Auto Insurance during Credit Crunch

Reports suggest that owing to the economic slowdown worldwide sale of vehicles have nosedived. Consequently, the auto insurance industry has taken a backseat too. There are several other factors that have impacted the auto insurers. Some of the prominent factors include restrictions imposed on CO₂ emissions, fuel efficiency standards. High energy prices and the fact that the public transportation system has less number of investors have contributed to a slump in the auto insurance industry.

Facts about auto insurance

Expenses related to auto insurance (nationwide) escalated by approximately 2.5% in FY 2008 (TABLE 1). The figure recorded was the highest since FY 2002 and FY 2003.

(Source: NAIC, Insurance Information Institute Estimates 2006-2008)

Previously, modest severity level had restricted auto insurance prices from escalating. However, the prices have started rising again (TABLE 2). The table below indicates the same.

TABLE 2

(Source: US Bureau of Labor Statistics; Insurance Information Institute)

It has also been observed that in some of the states, the insured, in an attempt to cut premium costs have reduced their premium amount to save some money. People have started lowering their auto insurance premium amount despite the fact that in doing so, they don’t have adequate coverage.

More and more vehicle owners are opting for public transport and keeping their cars at home. Few are of the opinion that rising fuel prices are responsible for the change in attitude of the car owners.

There is another fear that is gradually seeping into the automobile sector and that is declining oil supply which is inevitable in the near future. It will change the logistics in the auto industry to a great extent.

Description: The auto insurance industry has suffered a set back due to the credit crunch. Rising prices of fuel have restrained car owners from driving their vehicles and buying cars. All this have affected the auto insurance to a great extent.

Health Insurance

Health Insurance Woes

By the end of 2010, analysts predict that close to 6 million Americans will lose their current health insurance. Even more, as more people qualify for Medicaid, its spending will increase dramatically. This is the health care program for the less fortunate.

The U.S. Department of Health and Human Services estimate that Medicaid spending could jump as much as $34 billion, an increase of 9.6%. This is by the end of 2010, less than a full year away now!

The public is faced with several tough decisions regarding health care coverage. It is important to search for sites like InsureLane which offer free Health Insurance Quotes. Without these free quotes, you could be overpaying for your healthcare. If you need Online Free Accounting, QuickBooks online accounting software creates invoices, pays Bills, tracks expenses for free.

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