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One of the major problems for families has been the age of their children. No matter whether the parents were on private or an employer plan, there was always an age cut-off so that older teens or young adults were forced out of cover. For those who went on to college, this was slightly less of a problem because most of the better-run colleges and universities offer subsidized cover for their students and, in some cases, their alumni. But for those not pursuing higher education, the threat of larger health bills was always in the back of minds when looking for work. In the boom years, it was reasonably easy for young adults to find employment and, in many cases, this gave access to a health plan. But following the recession, the national rate of unemployment has stayed over 9%. For young adults, the rate of unemployment varies from state to state, but it’s often 20% or higher with no immediate prospects of employers looking to hire from among the young unemployed. Although education is not for everyone, this really is the best time to wait out the bad years in school or college, picking up all the qualifications possible. It’s going to be difficult to find work for some time to come.

The Affordable Care Act of 2010 is somewhat controversial, but there are one of two good outcomes. One allows those under age 26 to stay on their parents’ plan as dependents. As a result, about one million more young adults have been able to obtain cover or stay covered. The total number of adults without any access to insurance cover, which includes Medicaid and Veterans’ cover, is around 52 million. Of these, the percentage of uninsured young adults has dropped to 30%. Currently, that means there are about 9 million young adults without any healthcare cover. Indeed, the Centers for Disease Control recently carried out an survey and estimates young adults are the most likely group to be uninsured. That the number of insured young adults has increased given the appalling unemployment numbers is encouraging.

The skeptics among you will argue there are many other reasons why the number of uninsured young adults should fall. You will deny any benefit could come from the hated Obamacare. Unfortunately, the percentages of uninsured has stayed constant in all the other age groups. This suggests the change in law is the reason for the drop. For the record, all the health plans were required to change their eligibility criteria as from September 23, 2010. All plan renewals after that date have accepted young adults. So we have had this law in operation for a year and, allowing for the fact not everyone will have taken up the offer yet, there’s still scope for more young adults to come on to their parents’ plans.

Because younger people tend to be in better health, the health insurance quotes for adding young adults as dependents should be relatively low. Perhaps the more interesting outcome affects employment. In the past, young adults have been chasing jobs with health insurance plans on offer. If these people can stay on their parents plans until 26, this improves their choices of employment. Hopefully, people will recognize this benefit and think better of Obamacare.

Michigan’s system of insurance for motor vehicles has been either praised or decried for years, depending on how you feel about government involvement in insurance. While always among the highest average premiums in the country, Michigan also has the best-protected drivers of any state. Now, however, it looks set to change, as new legislation comes up for debate in Lansing’s legislative bodies.

Cars, Insurance, and Natural Disasters

Will there be a new system? If so, what will it be like?

The Current Law: Benefits and Problems

Currently, the state of Michigan is the only state in the US to require all drivers buy unlimited medical and rehabilitation benefit coverage if they want to drive legally. This means that, if someone is injured in a crash, the insurance company covers all of their medical needs up to a point, from where the state assumes responsibility.

The upside of this has been very few lawsuits compared to other states, as well as the obvious benefit that is people having their injuries covered. It also still means that, if you want unlimited injury protection, Michigan is the cheapest place to get it.

The downside is that everybody, no matter their financial background, has had to buy high-priced insurance. It is true that not everybody can afford to buy coverage like this in Michigan, the state with the worst unemployment in the nation, which may be causing more uninsured illegal driving, rather than driving with a smaller level of coverage.

This has also been very expensive for the state. In order to make premium prices drop and allow everyone to afford the great coverage, Michigan set up the Michigan Catastrophic Claims Association (MCCA), which reimburses fees that insured drivers receive after $500,000 of coverage through their insurer is surpassed. With nearly 13 thousand Michiganders on the books, the MCCA tab is simply too much for the state.

Possible Changes to Michigan’s Auto Coverage Mandates

State Republicans are the ones largely backing the proposed changes. They argue that the system is simply too expensive for the state. Eventually, they say, Michigan won’t be able to afford the bills and balance the budget � which its constitution requires it to do each year.

The changes would end the unlimited coverage mandates and allow people to get policies with a lower level of mandated coverage. The coverage levels being discussed are minimums of $50,000 to $200,000, government insiders believe.

