There are many types of insurance fraud, and it happens in all areas of insurance, from life insurance, health care insurance, automobile insurance, to property insurance. The severity of insurance fraud attempts, range from the simple amplification of a claim to deliberately causing accidents and injuries.

Insurance fraud adversely impacts the insurer and the insured. Insurers loose millions of dollars every year as a result of insurance fraud, since they account for a significant number of claims received annually. Honest people carrying insurance are affected because fraud either indirectly or directly leads to increased insurance cost. You could say that the cost of insurance fraud is built into policy holders’ premiums, as carriers raise rates to compensate for their losses.

Home owners Insurance is one type of insurance cover that has been significantly affected by insurance fraud. Dishonest home owners have staged fires and even paid burglars to commit a ‘fake’ robbery in their insured homes or apartments. Dishonest auto insurance policy holders have staged accidents or abandoned an unwanted car somewhere and then reported it stolen.

The rising number of insurance fraud cases in the United States has resulted in legislative attempts to address the phenomenon. These efforts include the passing of the Health Insurance Portability and Accountability Acts (HIPAA) and the formation of the National Insurance Crime Bureau (NICB), which gathers information on fraudulent activities using hotlines and other sources and refers appropriate cases for investigation and prosecution. In the United States today, insurance fraud is considered a ‘white collar crime,’ and as a felony which can carry a sentence of two to fifteen years in prison. In States that do not recognize insurance fraud as a felony it is classified as bribery, theft of forgery. These crimes carry sentences that can include imprisonment and/or financial penalties. Other sentences for insurance fraud may include probation, parole, restitution and community service.

Companies pay advertising experts millions to create slogans that are memorable and catchy to the public… at least for a while. But what they don’t realize is that after a period of time those once catchy slogans become old and void of meaning. They often get boring and, even worse for advertisers, sometimes make people skeptical of what it is they claim.

When I was younger, my Uncle Alex told me that, if you’re tired of brown-bagging your lunch and staying home during summer vacations, try taking a closer look at your car insurance to see if you can free up some money.

Well, I did, and it turned out that he was right. Despite the fact that, even back then, the car insurance slogan “you can save on car insurance” has become old, and familiar, it’s quite often still true.
When I got my first car I was kind of leery about the whole car insurance thing. I bought from the first company that seemed to promise the best car insurance deal. At that time, I found a company in the phone book that convinced me that all my car related issues had been covered. After expiration in six months, bearing in mind that my premium seemed a bit high and my budget was getting tighter, I decided to check around and compare prices with other automobile insurance providers To my amazement, I discovered my same company issued me a lower premium for the same coverage.

To determine a good insurer, a car owner should first perform a simple consumer survey. A consumer survey involves seeking information on users who find a certain insurance company appealing. This can be done by obtaining information from several individuals who have been customers of many different insurance companies.

Secondly, it is important to search the internet. Drivers discuss their opinions and experiences with car insurance companies on blogs and other consumer forums. This information is easy to access and review.

Third, call different Body Shops and Mechanics — they tend to know a lot about car insurance and carriers’ claim paying practices.

Last and most important, visit government websites. Find out who is registered with your state’s insurance department. Anyone not licensed will not be approved. It’s also common to find that the insurance department displays information on complaints regarding insurance companies and agencies on their websites.

“Save, Save, Save on Car Insurance,” may appear to be one of those oversaturated slogans in the marketplace, but the truth is it’s essential for a cost conscious car owner to check around each time before renewing car insurance. Premiums for different cars change significantly within a period of one year. even now, as I explain the importance of saving on insurance, I still feel like the announcer in an automobile insurance commercial.

I am not sure if any one is “Getting into the game” with ATI Technologies or still being “taken forward” by Ericson. But what I can tell you is, taking a bit of time to research car insurance before buying it can save you a lot of money. So, it really might turn out that the amount you save annually on you insurance coverage will, just like Dell Computers, help you to “Get more out of now!”

My favorite car insurance promotional commercial is the one where they say “We will send you a check for a small percentage of your ‘semi annual premium’ every 6 months that you don’t have an accident.”

