Headline News: Home & Auto

Kelley Blue Book’s November Market Report Now Available

PR Newswire — November 11, 2009

IRVINE, Calif., Nov. 11 /PRNewswire/ — Kelley Blue Book www.kbb.com, the leading provider of new- and used-vehicle values, announces that its November Monthly Market Report is now available at http://mediaroom.kbb.com/blue-book-market-report. This month’s report takes a look at top movers in vehicle values, brand and segment value changes month-over-month and provides an in-depth analysis on how the recession and gas prices are affecting the stability of the marketplace.

Market Report Excerpt:

With people out of work or not working as much as they’d like, families are trying to reduce spending wherever possible, and this slow in spending has hit the auto industry in various ways. One outcome Kelley Blue Book is seeing is that consumers are holding onto vehicles longer, staying away from short-term leases, and if they absolutely must buy a car, they are looking more and more at used cars. In a recent Kelley Blue Book Market Intelligence study, more than half of car shoppers surveyed said they intend to keep their next vehicle for six years or longer. There also have been reports of consumers foregoing auto repairs and pocketing the insurance money resulting from auto insurance claims, just to keep the lights on and dinner on the table.

“In addition to lack of demand in the new-car market and unexpected demand in the used market, a lack of trade-ins coupled with reduced sales to fleet companies also has had somewhat of a negative impact on used-vehicle supply,”

said Juan Flores, director of vehicle valuation, Kelley Blue Book. “The shortage at auction has even led some dealers to scour eBay and Craigslist in order to supplement their used-vehicle inventory via private party listings.”

Values have been relatively stable over the past several months, but the current stability in the marketplace is highly dependent on current supply and demand conditions. Any number of factors could play a significant role in altering this dynamic, which could once again lead to volatility in the marketplace.

About the Kelley Blue Book Monthly Market Report

Each month, the Blue Book Market Report explores the state of the automotive industry by analyzing Kelley Blue Book Wholesale Values, which are produced on a weekly basis from actual transaction data with economical and regional factors applied. The report also delves into developments in residual values every other month, and how the market influences these percentages in a variety of segments.

Furthermore, the Market Report includes data from both Eco Watch(TM) and Market Watch studies conducted by Kelley Blue Book Marketing Intelligence. Eco Watch tracks in-market new-car shoppers’ opinions on fuel prices, alternative fuel-related technologies, environmental issues and vehicle consideration, while Market Watch measures new car pricing report views on kbb.com, capturing shopper activity and interest in specific vehicles.

The forthcoming December Market Report will have a full commentary and forecast for both used-vehicle values and residual values of 2010 model-year vehicles.

For more information, visit www.kbb.com/media.

About Kelley Blue Book (www.kbb.com)

Since 1926, Kelley Blue Book, The Trusted Resource, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company’s top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book Official Guide. According to the C.A. Walker Research Solutions, Inc. - 2009 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.

SOURCE Kelley Blue Book

To save money, credit counselors advise consumers to reduce, quit smoking

PR Newswire — November 10, 2009

ATLANTA, Nov. 10/PRNewswire/ –The impact of smoking on your health is well documented. But counselors at Consumer Credit Counseling Service (CCCS) of Greater Atlanta know that it can also wreak havoc on a person’s financial health. Whether it’s helping people struggling with credit card debt or trying to avoid foreclosure, counselors find that tobacco use adds a significant amount to monthly household expenditures and they advise consumers to consider reducing or quitting smoking to save money.

A pack-a-day smoker spending an average of $5.15 per pack could save $1,879 per year by quitting smoking. These funds could be used to cover living expenses, reduce household debt or start a savings plan. Invested in a basic savings plan paying just 3 percent interest, you would have in excess of $21,000 after 10 years. Over 30 years, that figure climbs to more than $91,000.

“Quitting smoking is good for more than just your physical health,” said Michelle Jones, Senior Vice President of Counseling for CCCS of Greater Atlanta.

“Reducing or eliminating tobacco use can significantly increase the amount of money consumers have to use to pay off outstanding debt.”

Even homeowners struggling to make their mortgage payments and seeking a loan modification may be able to benefit by reducing or quitting smoking.

“Any reduction in spending will show the mortgage company that there is more income to put toward a homeowner’s monthly budget,” said Jones. “The better their budget looks, the more likely the lender is to offer a favorable workout, such as a loan modification.”

This year’s Great American Smokeout is November 19, but any day is a good day to give up smoking. “Our clients get a great deal of satisfaction when they quit smoking,” added Jones. “It’s a great first step in improving their physical and fiscal health.”

