Friday, March 26, 2010

Flood Insurance Program Shut Down For Weeks by Congress

Congress failed to act today to extend the National Flood Insurance Program. What this means is that starting Sunday, March 28th at midnight, no new flood policies can be issued and no current policies will be renewed.

Congress adjourned until April 12th. Senator Tom Coburn, R-Oklahoma, blocked the Senate from voting on the bill.

If you have a property that is in a flood zone and the lender is requiring flood insurance, you will be out of luck until Congress returns from recess at which time they can vote to make the bill retroactive. Until that time, no new policies may be issued, no changes in coverage's can be made, and any policies expiring cannot be renewed. Claims will still be paid on existing and current polices.

What is it with Congress? The Senate seems to be wigged out on something. Don't they care or know how their actions affect the whole nation? How people lives are affected?

If you wish to write your Senator or Senator Tom Coburn, Click here and let them know how long your escrow period is going to be and what it cost you.

Monday, March 22, 2010

Auto Insurance - Why you should take a second look.

If you have not shopped for your auto insurance in a while, you may want to take another look.

I know that there is a certain comfort to staying with the same carrier you have always been with. And many carriers are giving some pretty good discounts. But is that worth an extra $50, $100, or more dollars a month?

Auto insurance carriers are dropping prices. Drive Insurance by Progressive just lowered their rates 8% for personal auto. They also offer a lot of other discounts depending on who you work for and what kind of industry you are in. If you have taken a defensive driving course, get the certificate to your carrier. You will get a discount in most cases.

You also will want to look at your homeowners and other insurances too. Many carriers adjust costs at your renewal to keep pace with inflation, increased county fire department fees, building costs and so on. Other carriers look at your replacement cost for a property and feel that it is lower. Also, due to changes in underwriting policies, you may be able to stay with the same carrier but write a new policy.

In legislative news, there is a proposition, prop. 17, which would allow a carrier to base your auto insurance premium on prior coverage. Let your coverage lapse, and you could be paying a lot more for your insurance once you reinstate it. The up side to this is that hopefully less people will cancel their auto coverage which will allow insurance companies to have more premiums to pay claims from. The cost that California drivers pay for uninsured motorists claims has gone up dramatically in these hard economic times. People are driving with out insurance to save money. This drives up the cost of insurance on everyone else so that carriers can pay claims for thier customers. If you drive without insurance and get pulled over or worse, have an accident, the fines are pretty steep and you could have your car impounded on the spot, not to mention the insured person you hit coming after you in court in addition to their carrier suing you from now til the end of time. Also, state law requires you to have insurance or your registration is voided by the DMV. On the down side, people who are driving without insurance are going to take a hit ( pardon the pun!) when they do decide to get coverage.

If you do not have auto insurance, get it now!

The California Low Cost Auto program is here to help. If you meet the income guidelines and other requirements, this is an affordable solution. Also, check out other carriers and compare prices. There is an affordable solution out there for almost everybody. With the variety of discounts, programs and carriers lowering their rates, you are bound to find something you can afford.