Having teens drive a Camry rather than a Corvette, encouraging them to make good grades, and urging them to keep their driving records clean can all have a major impact on rates.

“Putting your teen in a big, boring vehicle is going to be a lot easier on the wallet than giving them the zippy small car they may want,” says Russ Rader, spokesman for the Insurance Institute for Highway Safety.

There is a reason teenagers cost more to insure.

New drivers are among the most dangerous on the road, racking up tickets and accidents at rates several times the rate of a typical driver.

A teenager does not have to drive. Bicycles and bus passes are cheaper, if you live in a place where that’s feasible.  But if it’s not, here is what every parent needs to know about the cheapest ways to insure a teenager.

Yes, you have to insure your teen driver

Virtually every insurer will require that all licensed family members in a household be included on your policy, whether they drive your cars or not. You should let the insurer know when the child gets his or her learner’s permit, but typically the teen isn’t listed (or your policy charged) until he or she is licensed.

If you are divorced and have only part-time custody of your child, you’ll have to consult your insurance company. Each company has its own rules. The best case is that the parent with primary custody adds the new driver; the worst case is that both parents do.

The only way to avoid paying the premium for a teenage driver on your own car is a named exclusion. Through an endorsement to your policy, you and your insurer agree that the driver is not covered. Any claim caused by that driver isn’t covered, either.

Your teen could insure his or her own car, but state laws governing teen ownership of cars differ widely. In general, a minor cannot own property or sign contracts, such as an insurance agreement, without a parent’s consent and signature.

It is almost always cheaper to add teenagers to an existing policy than to exclude them and instead buy an additional car and insure that, says CarInsurance.com consumer analyst Penny Gusner.

Not-so-hot wheels

If your household has several cars, it can help to have your new driver assigned to a specific one — the one that’s cheapest to insure.

If your child will have a car of his or her own, one place to start when looking for a car is the IIHS website, which lists insurance losses by make and model for vehicles built prior to 2010. Those vehicles with lower auto insurance losses will typically have lower auto insurance rates, while providing more protection if your teen is in a crash, Rader says.

The site also has a listing of the IIHS’s top safety picks for 2011 and older model years.

June Walbert, a Certified Financial Planner for USAA, says a vehicle with a “bigger, faster engine costs more money to insure and more money to repair.”

And just having a car with a powerful engine can be a temptation, Walbert says. “If you have that kind of power available, perhaps you’ll use it.” Instead, she recommends four-door sedans and crossover vehicles.

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on your insurance!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Courtesy: Carinsurance.com, MSN Money

Insurance during the Remodel

While remodeling your house, you’ll need to have the proper liability coverage in place. If you hire contractors to work on the home, they may have their own coverage. Although, handymen and friends of the family, if injured, should have the opportunity to file a claim on your homeowner’s policy.

Turning your home into a construction site can put the interior at risk for damages. You should try your best to minimize risk exposures so as not to be negligent or expose yourself to more risk than is necessary.

The materials you use during your remodel could affect your insurance premiums. Be sure to follow the most recent code guidelines when making improvements. Also, try to invest in building materials that fortify the structure against damage. Fortifying your home can, in turn, add discounts to your home insurance policy.

Finally, think about your possessions listed in the contents area of your policy during the renovation. For some, you may have to find temporary, offsite storage for some items. This can take them out of the scope of your policy and expose you to risk of loss unless you have a supplementary plan of coverage those items while they are offsite.

Insurance after the Remodel

Once your remodel is complete the property value, as well as your replacement costs, will increase. If any redecorating is included with the remodel, the value of your contents might also have increased. All of this translates into a need to review and possibly update your home insurance policy to reflect your new values. Raising your limits will ensure you’ll get exactly what is needed out of your policy in the event of a post-remodel insurable incident.

It’s very easy to update your homeowner’s policy to reflect these changes. Just give your agent a call to let them know what needs updated, and they can help you decide what your new property and contents limits should be. Since increasing your limits will likely increase your premiums, you could consider raising your deductible a bit in order to balance the changes out.

Contact us at Insurance Planning Service today to make sure your Michigan home insurance policy is all up to date!

