Some people in politics want everything to be black and white. “Big government bad, small government good” and similar slogans have become rallying cries during town hall meetings and elections. Sound bites are convenient ways of getting a message across, but unhelpful when it comes to more complicated issues. On the face of it, we seem on the cusp of slipping back into recession. To try avoid this double dip, the Fed has announced plans to buy $400 billion in long-term Treasury Bonds. It’s trying to drive down longer term interest rates. While the Fed tries action, this September sees Washington politics try inaction (again). This time, the House rejected funding for government through mid-November. If this measure does not pass by September 30, government will shut down. As if we did not need further proof of political dysfunction. . .

Hanging this “business as usual” shingle outside Capitol Hill should not distract us from the day-to-day reality of trying to keep life together in business. Yes, the Fed may be trying to keep longer term interest rates down but, with many banks undercapitalized, there’s little or no money to lend, even to those businesses with good collateral. All growth is having to be funded organically – that’s assuming we have survival under control. That means using every cent of revenue in the most effective manner. Of course, this means deciding what the most effective strategies are. At this point, we should admit a prejudice. We believe small businesses do best when the employees are all positively motivated. Note we said “positively” motivated. This is not fear of unemployment. Any boss can bully and try extracting every last ounce of effort out of people. We think staff are more willing to go the extra mile if there’s a mixture of encouragement and trust. One of the ways in which you can lift a burden from an employee’s shoulders is to offer a health plan. With more than 50 million Americans without any health insurance or access to Medicaid, there’s a constant fear of illness in the family. Give some reassurance and you will find the staff are more loyal.

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There are many who complain about all the irrelevant factors insurers take into account when setting premium rates. It’s unfair for them to look at where we live. And just what do out credit scores have to do with how well we drive? They are all for the assessment of risk being personal with the lowest premiums going to the drivers who manage to act like angels, avoiding accidents and never picking up tickets. In reality, this is all a matter of pure luck. No matter how well or defensively you drive, this fails to consider the maniac behind the wheel of the other vehicle that comes plowing into you. Or the magic day you got pulled over and the officer took pity on you and waved you on with a verbal warning.

So what do you do if you pull the short straw of the day and pick up a speeding ticket? Well, the first decision is whether to fight. Sometimes, going to court to argue the merits can pay off. The officer may be ill that day and no one appears to give evidence against you. Who knows. Anything is better than picking up those points. Except. . . except there are some states where you can do something to take back time. In California, Florida, New York, Wisconsin and, now, Michigan, there are driver improvement programs. Continue reading →

Do you have first rate automotive coverage for as little as possible? Although it’s easy to become content with your current provider, it never hurts to take a look around to see what other companies are offering to seek a lower monthly premium. In fact, under some circumstances, switching your plan might be something you’ll want to look into beforehand.

Why Consider Switching?

It’s easy to continue with your current coverage when you’re in the habit of paying your monthly premium. Sometimes, your current provider will have the best prices for you. Many insurers offer rewards to longtime customers, so if you do begin searching for an alternative, make sure you’re aware of all of the discounts you’re currently receiving, and factor those into potential future rates, or you may miscalculate and end up paying more than originally expected. Continue reading →

Having a car is definitely a necessity in the US. The ability to travel across greater distances and the convenience of moving around a car gives us is definitely worth investing the money. However, some costs can definitely make this pleasant and useful object a bit expensive to maintain. Gas price is just a part of the problem, as you can always switch to a car with better gas mileage to save some money. But there’s one aspect that definitely annoys nearly all car owners out there – the necessity of insuring the vehicle.

The simple fact that car insurance is a must makes a lot of drivers think that they are made money on. Of course, having mandatory auto insurance helps maintain the order on the road with so many vehicles out there. By insuring your car you get the financial back-up for nearly any situation that may happen on the road. But sometimes this back-up comes at a price that’s not too wallet-friendly and that’s when car owners start questioning car insurance in general. Sure, getting rid of insurance altogether is not the smartest thing to do both financially and socially: you are acting irresponsibly towards other drivers who you may have an accident with and you risk ending up with enormous costs to cover out of own pocket in case the accident takes place after all. So what can be done about auto insurance in order to reduce its costs? Continue reading →

In Europe there are a lot of safety options for cars that feature both standard and additional equipment. But it’s not the same in the US. What are the reasons for that? Some insurance specialists think that it’s the lack of tort reform that puts auto insurance in the US into such a situation.

