Unitrin Direct Auto Insurance Review

Unitrin Direct offers auto insurance in many states and continues to expand. The auto insurance company was founded in 2000, and is a subsidiary of Unitrin.

The Unitrin Property & Casualty Insurance Group is currently rated "A" excellent by AM Best for financial stability.

Unitrin Direct offers many different types of discounts for auto insurance and may vary by state. Some of the discounts include multi-car, pay-in-full, drivers older than 55 & away from home students.

The company also has a discount called loyalty, which gives you a discount after your first renewal. Consumers may also qualify for a discount if you sign your documents online and enroll in EasyPay, their recurring payment service.

Unitrin Direct's website is easy to navigate, clean, and very transparent. We know how important this is for consumers, and personally give them an "A" for their website design. According to their news release, they updated their website on Jan 12, 2007.

Unitrin Direct currently offers auto insurance in 25 states, and continues to expand. At their website they have a link that shows which states they do business in.

Unitrin Direct: www.unitrindirect.com

Insurance Complaints Drop in 2007

Insurance complaints dropped this year, while the most common types of complaints remain relatively unchanged according to new statistics.

According to data from the National Association of Insurance Commissioners (NAIC), insurance complaints decreased 3.6% in 2007 from the previous year's data.

The most common types of complaints were Delays (16%), Denial of Claim (14.7%), Unsatisfactory Settlement/Offer (9.8%), Cancellation (4.6%), and Premium and Rating (4.4%).

The most common complaints by types of coverage were Accident and Health (36.4%) and Auto (34.4%).

Other types of complaints by coverage include Homeowners (12.5%), Life and Annuity (9.0%), and Commercial Multi-Peril (1.8%).

NAIC collects the data from its Complaint Database System (CDS), where states report "closed" complaints voluntarily, and the NAIC does not collect data from all states.

A total of 222,814 consumer complaints were reported to CDS in 2007.

California Health Insurance Mandate, Voted No

The Senate Health Committee voted against the bill that would have required all Californians to purchase health insurance. The bill, AB X1 1, was scheduled for vote last wednesday, but then delayed until Monday.

The committee was concerned about the spending in the bill, as well as the mandate that would require people to purchase health insurance they may not be able to afford.

The bill would have also required employers to purchase health insurance. The bill did have some good parts in it, but I guess the committee felt the good did not outweigh the bad.

Arnold, speaking to the San Francisco Chronicle, said "I'm not taking 'no' for an answer, we've come a long way to get as far as we have... this is the last mile."

It seemed pretty certain last wednesday that there was not enough support for the bill to get past the committee. Sure, California may need health insurance reform, but how about a bill without the mandate.

The bill had so many different provisions in it. Maybe they can make the bills not so lengthy, and pass the parts everyone agrees on.

BadgerCare Plus to Insure All Kids in Wisconsin

Wisconsin has proven to be a leader for insuring kids. Wisconsin's new program will provide health insurance for all children in the state, regardless of income.

The health insurance program, BadgerCare Plus, will be available to people in Wisconsin starting February 1, 2008.

Low income families will be able to enroll their children into BadgerCare Plus at no charge.  Higher earning families will be able to buy into the program for as little as $10 a month.

BadgerCare Plus also offers comprehensive, affordable health care to pregnant women and some adults in Wisconsin that make a certain amount of income.

Families can begin signing up for BadgerCare Plus on Friday, or get information about the program by visiting www.badgercareplus.org.

Other states have similar programs for children, but may currently have income eligibility requirements.

Blue Cross Unveils Plan to Cover Uninsured

On Wednesday, Blue Cross Blue Shield Association has announced a plan for covering the uninsured and comprehensive reform. The five-point plan is called "The Pathway to Covering America".

BCBSAs five-point plan for comprehensive reform includes the following:

1. Encourage Research on What Works. Today, an estimated 30 percent of healthcare spending goes toward care that is ineffective, redundant or inappropriate. America needs an independent institute to support research comparing the relative effectiveness of new and existing medical procedures, drugs, devices, and biologics.

2. Change Incentives to Promote Better Care. The incentives in our system must be changed to advance the best possible care instead of encouraging more services. Providers should be rewarded for delivering high-quality, coordinated care, especially for the increasing number of Americans with chronic illnesses.

3. Empower Consumers and Providers. Consumers and providers must have access to the information and tools they need to make informed decisions. This starts with information systems to manage personal health records. In addition, consumers need to know how much they are paying for their healthcare and what they are getting in return.

4. Promote Health & Wellness. The costs of treating chronic conditions are estimated to account for 75 percent of healthcare spending. As a nation, we must promote healthy lifestyles to help prevent chronic illness and work aggressively to help patients with chronic illnesses manage their own health.

5. Foster Public-Private Coverage Solutions. Coverage plans need to be tailored to capture the diversity of the uninsured population so that no one gets squeezed out by cost, misses out on available government assistance or opts out because they do not think they need health coverage.

