Eight Things You Should Know About Car Isnurance

8 things you should know about auto insurance

 How Knowing More Can Help You Save on Automobile Insurance

Trying to understand auto insurance can be as tricky and confusing as trying to untie the Gordian knot. (We hear the knotty Gordian problem can be solved with a sword.) However, some "insider" knowledge can help you understand your options and what you can do to save money and get the most out of your auto insurance.

[ 1) Some of the most helpful coverages are the cheapest.

Auto insurance may be expensive, but if you're already spending a lot, shouldn't you get a lot? Optional coverages such as gap coverage, roadside assistance, rental reimbursement, uninsured/underinsured motorist coverage, and comprehensive coverage can provide a lot of protection for a little price increase. Comprehensive coverage is usually the most expensive of these coverages, but is still usually about half the price of collision coverage and a third the price of liability coverage.
Uninsured/underinsured motorist coverage is especially important, considering the benefits it offers and the number of uninsured drivers on the road, particularly during this period of economic hardship. Take a look at your coverage options. Paying a little more now may save you a lot in the future.

2) Many factors can affect your car insurance rate.

Auto insurance companies use many different criteria when evaluating an insurance application during a process called underwriting. Each car insurance company has many guidelines regarding which groups of drivers they want to accept and how much they will charge those groups they consider a greater risk. The guidelines are different for each company, meaning that two companies comparing the same driver can arrive at vastly different conclusions.
During the underwriting process, car insurance applicants are placed in a group based on how much money and how many claims the insurance company believes it may have to pay. Underwriting is done automatically by software behind the scenes. At this time, the insurance company will look at motor vehicle records to see how many accidents or tickets a driver has received. Many insurance companies also use an insurance history report to see if the driver has made any car insurance claims, and how much money was paid. Although accidents and violations can only affect the rates you receive for three years, many companies will look back five or more years when deciding if they want to offer you insurance. In addition, many auto insurance companies look at the credit history of the applicant. Although they use credit history to determine which group an applicant belongs to, they don't actually look at a credit report.

3) Insurance prices vary (a lot) by company.

You've probably seen commercials saying you can save money by switching to a certain car insurance company. How can so many companies make this claim? The reason is that "auto insurance is a highly competitive business and one of the most effective ways to reduce insurance costs is simply to shop around," according to Jeanne Salvatore, senior vice president of the Insurance Information Institute. "Drivers should look for an insurance company that will provide a good price along with excellent service."
Prices for the same policy from the same company, however, are set by law. They are approved by the state and can't be changed by an agent, so you can't get a better price for the same policy simply by going to a different agent or trying to negotiate the price. The best plan is to decide what coverages and options you need and comparison shop to get the best price.

4) If you let your policy lapse, you'll pay more in the long run.

Most insurance companies view drivers who are licensed but don't have insurance as risky or irresponsible. Because of this, if you let your policy lapse, you'll probably pay more when you go to buy car insurance. To avoid this, if you don't want to pay for insurance or are planning to let your policy expire because you want to switch companies, make sure to purchase car insurance before your current policy is cancelled.

5) Higher deductibles can lower your premium.

Insurance prices are based on how much money the insurance company believes it could have to pay. If you agree to pay for a larger portion of your own damages by raising your deductibles, your car insurance company automatically knows they won't have to pay as much for your claims. Because of this, they will usually give you a lower premium. If you decide to raise your deductibles to save money, be sure you can afford to pay the deductible if you have to make a claim.

6) Insurance discounts can make a difference.

Most insurance companies offer auto insurance discounts for things like a safe driving record, car safety features, anti-theft devices, electronic payments, payment in full, and more. Make sure you're getting rewarded for being a safe driver and for having a safe car by shopping around for car insurance that appreciates your record.

7) Coverage affects what you pay.

The majority of your car insurance premium generally goes toward the legally-required liability portion of your policy. It's typically not a good idea to reduce this portion in an attempt to save money, because you'll be responsible for any amount of damages above your policy limits. However, other coverages, although generally helpful, could be reduced or eliminated to lower your premium. If you have an older car that's not worth very much, or if you won't have a problem paying for a new car, collision and comprehensive coverages may not make economic sense. Talk to your car insurance company or agent about the best options for you.

8) The car you drive can affect your auto insurance rates.

The Highway Loss Data Institute compiles insurance accident statistics for most types of cars. Many insurance companies use data like this when setting prices on your insurance. For example, if the car you drive is very expensive to repair, the company is going to have to pay more if you get in an accident. Conversely, if the car you drive is extremely safe and protects occupants well, your insurance company will not have to pay as much if you're involved in a crash. If your model of car is generally less likely to be stolen, your car insurance company is less likely to have to pay to replace it. All of these car related factors can raise or lower the auto insurance quotes you receive, so it makes sense to keep insurance in mind when purchasing a car. Of course, since rates are based on much more than just the car you drive, your overall rate may be more or less than someone driving the same car.