Yes, that sounds like a pretty good deal – and yes, you will save a bit of money – in 6 months.

Since there is nothing free in this world; I have a better idea. Instead of waiting 6 months to get a check for a few dollars, how about getting some savings today? You heard me right… Today!

That’s because, if you have a good driving record, all the carriers which insureDirect.com represents will provide all your savings up front. No waiting. No gimmicks.

When you call InsureDirect.com, you instantly have access to 30 auto insurance companies which give you “all the discounts you deserve” today. No waiting for a check or a lower rate next policy period.

But, among all of these well-meaning, but generally inaccurate gems of wisdom that both my grandmother and grandfather shared with us, we realized that the advice grandfather shared about taking care of your automobile was actually both timeless and true.

For instance, he would always tell me that my car’s tires didn’t have enough air in them. “Mike, just because you can only afford to drive an old car, the last time I looked, air for the tires is free.” Well, air isn’t free at most places any more, but that fifty cent investment in keeping them properly inflated will save you as much as $5.00 on you next gasoline fill up, and probably increase the life of your tires too.

He’d also tell us, (although I’m not being paid for this endorsement) that “a can of STP in your oil every now and then will keep your motor going longer without costly repairs.” I can’t say that I know this to be true scientifically, but once again, it’s hard to argue that ‘an ounce of prevention is worth a pound of cure.’

And last but not least, my grandfather always used to boast how much money he was saving with his insurance guy. That his insurance agent had the cheapest car insurance in the world and provided the best coverage. Nothing you could possibly say would budge him from that belief.

Well, having been a kid at that time, I wouldn’t have argued anyway. But now, after so many years in the business and helping literally thousands and thousands of drivers get the best rate possible on auto insurance, I’d like to think that I’m at least somewhere among the best in the insurance world.

Sadly, grandfather is no longer with us, but my cousin Rob reminded me that he’s been insured with me for over 15 years, and that he didn’t give me the business because he’s a relative (even though he’s a good guy), but that he’s stayed with me all this time because he’s compared rates every year, and no one has yet been able to beat me. Although it kind of hurt my feelings to find out that he’s been shopping every year, I’m happy, because I’m able to share his experience with you.

So, while I’m not going to tell you to keep your tires properly inflated, or to put my grandfather’s preferred brand of oil additive into your engine, I will say that, With 30 carriers to choose from, probably including the one who writes your auto insurance today, and being able to quote and bind auto insurance nationwide, I’m pretty confident that I can find a great rate for you too.

-Mike

If I told you that you could get an insurance policy which would protect everything you own in your apartment, virtually for free, would you believe me? You should, or you’re going to miss out.

Many auto insurance buyers are simply not aware of the existence of Auto/Renters Package Policies. Although most carriers offer one, they don’t promote them heavily because they really don’t like giving anything away for free.

Just because you don’t own your home does not mean you can’t buy a package policy which covers both your car and the contents of your apartment or rented house from fire and burglary. Besides covering your clothes, televisions, computers, and furniture. You are also covered for personal liability.

So let’s get back to the free part. If you buy both your Auto and Renters insurance from InsureDirect.com, the discount you receive on both the car and Renters policy pretty much equals what you would pay for the cost of the renters policy alone.

A more frustrating situation is when a loyal insurance customer becomes aware that a particular claim is simply not covered. This misfortune is never pleasant to discover.

Most of the time, this kind of situation occurs when the policy holder has an car that’s 10 years or older and he or she had chosen to reduce or remove their comprehensive or collision coverages to save money.

Although finding out that you’re not covered for an issue is upsetting, In many cases it is not really a bad financial decision to have made. If you calculate the high cost of premiums against a limited claims payout on an older car, and then add in a deductable of $500 or a $1000, you’ll find that in most cases involving an older car, you made the right choice. Insurance carrier actuaries are very good at what they do – It’s really true when they say “you can pay now or pay later.”

