In honor of Presidents’ Day, we’re doing an extra video this week. It’s a lesson on how to prevent car theft, by using anti-theft devices and other common-sense practices. After all, the most efficient insurance claim is the one you never have to file.
The Senate Committee on Financial Institutions, Housing, & Insurance in Washington state has refined a proposal to allow the use of PAYD (pay as you drive) methods to be the primary method of determining drivers’ insurance rates. The PAYD bill, also known as Senate Bill 5730, would allow insurers to offer lower rates to those drivers with lower mileage, while, in turn, motorists would be encouraged to drive less in order to save money on insurance, gas, and vehicle maintenance. That would, in turn, reduce accidents, congestion and pollution, say the bill’s supporters.
According to Kenton Brine, the assistant vice president for the Northwest region for the Property Casualty Insurers Association of America, there’s nothing in place that actually prevents insurance companies from offering PAYD programs in Washington.
“What is stopping [more] insurers from offering PAYD in Washington, is that once they file an underwriting and rating plan, it becomes available for public inspection,” Brine explained. PCIs western region public affairs director Nicole Mahrt added that insurance companies generally want their proprietary trade information kept private.
The substitute bill that passed out of the Financial Institutions, Housing & Insurance committee, however, now includes language provided by the insurance industry, which says that rating plans and models are protected as trade secrets, and the language in the original PAYD bill that would have required insurance companies to give discounts for all motor vehicle liability policies for vehicles with fewer than 5,000 miles driven per year was also removed.
Brine added, “If that legislation [with the revised language] passes, there will be, I’m certain, more insurance companies that will come into the state writing that PAYD product.”
Desperate times apparently really do call for desperate measures. A New Jersey resident recently pleaded guilty to torching his aunt’s car so that she could collect insurance money. Even better, he would also make money from the deal.
Kristopher Wynder, a resident of Vineland, confesed that in 2008 he set fire to his aunt’s 2002 Ford Explorer in a remote part of the city. His aunt Cheryl Wynder, he said, had agreed to give him $500 of the insurance proceeds.
Cheryl Wynder had already pleaded guilty to charges of insurance fraud as a result of the incident, and will be paying roughly $14,000 in restitution and fines.
Kristopher, on the other hand, has pleaded guilty to arson. His sentencing won’t happen until April, 2011, but the current recommendation is a five-year state prison sentence.
The state Senate of Mississippi passed a bill this week that will require drivers in that state to provide proof of liability insurance before they can receive a car registration tag.
The measure was sponsored by Senator Billy Hewes (R – Gulfport) who said constituents in his district have complained about being involved in crashes with uninsured motorists.
Drivers who present false proof of insurance would be given a fine of $500 and could face up to a year’s imprisonment, though both the fine and the jail time would be waived if proof of valid liability insurance is provided by the specified court date. Policy terms must be at least six months.
According to Senator Hewes, the bill (SB 2053) won’t create any extra paperwork for tax collectors, as they must only ask to see an individual’s proof of insurance before approving a car tag.
Senator Cindy Hyde Smith (R – Brookhaven) voted against the bill. She said that officials in her district were concerned that the extra responsibility might slow down the process in tax collectors’ offices.
The bill will now move to the House, which has killed similar legislation in the past.
If you own a motorcycle, you’re probably worried about how to handle it if you’re hit by someone who isn’t insured. This video offers some suggestions, including how to save money on the high premiums associated with uninsured motorist coverage for motorcycles.