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941-698-8876

Lehn Insurance
4478 N Access Rd
Englewood, FL 34224

Citizens Insurance to transfer Policies

Florida’s Citizens Eyes Risk Transfer While Lawmakers Plot Changes

Florida’s  largest homeowners’ insurer has set the goal of moving at least $1 billion in risk back to the private capital markets while looking to lawmakers to make statutory changes that will assist the insurer in its depopulation efforts.
Speaking before the Florida Cabinet, outgoing Citizens Property Insurance Corp. President and CEO Scott Wallace said the insurer is intent on focusing all of its efforts on depopulating the insurer and reducing the exposure it represents to all Florida policyholders.
Currently, the insurer has 1.47 million policies in force with a total exposure of a half  trillion dollars.
“We are doing everything we can as quickly as we can to focus on our goals,” said Wallace. “Clearly, there is a lot of work to be done to reduce the size and significance of Citizens.”
Wallace said the insurer is taking several approaches to achieving depopulation and reducing its financial exposure.
The step with the most immediate impact could be if Citizens is successful in transferring at least $1 billion in risk back to the private capital markets.
Following last year’s successful purchase of $575 million in private reinsurance and $900 million in pre-event catastrophic bonds, Wallace said the Citizens has set a goal of transferring at least $1 billion in exposure back to the private capital markets by the end of the year.
Meanwhile, the insurer has implemented some coverage reductions.
As of Jan. 1, the insurer is no longer covering properties valued at more than $1 million in its coastal account. It has also implemented a 10 percent mandatory sinkhole deductible and reduced its personal liability coverage from $200,000 to $100,000. Other coverage changes are slated to be implemented later this year.
On the depopulation front, Wallace said that 17,000 policies are slated to be removed from the insurer on Feb. 14, by the Boca Raton-based Peninsula Insurance Co.
Citizens has reactivated its depopulation committee, which will make a series of recommendation at the insurer’s board of governor’s meeting next month.
The committee is expected to consider eliminating ceding commissions and evaluating methods to package Citizens’ policies so they are more attractive to private insurers.
Chief Financial Officer Jeff Atwater questioned whether there is any other interest from private insurers and what concerns are they expressing.
Wallace said the insurer is in the preliminary stages of meeting with some investors, but it is going to take time for the market to be willing to take on large numbers of policies.
When questioned why by Atwater, Wallace cited that in effect, it will take national companies time to trust the state’s regulatory environment. In the past several years, insurers have seen changes such as a Citizens’ rate freeze, which was later lifted in favor of a 10 percent annual rate increase.
In 2008, private companies assumed 385,000 policies from Citizens but since then the number of assumed policies has dropped significantly from 150,000 policies in 2009 to just 59,700 policies in 2010.
“The one concern I hear in the marketplace is the lack of consistency through the years,” said Wallace.
Citizens is supporting a number of reform bills currently being considered by state lawmakers, including one that is moving quickly that would allow surplus lines carriers to remove policies directly from Citizens. The bill is being backed primarily by GeoVera Specialty Insurance Co., which has operated in the state since 1994 and currently has 30,000 policyholders around the state. The company primarily offers residential homeowners polices and earthquake coverage in the southeast and Midwest.
Citizens is also supporting several other bills that have yet to gain much traction in the legislature.

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What does this mean for the policy holder?

For one , if you  an get away from Citizens it may guarantee your pool cage will be covered.

Rate increase.??/.either way rates are going up.

The homeowners insurance market in Charlotte and Sarasota Counties, especially the coastal areas of Englewood, Rotonda, Cape Haze, South Gulf Cove and older homes in Punta Gorda and Port Charlotte, rely heavily on Citizens to write business at a reduce rate. The rates are artificially  low due to Citizens keeping rates down. While other companies have raised rates 15-20% and reduced exposure, Citizens has been mandated to keep rated increase to 10% on average.. Limiting exposure...not Citizens.  The closet they have come is requiring homes  have a useful roof life of 3 years and not longer covering pool cages and some out buildings. 

The bottom line is that Citizens is a ticking tme bomb.  Citizens needs to be the insurer of last resort and not the first choice.  Homewoners needs to take full advantage of wind mitigation and fortify their homes. New roofs and shutters will help reduce the overall rate in the open market..