The MCCA is also likely to stay open, but will not take on any future claims. Currently it operates with a $2.4 billion deficit, so it cannot really even afford to pay for everyone it does. To fix this, all motorists would be required to contribute a “pre-vehicle special assessment”, which amounts to a yearly fee. This year it would cost drivers $29.

The insurance industry and Republicans are in agreement on the changes to car insurance mandates. A cynic would say the industry stands to make more money with the changes, but they say it is about consumers having a right to choose.

Legislation would also end the choice of an unlimited policy, capping auto insurance coverage at $5 million.

Healthcare workers, economists, and trial lawyers all stand against this car insurance proposal. They argue it would increase healthcare costs, make unemployment worse, and hurt consumers.

Insurance agencies use many factors to determine your rates. Credit, driving record, and age range help to estimate your potential risk as a client. But with today’s technology, companies can get an actual sample of your driving via electronic data-tracking devices, ultimately saving you money for responsible driving.

With the development of on-board computers in automobiles, every car now has a sort of “black box” that can record driving information and, with the right equipment, transfer information like top speeds and mileage. Several programs now exist in various parts of the United States, and they get you big discounts on your monthly premiums.

Device Tracking Programs

Allstate’s Drive Wise

This program offers discounts based on information collected from a device that you plug into your car’s onboard computer-available in all cars made since 1996. It measures mileage, hard braking, acceleration rates, time of day driven, and speed (when you exceed 80mph). This information is then automatically transmitted to Allstate. You can even check your performance online.

You receive a 10% discount just for signing up and up to 30% after your first policy period. The program cost is $10 per policy period.

Availability: Arizona, Illinois, Ohio

Progressive’s Snapshot

Similar to Allstate’s Drive Wise program, signing up for Snapshot transfers data to the insurance company for discounts measuring most of the same information.

You earn an initial discount after one month, and you send the device you installed back after 6 months. You are then eligible for another, permanent discount up to 30%. There is no cost to enroll and the data can’t hurt your rates.

Availability: 37 states

OnStar Programs

OnStar is a subsidiary of General Motors which allows subscribers a number of special features in their car, such as GPS navigation, emergency contact, vehicle diagnostics, hands-free calling, and other features. It is installed on all GM vehicles; new vehicles receive a free one-year subscription, and used vehicles receive a free 3-month subscription. This program has been integrated into two different mileage-based insurance programs.

GMAC’s Low-Mileage Discount

All GMAC customers who have a subscription to OnStar can enroll in this program, which is based entirely on mileage, for free.

Drive fewer than 15,000 miles per year and you will get a discount of at least 13% and up to 54% if you drive fewer than 2,500 miles per year.

Availability: 35 states

State Farm’s Drive Safe and Save

Also utilizing the OnStar system, Drive Safe and Save tracks your mileage and gives you up to 44% savings on your car insurance premiums. The driving is constantly updated though, so your discount will change every policy period based on your latest driving statistics.

Availability: California, Colorado, Illinois, Ohio, Texas

MileMeter

This Texas car insurance company offers insurance by the mile. Prices start at 2.5 cents per mile. No need any fancy electronic equipment for mileage tracking-all you have to do is send the company a picture of your odometer when you sign up and each time you renew your policy.

Availability: Texas only

Pre-1996 And Non-GM vehicles

Pre-1996 vehicles cannot be retrofitted with the OBD II diagnostic device. However, non-GM vehicles can be fitted with a custom rear-view mirror equipped with OnStar.

The year 2011 has been one for record natural disasters. The Texas wildfires currently raging are already causing never-before-seen damage in the state to forests, animal habitats, and human homes. This damage continues hurting even after the fires are done. The only thing protecting homeowners in the 25 thousand scorched acres is insurance.
Big disasters can be huge tests of the viability of an insurance company. Make sure your insurer is up to the test.