Homeowners’ Insurance
The last thing volunteers want to consider is what would happen if their favored organization file suit against them as a result of their efforts. But it happens, and not infrequently. This does happen, especially when volunteers make decisions that directly influence the finances of an organization. Often, the only insurance these volunteers have to back their efforts is a homeowner’s policy. Unfortunately, this policy may be of little assistance.

The reason homeowners’ policies do not usually cover liability stemming from actions as a volunteer is the nature of the claim. The policy is designed to cover claims of “bodily injury,” such as someone slipping on cracked pavement in your driveway; and/or “property damage,” such as accidentally setting your neighbor’s house ablaze when burning some brush on a windy day.

Claims against board members do not usually involve bodily injury or property damage. Rather, they involve bad decision making that results in financial loss to the organization, such as the decision to invest in an IT system that turns out to be a debacle, costing the organization tremendous time and money.

There is another problem. Homeowners policies do not cover “professional services.” This is important to note, because board members are often asked to serve in a capacity consistent with their profession. For example, a church member who is a CPA may be asked to serve on the church’s board as finance chairman. Even though he is not paid for his services, the “professional services” exclusion under his homeowner’s policy would still apply.

In addition to the above, homeowners policies do not cover claims of personal injury unless this coverage is specifically added. Personal injury insurance is added to the homeowner’s policy to cover claims such as libel, slander, wrongful eviction, and false advertising.

What to Do
Events causing claims are unpredictable. While the reasons shown above prove it’s unlikely, not all claims against volunteer board members are excluded by a homeowners policy. Decisions to purchase personal injury coverage and a personal umbrella policy will increase your ability to find coverage for a suit against you. 

The best method for insuring the actions of board members is for the organization to purchase a directors and officers (D&O) liability policy. These policies are relatively inexpensive for most non-profits. Before volunteering, request information on the organization’s D&O policy. The absence of this insurance leaves you at risk of having no personal insurance to defend a suit brought against you by the organization and should influence your decision to serve.   

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on Michigan Umbrella Liability for your family or Directors’ and Officers’ Liability for your organization or business!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Courtesy: Trusted Choice

Daniel J. Loepp, Blues president and CEO said, “This agreement is a win-win – not for the health system or the insurer – but for our members and customers. It maintains access to Beaumont facilities for our customers and members. It commits Beaumont, Blue Cross and physicians to work together to achieve high-quality health care and the efficient use of health care dollars. It advances our efforts to deliver innovation in how Michigan pays for health care in the future.”

The five-year agreement provides an increase in base reimbursement to Beaumont Health System while also committing Beaumont to a new performance-based hospital payment model sought by the Blues. Under the new model, Beaumont will work closely with its affiliated physician organizations and the Blues to design standards for successful patient health outcomes that will be the basis for part of its reimbursement.

The new contract moves away from the traditional fee-for-service payment approach toward an outcomes-based approach that revolutionizes the ways hospitals are paid. The new pay-for-performance contract terms sought by the Blues and achieved in this agreement represent a new standard for how Michigan hospitals are paid for services, and how the Blues can help hospitals and physician organizations build efficient and coordinated systems of care.

The agreement includes an opportunity for infrastructure improvements needed to better integrate care services between Beaumont and its physicians groups. The performance standards that will be mutually determined by Beaumont and the Blues will financially reward the hospital for maintaining better overall population health and ensuring the efficient use of tests and procedures.

In December the Blues announced that St. John Providence Health System (SJPHS), and its five acute care hospitals across southeast Michigan, was the first health system in the state to partner with the Blues on a new performance-based reimbursement model. Both the new Beaumont contract and the agreement with the St. John Providence System signal a new era in health care that rewards hospitals for keeping patients healthy and out of the hospital.

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on Michigan Health insurance for your family or business!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Courtesy: Blue Cross Blue Shield of Michigan

2013 Dodge Dart

Detroit’s 2012 North American International Auto Show is only days away from opening its doors to the public!  For those who, like me, attend the show each year, anticipation is building as our local news broadcasts and TV commercials are alive with information about the coming big event.  After several down years in the auto industry, there now seems to be a sense that Detroit is rekindling its title as the “Motor City”. 

I have been a car enthusiast even before I was old enough to drive.  I have attended the auto show every year for as long as I can remember – always looking with particular interest at the new car models that will be offered in the year ahead, as well as the concept cars that give ideas of what may be on the mind of the auto makers for future years.  I will be in the market for a new car this summer so I will be looking closely at several models that may be the next one for me.