To foster public-private coverage solutions, they propose states should provide brokers with a finder's fee for enrolling individuals in Medicaid and SCHIP & feel states should be allowed to automatically enroll children into public programs who qualify for other programs (such as free or reduced school lunches, ect).

In each step, they have outlined what the Blues are doing, and what the Government should do. The BCBSA plans to engage in a multi-pronged campaign both nationally and in all 50 states to help advance this proposal. For more details/information about BCBSA's plan visit www.bcbs.com/pathwayreport

Blue Cross Blue Shield has had 75 years as leaders in the health community, and the 39 regional companies insures millions of Americans.

Aetna Advantage Plans Available in More States

Aetna announced today that it has begun selling health plans for individuals and their families in Alaska, Arkansas, Mississippi, West Virginia & Wyoming. The new Aetna Advantage Plans for Individuals and Families will be effective February 1, and consumers will be able to purchase health insurance directly from Aetna or through independent insurance agents or brokers.

Individuals may choose from among several different medical plans, including PPO-style plans; high-deductible health plans compatible with health savings accounts; preventive and hospital plans that combine coverage for preventive care with catastrophic coverage for services like inpatient hospital care and outpatient surgery; and an optional dental PPO plan.

Each Aetna Advantage Plan is also available on a child-only basis, so that parents can obtain health coverage for their children, even if no other family members enroll in the plan.

Aetna has a large network of health care providers and offers a broad range of health insurance products. The Aetna Advantage Plans are currently being sold directly to consumers or through agents and brokers in many other states.

Massachusetts launches insurance agent finder website

The Massachusetts Division of Insurance announced they have launched a new website that helps consumers locate insurance agents and insurance products in Massachusetts.

The website lists agents/agencies that are licensed to sell insurance in Massachusetts, and have also registered to be on the website.

At the website, agentfinder.doi.state.ma.us, consumers can perform a search by entering their zip code and selecting between auto, homeowners, life or health insurance.

Consumers can also conduct detailed agent search by entering the agent's name, business location, company or product.

Massachusetts Division of Insurance's AgentFinder will work in conjunction with the state's web site launching next month for comparing auto insurance premiums.

California Mandatory Health Insurance Vote Delayed until Monday

UPDATE: Originally the vote was scheduled for Wednesday, but Perata requested it be delayed until Monday.

Arnold's bill for mandatory health insurance in California is up for vote is now delayed until Monday. However, there is a key senator, Leland Yee, that opposes the bill, so it probably won't pass.

The law, AB X1 1, would require all Californians to purchase health insurance, with no caps on premiums, no regulation of the costs of insurance or medical expenses, no maximum deductibles, and no floor on how little coverage you must purchase. If you do not purchase insurance, the State would collect premiums by garnishment of wages or mortgage liens.

Senator Leland Yee joins the Senate Health Committee Chair, Kuehl in opposing the bill. Here is an excerpt from Yee's press release about what he thinks of the bill.

“AB X1 1 doesn’t provide care, but rather just requires individuals to purchase insurance without specifics on how to contain costs,” said Yee.  “It is unethical to garnish someone’s wages or place a lien on their mortgage because they can’t afford to purchase insurance.  This bill is like telling someone who is in need of help, 'I'm going to give you food, but I'm going to take away your clothes.'

AB X1 1 is also opposed by the California Nurses Association, United Food and Commercial Workers, Communication Works of America, League of Woman Voters, the Teamsters, Gray Partners, California School Employees Association and others.

The Senate Health Committee will be holding the hearing on AB X1 1.

Average Insurance Costs

What does an average insurance rate mean to you, factors that influence insurance costs, and how rates vary depending on the company.

The average car insurance rate is $829, and the average home insurance rate is $764. Those are the national averages, but rates vary by as much as $500 depending the state you live in.

Car insurance rates are going to vary depending on type of car, location, type of coverage, driving experience, driving history, and much more. Home insurance rates are vary depending on the age of house, cost of home, location, claim history, and other factors.

The average insurance rates for a 25 year old is going to vary from a 35 year old that has much more driving experience. So it is going to be difficult to know what the average rate is going to be for you.

If you wanted to know your average rate, then you can get quotes from different companies and calculate the average rate. Although, most people are more concerned about just finding a good price for insurance.

More importantly, average insurance rates vary depending on the company. Insurance companies may have lower prices or higher prices for various reasons. Rates may be influenced by how much insurers are spending on business expenses, how much profit they expect, advertising expenses, risk factors, competitors rates, and many other reasons.

Allstate no longer suspended in Florida

Just days after Allstate was issued a suspension in Florida, Allstate can now once again write new policies in the state. Allstate sent an emergency motion for immediate relief to the appeals judge and it was granted.

