The good news is that the less we drive, the less risk we are to an insurance company and insurance companies offer discount to those who drive less.

Today I have posted an article by M.P. McQueen about the discounts offered by insurance companies, including the one I represent.

For more questions about how this is effecting us in Ferndale, Royal Oak, Pleasant Ridge, Hazel Park, Berkley and the surrounding areas please contact me through this blog site. Thank you.  Marty O’Neill, Insurance Agent

By M.P. McQueen

Car owners who are changing their driving habits because of soaring gas prices may be able to save a few dollars on auto insurance.

Major car insurers including State Farm Mutual Insurance Cos., Travelers Cos. and Farmers Insurance Group say that drivers who log less than about 7,500 miles a year may be eligible for “low mileage” programs that reduce premiums an average of about 10% to 12%. State Farm’s program earns drivers discounts ranging from 12% to 18%, says spokesman Dick Luedke.

Car owners who drive more than that but less than they used to — perhaps because they have started using public transportation or walking to work — may also save on premiums, according to a study by the Consumer Federation of America. The group released a study Tuesday showing consumers could save 5% to 15%, amounting to $47 to $142 a year based on 2005 rates, when the average U.S. premium was $949, by cutting their mileage enough to drop into a different ratings category, say, from “drive to work” to “pleasure driving,” says J. Robert Hunter, insurance director for the Consumer Federation of America.

“Most insurance companies have a scale, and you pay more based on how much you drive. Each time you drive more, they charge you more,” Mr. Hunter says. Depending on ratings factors allowed by state regulators, the savings can be even greater, he says.

In California, for example, companies charge motorists based mainly on their driving history and miles driven, so driving more or fewer miles significantly affects the premium drivers there pay. Consumers should inform their agents of any big changes in their driving habits, says Mr. Hunter.

A few insurers in some states also give discounts to drivers who enroll in programs that use an installed monitoring device to track driving habits. The insurers charge drivers according to when, how, and how many miles they drive, so that those who log fewer miles pay less.

Progressive Group of Insurance Cos. pioneered its “MyRate” program, formerly known as “TripSense,” in Minnesota, Oregon and Michigan several years ago, and anticipates rolling it out in six more states in the next few months, pending regulatory approval. In those states, drivers get a 25% discount off regular rates for participating. The discount is expected to be even larger in the expanded program, says Richard Hutchinson, usage-based insurance general manager. Progressive also offers a low-mileage discount in four states. Since July 2007, GMAC Insurance from General Motors Corp. has offered eligible On-Star subscribers who drive less than 15,000 miles savings of up to 54% on their premiums, including an automatic 11% discount. The program is available in 34 states.

Several insurers, including Travelers and Farmers Insurance Group, a unit of Zurich Financial Services, also have rolled out discounts for drivers who switch to hybrid and other gas-saving vehicles. Since 2005, Travelers recently started offering a 10% discount on most coverages for owners of hybrid or other gas-saving cars in 44 states. The company says that hybrid-car owners are generally good risks. Farmers also offers an average 5% discount nationally on all major coverages including liability and property damage, says spokesman Jerry Davies.

Arlington, VA — Teenage drivers’ cellphone use edged higher in North Carolina after the state enacted a cellphone ban for young drivers, a new Institute study finds. This is the case even though young drivers and their parents said they strongly support the restrictions. Parents and teens alike believe the ban on hand-held and hands-free phone use isn’t being enforced. Researchers concluded that North Carolina’s law isn’t reducing teen drivers’ cellphone use.

The two-part study coupled researchers’ observations of teenage drivers with telephone surveys of teens and their parents in the first evaluation of a cellphone law for young drivers. North Carolina’s ban for drivers younger than age 18 is part of the state’s graduated licensing system.

Just 1-2 months prior to the ban’s Dec. 1, 2006, start, 11 percent of teen drivers were observed using cellphones as theyleft school in the afternoon. About 5 months after the ban took effect, almost 12 percent of teen drivers were observed using phones. Most drivers were using hand-helds. Nine percent were holding phones to their ears, while fewer than 1 percent were using hands-free devices. About 2 percent were observed dialing or texting. Cellphone use remained steady at about 13 percent at comparison sites in South Carolina, where teen driver cellphone use isn’t restricted.

“Most young drivers comply with graduated licensing restrictions such as limits on nighttime driving and passengers, even when enforcement is low,” says Anne McCartt, Institute senior vice president for research and an author of the study. “The hope in North Carolina was that the same would hold true for cellphone use, but this wasn’t the case. Teen drivers’ cellphone use actually increased a little. Parents play a big role in compliance with graduated licensing rules. Limiting phone use may be tougher for them since many want their teens to carry phones.”