Just my views
Matt

FLorida Gov Scott address Fraud

Florida Gov. Scott Talks Insurance Fraud in State of State Speech

  In the annual State of the State address opening Florida legislative session, Gov. Rick Scott highlighted automobile insurance while remaining mum on the future of the state’s property insurance underwriter, Citizens Property Insurance Corp.

In a half-hour speech before the legislature, Scott said he is “open to any idea from whatever source that is likely to improve the lives of Floridian.” He even went as far as saying he listens to “my close friends in the media.”

 . On the insurance front, Scott confined his remarks to reforming automobile personal injury protection insurance, where he said fraud and abuse are estimated to cost Floridians $900 million.
“These costs are being driven up every day all along around the state by scams that are ultimately paid for by Florida’s workers’ families,” said Scott. “It is the consumers in our state that we must protect, not trial lawyers or those involved in these schemes. Floridians cannot afford another year of this fraud and abuse or the cost that will come with it.”
Absent from Scott’s comments was any mention of Citizens, which has been a central topic over the past year. The governor has floated proposals calling for the privatizing of the state-run insurer and has been seeking ways to make it less competitive with the private market.

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Lets see if the Gov Scott makes good on his promises>

On  the same subject look slike our legislature is making an effort to curb the rising cost of Florida auto insurance.

Florida Lawmakers File Bills to Address Auto Insurance PIP Fraud

   State Sen. Joe Negron this week filed legislation designed to crack down on the fraud that leads to more expensive personal injury protection insurance required of all Florida drivers.

Negron’s bill (SB 1860) targets fraud issues that have resulted in skyrocketing premiums in some metropolitan areas of Florida. Some estimates say the fraud costs Floridians $1 billion annually. In some neighborhoods in the Tampa Bay area and South Florida, the coverage can add several hundred dollars annually to auto insurance premiums, a cost that’s almost entirely the result of rampant fraud.

 . Two PIP proposals (HB 119 and HB 523) were filed by House members in November.
With so many stakeholders involved, lawmakers have been unsuccessful over the past 15 years in finding a fix for the PIP problem. Trial lawyers, insurance companies and a variety of health care providers are among those trying to recover some of their costs covered in car injuries.
Negron, R-Stuart, wants to close the licensure loophole that currently exists for clinics and establish a fee schedule for reimbursements. It would also modernize the current system for bill payment. His measure also would give hospitals priority standing in PIP claims. Hospitals are typically the first to provide care after an automobile accident.
Reforming the state’s PIP insurance is also one of Gov. Rick Scott’s key goals for the upcoming legislative session that began Tuesday.
Just last week, state officials said a recent investigation in Miami-Dade County alone uncovered regulatory violations in 43 of 49 pain clinics, where virtually all of their business was treating automobile accident victims. However, during those checks, investigators witnessed only 17 patients while employees at some clinics reported they had never seen a patient.
PIP was adopted in 1972 to provide benefits in a timely manner for a person injured in an automobile accident regardless of who was at fault, but schemers have turned Florida into the No. 1 state for staged accidents. The legislation provides that a driver’s insurance company pay up to $10,000 to cover medical bills and lost wages after an accident.
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Matt Lehn 

Personal Injury Fraud Drives Up Rates

Personal Injury Protection Coverage or PIP is one of your no fault coverages under your personal auto policy. The other is property damage. Property damage has minimum of limits of $10000. And covers damage to property such as a vehicle or fence. PIP covers 80% of medical coverage, 60% Los of wages, 100% loss of use and a $5000 death benefit. PIP maxes out at $10000 worth of combined coverage. Corrupt medical providers and fraudulent claims treat this coverage as a piggy bank. Greed on their part drives up auto insurance rates for us all. Whether you live in Northport, Englewood, Port Charlotte, Miami, Florida or New York, fraud is everywhere. If you feel your medical provider may be committing fraud or you hear of a fraudulent insurance claim contact your state department of insurance or talk to your agent. Rewards are available for reporting fraud.
 The following article s a reprint from an online journal.
A major insurance company is seeking to recover more than $1.1 million from 16 New York-area defendants. According to its federal complaint filed last week, the insurer alleges that a chiropractor, together with one layperson and two lay entities, illegally owned and controlled three professional medical corporations. These corporations were allegedly owned on paper by a medical doctor. These businesses were allegedly used to submit fraudulent billings to Allstate. The insurer contends that professional service corporations were actually owned and controlled by laypersons, rather than by licensed medical professionals. The lawsuit alleges that the defendants submitted claims for services that were performed by independent contractors in violation of the no-fault law. There were also incidents of illegal referrals to a person who had a financial interest. Additionally, four other individuals and four other companies were also named as being part of the overall scheme to submit fraudulent bills to The major insurer. Since 2007, The major insurer has filed 36 fraud lawsuits in New York, seeking nearly $199 million in damages. According to the Insurance Information Institute, New York is in an insurance fraud crisis and no-fault fraud is costing New Yorkers millions of dollars year-after-year. “We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first,” said Krista Conte, spokesperson for Insurance Company's New York office. The major insurer and other insurers are pushing for a comprehensive reform of the no-fault system. “The no-fault system is being exploited and responsible citizens are the victims,” Conte said. “Without the support of lawmakers, incidents of fraud will continue to increase. We need to work together to fix the broken no-fault system.”   