The commissioner had previously suspended Allstate's authority to do business in Florida, and now he says that this is just another step in the process that enables Allstate to further delay production of the documents requested, and Allstate's motion was not unexpected.

He also says he remains committed to Florida's consumers and will get to the bottom of this issue, and take every action necessary to protect Florida consumers.

Allstate was pleased with the Florida First District Court of Appeal's decision to grant an immediate stay from the Florida Office of Insurance Regulation's order to cease writing new business.

This ruling now allows Allstate's more than 1,100 Florida agents and employees to continue to create jobs and serve their community.

Average Home Insurance Rates by State

The national association of insurance commissioners (NAIC) released its homeowners insurance report, providing data for average costs by state and other information.

Although the cost of real estate differs in each state, it still gives you a good idea what an average rate would be in each state.

Also, insurance companies have a team of professionals that evaluate risk, so the costs may be a good indicator of what is the safest place to own a home.

The Texas Department of Insurance develops policy forms similar, but not identical to homeowners policies countrywide, and should not be directly compared with any other state. The average in Texas is $1,372.

States with higher rates
1) Louisiana $1,144
2) Florida $1,083
3) Dist. of Columbia $963
4) Mississippi $939
5) Oklahoma $996

States with lower rates
1) Idaho $457
2) Utah $477
3) Oregon $491
4) Delaware $498
5) Wisconsin $495

The national average for home insurance is $764. The average rates for renters insurance countrywide is $193, and does not vary much by state. The study is based on premiums in 2005.

Florida suspends AllState from writing new policies

Florida Insurance Commissioner, McCarty, announced he has suspended Allstate from writing new policies in Florida until they comply with the subpoenas served Oct. 15. Allstate was supposed to provide appropriate documents before Tuesday's hearing, but instead sent 51 pages of objections to the subpoenas.

The suspension applies to all Allstate companies in Florida from writing new policies. Existing policyholders will not be affected and policy renewals will not be affected. Only new business is affected. The suspension will be lifted when the commissioner has received the documents the state needs to investigate the important issues before them.

The commissioner says he was troubled by Allstate not complying with the subpoenas and not willing to explain their relationship with rating agencies, modeling companies and trade groups, and how these relationships might have influenced the huge rate increases they have requestioned. This is the first time Florida has suspended a company for failure to freely provide documents as required by Florida law.

Allstate responded to the FL Office of Regulation in a statement. Allstate was surprised at the OIR's actions and since receiving the subpoenas, Allstate has produced nearly 40,000 pages of information and will continue to produce responsive documents. At this time, it is not clear how this action will affect Allstate or the more than 1,100 Allstate agents in Florida.

Washington State Seeks to Regulate Individual Health Insurance Rates

The Washington Department of Insurance announced this week that the Insurance Commissioner will again request legislation to restore his ability to regulate rates for individual health insurance.

According to the reports, insurance carriers say individual plans don't need to be regulated because there's no problem. However, the commissioner points out that many consumers are seeing rate increases as a problem.

The authority to regulate the individual market was revoked back in 2000, when a pledge was made with the carriers. In exchange for the pledge, the carriers agreed to stay in the market.

The pledge included: The health carriers were allowed to off-load the sickest eight percent of applicants to the state's high risk pool. The pre-existing condition waiting period grew from three months to nine. Health carriers can replace a product on 90 days' notice. Insurance Commissioner lost authority to review rates.

Eight years have passed since this law took effect and the commissioner says that last year, the largest insurer filed an average 19 percent increase. If the state regulates rates there may be more affordable health insurance.

Top 5 Myths and Facts about Independent Insurance Agents

MYTH: Independent insurance agents can compare rates from all carriers.
FACT: Independent agents can only compare rates from carriers they have contracts with. Some larger agencies may be very good at comparing rates, but new, smaller agents may only have a few carriers they represent. Carriers usually want a minimum of premiums, or the agents get dropped.

MYTH: Independent agents only try and promote the company with the higher commission.
FACT: Commissions do vary, but 1% or 2%, and not enough for an agent to pick one company over the other. Ultimately the customer decides what company they want to go with. People usually base their decision on price, and may listen to agents experience with the carrier.

MYTH: Independent insurance agents work for the insurance company, so they only care about the company, and not the customers.
FACT: Most agents care a lot about the customers and want to keep their clients happy for both moral and financial reasons. They have a lot of experience dealing with claims service, customer service, and know what companies are better than others.

MYTH: Independent agents could never be biased towards one carrier.
FACT: Agents that have bad experiences with certain carriers will simply not recommend them to their clients. Additionally, many carriers offer contingencies if the 'book of business' is very profitable. This may encourage some agents to put low-risk with one company and high-risk with another company.