Parents and teens support cellphone ban: When surveyed after the cellphone restrictions took effect, teenage drivers were more likely than parents to say they knew about the ban. Only 39 percent of parents said they were aware of the cellphone law, compared with 64 percent of teen drivers. Support for the ban was greater among parents (95 percent) than teens (74 percent). Eighty-eight percent of parents said that they restrict their teenage drivers’ cellphone use, though only 66 percent of teenagers reported such parental limits. About half of the teenagers surveyed after the law took effect admitted they had used their phones, if they had driven, on the day prior to the interview.

Restrictions are rarely enforced: Most parents and teen drivers agreed that police officers weren’t looking for cellphone violators. Seventy-one percent of teens and 60 percent of parents reported that enforcement was rare or nonexistent. Only 22 percent of teenagers and 13 percent of parents surveyed believed the law was being enforced fairly often or a lot.

“Cellphone bans for teen drivers are difficult to enforce,” McCartt notes. “Drivers with phones to their ears aren’t hard to spot, but it’s nearly impossible for police officers to see hands-free devices or correctly guess how old drivers are.” Absent some better way to enforce them, “cellphone bans for teenage drivers aren’t effective, based on what we saw in North Carolina,” McCartt adds.

In both North Carolina and South Carolina, observed cellphone use was significantly higher among girls than among boys and higher when teens drove alone in vehicles rather than with friends. For example, 13 percent of female drivers and 9 percent of males were observed using cellphones in North Carolina before the law. Cellphone use was 14 percent among solo drivers and 8 percent among teens with 1 passenger. More SUV drivers than car drivers were viewed using phones.

Phone bans for young drivers are becoming commonplace as concerns mount about the contribution of distractions to teens’ elevated crash risk. Seventeen states and the District of Columbia restrict both hand-held and hands-free phone use by young drivers. Six states and DC bar all drivers from using hand-helds. For a state-by-state list of cellphone laws, visit www.iihs.org.

Today I have posted a column from The Detroit Free Press and columnist Susan Tompor. She writes about concerns related to CDs and potential pitfalls that might occur during investing in CDs–Marty O’Neill, Insurance Agent, Ferndale Michigan

 
BY SUSAN TOMPOR • FREE PRESS COLUMNIST • May 31, 2008

 
Putting money into an FDIC-insured certificate of deposit called a brokered CD could seem like a no-brainer. It’s insured after all, right?

But some savers found unsettling hurdles with so-called brokered CDs issued through one distressed Arkansas bank that brought in money from savers nationwide.

Federal regulators on May 9 closed ANB Financial National Association in Bentonville, Ark. It was the third closure this year of an FDIC-insured bank.

But more than two weeks later, many savers with the brokered CDs still do not have access to their money.

It is an unusual situation, but one worth talking about as savers push the limits to find more attractive interest rates and some banks run into financial troubles.

$1.6 billion left out of deal

ANB Financial, which had about $2.1 billion in assets, was the largest bank to be closed this year. Regulators blamed lax lending standards for construction and development loans.

Pulaski Bank and Trust Co. in Little Rock, Ark., assumed control of the bank’s locations. Insured deposit accounts were transferred to Pulaski Bank and were available immediately.

But ANB Financial had a high amount of brokered deposits — roughly $1.6 billion — that weren’t part of that deal.

Those deposits were held by investors all over the country, including Michigan.

The FDIC has the task of paying the brokers directly for the amount of their insured funds.

What savers must realize is that brokered CDs are not the same as an ordinary CD opened directly through a local or out-of-state bank.

Consumers can go to www.fdic.gov/deposit in order to see how insurance works and whether the Federal Deposit Insurance Corp. insures your money at a given institution.

Savings accounts, checking accounts and CDs are insured by the FDIC up to the legal limit of $100,000 and sometimes more for special kinds of accounts or ownership categories. For example, each person’s deposits in self-directed retirement accounts at the same insured bank are added together and insured up to $250,000. Naming beneficiaries to a self-directed retirement account does not increase insurance coverage.

Read disclosures carefully

Brokerage firms offer CDs, too. The deposit brokers can sometimes negotiate a higher rate of interest for a CD by promising to bring a certain amount of deposits to the institution.

These brokered CDs are then offered to customers.

If you put money into a brokered CD, read all the disclosures. You need to know which bank or thrift insures your CD.

The Securities and Exchange Commission has warned that consumers risk not being fully insured if their total deposits at the bank or thrift, including all brokered CDs at that bank, are above the insured limit.