The financial benefits of quitting extend beyond just the cost of cigarettes.

Increased Employment Opportunities and Productivity - Some employers have begun hiring only non-smoking employees or instituting “no smoking” policies in an effort to reduce overall health care costs and increase productivity.

Reduced Health Care and Insurance Costs - Non-smokers often enjoy lower health and life insurance premiums and general healthcare costs than smokers. In Georgia, state employees who smoke pay $40 more per month for health insurance than non-smokers. Many states have enacted similar policies for smokers, including higher deductibles and increased co-pay rates. Average life insurance premiums for smokers can be double that of non-smokers. Non-smokers may also be eligible for discounts on homeowners’ insurance premiums.

Decreasing Values on Assets - According to Carmax, a used vehicle owned by a smoker will narrow the market of potential buyers and can result in lower trade-in or resale values than comparable vehicles owned by non-smokers.

Similarly, general maintenance costs on a home are higher for smokers and a home that has been smoked in can be harder to sell.

For more information and tips to quit smoking, visit the American Lung Association at www.lungusa.org

About CCCS

CCCS of Greater Atlanta offers online education classes that cover a wide variety of money management topics at www.credabilityu.org.

CCCS of Greater Atlanta serves clients in all 50 states and has 33 offices in four states. It is the headquarters for the CredAbility Network, a family of nonprofit agencies serving consumers in north Georgia, south and central Florida, middle Mississippi and east Tennessee as well as nationally via telephone and Internet.

CCCS is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC).

Governed by a community-based board of directors, CCCS is funded by creditors, clients, contributors and grants from foundations, businesses and government agencies. CCCS offers around the-clock help by phone at 1-800-251-CCCS or at its Web sites, www.cccsinc.org and www.cccsenespanol.org.

SOURCE Consumer Credit Counseling Service of Greater Atlanta

Take the Water IQ Test and Find Out!

PR Newswire — November 9, 2009

NEW YORK, Nov. 9 /PRNewswire/ –Because water can enter your home and cause damage in so many ways, it’s often confusing to figure out what’s covered by insurance and what’s not. The Insurance Information Institute has tips on how to figure it out.

To view the Multimedia News Release, go to:

http://multivu.prnewswire.com/mnr/iii/40966/

Test Your Water IQ:

    –  You discover water in your basement from a burst pipe. Is it covered?

        Yes, your homeowner’s policy protects you.

    –  How about that slow leak that’s been dripping for several months under

        the sink in the bathroom that’s leaked through and stained the ceiling

        below? No. That’s a maintenance issue and your responsibility.

    –  How about a sewer backup? Some policies cover it and some don’t. To be

        covered, it’s an add-on and costs about $50 a year.

    –  A winter storm forms an ice dam around your gutter allowing water to

        enter your home, damaging your roof, ceilings and walls. Covered? Yes.

    –  A storm blows a hole in your roof and breaks a window. Water pours in

        and damages the ceiling. Covered? Yes.

    –  What about flooding? Does my homeowner’s policy cover it? No. To be

        covered you need a policy either from the National Flood Insurance

        Program or a private company.

A good rule of thumb: water that comes from the top down is generally covered by your home or renters insurance, but when it comes from the bottom up as in a flood, it’s generally not. Flood insurance should be considered by every homeowner. Statistics show 26% of losses come from areas that are not deemed as flood zones.

Even a small amount of water can cause serious damage to your home. So it’s important to have a good water IQ. If you haven’t done so in a while, be sure to review your homeowner’s insurance policy with your agent so you know what’s covered and what’s not, and be aware that all homes are at risk for floods.

About the Insurance Information Institute

I.I.I. is an educational, fact finding and communications organization funded by the property casualty insurance industry to explain what insurance is and how it works. Each year, the I.I.I. works on more than 3,700 news stories, handles more than 6,000 requests for information and answers nearly 50,000 questions from consumers.

SOURCE Insurance Information Institute

PR Newswire — November 5, 2009

Is New York’s No-Fault Auto Insurance Crisis Returning?

I.I.I. Analysis Finds Average Cost of No-Fault Claim Has Soared 56 Percent Since

2004

LATHAM, N.Y., Nov. 5 /PRNewswire-USNewswire/ — New York’s auto insurers saw their typical no-fault payment for the medical care of accident victims rise by

56 percent to $8,748 per claim in the second quarter of 2009. This represents a dramatic increase from late 2004, when the average no-fault payment stood at

$5,615 per claim, according to an Insurance Information Institute (I.I.I.) analysis.

