Slumping Economy Means more Uninsured Motorists

A recent survey from the Insurance Research Counsel states that hundreds of thousands of driver have let their insurance lapse because of financial hard times. As the jobless rates climb, so will the number of people choosing to go uninsured. The story is the same, “which bill do I pay the insurance or the electric?”

The trend is bad news for everybody on the road. If you're hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage -- almost half of states require the added coverage -- but this may boost your premium.

Many of the people on the road are either uninsured or underinsured, and so you have to protect yourself. Your odds of being in an accident with an uninsured driver are substantial.

One of my clients had a down turn in his business and reduced his coverage to a bare minimum to save costs. Against my advice, he cancelled all covergaes except liability. As you can probably guess, he was hit by an uninsured driver, who then fled the scene. In tough economic times, he now has substantial damage (in excess of $10,000) that he has to pay. To make matters worse, he was injured.

Motorists driving without insurance also face risks. If you are found at fault for the accident and a judgment is awarded, a court could order liens on you assets. If you don’t have attachable assets, you could be set up on a court ordered “payment plan.” Also, driving without insurance is illegal in 48 states and the District of Columbia.

It’s an ugly situation, so before you decide to let all you policies lapse, talk to you agent. There are often things that can be done to ease the financial pressure without sacrificing your long term financial future.

Gadgets! Gadgets! Gadgets!

I saw this in Forbes and thought it was interesting…From Bluetooth to Blackberrys, from Widgets to Wifi, the way we live, work and play is being transformed by technology.

• 82% of cars in 2009 will be equipped for Bluetooth wireless communication.
• 14 million subscribe to Blackberry.
• 31% of cell user’s text message daily.
• 160 million I pods have been sold worldwide.
• 4141 Widgets are on Yahoo.
• $500 million in projected sales of GPS devices by 2015.

Put Identity Theft Protection on Your Shopping List

Last month, someone in Newark, New Jersey got my debit/visa information and nearly emptied my account. Fortunately, my bank, Bank of America, caught it and put an end to their evil plan. But it got me thinking; we should all take extra care during this time of year.

The craziness of the holiday shopping season creates ample opportunity for crooks bent on stealing your credit cards or financial information. People become tired, the stores are crowded and so it’s easy to become less guarded about personal information such as driver’s licenses, personal checks, social security numbers and credit cards. Thieves can take this information and empty bank accounts, open credit cards and even establish phony insurance policies.

I did a little Google searching and found that nearly 8.5 million Americans had become victims in 2005 alone.

Here are some tips that may help:

• Keep the amount of personal information in you wallet or purse to a minimum.
• Guard your cards; don’t let people see them
• Always take your receipts and don’t throw them in a public trash
• Only buy from reputable on-line retailers
• Order a copy of your free credit report and make certain it is accurate
• Password protect your credit cards and bank accounts. (And use real passwords, not your kid’s name, or your DOB.)
• Monitor your accounts. Know how much money you have.
• Do not give you personal info out over the phone or online unless, you initiate the contact.
• Shred personal documents.

To irritate the crook even more, have the credit reporting agencies to put a fraud alert on your account. This way, they must notify you before opening a new account or changing an existing one.

Even if you do all those things, you may still become a victim. So, call your insurance agent for help. Some insurance companies include identity theft coverage as part of their homeowners’ policy, selling it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. This coverage gives you reimbursement for the expenses associated with the identity and credit restoration process including phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). They may also include the added services of a fraud specialist to assist and guide victims through the process of restoring and protecting their identity. Contact your insurance agent or company representative to find out what kind of coverage is available. The cost is minimal ($25 per year at State Farm) and well worth the investment.

Now that you are protected, go out and spend some money and fuel the recovery!