Usefull Information

A drunken driving test may not seem the likeliest place to come up with a mobile phone app, but that’s when inspiration struck Nashville, Tennessee resident Clay Bradley. Bradley said he was following a policeman’s pen with his eyes when it dawned on him that a smart phone could be used for the same purpose. He mentioned his idea to some friends, and they came up with BreathalEyes. The 99-cent app, which launched in November, can be used to measure involuntary eye movements when people are intoxicated, which is one method police use in field sobriety tests. Bradley said people can use the app to help determine whether they’ve had too much to drink to drive. He said the app uses the iPhone’s camera and scans a person’s eyes to find the “horizontal gaze nystagmus,” which is the involuntary eye jerking that occurs when a person is intoxicated. “It takes a series of photographs to detect and analyze HGN, then estimates the user’s blood alcohol content,” Bradley said. He let the idea simmer for over a year before telling his friend Russell Ries. “This was really appealing to me because I am a recovering alcoholic,” says Ries, adding he has been sober since March 26, 2008. “I know firsthand that any little bit of information you can put in front of somebody’s face to help them make smarter decisions, especially people who have a tendency to abuse alcohol, can help.” The two men then approached friend, Robert Andrews. He, too, was intrigued by the proposal. “It sounded like a great idea, so I invested in some research and development,” Andrews said. “Then we eventually all decided to become partners, and I invested some more money into it, and now we have all sort of coalesced into a true partnership.” The men said that their app is backed by science and when downloaded can detect a user’s blood-alcohol content with an effective range of between .02-.17 percent. In Tennessee, a first offense DUI can lead to the loss of a license, classes, fines and legal fees of more than $4,000 and jail time. “At no point will the app say, `Yes you can drive, no you shouldn’t drive,”’ Ries said. “We feel ultimately that decision falls on the person. But if we can give them something to help them make a smarter decision, that is what we want to try

Englewood Florida Home Insurance

Rates keep rising in the Englewood, Florida area on homeowners and flood insurance. Flood insurance rates are set by FEMA, the federal government. The rates in Englewood, Florida as well as the rest of the country are standard from one insurance company to another. Your particular home is rated on location of home, base flood elevation and elevation of your lowest floor. Home insurance rates fluctuate between carriers. Englewood, Florida rates are higher than Northport, FL rates as well as areas of Port Charlotte. These towns are located in different territories. The age of your home, roof design, construction material as well as hurricane mitigation are all factors in the cost of your homeowners insurance. If you would a rate comparison of your home or flood insurance policy give us a call or send a email with your address. Www.lehninsurance.com Matt@floridaci.com 9416988876 Don't forget to thank our Troops for defending our FREEDOM!

Gaps in Coverage/Insurance Trends

When reviewing insurance policies, I usually come acros a few common gaps in coverage. auto poicies: Low liability limits and either low uninsured motorist or no uninsured motorist coverage. Both are very important coverages that help protect you from financial hardships. Home policies: On a good note we are not seeing to many homes that are underinsured. We normally find policies that do not have scheduled jewelry or electronics. Most policies have a limit coverage for fire and theft. I fyou feel you have more that 1500 dollars in Jewelry it is a good idea to have your jewelry appraided and schedule it on your policy. It may cost a few extra dollars today but may save you thousands in the future. Pet liability is another overlooked coverage, if you have pets or a rental property make sure you add this coverage if available. Excess Liability or Personal Umbrella Policy. very important coverage once agai. An umbrella policy can increase your liability coverage up to 1 Million dollars for unde a $1 a day. Flood Insurance: We live in Florida with low elevations. Eve home in Florida is in a flood zone. Port Charlotte, Englewood and Northport are in both high risk and preferred flood zones. Once again you can protect your home,from rising water for as little as $100 a year.

Matt Lehn
Lehn Insurance & Financial Service LLC
4478 N Access Rd
Englewood, FL 34224
http://www.lehninsurance.com/

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