The insurance industry, the New York State Insurance Department’s (NYSID) Frauds Bureau, the National Insurance Crime Bureau and law enforcement agencies continue to investigate suspicious claims vigorously, according to Dr. Robert Hartwig, the I.I.I. president and an economist. Yet loopholes in the no-fault system make it particularly vulnerable to fraud and abuse by a “no-fault industry” of corrupt medical professionals, attorneys, and street-level criminals who work on their behalf.

“In less than five years, New York’s auto insurers have seen an extraordinary 56 percent increase in the average cost of no-fault claims, to a great extent the result of abuse and, sometimes, outright fraud in the system,” stated Dr.

Hartwig, in remarks scheduled for delivery today to the New York Insurance Association’s (NYIA) annual meeting in Latham, NY. “The costs of fraud and abuse of the state’s no-fault system ultimately are borne by New York’s honest policyholders. New York’s no-fault claim costs are now the second highest in the country and are 111 percent higher than the U.S. average of $4,152.”

“State lawmakers need to make no-fault auto insurance reform a high priority when they reconvene in Albany for their 2010 session,” said Ellen Melchionni, president of the NYIA. “There are external forces which drive up the cost of auto insurance in this state which can and must be contained.”

The state Insurance Department’s Frauds Bureau, in its 2008 annual report, said that no-fault fraud reports to the NYSID had increased 22 percent since 2006, after the number of these same reports fell 35 percent between 2003 and 2006, Dr. Hartwig observed. Moreover, the Frauds Bureau has significantly expanded its number of no-fault investigations, its 2008 annual report stated.

The term “no-fault” auto insurance is often used to denote any auto insurance program that allows policyholders to recover financial losses, such as medical costs and lost wages, from their own insurance company, regardless of fault. The policyholder’s no-fault benefit coverage is listed under the personal injury protection (PIP) provision of their policy.

Dr. Hartwig said that several proposals have been advanced to combat New York’s growing no-fault crisis, including:

Institute Medical Protocols/Utilization Reviews: Implement medical treatment guidelines for specific auto accident-related injuries so as to reduce instances of over-treatment and/or unnecessary treatments. New York’s no-fault system is one of the few in the U.S. that allows for insurer payment of medical treatment providers while requiring neither mandatory protocols nor utilization reviews.

This virtual blank check drives up system costs dramatically because the PIP payment ceiling is a very generous $50,000.

Require Disputes Be Resolved via Arbitration:Implement an arbitration system to eliminate trial costs for all parties while also expediting claims resolution.

No-fault systems were created to avert courtroom battles. Yet, in New York, no-fault cases are clogging the judicial system’s calendar, especially in New York City. The city courts are so inundated with no-fault cases today that they are currently setting trial dates for 2011.

Streamline the Process for Adjudicating No-Fault Claims:Permit parties with no-fault disputes involving less than $5,000 to submit proof based on a sworn affidavit from doctors. Under today’s system, doctors must appear personally in court, time which could be better spent treating their patients.

Implement Fair Burden of Proof Requirements:Require that, in order to establish the plaintiff’s right to no-fault benefits, the plaintiff must produce a witness with personal knowledge of the facts alleged in the plaintiff’s complaint.

Furthermore, there should be no presumption of medical necessity based on documents submitted by non-medical plaintiffs and/or witnesses who do not have personal knowledge of the facts of the case. New York’s medical treatmentproviders are required only to submit proof that a bill was received by the auto insurer to establish entitlement to receive amounts billed–irrespective of suspicions of fraud or abuse. The burden of the auto insurers is much higher. They are required to produce in court both a witness to testify under oath that the claim was handled in accordance with regulations and a medical expert to testify on the “lack of medical necessity.”

Strengthen anti-runner laws:”Runners” are those who receive a monetary benefit for facilitating a fraudulent insurance transaction, usually by acting as a go-between for dishonest policyholders and unscrupulous medical treatment providers and/or attorneys. The crime is currently a misdemeanor but, if upgraded to a felony, could provide an added deterrent.

For more information, see Dr. Hartwig’s PowerPoint presentation to the NYIA’s annual meeting: New York PIP Insurance Update: Is New York’s No-Fault Crisis Returning?

FOR MORE INFORMATION ABOUT INSURANCE:www.iii.org

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE PROPERTY/CASUALTY INSURANCE INDUSTRY.

SOURCE Insurance Information Institute