With that said, I’ve noticed an interesting phenomenon emerging over the last 10 or so years. Since the mid 1990’s, more and more of my insurance clients have been holding on to their older vehicles. That’s pretty smart; with the cost of a new car and repairs after the warranty has expired, I can see why its appealing to hold on to and maintain that investment.

But sometimes, there’s an option between reluctantly carrying expensive comp and collision on an older car and considering buying a new one when a claim isn’t covered. One story that comes to mind concerns a long time customer, a single mom on a strict budget, who faced exactly this situation. After her car was caught in a flash flood, and wouldn’t start, she was told by the garage she had the car towed to that the engine was seized: full of water and not repairable. Because she had dropped comprehensive coverage on her 15 year old car, she was told she would be fully responsible for the repair. But after the garage gave her an unaffordably high price for rebuilding the engine, she started shopping for a new car.

When she came to my office, we sat and reviewed rates for the replacement vehicles she had looked at. When the payment on a new car and the insurance required to cover it were considered, she came to the conclusion that buying a new vehicle was out of her price range. She didn’t want to buy a used car, worried that she would end up inheriting someone elses problems. So, we looked in a new direction. After doing some searching on the internet, we discovered that it was possible to simply buy a complete replacement engine for substantially less than the price quoted for rebuilding her ruined one. We settled on a company called Gotengines.com, which not only had the most comprehensive site we found online, but also had real people who answered the phone and answered all of our questions on how to arrange to purchase and have a replacement engine installed. Not only could they provide a replacement engine for virtually for any make, model and year of car on the road today, their prices were lower than anyone of the other resources we found on the web. They also have an extensive engine blog, which makes them something of a go-to resource when it comes to learning about replacement engines.

So, to make a long story short, my customer ended up purchasing a used engine (rebuilt and new engines were also available, but we were on a tight budget, of course) and had it shipped to a different local mechanic who was more than willing to install it at a much lower price (including the cost of the replacement engine) than the first garage she was dealing with.

Bottom line; we did two calculations. First, we determined how much she would have spent on the additional Comprehensive and Collision insurance for the previous 5 years. Second, after deducting the price of the engine from and the installation bill from the repair shop, we saw that she ended up saving over $500. Now, that’s a happy ending!

A surprising percentage of people who own an automobile and maintain a car insurance policy don’t realize part of the premium they pay every month may in fact defray the cost of their medical bills if they or a member of their household is involved in an auto accident.

The Medical Payments or Personal Injury Protection portion of many Automobile Insurance policies pays medical expenses which are as a result of a traffic accident or incident. Another covered event would include and incident when you are not in a Vehicle, but are struck by one. If you are a pedestrian walking on a public or private street, sidewalk or parking lot and you are struck by a car, bus or motorcycle, you may also have coverage. In many cases an automobile insurance policy maintained in your household will pay your medical bills — even if you are not a driver on the auto policy. The same could be true if you are a passenger in an insured family car.

Uninsured Motorist and Underinsured Motorist Coverage on an Automobile Insurance Policy might also possibly be accessed to defray or help to defray the cost of your medical bills when the at-fault driver or owner of a car other than your own has no auto insurance coverage in place at the time of the accident or incident. In addition, benefits may be available if the driver or owner of the other car has coverage, but not enough to pay the medical or hospital bills generated as a result of injuries you sustained in an accident.

All auto policy forms vary from carrier to carrier and state to state. Call your agent or carrier for the rules and regulations governing your policy so you’ll know what your car insurance-related medical coverage is.

Believe it or not; when you purchase car insurance, there are only two areas of the policy form which truly protects “your Car;” That’s the Comprehensive and Collision components of your coverage.

Comprehensive Coverage
Comprehensive coverage pays to repair your vehicle for perils like having your car catch fire, or when you park at the shopping mall and find upon exiting that your car has been stolen. Comprehensive also covers your car if you emerge from the mall to find that some creepy vandal has used the key from his piece of junk car to etch scratches on the side of your vehicle. Your Car insurance carriers also may consider a collision with a deer under Comprehensive. Comprehensive will also cover you for windshield damage from a flying stone or bird strike.

