New flood insurance rate maps have recently been developed by the Federal Emergency Management Agency (FEMA) for Oahu and Kauai.  Homeowners on these islands with federally backed mortgages may now need to obtain flood insurance.  And homeowners who currently carry flood insurance may see a dramatic increase in their flood insurance premiums.  Check out the Honolulu Star Advertiser article below.  In one example, the flood insurance premium for a homeowner could increase from $350 annually to $5,700 annually!!

http://www.staradvertiser.com/news/20100805_New_maps_could_hike_insura nce_cost.html

Interested in saving money on your auto insurance policy?  Check out the following article on some tips to save on your auto insurance premiums.

Lower Your Auto Insurance Costs

Automobile insurance premiums often take a big bite out of a family’s budget. You may, however, be paying too much for this coverage. The following are several approaches you can use to reduce your auto insurance costs.

• Choose higher deductibles, particularly if you currently have a low collision or other-than-collision deductible, such as $100 or $250. Increasing your deductible from $250 to $500 or $1,000, for example, can reduce your collision and other-than-collision premium by 15 to 35 percent.
• Eliminate collision and other-than-collision coverage on older, less valuable cars. If your car is worth less than $1,500, it may be wiser and cheaper in the long run to just retain this physical damage exposure. Used car valuations are available online at Kelley Blue Book.
• Maintain an excellent credit record, since insurance companies are increasingly using credit scores to price auto insurance policies. Consumers with poor credit often pay more for auto insurance.
• Buy a “low-profile” automobile. Before you purchase a new or used car, check into the auto insurance costs. Automobile models that are expensive to maintain and have higher theft and collision frequency rates tend to have higher insurance costs.
• Take advantage of multipolicy discounts by keeping your homeowners and auto policy with one insurer. Likewise, take advantage of multicar discounts by having all autos on one insurance policy.
• Seek out other auto insurance discounts (which can vary by state and by insurance company), such as defensive driving, good student, low-mileage auto, alcohol awareness training, air bags, antilock brakes, claim-free experience, and long-term customer.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

A recent Honolulu Star Advertiser article places Hawaii as the seventh lowest state for auto insurance rates.  Massachussetts had the lowest rates and Louisiana had the highest rates.  The article gave some good insight on why Hawaii rates were low.  This has not always been the case.  In the early 1990′s, Hawaii had some of the highest rates in the nation.

Check out the Star Advertiser article for details. 

http://www.staradvertiser.com/business/20100617_Isle_car_insurance_pri ces_seventh_lowest.html

You’re probably familiar with the black box.  Airplanes have a black box installed to collect valuable information in case the airplane crashes.  But have you heard of the blue box?  Auto insurance companies have started using blue boxes to track their customers’ driving habits.

The blue box plugs into the on-board diagnostic port of a car, and then wirelessly sends data to the driver’s insurance company.  The box can track vehicle speed, distance driven, how often the brakes are used and the time of day the vehicle is used.  Insurance companies can use the data to provide discounts to drivers who drive safely.

Currently, the blue box is being used in 19 states.  Hawaii is not one of these states.  What do you think?  If it was available to you, would you use the blue box?  Or, is it too much of a “big brother” watching over you?

As promised, here are the rest of the tips that may help you save money on your car insurance.  Should you have any questions on any of these tips, feel free to contact me.

6. Drive more safely. You may be eligible for a price break on your policy if you maintain a clean driving record for a specified period (usually three years). A clean driving record generally means no accidents, moving violations, drunk driving convictions, etc., during that period. The best way to qualify for the applicable discount is to drive carefully and defensively at all times. 

7. Buy a low-profile car. Cars are rated on a risk scale for auto insurance purposes. In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly. If you own such a vehicle, you will likely pay a higher premium than if you owned a station wagon, sedan, or other low-risk vehicle. 

8. Move. If you live in a rural community with little crime and traffic congestion, your premium will generally be lower than if you live in an urban area where your car is more likely to be stolen, vandalized, or involved in an accident. Granted, you shouldn’t move just to cut your auto insurance costs. However, this may be one of many factors in your decision if you’re thinking about relocating from the country to the city. 

9. Keep your car in a garage. Cars parked in garages are less likely to be stolen, vandalized, or struck by other vehicles. Using a garage to store your car may entitle you to a slight premium reduction. 

10. Have safety/anti-theft devices installed. You may receive discounts on your insurance if your car is equipped with one or more of the following options: anti-lock brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as car alarms and tracking systems (e.g., Lojack) may also get you a discount because they reduce the chances of your car being stolen or vandalized. 

11. Inquire about multifamily/multipolicy discounts. You may receive a discount from your insurance company if you buy more than one type of insurance through that same company (e.g., auto and homeowner’s). A discount may also apply to your auto insurance if you insure multiple cars under the same policy or with the same company. 

12. Other discounts Other discounts may be available if you meet certain criteria. Examples may include discounts for taking a defensive driving course, being a AAA member or staying with the same auto insurance company for a number of years. These discounts vary by company. 

Please note that this description/explanation is intended only as a guideline. 

Author: Rob Sliver

A lot of people shop for their car insurance based upon price only.  They will call insurance companies or shop online looking for the cheapest price possible.  Like almost anything else you buy, you get what you pay for.  If you’re paying a rock bottom price for your car insurance, are you getting a knowledgeable agent who will help you get the coverage you need?  Are you getting the type of claims service that you desire?  And most importantly, will the insurance company be there when you need it?

For some people, the cheapest premium is all that matters.  For others, service, claims and the company are important factors.  One must find the best value for what they’re looking for.  Whether you want the lowest premium or the most value, the following article can help with tips to save on your car insurance.