I have to admit that, since my teen years, I have had an interest in cars that have had, shall we say, a few horses to spare under the hood.  My more potent rides have included a ’69 Plymouth Roadrunner, a Dodge Daytona Turbo-Z, a Corvette, a couple of North Star powered Cadillacs and a Dodge Charger – the SRT-8 model, of course.  A few years ago, my childhood re-emerged and I picked up another ’69 Roadrunner – now a classic muscle car rather than the run-of-the-mill car as it was back in the day. 

This year I will be excited to see the all-new 2013 Dodge Dart and Cadillac ATS being debuted at the Detroit Auto Show.  Hey!  Anyone hear anything about Chrysler’s 6.2L Supercharged Hemi rumored to be hitting the streets soon?  That ought to be a screamer for sure, eh?

Well, one day soon be waiting in line with many of you when the doors open for the Auto Show!

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on your insurance!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

How is individual insurance different from group insurance?

Individual health insurance is, quite simply, coverage that an individual purchases for himself and/or his family. Individual insurance policies and provisions are regulated by the state where the policy is purchased. Individual policies are often purchased with the advice of a professional insurance producer due to the complexity of coverage offerings and the premium cost. 

Individual insurance is very different than group health insurance, which is the type of insurance that is offered through an employer. Since laws mandating what types of services must be included in individual policies are often different than those dictating what must be included in group policies, benefits are generally less extensive than what most people would receive through coverage they have through work. Sometimes individual health insurance consumers have the option to pay extra for coverage of additional services like maternity coverage. This extra coverage is referred to as an optional rider. 

Coverage in individual policies may be limited due to pre-existing conditions with certain kinds of medical care excluded as a result. This is often referred to as a “rider.” This means that applicants for individual insurance will need to complete a brief medical questionnaire when applying for benefits and, unlike a group insurance policy, in most states a company can decide not to cover people with very serious medical conditions (e.g., HIV or cancer), deeming them “uninsurable.” 

Cost is often the primary factor for individual health insurance consumers, which is another reason why the benefits included in individual policies are often simpler. In addition, deductibles (the amount you have to pay before insurance benefits begin) and cost-sharing (the fees you pay directly to medical providers at the time of service) are also generally higher. 

Since medical services can be quite costly, the insurance premium for individual coverage is small compared to the amount an insurer may have to pay for claims. For example, a comprehensive individual insurance policy may cost $4,000 for a 30 year old male for a year (actual premium costs vary by geographic area, benefits selected and other factors, this is an estimate for comparison purposes only).. A broken leg that needs surgery (lower leg fracture surgery) is estimated to cost $13,175 by the Healthcare Blue Book (www.healthcarebluebook.com). Since claims can easily outstrip medical claims costs for one individual, insurers “pool” risks (see below) to spread claims losses among all of the members of the pool.

In the vast majority of states, when you apply for individual health insurance coverage, you are asked to provide health information about yourself and any family members to be covered. When determining rates, insurance companies use the medical information on these applications. Sometimes they will request additional information from an applicant’s physician or ask the applicants for clarification. 

If the insurance company is unable to obtain information necessary to accurately determine the risk of a particular applicant, it will underwrite more conservatively, meaning that the assumption relative to the missing information will be negative rather than positive It is in the insured’s best interests to provide as much information about their medical history and condition as possible so that the premium quoted accurately reflects their health status.

Example: A person has a history of high blood pressure, but it is controlled with medication and he is not overweight. If the company is unable to determine if that individual smokes or if he has normal cholesterol, the company will assume that the missing information is negative and rate accordingly.

Once the company has determined your health status, you will be assigned a rate class by the company and put into a pool of other insured individuals with similar health status. Your premium will be the rate charged to that entire class of customers. Subsequent annual renewal premium rates will be determined not by your individual claims, but instead by the claims experience of the entire rating class pool.

Even though in almost every state an individual insurance company can choose not to offer coverage to people with serious medical conditions, most Americans don’t have perfect medical histories and most still qualify for individual coverage. However, there are some individuals who do not decide to purchase health insurance coverage until they know that they have a medical problem that will require the use of benefits. This is known as “adverse selection,” and it can be a serious problem for individual market insurance companies since their ability to spread risk is so limited.

