Happy New Year 2013

May the coming year be filled with peace, happiness and good health,
With lots of luck and loads of wealth,
Wishing you and your family a very happy new year!

Merry Christmas

I hope that your Christmas would be
fun and may the essence of
Christmas remains always with you.

Merry Christmas!!

New insurance rules could cost women drivers £300 a year

Women drivers could face a 40 per cent rise in their car insurance premiums in the EU.

New EU rules which raise women's car insurance costs have been slammed as "gender equality for gender equality's sake".

London MEP (Member of the European Parliament) Marina Yannakoudakis said: "Only in the EU could penalising both women and men be seen as a kind of fairness."

Ms Yannakoudakis, Tory spokesman in the European Parliament on women's rights, hit out on the day that new "gender-neutral" pricing rules came into force.

The rules follow a European Court verdict on sex discrimination and affect areas where different standards apply to the sexes - notably car insurance and pension ages.

Applying equality rules means that men are likely to get lower pension annuities, while women will pay more for car insurance where traditionally they are considered safer drivers and therefore pay lower premiums than men.

Ms Yannakoudakis said women drivers could face a 40 per cent rise in their car insurance premiums, with female drivers under 30 set to be hit hardest. Male pensioners could be left up to $10,000 worse off in retirement.

She said: "This ruling is gender equality for gender equality's sake.

"It flies in the face both of common sense and the overwhelming evidence that women drivers represent a lower risk to insurers.

"Women drivers who have not already changed their policies should shop around to ensure that they get the best deal."

It was in March last year that European Court of Justice judges in Luxembourg rewrote the rule book for insurance companies by banning risk assessment based on gender.

Using differences between men and women as a risk factor in setting premiums for car and medical insurance and pension schemes breaches EU rules on equality, declared the judges.

The verdict forced changes in the current standard practice across Europe of basing insurance rates on statistics about differing life expectancies or road accident records of the sexes.

The Association of British Insurers estimated that the decision will actually reinforce price discrimination, with women drivers under 26 in the UK facing at least a 26 per cent rise in car insurance rates, with a 10 per cent drop in rates for men.

Up until now, discrimination in setting insurance rates was explicitly permitted under EU equal treatment rules, which stated that discrimination was permissible "if sex is a determining risk factor ... substantiated by relevant and accurate actuarial and statistical data".

But the judges decreed that equality provisions set out in the Charter of Fundamental Rights of the Lisbon Treaty took precedence.

Newtown school shooting

 Heart and thoughts go out to all the affected.

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On December 14, 2012, Adam Lanza shot and killed 26 people, including 20 children and 6 staff, at Sandy Hook Elementary School in the Sandy Hook village of Newtown, Connecticut, and then killed himself. The school shooting occurred after he had shot and killed his mother, a volunteer at the school, at their nearby Newtown home. It was the second-deadliest school shooting in U.S. history, after the 2007 Virginia Tech massacre.

After shooting his mother Nancy Lanza, age 54, Adam drove her car to the school. The killing of his mother at their house made the overall death toll 27, in the day's rampage, not counting Adam. His older brother Ryan Lanza was mistakenly identified as the shooter in early reports by media organizations, and was later voluntarily questioned by the New Jersey Police, the Connecticut State Police, and FBI, though he was not considered a suspect or taken into custody. Ryan's identification was found on Adam Lanza's body.

Types of Auto Insurance Coverage

Auto Liability Coverage

Auto liability insurance coverage pays for the damages suffered by the other parties in an accident for which you are found to be at fault and you are legally responsible. Like accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.

Liability insurance does not cover any expenses related to damage to your property, or any injuries you may suffer. All states require a minimum amount of liability coverage in order to legally drive a vehicle. In some states, you can avoid buying liability coverage if you can prove you have the personal financial resources to cover the minimum requirements levied by the state. Liability insurance covers you when driving any vehicle you own, or if you drive someone else’s car with their permission.

Auto liability coverage falls into two categories:

    Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
    Property Damage Liability -- which covers damaged property, and may include loss of use.

Liability car insurance also pays legal defense and court costs.

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Personal Injury Protection (PIP)

This auto insurance coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident. Personal Injury Protection, or PIP, is sometimes called “no-fault coverage.”

PIP is a complement to bodily injury liability coverage in that it covers approximately 80% of medical expenses including rehabilitation, funeral costs, Lost earnings, and Replacement of services (For example, child care if a parent is disabled.).