You need to know up front if your broker plans to put your money into a bank or thrift where you already have other CDs or other deposits.

If the bank fails, typically, the healthy bank that assumes control of the troubled bank’s assets won’t agree to acquire the brokered CDs. It’s essential to understand if all your money in brokered CDs falls within the FDIC insurance limits.

David Barr, an FDIC spokesman, said most of the deposits at ANB Financial were brokered CDs, which is unusual.

As of Tuesday, the FDIC had released about $550.7 million out of $1.6 billion in brokered deposits at ANB. That’s roughly 35% of the deposits.

The situation is made more complex because about 180 brokers had funds on deposit at ANB. Paperwork is required to make sure that customers are only covered according to the limits.

The FDIC needs to cross-reference who has brokered CDs at that bank and how much they have in total through various brokers.

Adam Banker, a spokesman for Fidelity Investments, said Fidelity has provided the FDIC with information about many customers who had brokered CDs through ANB Financial. Fidelity is completing the paperwork for customers, but some customers may need to take more action.

But he said customers who have more than $100,000 in those CDs will need to submit more paperwork for the FDIC and return that paperwork to Fidelity so it can be submitted to the FDIC. Customers can get more information at www.fdic.gov.

No one could tell me how long the process could take for some consumers. It is unknown how long savers would have to wait to get the remaining money.

There are so many “rainy days” that people can experience - a sick child, a broken-down car or a late mortgage payment.

But what about a lawsuit?

These days lawsuits are being filed, not just against big corporations, but also against people like you and me.  In the blink of an eye, you could be involved in a car or boating accident, or have someone become injured on your property that could result in litigation against you seeking thousands or even millions of dollars.

Even though your primary insurance policies, such as Auto, Homeowners, Boatowners, etc., may provide substantial liability insurance coverage, it may not be enough. A Personal Liability Umbrella Policy provides additional amounts of liability coverage at an affordable price.
What is an umbrella policy?

A Personal Liability Umbrella Policy provides additional layers of liability coverage over the liability coverage of your underlying policies. Personal umbrella coverage amounts typically begin at one million dollars and can be increased in increments of one thousand dollars.

Here’s an example of how an umbrella policy could work: Let’s say your car is insured for liability with limits of $250,000 per person. You pull into an intersection, strike another vehicle and severely injure the other driver. This insured person sues you and the judgment against you totals $800,000. Your auto policy will pay the first $250,000 but an umbrella policy would respond for the next $550,000.
Also an umbrella policy often insures against some types of losses for which there is no coverage in the underlying policy. Examples of such loss include libel, slander and defamation of character.

Why have an umbrella policy?

Marty O’Neill, Insurance Agent

BY CHRIS CHRISTOFF • FREE PRESS LANSING BUREAU CHIEF • April 29, 2008
LANSING — A new, bipartisan — and in several ways unlikely — coalition wants to change Michigan’s no-fault insurance law to allow drivers to buy less medical coverage and save lots of money.
Lawmakers from Macomb County and Detroit, who are often at odds, and organizations as diverse as the Michigan Chamber of Commerce and Detroit Urban League have joined to lead the coalition.

Their push is certain to rekindle debate over how to reduce auto insurance rates, especially in Detroit, where estimates suggest half of motorists drive illegally without insurance because of its high cost.

Michigan is the only state that requires drivers to buy medical coverage with no monetary limits. Insurance companies say that contributes to high auto insurance rates in the state.

The Drivers for Savings coalition supports a Senate bill that would allow drivers to buy as little as $50,000 in medical coverage.

Detroit drivers who pay $4,000 a year on a comprehensive insurance policy could save as much as $50 a month, said Sen. Alan Sanborn, R-Richmond, the bill’s sponsor.

“We are providing a good substantive first step. A 15% savings is nice in these tough economic times,” Sanborn said.

Sanborn said drivers could still buy more insurance up to unlimited medical coverage under his bill. Senate Republicans plan four hearings on the bill around the state, he said.

Rep. Virgil Smith III, D-Detroit, joined Sanborn, saying many drivers are covered by other medical insurance so they don’t need much coverage from their auto insurance. Smith chairs the House Insurance Committee.

He said a new, $50,000 minimum requirement would be higher than all other states except New York, where drivers also must carry a minimum $50,000 in personal injury insurance. Smith said the lower cost would help drivers afford auto insurance rather than driving illegally without it.

Michigan’s average auto insurance premium for a comprehensive collision policy is $1,089 and ranks 12th among states, according to the National Association of Insurance Commissioners. The national average is $949.