Damage from Wildfires

Wildfires have always been a problem in the Southwest and always will be, if climate change doesn’t turn it into a tropical zone. The problem will likely only get worse as more of the precious few water resources are tapped out in Texas and other border states.
Wildfires can start from almost anything, whether it be spontaneous combustion from the sun or a cigarette tossed into the woods. The key is parched woodland from lack of rain, intense sunlight, and heat. Once a fire gets going, it’s very hard to stop. Part of the reason is the incredible amount of fuel available – so many trees – and another part is the inability to predict which way it goes. Fires spread by wind to anywhere where a flame or even an ember can blow.
In this Texas wildfire, 500 homes are already been destroyed in the conflagration, with no end in sight. The 25 thousand acres of land affected could double or triple before this is over, the fire department says.

Wildfire Coverage

Homeowners living near wooded areas don’t really have much protection against wildfires. Sure, they can put flame retardant in their homes and clear brush away, but if there is a raging inferno like this one, good homeowners insurance is the best you can do.
While most homeowners policies have some coverage for fire damage, it might not be enough to really protect against the threat that a full-blown wildfire poses. In the United States as a whole, there is a 10% chance that any given home will be damaged by a fire at some point over 30 years, so it is important that homes in all states have some protection. The following states, however, should get more fire coverage:
Alabama, Arizona, California, Florida, Georgia, Mississippi, North Carolina, Oklahoma, South Carolina, Texas

Texas home insurance Provider Up to the Task?

A reassuring sign of the people of Texas is that the insurance providers are out in force. Many of the companies have sent agents to the affected areas in vans or even temporary housing to help homeowners with claims. State Farm in Central Texas has already filed 210 claims.
Not all providers will be ready, however, as some might not be able to afford the claims. Make sure your insurance provider is up to the financial task by checking their financial health with Standard&Poor’s or another ratings agency.

Be Prepared

If you haven’t already, get good fire damage coverage on your homeowners insurance. Even if you are in Texas, it might not be too late.
You should also have your paperwork ready for disaster to strike. In case the fire should arrive near you, be ready to leave with all the necessary items, including a copy of your policy and proof of the most expensive items in your home.

To understand the issues, let’s start with a quick tour of ZIP codes. They are used by the US Postal Service to sort the mail faster. Once sorted, bundles of mail are delivered by staff who know the ground. This plan was not devised to help set insurance rates. Indeed, when you look at the boundaries on a map, you see how arbitrary they are, often lumping completely different groups of people together regardless of social class or property value. Basing the calculation of premium rates can therefore look unfair in urban areas where, on one street all vehicles can be parked off the road in locked garages overnight whereas, round the corner, the quality of the neighborhood just changed for the worse and crime affecting vehicles parked on the roads is rampant. Imagine how people who have lived on that second street feel. They have been paying their premiums for years and now must suddenly pay more because they have no choice but to stay – sadly, with the collapse of the housing market, it’s no longer easy to sell and move to a “better” area. In other words, basing the premium rate on the address rather than the safety record of the driver looks unfair.

Let’s now move over to Milwaukee where State Senator Tim Carpenter has introduced State Bill 289 to prohibit insurers from relying on ZIP codes to set premium rates. This is yet another attempt to repeat the success in California where, in 2008, John Garamendi, the Commissioner for Insurance, finally pushed through the regulations to reduce the insurers’ reliance on ZIP codes. Note the regulations do not outlaw the practice. The Californian insurers can still use the ZIP codes as one of the factors when setting the rates. But the codes can no longer be one of the “main” factors. Why not outlaw it altogether?

The answer depends on the difference between the insurance policies. Liability cover pays out to any third parties we may injure through our bad driving. This can be and, for the most part, is based on our individual safety record as drivers. Where we live is never going to be terribly relevant to where we drive once the vehicle is in motion. The problem comes with collision and comprehensive cover. Both types pay out to you if your vehicle is damaged in a collision, by a vandal or by a tornado. Where you park your vehicle must therefore be an important factor in deciding the risk you might get hit. Similarly, the local crime rate when it comes to vandalism is as relevant as whether you live in an area frequently hit by tornadoes, floods, landslides, etc.

So, comparing these different policies, you might find cheap car insurance if all you want is the minimum liability cover. Where you live is always going to be less important. But when you move on to collision or comprehensive cover, where you live become far more important. For this reason, Tim Carpenter’s bill is going to struggle in Wisconsin. Although the insurers there are exaggerating when they say this bill will mark the end of cheap car insurance, only a compromise between the state and the insurers will produce a fair outcome.