Collision Coverage
Collision Damage coverage pays for the Physical damage to your vehicle. Regardless of whether an accident is your fault or not, your carrier will pay to repair your vehicle – minus the deductible you agreed to when you purchased your policy.

Property Damage Coverage
The Property Damage Coverage portion of your policy pays for damage you have caused in the event of an At-Fault Accident. The maximum amount of Property Damage the carrier will pay for is determined by the limit you agreed to when you purchased your policy. Property damage can include damage to another car or other property like a home owner’s back yard fence or a utility pole. The state minimum in most states is $5000. Many carriers also offer Property Damage limits that pay as high as $100K.

Liability Coverage
Another coverage which covers the driver and occupants of the other car is Liability Coverage. Liability Coverage pays the Medical bills for the occupants of the vehicle your car hit or that was determined to be not-at-fault. Again; the maximum amount paid by your insurance company is determined by the limit(s) you agreed to purchase. The minimum in many states is $15,000 per person, $30,000 if more than one person is injured.

Uninsured and Underinsured Motorist Coverage
What if you are involved an automobile accident and the other driver is at fault? And, to make matters worse, what if the other driver has no auto insurance coverage or has coverage but may not have a sufficient insurance limit to pay for your vehicle or damaged property? Making matters even worse, let’s say you don’t have Comprehensive and Collision coverage on your policy to pay for repairs to your car. Purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) may make a huge difference in making you whole again. Depending on the state you live in and that state’s laws, UM and UIM can be accessed to pay for the damage to your car and/or Medical bills if the at-ault driver has insufficient insurance coverage or no coverage at all.

Additional Coverage Options
There are many other coverage options available for purchase within an auto insurance policy as well. For a small additional monthly premium, coverage for Loss of Income, Accidental Death, Rental car and Towing are available. If, after reading this you have any further questions regarding what coverages belong in your auto insurance policy, I invite you to call me personally at please me a call at 1-800-807-0762 ext. 206.

-Mike

The fact is, that many businesses, both large and small, have for decades tried to be forward thinking, and to include what are now commonly called “green initiatives” into their business plans. It also makes good business sense, because “going green” does not have to be an either/or proposition. “Thinking green” can save money, increase efficiency, enable a business to serve customers better, and help the environment all at the same time!

Regardless of the common cry that “evil business empires” are ruining the United States’ pristine natural resources in their quest for profits at all costs, smart businesses have learned that adopting green technology helps the environment at the same time it helps to reduce business overhead and increase the bottom line.

In 1996, InsureDirect.com became one of these early innovators. As President, I was very concerned with the amount of copy paper our Lansdale, Pennsylvania location was purchasing annually. I wasn’t happy with either the expense or the thought of where all the paper we were printing was going to end up. I estimated that we were purchasing over 50 Million Sheets of paper every year… All that blank copy paper was costing InsureDirect near twenty five thousand dollars a year! And, everyone knows that business expenses are ultimately passed on to the consumer. We performed a utilization audit and discovered much of the paper we were using was utterly wasted on copying and recopying the same new insurance applications for the purposes of filing, reporting, and forwarding information to our insurance carriers.

I shared my concerns with our duplicating vendor, and learned about what was then a new technology where a business could scan any document into a computer, and then have that scanned document forwarded via Fax, sent by Email, and stored as a permanent record on a computer hard drive. The technology could even convert the printed words on a paper form into searchable text, so that even more efficiency and greatly enhanced customer service could be realized when searching for an important document or record of an insurance transaction.

So, not only were we able to use document scanning technology to reduce our purchasing of copy paper by 80% (and save a good number of trees in the process), we also eliminated the need to constantly buy new filing cabinets every month to store new business applications. Not only did we end up saving $200 on the purchase of new filing cabinets each month, we were also able to reduce the area we needed to heat – over 1000 Square feet of office space being used to house nearly 100 Filing cabinets – reducing what’s come to be known as our ‘carbon footprint’ by a significant amount. These changes also reduced our monthly expenditures, which allowed us to repurpose those funds into hiring more customer service personnel. That not only provided our customers with a better experience, it also helped establish Insuredirect.com as an organization that excels in serving our customer’s needs in everything from getting the right coverage at the lowest possible price to resolving any service issues with industry leading efficiency.

