5 Most Expensive Cities In The U.S. For Car Insurance

Maintaining a car can be a very expensive venture if you are not careful. From annual inspection and periodic upkeep to keeping the car fueled and insured, owning a car can easily deplete your bank account and leave you strapped for cash. One major cost associated with owning a car is paying for car insurance. Depending on where you live in the United States, car insurance could either be a small expense or take a dramatic toll on your budget. Here is a look at five of the most expensive cities in America for car insurance.

DetroitAccording to an article released by Yahoo! in January 2012, Detroit, Mich. has the highest car insurance premiums on average in the U.S. The Motor City's insurance rates are most unfriendly to cash-strapped car owners. According to Runzheimer International, the average car insurance premium in Detroit was $5,941 in 2011. That's nearly $2,000 more than the runner-up. The Motor City is filled to the brim with automobiles, and as a result of the high population of citizens and cars, along with a no-fault insurance system, its insurance premiums have stayed among the highest in the country.

PhiladelphiaPhiladelphia, Pa. is another city that is hit hard by high car insurance costs. Coming in just behind Detroit, the City of Brotherly Love is not feeling the love in regards to its high premium costs. In 2011, the average car insurance policy cost drivers $4,076, according to Runzheimer International. The cost is not nearly as high as Detroit's astronomical average premium of $5,941, but is considerably higher than the approximate $1,199 national average that HomeInsurance.com reported for December 2011. Due to Philadelphia's overcrowded streets and high population of vehicles, insurance rates have continued to climb.

New OrleansAnother American city that definitely gets the short end of the stick when it comes to saving on auto insurance is New Orleans, La. The Big Easy has one of the most expensive car insurance premiums in the U.S. According to a Runzheimer International study performed in 2011, New Orleans had an average car insurance premium rate of $3,599 in 2011. New Orleans' high premiums are not due to overcrowding but because of judicial ruling. In Louisiana, only claims totaling over $50,000 actually make it to a jury case. Claims less than that benchmark are settled out of court. MiamiMiami, Fla. is another U.S. city that was unable to escape high auto insurance premium rates. The Runzheimer International study performed in 2011 marked the average car insurance premium in Miami at a hefty $3,388. Due to the city's no-fault auto insurance rule and an influx of fraudulent claims, Miami has experienced a significant premium hike in recent years.

Newark, N.J.Last but certainly not least, Newark, N.J. has one of the highest car insurance premium averages in the U.S. The city features an average auto insurance premium of $2,867. Newark's residents certainly have quite a hefty expense in order to keep their vehicles insured. Similar to Miami and Detroit, New Jersey has a no-fault insurance rule, and costs have risen as a result.

The Bottom LineCar insurance premiums vary substantially depending upon where you live. States with no-fault laws and higher populations are prone to have higher average auto insurance premiums due to the higher amount of accidents and collisions that occur. The numbers presented are based off studies, and it is possible to find less expensive auto insurance. Many factors apply when determining what your auto insurance rate is, including driver safety, your zip code and your age. Shop carefully when buying car insurance, and make sure you are getting the best rate possible.

 

 

 

 

 

Source: investopedia

Beware These Disaster-Related Scams

Superstorm Sandy is the most recent large-scale natural disaster to hit the United States. Sandy caused an estimated $25 billion in damages and left 7.5 million customers without power in 15 states along the east coast. A disaster of this magnitude means two things: people need help and con artists will try to take advantage of victims' desperation.

Here are some of the most common natural disaster scams and how to avoid being a victim.

Identity TheftThe Federal Emergency Management Agency reports that people pretending to be FEMA or other government officials are calling or going door-to-door asking for personal information. FEMA advises citizens not to give out their social security number, banking information or other forms of identification. Crooks use this type of data to perpetrate all manner of identity theft crimes. Legitimate businesses and government agencies will go to great lengths to protect your identity. FEMA and the Small Business Administration (SBA) will not ask for personal information until the victim first contacts them. Do not respond to unsolicited phone calls or visits. Make the contact yourself.

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Fake VictimsSocial media has revolutionized how people communicate. Unfortunately, it has also revolutionized how con artists communicate with potential prey. Stories of loss tug at the heartstrings of the caring public. Pleas for help have been posted, tweeted, reposted and retweeted so much that it is impossible to separate the cons from the legitimate requests. Some of these cries for help are fabricated. If you want to contribute, stick with the most effective charities and charities you know. If you want to provide more direct aid, work with family or friends who know of individuals in need.

Speaking of CharitiesRead carefully the name of the charity asking for donations. Unscrupulous organizations may adopt a name closely related to a well-known charity in an attempt to trick donors. Perform an online search using the keyword phrase: "exempt organizations select check" to find qualified charities with tax-deductible status from the IRS. The website CharityNavigator.org is the nation's largest and most-utilized evaluator of charities. Charity Navigator, a free service, provides a complete evaluation of everything from program and administrative expenses to fundraising efficiency.

