New York Car Insurance: Cell Phone Law - Better Safe Than Sorry

Over the past decade, cell phones have evolved from luxury items to absolute necessities for most on-the-go Americans. Consumers now use cell phones not only for business and personal calls but also to text message, take pictures, and even listen to their favorite music. The omnipresent nature of cell phones is not, however, without a price as the National Traffic and Highway Safety Administration (NTHSA) estimates cell phone-related car accidents are on the rise with distracted drivers causing over 25% of all police-reported traffic accidents.
Concerned with the impact of cell phone use on driving safety, New York lawmakers have enacted cell phone laws banning the following types of drivers from using cell phones while driving:

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• Learner`s permit holders
  
• Drivers younger than 18 years old
  
• School bus drivers
  

New York has also implemented a state-wide ban on the use of hand-held cell phones while driving. Connecticut, New Jersey, and the District of Columbia have implemented similar state-wide bans on hand-held cell phone use in an effort to reduce cell phone-related traffic accidents. Drivers caught using a hand-held cell phone while driving in New York will face a $100 fine.
If you must use a cell phone in your car in New York, safety experts recommend that you follow the following guidelines:

• Use a hands-free phone
• Keep your eyes on the road at all times
• Never dial while driving
• Avoid using your phone in bad weather or heavy traffic
• Avoid stressful conversations while driving
• Never look up phone numbers while driving

New York Auto Insurance: State Insurance Department - Looking Out for You

When shopping for insurance in the state of New York, residents can rest easy knowing that the New York State Insurance Department (NYSID) has their best interests in mind. Responsible for the regulation of New York`s insurance industry, NYSID oversees all types of insurance policies including:

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• Auto
• Health
• Home
• Life
• Long-term care
• Worker`s compensation

The principal responsibility of NYSID is to protect New York consumers. NYSID does this by:

• Licensing insurers and insurance companies to do business in Ohio
• Regulating insurance contracts and rates
• Protecting against insurance fraud
• Ensuring that insurance companies comply with Ohio law
• Ensuring that insurance companies abide by their own policy language
• Processing Ohio insurance consumer complaints
• Monitoring and reporting annual insurance complaint rates
• Providing Ohio residents with comprehensive insurance guides

Licensing Insurers
The NYSID manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that insurance companies are financially secure but also that individual agents are well-versed in New York state insurance laws through pre-licensure and continuing education coursework. The NYSID also reviews all insurance products to verify that they comply with the New York Insurance Code`s rules regarding insurance contracts and rates.
Through the NYSID, consumers can verify:

• Whether an insurance company is licensed in New York
• Whether an insurance company is licensed to sell a specific line of insurance
• Whether an agent is licensed in New York and a legitimate representative of the insurance company Whether an insurance company has a good record of handling policy complaints

Protecting Consumers
Beyond licensing, the NYSID works on a number of fronts to protect New York insurance consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes by reviewing and investigating consumer complaints. The New York State Insurance Department also seeks to limit disputes by providing consumer guides to help residents better determine their insurance needs. A complete list of these guides, including the New York Shopper`s Guide to Automobile Insurance, can be found on the NYSID website
In addition to managing consumer complaints, the NYSID polices all other insurance activities in New York. The NYSID Superintendent works diligently to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the New York Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. The Superintendent also publishes regulations to ensure the proper implementation of the New York Insurance Code.
For more information regarding New York insurance laws as well as complete information about the New York State Insurance Department, please visit the NYSID website.

New York Auto Insurance: Speed Traps and Your Safety

The speed trap. Mere mention of this law enforcement technique causes many a heart rate to increase and a lead foot to cringe. After all, we all know we`re not supposed to speed but do the police have to be so sneaky to catch speeders?