To help prevent adverse selection, insurance companies are allowed to look back at your medical history for pre-existing conditions and may choose not to cover certain conditions for a specified period of time. This is known as an exclusionary, or pre-existing condition, waiting period. The amount of time an insurance company can look back at your medical history, and the length of time an exclusionary period can last, vary on a state-by-state basis. NAHU’s Health Care Coverage Options Database will tell you what the requirements are in your state. 

In some states, you can receive credit against a pre-existing condition waiting period if you have had prior health insurance coverage within a specified number of days. The amount of the credit against the waiting period is generally proportional to the length of the prior coverage. 

Also, many states allow health insurance companies to issue elimination riders to people who have pre-existing medical conditions. Elimination riders allow for insurance companies to offer an individual with pre-existing condition coverage but exclude coverage of that pre-existing condition. 

Example: An individual has severe seasonal allergies but can control them with medication. A company may offer the applicant two policy options: a policy at a more expensive rate with full allergy coverage and a pre-existing condition waiting period, or a cheaper policy with no waiting period that excludes allergy coverage. The individual may find that it is more affordable to buy the cheaper policy and pay for his allergy medication and related medical expenses out-of-pocket.

In most states you can be turned down for individual coverage if you have a very serious medical condition (e.g., HIV or cancer). Fortunately, even though they are not required to do so, most states have developed some way to provide uninsurable people with access to individual health insurance coverage. In addition, federal health reform under the Patient Protection and Affordable Care Act (PPACA) provides a pre-existing condition insurance plan for states that don’t have their own program. Twenty-seven (27) states provide coverage to medically uninsurable people through high-risk pools. The federal government, through the U.S. Department of Health and Human Services (HHS) runs the Pre-Existing Insurance Plan in twenty-three (23) states and the District of Columbia. 

Anyone interested in learning more about pre-existing condition insurance can visit PCIP.gov for state-by-state information on pricing, premium and eligibility.

Under PPACA, as of March 23, 2010, health plans can no longer exclude, limit or deny coverage to a child under age 19 solely on the basis of a pre-existing condition. Beginning in 2014, insurers providing individual insurance will no longer be able to, in most cases, exclude, limit or deny coverage for any American solely on the basis of a pre-existing condition. There may be some situations where a plan has maintained special “grandfathered” status where this limitation would not apply.

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on your insurance!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Courtesy: National Association of Health Underwriters

Most auto, homeowner and other property insurers use a credit-based insurance score to determine how likely it is you’ll file a claim, according to David Snyder, vice president and associate general counsel of the American Insurance Association. It’s similar to how mortgage lenders, banks and other gatekeepers of credit rely on a credit score to figure out the probability you’ll default on payments.  Read more…

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on your insurance!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Don’t go out until the snow plows and sanding trucks have had a chance to do their work, and allow yourself extra time to reach your destination.

If you must drive in snowy conditions, make sure your car is prepared (TIPS), and that you know how to handle road conditions.

It’s helpful to practice winter driving techniques in a snowy, open parking lot, so you’re familiar with how your car handles. Consult your owner’s manual for tips specific to your vehicle.

Driving safely on icy roads

1. Decrease your speed and leave yourself plenty of room to stop. You should allow at least three times more space than usual between you and the car in front of you.
2. Brake gently to avoid skidding. If your wheels start to lock up, ease off the brake.
3. Turn on your lights to increase your visibility to other motorists.
4. Keep your lights and windshield clean.
5. Use low gears to keep traction, especially on hills.
6. Don’t use cruise control or overdrive on icy roads.
7. Be especially careful on bridges, overpasses and infrequently traveled roads, which will freeze first. Even at temperatures above freezing, if the conditions are wet, you might encounter ice in shady areas or on exposed roadways like bridges.
8. Don’t pass snow plows and sanding trucks. The drivers have limited visibility, and you’re likely to find the road in front of them worse than the road behind.
9. Don’t assume your vehicle can handle all conditions. Even four-wheel and front-wheel drive vehicles can encounter trouble on winter roads.

If your rear wheels skid…

1. Take your foot off the accelerator.
2. Steer in the direction you want the front wheels to go. If your rear wheels are sliding left, steer left. If they’re sliding right, steer right.
3. If your rear wheels start sliding the other way as you recover, ease the steering wheel toward that side. You might have to steer left and right a few times to get your vehicle completely under control.
4. If you have standard brakes, pump them gently.
5. If you have anti-lock brakes (ABS), do not pump the brakes. Apply steady pressure to the brakes. You will feel the brakes pulse — this is normal.