Crooked ContractorsWhen disaster strikes, contractors flood the area to cash in on the rebuilding effort. Many are ethical and registered legitimate businesses. Some are not. Before working with a contractor, ask for a copy of the contractor's liability insurance and verify that the policy is valid. Ask for and check out references if possible. Call or go online to check with the Better Business Bureau (BBB). Online review services, such as Angie's List, can also help. A detailed list of all work to be performed should appear on the contract and full payment should not be required until the work is completed to your satisfaction. Do not fall for: "I don't have the money to buy the supplies unless you pay all of it up front." Legitimate businesses front the cost of supplies and labor.

Insurance ConsBeware of "specialists" who say they can increase the amount of FEMA aid you receive or bump up your insurance settlement. In return, they will probably ask you to sign a contract that gives them a certain percentage of the extra funds. Not only is this a potential for identity theft, but a contract like this may force you to give them a percentage of money that would have been yours anyway. Deal directly with FEMA or your insurance company if you feel the original aid or settlement is not satisfactory.

Report ItIf you believe that somebody contacted you with illegal intentions, do not stay silent. Contact local law enforcement officials, the FBI or the National Center for Disaster Fraud. You may have seen through the con artist, but your neighbor may fall victim.

The Bottom LineIt is not just this storm. Any time a disaster of this magnitude happens con artists and thieves will try to take advantage of people when they are most in need of human kindness. Knowing what to look for will help you to separate the Good Samaritan from the wolf in sheep's clothing.

Source: investopedia

5 Things You Need To Know About Obamacare

A hot topic in the U.S. and the world at large right now is fighting the high cost of healthcare. In the United States, a polarizing issue is the Affordable Care Act, better known as "Obamacare." There are many people up in arms about the future of healthcare in America. There are many components of the Affordable Care Act that are widely misunderstood by many citizens. Here's a look at five things you need to know about Obamacare and why it's not as scary as you think.

It Doesn't Replace Private InsuranceContrary to what many citizens may think, Obamacare is not replacing private health insurance, Medicaid or Medicare. The Affordable Care Act works hand in hand with private insurance by regulating insurance practices, giving citizens affordable options and making sure that every American citizen has access to affordable healthcare. Without private insurance, the Affordable Care Act would not work. There is no specific "government" plan; you are free to select whichever plan you desire.

 

Obamacare Regulates Insurance Company PracticesOne of the restrictions that will be put into place includes enforcing a cap ceiling on what insurance companies can charge in terms of premiums. Other terms include the removal of pre-existing condition clauses, in which an insurance carrier refuses coverage due to an existing health condition. By regulating insurance company practices, the Affordable Care Act is helping to lower healthcare costs and help protect the financial well-being of American citizens.

Healthcare Exchange Provides More OptionsThe healthcare exchange that comes alongside the Affordable Care Act will provide a diverse selection of policies to choose from. Citizens can select from free or low-cost insurance coverage, or opt for a higher-priced plan from a private health insurer. Obamacare is not stripping citizens of their liberties, as many people believe, it is actually giving them more choices and protecting their wallets in the process.

Obamacare is Projected to Lower the Deficit, Not Raise ItA complaint many taxpayers have is that they believe the Affordable Care Act will increase the already-enormous deficit. The reality is much different than this belief, however. By the year 2022, the American people will have saved $84 billion as a result of Obamacare. The reason for the massive savings is due partially to the cap being placed on insurance carrier premiums, along with a number of other factors, including offering more low-cost options to cash-strapped Americans, as opposed to going without insurance.

In 10 Years, Obamacare Will Insure 30 Million More CitizensIn today's society, a big complaint from many consumers is that they cannot afford health insurance on their present salary. Obamacare puts an end to this complaint. By offering a variety of low-cost options, citizens who previously couldn't afford health insurance now have access to a variety of choices. It has been estimated that by the year 2022, more than 30 million additional citizens will be insured thanks to Obamacare.

The Bottom LineThere are many misconceptions surrounding the Affordable Care Act. The purpose of the act is to put regulations and restrictions on insurance companies so that Americans can better manage their healthcare costs. This is done in order to protect the American people, not hinder them or encroach on their liberties. The Affordable Care Act provides budget-friendly choices and keeps insurance companies from increasing premiums past a certain level, while also restricting other pre-existing condition clauses. By making health insurance more affordable, Obamacare aims to improve the quality of life of millions of Americans, while also protecting their financial well-being.