MYTH: I can find the best company & rate by going to one independent agent.
FACT: As said before, agents typically do not have contracts with all the carriers. Sometimes as few as 2 or 3. Also, some agents are more experienced than others. Talking to several independent agents and/or captive agents will help you find the best insurance company and rate.

Tool for Comparing California Auto Insurance

The California Department of Insurance created a tool for comparing auto insurance rates. The premiums shown are based on a CDI automobile premium survey. The results are not premium quotes, but is provided to encourage Californians to shop around for insurance.

The tool asks if you want standard or liability coverage, where you live, your sex, how long you have been licensed, miles you drive a year, driving record for 3 years, and vehicle type. I noticed they do not have many vehicles to choose from, but you could select a vehicle that is most similar to yours.

I ran a few tests to see how rates varied depending on a few factors. I wanted see how much difference driving experience and sex made.

I selected standard, Los Angeles Hollywood-West, Male, 3-5 driving experience, 7,600-10,000 miles, no violations or accidents, Honda Accord.
Rates are high. $2,000 - $7,000.
Rates are very similar for female.

When I changed to driving experience 16-40 years, Rates were much lower. $1,000 - 4,000.

I put 16-40 years driving experience, and 1 At-fault accident and rates go up 1,500 - 5,000.

These are not premium quotes, but good indicators of the differences in premiums charged by insurance companies. The rates did vary depending on the criteria I put in, but I was also surprised how much the rates varied from different insurers, assuming this tool is somewhat accurate.

Health Insurance in New York: What's the solution?

I was reading a question for Hillary, and the question was: Why does New York spend more on government health-care than every other state but still has a larger portion of its population walking around without health insurance than states that spend far less?

He touches on several points:

* New York has guaranteed issue and community rating. This drives up costs so individuals can't afford private health care.

* Community rating requires insurers to charge the same premium to anyone in a given plan, regardless of age, gender or health.

* Guaranteed issue requires insurers to sell a policy to anyone who can pay for it, regardless of health status, and this encourages people to wait until they are sick before they buy insurance.

* 68% of children without insurance in the state eligible for government care, haven't signed up.

It sounds like he answered part of his own question! Those that don't want to spend money on private healthcare in New York, wait until they get sick. That is exactly why New York was trying to raise the SCHIP limit because private healthcare is just so expensive in New York. Should they relax the mandates in New York? Probably so.

Is there a perfect solution? I don't know!

ForAgentsOnly.com helps independent agents quote commercial auto

Progressive announced that independent agents in 12 states now - and all states by mid-year 2008 - can accurately quote commercial auto policies using their agency-dedicated web site, ForAgentsOnly.com.

Agents say that quoting in real-time helps service their customers much better. The platform is similar to both ProRater and Progressive's private passenger auto FAO quoting experience.

The Real-time quoting verifies customers information, including vehicle identification numbers (VIN), credit reports and motor vehicle reports.

Independent insurance agents who would like to sell Progressive Commercial Auto should visit www.progressiveagent.com

Credit Score and Insurance Rates

Whether you agree that credit score should be a factor in determining insurance rates, in most states and with most insurers, it can be a factor.

Using credit score for other types of financial services makes sense, because they want to make sure you pay your bill. It may be true that those with lower credit scores are more likely to file claims.

It's really difficult to determine why they use credit score for insurance. However, more than likely it would not be weighted as much as other factors.

How many tickets you get, how many claims you've filed, will probably be more important factors.

If you really wanted too, you could get a credit report that's free once a year, and see if it's correct and see if you can make your credit score better.

You may also consider getting a your CLUE report, which is free as well, that tracks your claim history for the last five years, and make sure that is correct too.

What's New for Insurance in the New Year 2008

With a new year, comes many changes. There's quite a few new things with insurance this year.

All of these changes only apply at a state level, except for the SCHIP extension. This is by no means, a complete list, but is some new things interesting about what the new year brought to insurance. These are not listed in order of significance.

* Florida drivers must now carry PIP insurance on their auto insurance policy. PIP was required previously, but lapsed, and now is required again. [sun-sentinel.com]

* Bush signed bill to extend SCHIP until March 2009, although it was not expanded, it was good news for many that needed it. [reuters.com]

* Massachusetts fines go up for not having health insurance. Fines could total as much as $912 for individuals and $1,824 for couples by the end of 2008. [businessweek.com]

* Connecticut insurance department will start to post information on it's web site how insurers treat their customers and the fines insurers pay for violating state law. [newsday.com]

* The hurricane law in Connecticut that bans insurers from refusing coastal customers who lack permanent storm shutters, now includes that insurers must offer premium discounts, or credits to homeowners who install permanent storm shutters or impact-resistant glass. [theday.com]

* In Oregon, health insurance plans that cover prescription drugs must now cover birth control. [oregonlive.com]

* Health insurance rate regulation returns to Hawaii. The law intends to prohibit health insurance rates that are excessive. [starbulletin.com]

Happy New Year!