The Drivers for Savings coalition includes U.S. Rep. Carolyn Cheeks Kilpatrick of Detroit, the Michigan Chamber of Commerce, the Detroit Urban League, the Small Business Association of Michigan and the Michigan Sheriff’s Association.

A competing group is opposed to eliminating mandatory unlimited medical coverage. Michael Dabbs, spokesman for the Coalition Protecting Auto No-fault (CPAN), said without unlimited coverage for all drivers, taxpayers would pay for treating those with severe accident injuries, such as brain and spinal cord damage.

“Not one of us thinks we’re going to be in an accident,” Dabbs said. “But the reality is many of us will. Let insurance do what it’s supposed to do: protect against catastrophic injuries.”

CPAN contends that insurance companies reap excessive profits. Dabbs said medical coverage is unfairly blamed for high auto insurance rates, and that liability and collision coverage cost drivers much more.

Sanborn said a minimum $50,000 no-fault medical policy would cover 95% of auto injuries in Michigan. He acknowledged that those severely injured in crashes might wind up on government aid, such as Medicaid, but said the number would be few.

The Michigan Catastrophic Claims Association, which insures severely injured drivers, estimates 1,100 Michigan drivers will suffer catastrophic injuries in the coming year. The MCCA charges a flat fee on every vehicle — $104.58 beginning July 1 — to cover individual medical costs in excess of $440,000.

The MCCA covers 11,400 severely injured people whose lifetime care will cost an estimated $66 billion.

BY CHRIS CHRISTOFF • FREE PRESS LANSING BUREAU CHIEF • March 26, 2008
LANSING — The big buckle of the law will get bigger to protect more kids on Michigan roads.

Gov. Jennifer Granholm is expected to sign a bill soon requiring car booster seats for children ages 4 through 7 who are less than 4 feet 9.

Current state law requires a car seat of some kind for children younger than 4.

“It’s more protection, something we should have done a long time ago,” said Sen. Michelle McManus, R-Lake Leelanau and sponsor of the bill.

McManus said a car booster seat costs between $10 and $25 but said the state can apply for a federal grant to give booster seats free or at a reduced cost to families that qualify based on their incomes.

The new law, effective July 1, would allow police to stop drivers for a booster seat violation alone, as a primary traffic offense. Fines would be $65.

Advocates of the bill say vehicle seat belts don’t properly fit across the smaller bodies of children, leaving them vulnerable to accident injuries from the belts themselves.

Booster seats raise children higher so seat belts fit snugly across their chests and hips, instead of their necks.

The strap-in seats reduced neck, spine and abdominal injuries for children ages 4-7 by 59%, according to a 2003 study by the American Medical Association.

Michigan would become the 39th state to require booster seats for children through age 7.

“I think it’s a fabulous idea. I think there should be a five- point harness required for kids up to 8,” said Christina Calderwood, 36, of Rochester.

She said her 5-year-old uses a safety seat rather than a booster seat, and he doesn’t complain.

“He knows race car drivers wear five-point harnesses,” Calderwood said.

Tara Bradshaw, 39, of Wyandotte said some parents will view the new law as a government intrusion. But Bradshaw said she uses a booster seat for her 4-year-old.

“When it’s a law, more people do it,” she said. “I don’t like the government telling me what to do, but I’m all for doing what’s necessary to keep my children safe.”

The issue was a topic Tuesday on the Free Press’ MotorCityMoms.com Web site, where most readers supported the new booster seat requirement.

Still, some questioned whether it would be a hardship to some families or merely was an attempt to muster revenue for police departments through more fines.

A 2006 national survey found that 58% of children ages 4-7 were restrained in booster or safety seats.

The state is planning a public awareness campaign for the new booster seat law through the Office of Highway Safety Planning.

By TIM MARTIN
The Associated Press

LANSING, Mich. (AP) — House Democrats plan to take another stab at changing Michigan’s auto insurance rules in an effort they say could make rates more affordable for those who need a break most.

The bills would eliminate the use of credit scoring in setting insurance rates. Democrats who support the legislation say allowing credit history to influence insurance rates is unfair and that rates should be based only on driving history — not on whether motorists have paid their bills on time. Democrats say the practice of using credit scoring as a factor in rates hurts low-income people the most.

“We need to rewrite Michigan law so it protects consumers,” said Rep. Bettie Cook Scott, a Democrat from Detroit.

The bills are scheduled to be taken up in the House Insurance Committee House on Thursday. While the legislation possibly could pass the Democratic-led House, it would face more resistance in the Senate, where Republicans hold the majority.

Rep. Virgil Smith, D-Detroit and chairman of the House Insurance Committee, acknowledged Tuesday that the Senate votes aren’t there to pass the bills at this point. But Smith said “anything could happen” late this year as the 2007-08 legislative session comes to a close during the so-called lame duck session.