But what is a tort reform in the first place and what it has to do with auto insurance? Tort reform is a general term that refers to a change in the US civil justice framework that is required to provide a limitation of tort litigation and damage. If the reform will be applied then the negative effects litigation has on the economy will be significantly reduced.
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How many times have you used rental autos and had to make the decision whether or not buying additional insurance for the rented vehicle. On one hand it’s an additional cost you simply don’t want to drain your wallet. On the other hand, having such a backup when driving a rented car can save from a lot of trouble if something happens while you’re behind the steering wheel. So, is there any sense in getting rental car auto insurance or not?

A certain amount of rental car insurance is simply a must when using such a vehicle. You can get the insurance from the rental company, any insurer you can typically get auto insurance quotes from, or even a credit card union.
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It’s titles to articles that really get people annoyed. It would probably be OK to say Mercedes-Benz make better cars than BMW. Somehow, it’s acceptable to compare the strengths and weaknesses of brands. But once we get into the area of individual skills, passions are involved. There would be hours of argument on whether Dario Franchitti is a better driver than A.J. Foyt. Most adults know how to drive and, as fans of Indy heroes, they will appreciate an everyday skill raised to the highest level. All this is safe territory. No one feels threatened by talk of the best, particularly when one is now retired. But start talking about whether you or your partner is the better driver, and egos are on the line – tempers are likely to get frayed very quickly. We are all proud of what we do. That’s a part of what gives us the confidence to keep doing it. Accusing A of not being as good a driver as B is entering a potential war zone.

Yet, if you go to the people who collect evidence about traffic accidents – that’s a range of people from the ambulances that carry drivers to hospitals, to the police and courts who decide whether anyone should go to jail, to the insurers who have to pick up some of the bills – they will all tell you the same story. Ambulances carry fewer women drivers. They are less likely to be injured because they drive more slowly than men. Women are less likely to break the law than men and so pick up fewer tickets and rarely commit offenses serious enough to justify jail time. Insurers prefer women drivers because they are rarely in serious accidents as drivers. They are injured seriously as often as men because, in most cases, they are being driven by men who ignore the basics of safe driving.
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There’s always quite a big political edge to issues surrounding the insurance industry. In the case of vehicles it comes down to two big question marks. The first is whether the insurer should focus interest on the driver; the second on whether the insurer should use price as a lever to change driver behavior. You see the first in the ongoing debates on whether premium rates should be based on the ZIP code or the driver’s credit score. Continue reading →

It may be the recession, but that never gets in the way of a good party. Whether it’s the traditional blow-outs like Thanksgiving, Christmas and New Year, or just a cookout with a few friends standing around the BBQ nursing cans of beer, there’s a potential problem if you are a little too generous with the alcohol. And, let’s face it, we all need a little sustenance to be able to face each new day. Not as a slippery slope into alcoholism, of course. But just to unwind, shooting the breeze and nibbling on a chicken wing (hopefully dead).

Now, as if there wasn’t enough to worry about, those activist judges have started to get at us partiers. Those Brits used to have something with the idea of their homes as castles. High walls to keep out the local sheriff, his deputies and any passing members of the DEA. So, what’s the problem? Well, let’s suppose you are passing around the cans or pouring into glasses. Everyone is getting gently mellow. Are you going to let them all drive home? What happens if one or more of your guests is involved in an accident on the way home? Continue reading →

Many people, when looking for health insurance quotes or other types of insurance premium pricing information, begin to feel like they would be better off just saving their money rather than sending it to an insurance company to make a premium payment. They often feel this way because they think that the likelihood that they will actually use the insurance that they are paying for is low, so they will spend all this money on premiums and then have nothing to show for it, which leads many individuals to decide that it would be better save their money and put it into an interest-bearing account and forgo the insurance policy.

Savings vs. Insurance Continue reading →