Local insurers say cancelling policies is no way to save
Raise deductions, experts adviseBy ANGELA BURCH, Messenger staff writer
The economic downturn has undoubtedly left many people looking for ways to cut costs and spend less money.
But scaling back on insurance coverage is not a way to accomplish saving, experts agree.
"In an economic downturn like this, there are ways of reducing your insurance premium," said Fort Dodge State Farm Insurance Agent Dan Flattery. "But one of the things we tell people is don't drop your coverage."
Locally, Flattery said his office has not seen a drastic shift in people canceling insurance coverage.
"We are seeing people reviewing their policies and seeing areas where they can maybe save money, but we're not seeing a lot of reduction in coverage," he said.
For people who have experienced involuntary job layoffs, federal stimulus money is available through the American Recovery and Reinvestment Act to help former employees temporarily stay enrolled in their employment-related health insurance plans.
Andy Hejlik, a co-owner of Kingsgate Health Insurance in Fort Dodge, said people who were laid off any time after Sept. 1, 2008, can apply for the money.
The federal government is subsidizing COBRA premiums so laid-off workers can continue their health insurance coverage for nine months after the law went into effect on March 1 by paying 35 percent of their premiums instead of the entire amount.
Lynn Schreder, another co-owner of Kingsgate Health Insurance, said her advice to consumers is to seek information from an insurance agent.
"Now, more than ever, the agent is so important in the decision-making process," Schreder said. "(Agents) can help them to make the right decision for them and their employers."
Consumers are maintaining coverage and reducing costs by increasing their deductibles on both auto and health insurance, according to the Insurance Research Council.
Increasing the deductible is a trend Hejlik said he has noticed in the past five years.
"These findings confirm that most Americans recognize the importance of maintaining essential insurance coverage on their homes and cars," said Elizabeth Sprinkel, senior vice president of the IRC. "But they also show that Americans are willing to shop and re-evaluate their insurance needs in order to reduce insurance costs."
In additional to health and auto insurance, Flattery said life insurance policies are important to have - especially considering today's economic climate.
"We feel it is important to maintain those policies," he said. "In tough economic times, you want to make sure you take care of those risks so family members aren't faced with a big debt of some type."
Without auto insurance, drivers and passengers run the risk of extensive financial liability, especially if someone is injured in an accident. The fine for driving without insurance in Webster County is $397.50. If there is an accident involved, that amount jumps to $735. Those sums don't include any additional monetary compensation if there is an injury involved in the case, which can easily add up with hospital and repair bills, Flattery said.
The IRC estimates that by 2010 - with the strong correlation between the percent of uninsured motorists and the unemployment - approximately one in six drivers across the U.S. will be uninsured.
The experts agree that, in most cases, it is cheaper to have the insurance.
Contact Angela Burch at (515) 573-2141 or aburch@messengernews.net
|
gummybear
|
|
|---|---|
|
07-10-09 8:27 PM
|
Jobs in the paper, like delivering the paper? I just got a note with my paper this morning here is what it said. Due to the paper being cheap to supply us with rubber bands we will no longer put one on your newspaper. They only pay us 12 cents a paper! And these kids are trying to buy a car and pay for their insurance on 12 cents a paper -- so if you think these jobs in the paper are wonderful jobs and pay so great you are wrong!
|
|
stuart
|
|
|
07-10-09 7:31 PM
|
NOt to many people have proper amount of insurance unless they are making loan payments on the cars/trucks. All those jobs listed in paper doesn't mean those companies are hiring, they are just getting a pool of names to draw from, or have proof they are attempting to hire employees so that don't have to pay back those government incentives they received.
|
|
4fairness
|
|
|
07-10-09 1:17 PM
|
Plus, the responsible people who have insurance are helping to pay the debt (through higher premiums) for the irresponsible uninsured who cause costly accidents and can't pay the resulting judgement. Auto insurance is not only based on what type of vehicle you have but also your driving record and your credit report. Statistics show that people with a lower credit rating are more likely to have accidents and submit claims (both auto and homeowners), which is why their premiums are higher. They're a higher risk - simple as that. And I agree - if you can't afford the insurance, don't drive.
|
|
bigmac1
|
|
|
07-10-09 12:12 PM
|
What's totally unfair is when someone without insurance at all runs into someone who is doing the right thing, but only has liability insurance. My sister and mother-in-law were both hit by someone without insurance and were left with nothing because their policies don't cover uninsured drivers. So if you can't afford insurance, don't drive at all. It's that simple.
|
|
gaelbballfan
|
|
|
07-10-09 12:00 PM
|
I am always puzzled how there can be so many job openingsin the classifieds and yet still have a substantial unemployment rate. It seems there are jobs out there. Maybe people are just being too picky. I have done some pretty difficult labor (nothing like what my background has trained me for) to support my family. I have been out of work on two occasions due to downsizing and within days I was gainfully employed. While those jobs were only temporary, they filled their purpose.
|
|
MisterReality
|
|
|
07-10-09 11:26 AM
|
Auto ins. is cheaper than dirt IF you don't try to live beyond your means! I see people I know that make less than I do driving a giant SUV and brand new car.....they struggle week in and week out to make the payments. That is insane my friends. Why would anyone do that to themselves? I drive an old pick up to work everyday and with the money I save I invest in properties or equipment to maintain those properties. Cars COST you money, investments MAKE you money. Also, don't try to "one up" or "best" your friends or neighbors with some fancy vehicle. Chances are they don't care. Put that money away for a rainy day. Car insurance is expensive because you chose to make it that way. I pay $24/mo on my truck because I see no problem driving an old truck and investing my money somewhere else.
|
|
thendrickson
|
|
|
07-10-09 10:04 AM
|
If you can't afford insurance, you can't afford to drive, it's that simple.
|
|
JasonXX
|
|
|
07-10-09 3:55 AM
|
Fort Dodge is a small town. I guess if people cannot afford to purchase insurance, they will either have to walk, taxi to and from, have a friend take them, or ride a bike. Times are tough, and we have to make do with what we can afford. The price for the fine for no insurance is way stiffer than the cost of liability insurance. My '04 Neon is $42.00/month full coverage and my second car cost me an additional $17.00/month for just the liability.
|
|
momof250548
|
|
|
07-10-09 2:52 AM
|
If it wasn't so dang expensive for lower income people to have insurance I'm sure they would be happy to keep it. But my prices for auto insurance are riduculas...
|
|
boatassembler
|
|
|
07-10-09 12:35 AM
|
It may be cheaper, but if you are unemployed and have NO money how are you going to pay the premiums, no matter how high or low?
|