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In New York, the answer depends on who you ask.
According to the National Motorists Association (NMA), a non-profit political interest group, many consumers are concerned that speed traps are a dubious means by which New York municipalities generate additional, non-tax revenues to pay for equipment and salaries. The hallmarks of such a speed trap may include:

• Abrupt speed limit changes
• Absurdly low speed limits
• Confusing signage
• Abrupt changes in terrain
• A disproportionate number of tickets issued to non-local residents

According to the NMA, speed traps may actually decrease public safety by:

• Causing motorists to decelerate unexpectedly
• Adding to gridlock during high-volume traffic hours
• Reducing the reasonable flow of traffic based on prevailing road and weather conditions

Because fines from speeding tickets effectively lower local taxes, local residents have little incentive to question the wisdom or legality of speed traps in New York. For that reason, the NMA established its "Speedtrap Exchange," a volunteer-driven website that documents the location and nature of speed traps nationwide (see www.speedtrap.org). According to the Exchange, New York has over 1,000 documented speed traps with more being identified every day (http://www.speedtrap.org/speed-traps/show/New York/).
Regardless of such laws, it remains the clear obligation of every New York driver to obey posted speed limits and other state laws regulating the speed of vehicles in relation to emergency vehicles and accident scenes. The best bet to avoid a speeding ticket in New York is to follow the letter of the law by by making sure you:

• Familiarize yourself with New York state speed limits
• Obey all posted speed limits in construction and high-traffic zones
• Slow to reasonable speeds when approaching accident scenes
• Slow to reasonable speeds and move to the opposite lane when passing a stopped police cruiser

New York Auto Insurance: Radar Detector Law & Legal Issues

Thanks to rapid advances in technology, speeding-"or perhaps more accurately, avoiding speeding tickets-"is big business in the United States. The "Fuzzbuster" technology of the 1970's has evolved into a dizzying array of radar detectors, laser detectors, scanners, jammers, and stealth coatings designed to elude law enforcement officials. In fact, recent estimates suggest that over 10% of all drivers employ some sort of "radar-busting" technology on our nation's highways.
Are "radar busters" like these legal? The answer in New York depends on the type of technology you use and how you use it.

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Radar & Laser Jammers
Under New York law, the use of radar and laser jammers is illegal. It is also a felony under federal law to jam or attempt to jam police radar signals. Many states also criminalize the mere possession of a radar jammer, so it is best to avoid such products altogether.
Laser jammers, on the other hand, are not banned by either federal or New York law at this time. However, check all local laws before trying a laser jammer, since their use, sale, and possession are banned entirely in several states (CA, CO, IL, MN, UT, and VA).
Police Scanners
The use of police scanners is illegal in New York without a permit (see New York Scanner Laws.)
Stealth Coatings
To date, neither New York nor any other state has banned the use of stealth coatings to impair the ability of police LIDAR laser guns ("Light Detection and Ranging") to obtain an accurate speed reading of a vehicle. Stealth coatings first gained notoriety due to their defense applications (such as with the Stealth Bomber). Their efficacy on the roadways, however, remains to be seen-"although some testers claim that stealth coatings can reduce laser gun sensitivity by over 60% (see the RadarBusters Stealth Coating tests).
Radar & Lidar Detectors
Under federal law, the use of radar and lidar detectors is illegal in all commercial vehicles over 10,000 pounds (see an overview of radar and laser detector laws). For all other purposes, radar and lidar detectors are legal in New York.
In light of the obvious conflict between speeding laws and radar detector use, law enforcement officials, safety advocates, and insurance companies continue to lobby legislators nationwide to ban the use of radar and laser detectors altogether. Thus far, they have only been successful in banning radar detector use in Virginia, Washington D.C., and on U.S. military bases.
Some speculate that one of the reasons that legislatures have been loathe to ban consumer use of radar detectors is that such bans could expose the inaccuracy of radar and laser-based speed detection systems. Independent studies have shown that radar and laser guns are susceptible to technical and operator error, leading some radar detection advocates to claim that over 25% of all radar-based speeding tickets are generated in error (see Radar and Laser Gun Mistakes). Some of the more common reasons for errors include:

