Breaches in ethical and moral behavior are all too common when large sums of money are at stake and the industry of insurance claims adjusting is certainly no exception. Claims adjusters, more than many other professionals, will almost continuously face temptations of greed. Why does this happen?
An insurance adjuster, particularly an independent insurance adjuster, has a surprising amount of power to wield. When a claim is filed, the adjuster may dictate in large part the speed by which the claim will be processed and the final settlement amount. In the case of a small automobile claim, this may be less the case as a dented fender and broken headlight leave little wriggle room for malfeasance. However, in the case of a medium to large loss residential or commercial property claim, the possibilities for abuse become far greater. $15,000 can literally be added or subtracted from a claim with a few keystrokes and it is here that adjusters can run into trouble. Take for example the recent fraud attempt in Beaumont, Texas.
A hotel manager was arrested for offering $20,000 cash in exchange for a $125,000 insurance claim check on a loss of only $18,000 after Hurricane Humberto. The man in this case was turned in by his adjuster but one can imagine some less ethical claims personnel taking the money and putting in an imaginative claim for $125,000. Claim inflation is probably the single greatest temptation an adjuster will face and not merely from the perspective of taking a cut of the final payment from the claimant. Because adjusters are typically paid a percentage of the final claim amount, there is always a temptation to bump the claim up another notch to get to that next percentage level. However, the two are in effect the same and must be avoided altogether. An adjuster who repeatedly pads claims, in addition to committing a crime, will eventually be an adjuster out of work. Fraudulent claim activity is being investigated and prosecuted like never before.
Strength of moral character is an important trait for any professional but particularly for those who hold the power to give and take away – a power given to claims adjusters.
By: Dan Kerr
It’s not exactly cheap to drive and maintain a car these days. As gas prices waver up and down and salaries fail to keep pace with inflation, it seems we’re all looking for ways to cut costs.
For those of us who drive, auto insurance is a necessary requirement enforced by law. Though we hate paying what we sometimes feel are outrageous premiums, the financial protection we gain from those policies is a trade-off we just can’t live without.
Just ask anyone who’s been involved in an accident lately.
But there is good news. As this mobile society struggles to keep up with increasing costs, auto insurance premiums have finally begun a downward trend.
According to one reliable source, the average auto insurance premium fell almost 2 percent last year, to an average of just over $2,300 per household.
That may not sound like much, but it translates to an average savings of $60 a year.
If you weren’t one of the lucky ones who got a pleasant surprise when your auto insurance policy renewed this year, don’t despair. You can still save money on your premium by following a few simple steps:
Comparison Shop. If you have a good driving record and/or buy a safer car, your premium should go down. Plus, with some companies now charging lower rates, increased competition means better auto insurance rates for you! Take advantage of online marketing services like InsureMe.com to find the best auto insurance rates from competing insurers.
Find out what your insurance will cost before you buy that new car. Auto insurance companies typically charge more for cars that are expensive to repair or don’t fare well in accidents. So before you drive off that lot, make sure your new car is considered safe, and relatively cheap and easy to repair by your insurer. This will help minimize risk…for both of you!
Ask your insurer for discounts. These cost-savers can lower your insurance premiums more than you might think:
Combining two or more cars on one auto insurance policy Buying a car with airbags or other safety equipment Installing anti-theft devices in your vehicle Completing a driver’s education course Insuring your home and auto with the same insurer Applying for a mature driver discount (for those between 50 and 65) Getting good grades (for students under 25)
Take the highest deductible you can afford. Your deductible is the amount you pay out-of-pocket, in case of a claim, before your insurance company starts paying its share. The higher your deductible, the lower your premium—it’s as simple as that. Just be sure you’re able to absorb a larger portion of your loss in case of an accident.
Improve your driving record. The more tickets and accidents you have, the more your auto insurance costs. So drive cautiously, improve your motor vehicle record, and inform your auto insurance company of the change. They’ll reclassify you as a safer driver, and lower your auto insurance rates in the process!
Consider dropping comprehensive and/or collision coverage if you drive an older car. Physical damage coverages like these reimburse you for damages to your own car. But if the vehicle you drive is several years old—or worth less than $1,000—it may not be worth much anyway. Dropping such unnecessary coverage can really save you money.
Review your policy regularly, and keep your coverage updated. Your auto insurance rates may fluctuate due to:
Adding or removing a driver from your auto insurance policy Replacing an older vehicle with a newer one Adding or removing a vehicle from your policy Increasing or decreasing the number of miles you drive annually
Talk to your insurer if you encounter any of these situations. Under the right circumstances, you’ll reduce the impact on your wallet—and walk away a few dollars richer!
If you’re looking for ways to counter prices at the pumps—and everywhere else, for that matter—take these tips to heart.
By: Penny Hagerman
The legal driving age was 16 years old back then. In Ottawa, Ontario, Canada, insurance cost for 17 year old or 16 year old like I was at the time was very expensive. Now days with the inflation and cost of living, it is almost impossible for a 16 or 17 year old teenager to afford auto insurance on his own.
A lot of parents are very nervous about registering their children on their own auto insurance policy at 16 or 17 for obvious reasons. The main concern many parents will have is dealing with the facts that their children are still very young without any driving experiences and very little maturity to be put behind the wheel of a car. Not to mention their own insurance policy being raised following an accident caused by their children, good bye to those no-claims bonus. The other side of the coin might be to tell your children to wait until they find a job and can afford their own insurance policy risking a lot of nervous tension. Statistics are showing that each year over 5,000 teenagers between the age of 16 to 20 die in car accidents. These young drivers are at a greater risk of being involved in a car accident than it is for driver over 20.
Many factors affect insurance cost for 17 years old. Insurance companies base their premium depending on the number of claims per zip codes or area you live in, the types of car you will be driving, the year and model, being a male or a female can determine your policy cost as well, having an approved driver-training course will also help getting your child a better deal. As you can see the cost of an auto insurance policy is not simply based on the age of a driver.
Did you know that currently, the legal age range at which teenagers are allowed to drive without supervision is from 14 in South Dakota to 17 depending on the states. Insurance cost for 17 year old drivers or younger can vary anywhere from $1,500 to $3,000 or more a year on a parent’s policy again depending on the criteria listed above.
By: John Tahan