Insurance Blog

I regularly tell friends there’s always an insurance angle, no matter the event. And so it is with Lindsay Lohan’s latest fall from grace.
As Lohan’s jail time continues to fuel the news headlines, our colleagues at the Insurance Information Network of California (IINC) remind us that we can learn from Lohan’s mistakes, at least from the insurance perspective.
As reported by Insurance Journal, IINC has determined the average insurance premium difference Lohan could pay for auto insurance because of her risky behavior based on her profile, ZIP code, vehicle model and current record of two DUIs and an at-fault car accident.
A single, 24-year-old female who lives in the Beverly Hills ZIP code of 90210 (Lohan lives in a condo in West Hollywood) and drives a 2009 Mercedes SL550 convertible would have access to 100 percent of the insurers offering auto coverage in California, according to IINC.
With a clean driving record, Lohan […]

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California residents are the weakest link in earthquake preparedness and more than 60 percent have not done enough to make their homes safer and guard their personal finances, according to a newly released study. The California Earthquake Preparedness Survey conducted by the University of California Los Angeles School of Public Health for the state Emergency Management Agency found that many California residents have taken the easy route to prepare for a large-scale quake, by collecting supplies and making back-up copies of important documents. However, they have not taken additional steps to prepare such as securing the contents of their home or purchasing earthquake insurance. Key takeaways of the study include: fewer than 20 percent of households have structurally reinforced their homes or had their homes inspected for earthquake resistance; fewer than 20 percent of Californians have purchased earthquake insurance; only 40 percent keep the recommended minimum of three gallons of […]

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As a second major snow storm in less than a week hits the Northeast, the National Weather Service has issued blizzard warnings that extend into New York City, where it says 10 to 16 inches of snow can be expected. As of 4am EST, winter storm warnings and winter weather advisories were in effect across a region stretching from near Chicago through the Ohio Valley all the way into southern New England. Snowfall totals late Tuesday and into early Wednesday at Baltimore, MD, Washington, DC and Wilmington, DE from this most recent storm have made the winter of 2009-2010 the snowiest on record for these cities, according to the National Weather Service. This severe weather map from Weather Underground (wunderground.com) shows the extent of the winter weather (areas in white) across the Northeast.

Winter storms can be costly for insurers. Insurance Information Institute (I.I.I.) research shows that winter storms result in about $1 […]

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A major winter storm barreled up the East coast over the weekend, blanketing states from the mid-Atlantic to New England bringing record snowfalls to some regions. According to reports, the storm caused widespread power outages, treacherous driving conditions, and was blamed for at least six deaths. It’s easy to forget that winter storms can pack a powerful punch, for insurers in particular. According to Insurance Information Institute (I.I.I.) research winter storms result in about $1 billion in insured losses annually and are the third largest cause of catastrophe losses, behind hurricanes and tropical storms and tornadoes. Melting snow can inflict significant damage to property. From 1999-2008, winter storms resulted in more than $7 billion in insured losses. Winter storms also account for a large proportion of homeowners claims each year. In 2007, water damage and freezing accounted for approximately 22 percent of all homeowners claims in the country. So what […]

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Some 38.4 million Americans will travel 50 miles or more from home over the Thanksgiving holiday weekend, up 1.4 percent over last year when 37.8 million traveled, according to the AAA. This year’s expected increase in travel reflects improved customer confidence from one year ago, better financial market performance and a growing sense among many consumers that the worst of the global economic crisis is behind us, AAA said. In 2008 Thanksgiving travel dropped a precipitous 25.2 percent in the wake of the ongoing housing and financial crisis. Some 33.2 million motorists are expected to hit the road this Thanksgiving, a 2.1 percent increase on last year. Another 2.3 million plan to travel by air, a decline of 6.7 percent, while the number traveling by train, bus or other transportation is expected to increase by 1.2 percent to 2.9 million. According to AAA’s Leisure Travel Index (LTI), Thanksgiving holiday travelers […]

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Halloween can be a fun time, but it can also be a costly one for insurers according to a report from across the Pond. A U.K. insurer quoted in an article by the London Guardian newspaper says that home insurance claims are expected to rise by 270 percent on Halloween. Another U.K. insurer claims that 3.6 million homeowners will face damage to their properties as some revelers go too far in their pranks. This side of the Atlantic Halloween brings with it increased concerns about drunk driving and liability risks, I.I.I. finds. Social host liability laws exist in many states so anyone hosting a Halloween party should take steps to limit their liquor liability and make sure they have the proper insurance. I.I.I. vice president Loretta Worters notes that depending on the jurisdiction, violations of social host laws can lead to civil or criminal fines, imprisonment and monetary damages awards. […]

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A question frequently asked of anyone who’s lived in the United Kingdom is how the healthcare system across the Pond compares to the one over here. Indeed the National Health Service (NHS) as it’s known in the United Kingdom has come under repeated attacks by critics of U.S. President Barack Obama’s health reform plans. So much so that this week U.K. Prime Minister Gordon Brown used Downing Street’s Twitter site to hit back at those critics who had dubbed the NHS “evil”. “NHS often makes the difference between pain and comfort, despair and hope, life and death. Thanks for always being there. #welovetheNHS,” Brown tweeted. As a result, #welovetheNHS has risen to the top of trending topics on Twitter. While the debate continues on healthcare reform the London Guardian’s Datablog yesterday answered the question of how the NHS compares to U.S. healthcare by posting a chart showing some key indicators […]

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Guidelines on how to meet the auto insurance requirements under President Obama’s Car Allowance Rebate System (CARS), also known as the “Cash for Clunkers” program are expected to be available today at www.cars.gov. Administered by the National Highway Traffic Safety Administration (NHTSA), the program helps people purchase a new, more fuel efficient vehicle when they trade in a less fuel efficient vehicle. Depending on the difference in fuel economy between the new vehicle and the trade-in vehicle, people will get a credit of between $3,500 and $4,000 to help pay for the new vehicle. An important feature of the program is that the trade-in vehicle must have been registered and continuously insured for the past year. Check out I.I.I. facts and stats on auto insurance.

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Governors from around the country are gathered in Biloxi, Mississippi for the National Governors Association’s annual summer meeting. The four-day meeting which started Saturday focuses on a range of issues, from economy and health care to education and the environment. A special plenary session yesterday was dedicated to emergency preparedness issues while today’s closing plenary session will focus on energy and the economy. How the states will fit in to a restructured health care system appeared to be a central topic of discussion over the weekend, as reported in a July 19 article in the New York Times by Kevin Sack and Robert Pear. State budget issues were another topical issue for the gathering, according to the Washington Post’s Sunday Take by Dan Balz. Check out I.I.I. facts and stats on health insurance.

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Before the Brits among us slide off to hide under a rock for the July 4 holiday, it’s time to present our annual Independence Day fact file. The Census Bureau reminds us that in July 1776, there were an estimated 2.5 million people living in the newly independent nation. This July 4, the nation’s population is a burgeoning 307 million. The Census Bureau also puts the dollar value of trade between the United States and the United Kingdom last year at $112.4 billion, making the nation’s adversary in 1776 its sixth-leading trading partner today. Another key Fourth of July fact is that 78 million Americans said they have taken part in a barbecue during the previous year. It’s probably safe to assume a lot of these events took place on Independence Day. Whether you’re planning on celebrating the holiday lounging by the swimming pool, renting a car to visit family, […]

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