The Insurance Institute of Michigan opposes the legislation. The organization says that the use of credit scoring benefits two-thirds of the state’s motorists and helps provide a more accurate reflection of risk when rates are set.

“If it’s designed to reduce insurance rates, it does just the opposite, frankly,” Insurance Institute of Michigan executive director Peter Kuhnmuench said of the legislation.
The legislation would give the state insurance commissioner more power to approve auto insurance rate increases before they take effect. Refunds could be ordered if it is determined consumers are overcharged or were discriminated against.

The legislation also would give policyholders more leeway to sue insurance companies for various violations of the state’s insurance code.

Auto insurers would have to report to the state how many claims are filed and how much money they pay out in several different categories. Insurers also would have to report how much they spend related to settling and defending themselves against lawsuits.

Rate increases could be made 90 days after those filings are made, unless those rates are challenged by the state insurance commissioner. Public hearings would be set on rate increases that are questioned.

The auto insurance bills are House Bills 4412, 4993, 5420, 5558 and 5559.

By John Michalak
Daily Tribune Staff Writer
HAZEL PARK — Three vehicles were stolen in Hazel Park Monday and all the owners could be charged in connection with the thefts.

The owners left their vehicles running and unoccupied with keys in them. That’s a misdemeanor violation of a local ordinance, said Hazel Park Police Chief David Niedermeier, who again on Tuesday reminded residents about the law.

Niedermeier last year forewarned residents that police would charge persons when they saw cars running without anybody attending to them. The warning came when the city had a rash of vehicles stolen after residents warmed the vehicles.

“You can’t leave cars running and unattended,” Niedermeier said. “Obviously that’s what happened in these cases. It is a common ploy by car thieves to look for exhaust smoke.”

Instead of residents helping thieves, Niedermeier said they should take measures to reduce crime opportunity.

“The majority of property crime — and some violent crime — can be stopped simply by hardening the target,” Niedermeier said. “Don’t make yourself and your property easy targets. You don’t leave your valuables in plain view, your cars running or your bikes on the front lawn. And that’s the case regardless of what community you live in. Citizens can go a long ways in reducing crime rates by using common sense.”

In the most recent car thefts, one of the victims got her vehicle back after she saw it unoccupied at a gas pump at a Sunoco station on Eight Mile Road in Detroit.

The victim, Nicole L. Meier, 25, had reported her 2000 Pontiac Grand Am stolen shortly before 8 a.m. on West Milton.

Nearly two hours later she and her boyfriend spotted the vehicle at the gas station and called Hazel Park police. An officer stood by the vehicle as Meier went home to get another set of car keys. A clerk at the gas station told police he didn’t see the driver of the stolen vehicle.

“I don’t think I’ll ever do that again,” said Meier, adding she didn’t know warming her vehicle unattended is against the law. “I learned my lesson. It won’t happen again.”

Meier said she had a hunch her Pontiac Grand Am wouldn’t go far because the gas light came on the night before the theft.

“It didn’t have any gas so my boyfriend and I went around looking for it,” Meier said. “It ended up being at a gas pump at the Sunoco station five blocks away from my house. The car was in drive, but there was no damage to it.”

Since the thief kept her keys, Meier said she purchased a Club wheel lock for her car and changed the locks to her house.

Other vehicles stolen Monday were a 2001 Pontiac Grand Am on the 1000 block of East Pearl and a 1999 Pontiac Montana from the 300 block of East Milton.

Gov. Jennifer Granholm said in a statement that Hollowell will tackle high insurance costs and predatory or illegal practices.

Hollowell, a former cochairman of the state’s Democratic Party, will start the job April 6. It pays about $120,000 a year.

Lawmakers and advocates say Detroiters are treated unfairly by insurers who charge high rates, especially for auto insurance.

Hollowell, 48, is general counsel for the Detroit Branch NAACP. He worked as a lawyer for Sen. John Kerry’s presidential campaign in 2004. That was cut short when Hollowell was arrested for picking up a prostitute near his home in Detroit.

The solicitation charge was dismissed.

STATEWIDE: Auto insurance fee to drop in July
Michigan motorists will pay a little less for auto insurance in the coming year. On July 1, the assessment for the Michigan Catastrophic Claims Association (MCCA) will drop by $18.57 to $104.58 per vehicle. The MCCA covers the costs of treating severely injured accident victims that exceed $420,000.

It’s the second straight year the assessment has decreased. The fee is charged to insurance companies, which pass on the cost to policyholders. It is charged to each vehicle.