independent insurer rather than through the car-rental company. She recommends getting a quote from tripinsurancestore.com.
• When you make your reservation, ask the rental agency if it’s cheaper to buy CDW in advance, at the time of reservation. You’ll sometimes get a better price, and you can compare it to a third-party quote.
• Beware of restrictions when buying third-party CDW. You may find that you aren’t covered for certain types of vehicles, or that you’re limited to the length of the rental period or the number of drivers.
• Credit-card coverage is good for 30 to 45 consecutive days, depending on the card. 
• You may want to take two credit cards with you, because an amount equal to the CDW deductible may be blocked on the card you use to pay for the rental.
• Short-term leasing may be a better value than renting: it includes no-deductible collision and theft insurance. France’s main automakers have a handy buy-back program for a lease as short as 21 days.
• Know what type of fuel your rental car uses. Engine damage caused by the wrong type of gas isn’t covered by car-rental insurance.
• For more advice on long-term rentals, deals, and regulations abroad, check best-car-rental-tips.com. And brush up on the general rules of the road by reading our Tips for Driving in Europe.

The Supreme Court will hear arguments in March about the health care overhaul, setting up an election year showdown. The decision to hear arguments in the spring allows plenty of time for a decision in late June, just over four months before Election Day.

The health care case could be the high court’s most significant political undertaking since the 5-4 decision in Bush v. Gore nearly 11 years ago. That ruling effectively sealed George W. Bush’s 2000 presidential election victory.

The court has scheduled a remarkable five and one-half hours for oral arguments in the case, but has not set a specific date. The court will hear two hours’ worth of arguments about the so-called “individual mandate,” a linchpin of the law that requires individuals to have health insurance or face a penalty.

The court will also evaluate the provision’s constitutionality and whether the overall health care law can still stand even if that provision doesn’t.

Other portions of the oral arguments include the law’s new Medicaid requirements for states, and whether it is proper for courts to hear challenges to the law, considering its mandates do not take effect until 2014.

Source: NBC News, 12/19/11

Plummer Insurance is proud to announce the acquisition of Jack Nerud Insurance Agency of Oshkosh, Nebraska, effective January 1, 2012.

By Reuters September 20, 2011

President Barack Obama on Monday proposed to end a “direct payment” subsidy that gives $5 billion a year to farmers regardless of need, as part of his larger effort to reduce the federal budget deficit.

Direct payments, created in 1996 as a temporary measure, will be the largest farm subsidy this year and terminating them would be a dramatic re-shaping of the U.S. farm program.

Traditional price support programs, which are triggered by low grain prices, are idle this year because of record high crop prices.

Opponents of the direct payments say they help bankroll large operators who out-bid small and medium-size growers for land and equipment. Defenders say the payments are one leg of a federal tripod that stabilizes the farm sector

The White House said the subsidy is “unnecessary” as more than half of recipients have incomes above $100,000 a year. In a blog, White House rural advisor Doug McKalip said elimination of the subsidy was common-sense reform.

Elimination of direct payments would save $30 billion over a decade and crop insurance reforms would save $8.3 billion, said the White House. It also suggested cuts of $2 billion in stewardship programs and renewal of a disaster program that expires on Oct 1 for net savings of $33 billion.

Republican farm-state lawmakers said Obama should have looked at land stewardship and public nutrition programs rather than proposing hefty cuts to farm and crop insurance subsidies.

“For example, cutting $8 billion from crop insurance puts the entire program at risk,” said House Agriculture Committee chairman Frank Lucas of Oklahoma and Kansas Sen Pat Roberts, Republican leader on the Senate Agriculture Committee.

Discussion of farm reform usually is put off until a new farm law is being written. But the congressional drive for large savings could force earlier-than-usual debate.

Direct payments were tabbed months ago as a target for reduction or elimination. Some farm groups hope to shift money from the payments into programs that compensate farm losses.

“We think the program is politically vulnerable,” said analyst Mark McMinimy of MF Global. “But just how the program may be altered and how quickly changes will go into effect are still very much open questions.”

The National Corn Growers said it was concerned the cuts would undermine farmers’ ability to buy crop insurance to offset high and volatile market prices.

“While direct payments may be impacted, we are going to find a way to have a safety net in place,” said Agriculture Secretary Tom Vilsack to the National Restaurant Association.