Today, with these measures having been taken 13 years ago, I estimate that InsureDirect has saved nearly 100 trees and passed on the savings of what would have been over $100,000 in copy paper and filing cabinet purchases.

So, if you’re a business person, even if you haven’t really been thinking of ways to include Green technology in your business, taking your company paperless is a great place to start. The savings to your business and your contribution to helping the environment will be a plus for everyone in your community! And, if you’re a potential customer of InsureDirect, consider that our commitment to green business practices not only helps our business to run more efficiently and to keep our planet healthier, but also delivers a better buying and customer service experience to you at the same time. Going Green is one of those rare win/win opportunities where everyone can benefit!

-Mike

How can that be?

Well, it can’t. If there was truly one car insurance company which had the best rates on car insurance, we would not have thousands of car insurance carriers nationwide.

The truth about these “our car insurance is the cheapest” claims is very simple. Every driver, car and situation is different. Every car insurance company needs to raise and lower it rates to stay in business. While everyone is running around shopping for the best rate on car insurance; the carriers are keeping you guessing by raising and lowering their rates and calling the Programs they offer by different names.

Trying to compare one insurance company to another is like shopping for a mattress. Yes, that’s what I said: Car insurance policies are like mattresses. Just try to find a common name of a mattress in two different bedding stores – it will never happen. Say you go to “Mattress Galaxy” and find a great Mattress called “Spine Bracer.” If you want to compare the price at “Bedding World” – they may have the identical mattress; but it’s named “Straighter Spine.” That makes it tough for you to really compare products. And they do it because they don’t want you to be able to.

So, what option do you really have instead of shopping between different car insurance carriers who try to obscure the difference between the policies they offer? If you go to State Farm; Allstate or Nationwide – their ‘captive’ agent represents only that one car insurance carrier. Even if you call Geico, they’re only going to give you one rate. A Geico rate.

What they all hope is that you don’t shop with a Broker like InsureDirect. We’re independent, which means that when you call our Toll-Free number, our friendly representatives give you the ability to receive quotes from over 30 different major carriers including Progressive and carriers owned by Allstate and Nationwide.

But wait a minute Mike! I’ve been told buying from an agent costs more money because an agent makes a commission. Well, I’ve been hearing that for 18 years. But keep in mind who it was that told you will pay more for your car insurance by going through an agent or broker. The big carriers who have to add in the cost of their astronomical advertising budgets, or the single product carriers who have to look out for their ‘captive agents,’ right?
So don’t be fooled by the common misconception that if you buy direct and cut out the agent; you’re going to pay less and save money. Nothing could be further from the truth. In fact, the exact opposite is usually the case. Agents and Brokers make it possible for car insurance companies to sell insurance who don’t necessarily see the wisdom of spending millions and millions of dollars on advertising or captive agents who must be paid regardless of what they sell.

Lets take Geico for example. I don’t know if you are aware of the cost of advertising these days, but it’s astronomical.

But here’s where it gets interesting… How many millions of dollars do you think it costs Gieco to make sure that there’s always a Geico TV commercial, radio ad, or picture of their lovable lizard in just about telephone book in the nation. Not to mention paying for internet ads running 24 hours a day 365 days a year?

The answer? Actually, it costs them nothing!

That’s right, all that advertising doesn’t cost Geico a dime. Those millions of dollars being spent daily are paid by every single auto insurance policy holder currently insured through Geico.

Now; if you take the advice I offered above and combine that with what you now know about who really pays the high price of car insurance advertising, isn’t it worth at least one more call, to 1-800-807-0762 , to see just what you might save on your auto insurance from a pool of 30 insurance companies? I hope you do give us a call – we’ll do everything we can to make you glad you did!

-Mike