• Radio Frequency Interference (RFI) from sources such as radios, garage door openers, and police radar
• Cosine errors generated by an inappropriate angle of the gun to the target
• Mechanical errors caused by guns overheating or being out of alignment

Regardless of the accuracy of speed detection systems or the legality of radar detectors, one fact remains crystal clear in New York-"speeding is against the law. Accordingly, the best advice is for New York drivers to rely on their common sense, rather than technology, when assessing the proper speed for the prevailing road conditions. For more information on safe driving in New York, please visit the New York DMV site. If you're interested in learning more about radar detectors, please visit the Buyer's Guide.

New York Auto Insurance: Mandatory Auto Insurance Coverages

New York Bodily Injury & Property Damage Limits: Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes

New York Bodily Injury & Property Damage Limits:

Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for bodily injury or death caused by an insured person in an auto accident.

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Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.).

Bodily Injury & Property Damage coverage:

$25,000 person/$50,000 accident/$10,000 property

$50,000 person/$100,000 accident/$50,000 property

$100,000 person/$300,000 accident/$50,000 property

$100,000 person/$300,000 accident/$100,000 property

$250,000 person/$500,000 accident/$100,000 property

In New York a driver must have a minimum coverage of 25,000 for bodily injury to one person, $50,000 for bodily injury sustained by two or more persons in a single accident, and $15,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for New York.
Common Exclusions: Bodily injury and property damage coverages apply to injury and damage from normal use of the insured vehicle. Coverages are limited by your policy and there may be some circumstances in which coverage does not apply. For example, in some policies coverage does not apply to:

1. Bodily injury or property damage arising out of the use of your vehicle while transporting people or property for a fee.
2. Injury or damage caused by an intentional act.
3. Injury or damage as a result of operating a vehicle owned by a person covered by your policy, where the vehicle is not listed on your policy.
4. Injury or death of you or a family member.
5. Property owned by, rented by or in the control of an insured person.

Uninsured/Underinsured (UM/UIM) Basic or Supplemental (SUM) Coverage (cannot exceed Bodily Injury selection):

Basic Uninsured Motorist Coverage:
$25,000 person/$50,000 accident UM only (Basic-Excludes SUM coverage)
This coverage is mandatory in the state of New York and pays for medical expenses, lost wages, and other damages when you, family members who live with you, or occupants of your car are injured in an accident. The accident must be caused by a driver who has no insurance or does not have enough insurance. This covers ONLY accidents that occur WITHIN the State of New York.
Coverage for injury or death may be excluded for individuals driving or occupying a motor vehicle owned by the insured person, which is not listed on the policy, or when the operator's license to drive is suspended or revoked.
Supplemental Uninsured/Underinsured Motorist Bodily Injury (SUM) Coverage
You may purchase additional coverage for bodily injuries (up to the Bodily Injury limits you have selected) caused by uninsured/underinsured motorists through some carriers. This covers compensation for pain and suffering and any medical bills that exceed the coverage limits for PIP (Personal Injury Protection). Supplemental (SUM) broadens coverage to cover accidents that occur OUTSIDE the state of New York.
Coverage for injury or death may be excluded for individuals driving or occupying a motor vehicle owned by the injured person, which is uninsured.

Uninsured/Underinsured Motorist Coverages:

$25,000 person/$50,000 accident UM only (Basic - Excludes SUM coverage)

$25,000 person/$50,000 accident UM only (Includes SUM coverage)

$50,000 person/$100,000 accident UM only (Includes SUM coverage)

$100,000 person/$300,000 accident UM only (Includes SUM coverage)

$250,000 person/$500,000 accident UM only (Includes SUM coverage)

Personal Injury Protection (PIP): Basic PIP - $50,000:

Regardless of fault, PIP (sometimes referred to as "No-fault" Coverage), provides coverage for you, the passengers of your vehicle and pedestrians injured in an accident involving your vehicle inside the state of New York, up to the limits of your policy. PIP is mandated by the State of New York and includes total coverage up to $50,000 per person for:
Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.).