The government pays roughly 60 percent of the premium for crop insurance. The White House would reduce the subsidy by two basis points on policies with a federal subsidy above 50 percent, for savings estimated at $2 billion.

More than 90 percent of policyholders opt for higher levels of coverage.

The White House also would lower the rate of return to insurers to 12 percent, from the current 14 percent, to save $2 billion. It would cap administrative expenses at $900 million a year, adjusted for inflation, to save $3.7 billion, and set the premium for catastrophic coverage more accurately, saving $600 million.

Senate Budget Committee chairman Kent Conrad said Obama asked “for larger agriculture cuts than are necessary or appropriate” and could impair drafting of the 2012 farm law.

Without the direct payment, the budget for farm supports would be half or less than current spending.

copyright Reuters 2011

(Reporting by Charles Abbott; Editing by Bob Burgdorfer)

Beginning today, July 1st, 2011, people can go on-line to EMC’s Website and click “Vote Now” to begin voting for their favorite charity. Voting will last 100 days and will end on October 8. Voters are allowed to vote once each day until voting closes. At the end of the 100 day voting period, the four non-profits with the highest combined scores from the public and the EMC Foundation will receive an additional $25,000. We encourage each of you to go on-line in July show your support for the Morrill County Community Hospital Foundation.

To learn more about the 100 Ways of Giving, visit The Official Press Release or log on to http://morrillcountyhospital.com/ or www.countonEMC.com.  Thank you!

The bad economy is worsening the already-shaky finances of Medicare and Social Security, draining the trust funds supporting them faster than expected and intensifying the need for Congress to shore up the benefit programs, the government said yesterday.

Both Medicare and Social Security are being hit by a double whammy: the long-anticipated wave of retiring baby boomers and weaker-than-expected tax receipts, according to the annual report by the trustees who oversee the programs.

The Medicare hospital insurance fund for seniors is now projected to run out of money in 2024, five years earlier than last year’s estimate. The Social Security trust funds are projected to be drained in 2036, one year earlier than the last estimate. Once the trust funds are exhausted, both programs can only collect enough money in payroll taxes to pay partial benefits, the report said.

May 10, 2011

Written by: Insurance Journal

Few families without health insurance have the financial assets to pay potential hospital bills. On average, uninsured families can only afford to pay in full for approximately 12 percent of hospital stays they may experience – and even higher-income uninsured families are unable to pay for most potential hospital stays, according to a report by the U.S. Department of Health and Human Services (HHS).

Hospital stays for which the uninsured cannot pay in full account for 95 percent of the total amount hospitals bill the uninsured. Other studies have estimated that the bills for all types of health care that the uninsured cannot pay – the uncompensated cost of care – is up to $73 billion a year, a significant portion of which is shifted into higher costs for Americans with insurance and their employers, according to HHS.

The report found that most of the country’s 50 million uninsured people have virtually no savings. In fact, the median financial assets for all uninsured families are just $20. Even among higher-income families, assets are low. Half of families with income at 400 percent of the federal poverty level, or $89,400 a year for a family of four in 2011, have financial assets below $4,100.

Every year, nearly two million uninsured Americans are hospitalized. With 58 percent of these hospital stays resulting in bills of more than $10,000, most uninsured people are unable to afford potential hospital bills. The report found that even the top 10 percent of uninsured families with the most assets are estimated to be able to pay the full bill for only half of potential hospital stays. Uninsured families can, on average, afford to pay the full bills for only about 12 percent of the hospital stays they might experience, bills that account for just 5 percent of the total amount hospitals bill them.

“Health insurance is critical in helping protect families from unexpected hospital costs,” said Sherry Glied, HHS assistant secretary for planning and evaluation. “This report shows that even higher-income uninsured families are struggling to meet the high costs of health care. No family should bear the burden of being one illness or accident away from bankruptcy.”

According to the report, the high cost of hospitalization means that lacking health insurance poses a greater risk of financial catastrophe than lacking car insurance or homeowner’s insurance. Although people are 50 percent more likely to have a car accident than to be hospitalized in a given year, the average bill for a hospital visit is more than two and a half times higher than the average loss for a car accident. While the bill for a single hospitalization is about the same as the average loss from a house fire, a person is 10 times more likely to be hospitalized than to experience a house fire.