If your front wheels skid…

1. Take your foot off the gas and shift to neutral, but don’t try to steer immediately.
2. As the wheels skid sideways, they will slow the vehicle and traction will return. As it does, steer in the direction you want to go. Then put the transmission in “drive” or release the clutch, and accelerate gently.

If you get stuck…

1. Do not spin your wheels. This will only dig you in deeper.
2. Turn your wheels from side to side a few times to push snow out of the way.
3. Use a light touch on the gas, to ease your car out.
4. Use a shovel to clear snow away from the wheels and the underside of the car.
5. Pour sand, kitty litter, gravel or salt in the path of the wheels, to help get traction.
6. Try rocking the vehicle. (Check your owner’s manual first — it can damage the transmission on some vehicles.) Shift from forward to reverse, and back again. Each time you’re in gear, give a light touch on the gas until the vehicle gets going.

We at Insurance Planning Service wish you a safe winter season.  Call us at 800-220-5582 to be sure you have adequate insurance coverage or to receive a free Michigan Auto Insurance quote. 

Courtesy: Weather.com

Auto insurance often offers a sort of shared risk. Deductibles and limits divide the risk to make certain some of the risk is yours, and some of the risk belongs to your insurance carrier.

Deductibles are the amount of damages you’re responsible for before your carrier pays out. If the cost of your damage does not exceed your deductible, however, you’re responsible for the full amount.

Limits are the maximum amount that your insurance company will pay toward a claim. Any additional liability above your policy limits is your responsibility, unless you have an umbrella policy.

Setting higher deductibles and lower limits, allows your insurance company to assume less risk. By your carrier assuming less risk, your premiums may be significantly lower. In the event of an accident, your financial responsibility may be greater since you have an aggressive deductible and lower limits to make up for.

Ultimately, when using deductibles and limits to create an affordable auto insurance policy, you want to make sure you find the right balance.

• Can you afford the deductible? You should be able to pay your deductible without going into debt or having to remove the money from an account with penalties for early withdrawal.
• Do you have resources for claims that exceed limits? If you have a claim that exceeds the limits of your policy, you should try to pay the claim with funds that are readily available to you.
• Is it worth the risk? Finally, make sure you perform many policy comparisons with lower deductibles and higher limits to make sure that your premium savings are really worth the increased exposure you have. Consider the changes in premium that these adjustments bring and then consider the amount of money you will need in reserves to pay your additional responsibility.

Shopping for auto insurance is not just about finding the lowest premium. With a little finesse, you and your agent can design a plan with an affordable premium that offers you the coverage you need.Call us today at 800-220-5582 for more information or get a free Michigan auto insurance quote.

JG

The legislation includes multiple proposed changes to Michigan’s workers comp law. Those include a requirement for claimants to conduct a “good faith” job search while receiving disability benefits, as well as deductions of pension or retirement payments from weekly workers comp benefits.

The Senate version of the workers comp bill, originally introduced by state Rep. Brad Jacobsen, R-Oxford, will be returned to the Michigan House for consideration. If approved, the bill would be sent to Michigan Gov. Rick Snyder for approval.

‘More predictable system’

The Michigan Council of Self-Insured Group Administrators lauded the legislation in a letter last month to the state Senate reform committee. In part, it said the bill clarifies the difference between total disability and partial disability, as well as the compensability of mental illnesses that weren’t caused by physical trauma.

“The bottom line is that it creates more predictability in the workers’ compensation system for both employers and injured workers,” the letter reads. “A more predictable system makes the state far more attractive for job expansion and job creation.”

In a statement Wednesday, Senate Democratic Leader Gretchen Whitmer, D-East Lansing, argued that the workers comp bill would “erode (workers’) rights and the benefits they depend on to survive.”

Insurance Planning Service is an independent insurance agency offering a full range of insurance products – auto – home – business – life – health – to individuals, families and businesses throughout Michigan.  Call or visit us on the web today for a quote on your insurance!

734.421.9900  |  800.220.5582  |  www.ipsagency.com

Courtesy: businessinsurance.com