Where it differs from bodily injury liability is that it covers you, your passengers, or anyone authorized to drive your vehicle. It also covers you and anyone else named on your policy when driving someone else’s vehicle. This type of coverage is mandatory in 16 states. Your state’s Department of Insurance, or your insurance agent, will be able to tell you if you are required to have it. If you live in a state where it’s optional, you may want to consider adding it to your policy for extra protection.

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Medical Payments

This auto insurance coverage is available in most states. It pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident.

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Collision Coverage

This auto insurance coverage helps pay for damage to a covered vehicle caused by:

    Collision with another vehicle
    Collision with an object
    A vehicle rollover

A deductible is required.

Collision coverage will pay for the repairs your vehicle needs that is caused by the accident, or to replace your car altogether if the collision causes a total loss, also known as “totaling” the car. The most important thing to remember in this case is, you will be reimbursed for the current value of the vehicle, not the purchase price.

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Comprehensive Insurance

This auto insurance coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. This is the insurance coverage that pays for damage to your car caused by something other than another vehicle.

Examples of this type of damage or loss include:

    Fire
    Wind
    Hail
    Flood
    Vandalism
    Theft
    Hitting an animal
    Tornadoes
    Hurricanes
    Earthquake

A deductible may apply.

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Uninsured Motorist Coverage

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance.

It covers for damages if you’re involved in an accident with a driver who: carries no auto insurance, or insured by a company that is financially unable to cover your losses, or hits you and flees the scene.

In some states this auto insurance coverage may also pay for property damage.

This type of car insurance coverage varies by state and depends upon policy provisions.

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Underinsured Motorist Coverage

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.

Application of this type of auto insurance varies by state and depends upon policy provisions.

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Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident.

Daily allowances or limits vary by state or auto insurance policy provisions.

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Emergency Road Service

This auto insurance coverage pays for having your auto towed due to a breakdown.

Towing limits vary by state or policy provisions.

This information is only a general description of the available types of auto insurance and is not a statement of contract. All auto insurance coverages are subject to all policy provisions and applicable endorsements.

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Auto insurance deductible

It is the part of a covered loss that you have agreed to pay with your own money.

If you file a claim against your insurance, you will pay only the amount of the deductible. The insurance company will pay the rest - up to your coverage limit.

When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.

Typically, higher deductibles mean lower auto insurance policy premiums.

An auto insurance policy typically covers:

    You and your spouse
    Relatives who live in your home
    Other licensed drivers who have permission to drive your insured vehicle.

Happy Thanksgiving

Thank everyone you know. Thank your parents, your siblings, your special someone and all your friends and relatives. Be thankful for everything. Happy Thanksgiving.

What is Property Damage Insurance?

Property damage insurance is liability insurance for claims brought against a person who causes damage to another's property, as by an automobile accident.

This includes not only the labor and parts costs associated with car repair, but also replacement for valuables inside the car that were destroyed or even for repairs to stationary objects you may hit like a neighbor's tree.

Some states require you to purchase at least a minimal amount of property damage liability coverage around $5000. However it is recommended to purchase higher coverage amount. Because if for example Mr. X has a $5000 property damage insurance policy and his car hit another car and the cost of repairs goes over the threshold of $5000, let's say the tolal cost of repair is $10,000. He would still need to pay $5,000 out of his own pocket.

Not only is property damage insurance a good idea, but it's a safe bet, considering the cost of replacing or repairing personal property.

Collision Coverage

collision coverage - insurance coverage that cover for the repair or replacement of the policy owner's car in the event of an accident, no matter who caused the accident. Collision coverage requires the payment of a deductible when a claim is made and is required for financing a car.

collision coverage is optional, but may be important to include it in your policy.

If you cause the accident you can't collect for damage to your car from the other driver. Collision coverage will pay for the damage, even if an accident is your fault.

The amount of collision coverage your policy provides and the cost of premiums will depend on the value of your car. Premiums are much higher for vehicles that are expensive, accident-prone, easily damaged, or hard to repair.

The insurance company is only obligated to pay only up to the car's cash value (Car Market Value before the accident - Salvage Value of the damaged car).

When to drop collision coverage?

If your premiums plus deductible are equal or more that the value of your vehicle, you can drop the coverage.

If you have a $1,000 collision deductible on a vehicle that's worth $1,000, it becomes useless since it's the total amount of your car.

Or, if your collision premium is $300 for a six-month policy term, you're paying $600 per year to insure your vehicle against damage that may never happen and you still have to pay the deductible (out of your own pocket) for example $500 that would make a total of $1,100 which is more than the value of your vehicle.