1. Medical expenses.
2. Work loss benefits - Up to $2,000 per month for lost earnings (If you select a PIP option excluding work loss benefits, this option does not apply).
3. Daily expenses up to $25 (for not more than 12 months) for all other reasonable expenses.
4. Death benefit of $2,000.

Deductibles: You may select a deductible of $0 or $200, which applies to the insured and any relatives living with the insured.

We Haven't Had a Hurricane on Long Island, How Come my Insurance Still Went Up?

Welcome back to me, as I have not posted in a while now. The market for coastal and waterfront homeowners insurance on Long Island and in the New York - New Jersey - Connecticut area in general has, if anything, gotten a little better in the last year or so, with a few more carriers coming in to the market, and some companies at least NOT canceling as many people as they were 3 and 4 years ago. In addition, prices for insurance with the 'excess lines' markets such as Lloyds of London, Scottsdale, and many others, have been driven down by competition. This is/was especially true in the past several years where we have not had major storm activity.

But in the most recent six months, there has been a 'firming' of prices and some tightening of underwriting coming from these excess insurance carriers who are the ones taking the risk on houses closest to the shore. The question becomes, why? There are several reasons at play.

For one thing, it does not take a rocket scientist to figure out that in ANY type of insurance, but especially a line like home/fire insurance where there is a potential for catastrophic losses, rates can only go down so far before they 'bounce along the bottom'. That's the price at which companies start to notice that their profit margin is being squeezed. Insurance companies, if run properly, can make money, but it comes from relatively very small percentage profits on huge dollars. So when you are working on a 5% margin, or even less, it doesn't take much to turn your results from black ink to red.

The next thing that's having an effect on all insurance company profitability is the low interest rate environment. When the insurance company is able to get a decent income on their holdings, competition can force them to lower or hold the line on rates they charge to customers. But since most insurance companies invest mostly in interest bearing bonds, and we know what rates are available on those, their investment income has dropped substantially in the past few years.

Finally, the string of catastrophes in other parts of the world has an effect on the reinsurance market, which is where insurance companies buy insurance for themselves against the major catastrophes. That spreads the risk out all over the world, but unfortunately we have seen more and more events like tornadoes, tsunami's, massive flooding, and other things that, even though they might not happen here, still affect rates for property with a high catastrophe risk.

Problems with the National Flood Insurance Program

The National Flood Insurance Program, run by FEMA, comes up for renewal again in September. There have been several lapses in the program in the past few years because it gets used as a political football. Members of congress who are NOT in flood-prone states hold up their votes to force others to support their particular bills and projects. Congress is trying to start work early on the process, but there are several obstacles.

The biggest obstacle is that the whole FEMA Flood Insurance program, both here in New York and around the country, has been losing money for years, where it is supposed to be self-supporting. Naturally that means higher rates but that is not a very popular idea with members of congress.

Another area they have been looking at is whether catastrophic windstorm (hurricanes) should be added to the flood insurance program. Hurricanes are not so much of an issue in the Midwest where they are experiencing record flooding because of record snows this past winter. But here on Long Island and all along the east coast, hurricanes are a HUGE issue and something that needs to be addressed.

So some politicians want to add wind coverage to the flood insurance policy. But others are against it for several reasons. First, it is available in the private market and our system of government is based on private business wherever possible. But also, if they have been losing money on the flood insurance, chances are they would just lose even more money if you added windstorm coverage.

Today the GAO (General Accounting Office) issued a report that severely criticized the management of the National Flood Insurance Program, and says that if they don't make significant changes, they will never become profitable. So again, the fear is that if they were to add windstorm coverage, the program would lose even more money.

I just hope they figure it out quickly enough that the basic program is renewed in September.