 

 

 

 

 

 

 

 

Source: investopedia

Mistakes to Avoid When Buying Health Insurance

How to Skirt Common Health Insurance Traps

The one constant when buying health insurance is uncertainty. A sudden illness can carry in its wake a flood tide of unwelcome medical bills. The point of health insurance is to minimize the havoc from such bills. But you can't plan your illnesses, so how can you know how much insurance you might need? The ever-rising cost of healthcare, moreover, has driven insurers and employers to shift much more of the burden to policyholders through higher deductibles and coinsurance and slapping copays onto more services. It can be a challenge just to figure out in advance how much you'd wind up paying out of pocket if you do get sick.
Nowhere are unknowns a bigger concern than in the so-called individual market, where consumers purchase health coverage directly from an insurer rather than through an employer or the government. In many states, insurers can require you, and members of your family if you're shopping for a family plan, to pass a medical exam to qualify for coverage. If you don't pass, or you have a prexisting health condition, the plans can turn you down. (That will change in 2014, when a provision of the recently upheld Affordable Care Act takes effect and outlaws rejection for medical reasons.) You also could be charged much more per month than the published premium may have led you to believe if you are deemed likely to run up medical bills.
The tripwire that may be the least expected, until it wrecks your budget, is the annual out-of-pocket limit. Almost always displayed as a flat dollar amount, the term refers to the maximum you have to pay for your care in a given year before the plan picks up your expenses from then on—or so it would seem from the term. Unfortunately, many plans still impose deductibles, copays, and coinsurance after you reach the supposed limit of your out-of-pocket expenses. Retaining even one of these cost items could vacuum thousands of dollars from your pocket. What's more, a plan can put a limit on the total amount it pays out in a year. All charges above that maximum benefit are your responsibility, regardless of the stated out-of-pocket limit.

How could a mere copay, which you may think of as that annoying $20 or $30 flat charge you pay when you see a doctor, have such financial impact? Isn't coinsurance usually a small percentage? Both can carry more weight than you'd think. A copay can be hundreds of dollars if it is your share of an emergency-room bill. And coinsurance, your percentage of the cost of a service, may be a modest 10 percent or it could be the entire 100 percent. It also matters whether the copay or coinsurance is charged before you've met your deductible or afterwards. If before, you no longer have to make these payments when you've paid off your deductible. If after, the obligation is open-ended and may cost you more.
Here's a reality-grounded example: a plan in the U.S. News universe with a premium of $500 a month and a relatively low annual deductible of just $750. But U.S. News Best Health Insurance Plans shows that the plan's out-of-pocket limit of $2,500 doesn't include the deductible. That effectively pushes the out-of-pocket limit to $3,250.
That's not all. The out-of-pocket limit also doesn't include coinsurance on prescriptions, physician visits, hospital stays, or any other medical expense. Coinsurance is pegged at 30 percent or more in this plan for virtually every costly service, so in addition to your premium and deductible, you'll be responsible for nearly one-third of every medical cost you accrue, from brand-name drugs to ER care. If you get a hospital bill of $10,000, you'll pay $3,000 of it in addition to your deductible.
Another complication: Some of these hospital or doctor fees apply even after you've met your annual deductible, pushing your out-of-pocket costs higher. Oh, and there's also a $200 copay every time you use an emergency room.
Best Health Insurance Plans helps you spot these tripwires in advance by in some cases giving higher ratings to plans that clearly describe their cost sharing. Plans that shift less of the cost to consumers through coinsurance receive potentially higher ratings as well.
Besides these factors, you should also check those listed below. Be on the alert for:

• The percentage of applicants denied enrollment, which is a measure of a plan's selectivity. Some issuers offer plans but turn down two-thirds of applicants or more, based on concerns about their medical risk or other factors. A high denial rate may be an indication that, if you or someone in your family has medical issues, you may want to look at more inclusive plans.
• The percentage of applicants charged more than the stated premium. Just as some plans turn down many applicants for medical reasons, some issuers charge a high percentage of policyholders more than the stated premium for coverage. Plans may accept these policyholders anyway, but charge more because their medical history suggests that they are likely to use more services.
• Specific categories of care that aren't covered by a given plan, such as cosmetic surgery, children's eye exams and weight-loss therapy.
• Plans with a narrow scope of benefits or strict limitations that may leave you exposed to high medical costs related to catastrophic injuries or ailments. Generally speaking these are plans that are more likely to have received fewer stars in the U.S. News analysis. Always read the fine print before you settle on a plan.
• Plans with high deductibles (generally defined as $1,200 or more for an individual and $2,400 and up for a family) that may cover you for severe medical problems but could saddle you with mounting bills for routine care. Under the Affordable Care Act, a high-deducible plan purchased after March 2010 must offer free preventive care whether or not you've met the deductible. (If you're healthy and want to minimize your monthly premium, you may prefer a high-deductible plan. They can be coupled with tax-deductible health savings accounts, which allow you to put aside money for routine medical expenses.)
• Plans that do not cover specific drugs that you need. Visit the plan's website to see whether your medications are included in the plan's formulary.
• Plans whose networks don't include the doctors and hospitals where you get your care.

Read more at health.usnews