10+ Tips to Help You Save on Car Insurance

Most people complain about the cost of their auto insurance–hardly surprising, given that a typical policy costs at least several hundred dollars a year. Depending on your age, driving record, and other factors, your annual premium can be significantly more than that. So how can you lower your premium and save yourself money?

If you own a car and drive it, going without insurance is generally not an option. In most states, you are required by law to purchase a minimum amount of liability coverage. And you should probably have more than just the bare minimum if you want to provide yourself with adequate protection. There are steps you can take, however, to reduce your auto insurance costs without having to cancel your policy. Some or all of these steps may be appropriate for you, depending on your circumstances.

Specific ways to save money on auto insurance:

1. Shop around. One of your first steps should be to shop around. A particularly good time to investigate your alternatives is when your current policy is about to be up for renewal, especially if you find that your premium has gone up. You may be surprised to learn that auto insurance premiums for the exact same coverage on the same car can vary widely (by hundreds of dollars) between different insurers, even in states that regulate auto insurance rates.

2. Increase your deductible. For many people, raising the deductible on their auto insurance is a good way to cut the cost of the policy. Sometimes you can reduce your annual premium by 10 percent or more if you increase your deductible from, say, $250 to $500. If you do this, however, make sure you have the financial resources to handle the larger deductible when the time comes.

3. Keep an eye on your credit report. Your credit history is an important factor for most auto insurance companies. Many studies have shown a correlation between your credit history and the risk to an insurance company. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower auto insurance rates.

4. Drive less. If you drive less than a certain number of miles in a year (e.g., 7,500), you may qualify for a low-mileage discount. If your insurer offers this discount, try to limit your driving as much as possible. If you commute to work, use public transportation instead of driving. When you go away on vacation, fly or take the train.

5. Don’t use your car for business purposes. Since work-related driving generally subjects you to higher premiums than pleasure driving, it may be in your best interest to stop using your car for business purposes.

I will provide the rest of the tips in my next blog.  Let me know if you have any questions.

Last weekend, we experienced a tsunami warning in Hawaii.  The 8.8 magnitude earthquake in Chile was the cause of the warning.  The whole state of Hawaii went through the drill.  Some people stocked up on gas, groceries and water.  Others moved to higher ground to avoid the potential waves.

All in all, I thought everyone handled the situation well.  From the newsrooms to the tsunami warning center to the people of Hawaii, everyone stayed calm and informed.  I heeded the advice to stay home and prevent potential traffic jams.  I think it was extremely fortunate that the warning was on Saturday.  If I remember correctly, the last tsunami warning was on a weekday, and the traffic was horrendous.

The actual tsunami turned out to be nothing more than a 1-2 foot surge.  But what if a larger tsunami hit the islands?  Would your homeowner’s insurance policy cover losses from a tsunami?  Unfortunately, like earthquake losses, you would need to get separate coverage to cover flood (tsunami) losses.  Flood coverage is provided through the federal government under the National Flood Insurance Program.  Like earthquake insurance, flood insurance is very expensive.  For the most part, only homes close to the shoreline or close to a water source (river, stream or lake) are required to purchase flood insurance.

If you have any questions about flood insurance, feel free to ask me.

In the wake of the tragic Haiti earthquake, you may wonder what would happen if an earthquake struck closer to home.  Would your homeowner’s insurance policy cover your home if it was destroyed by an earthquake?  For most homeowners, the answer is “no.”  Unfortunately, the standard homeowner’s insurance policy excludes earthquake losses.  Similar to a flood risk, earthquake is considered too high of a risk to be covered by standard rates.

Liberty Mutual is one of the few companies that offers earthquake insurance in Hawaii.  However, very few of our policyholders choose to add this coverage to their policies.  The premium is quite expensive and the deductible is very high.

Read the following article for safety tips and more on earthquake insurance:

Consider Buying Earthquake Insurance

Images of desperation and despair continue to pour out of Haiti in the wake of its devastating earthquake last month, killing over 200,000 people and directly impacting over 3 million of its people. This earthquake also serves to remind Americans of their exposure to this peril as well. Records dating back to 1900 reveal that earthquakes have occurred in all 50 states and caused damage in 39 of these states. The Federal Emergency Management Agency (FEMA) released a major study in 2000 indicating that U.S. earthquake losses over time could average $4.4 billion a year.

So the following question naturally arises: what is your exposure to an earthquake? Research indicates that residents in California, Oregon, and Washington are most at-risk. However, parts of Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri, and Tennessee are also quite exposed to earthquakes. The New Madrid Seismic Zone runs under these states and, though it occurred long ago, gave rise to one of the largest magnitude earthquakes to ever hit the United States.

If you live in any of these states, you should ascertain your proximity to an earthquake fault zone. California residents can determine their exposure by visiting the State of California’s Department of Conservation Web site, which provides a list of affected cities and counties. For other state-specific information, visit the U.S. Geological Survey Web site.

Most homeowners policies specifically exclude earthquake losses, just as they do flood losses. Therefore, if you live near an earthquake seismic zone, consider purchasing a separate earthquake policy or an earthquake endorsement attached to your homeowners policy. In addition, the following are some steps to take that will reduce your chances of injury or property damage resulting from an earthquake.

• Verify that operational fire extinguishers are strategically located on each floor of your home.
• Anchor tall furniture, refrigerators, water heaters, and bookcases securely to the walls.
• Utilize flexible connectors for gas supply to gas-fueled appliances.
• Keep beds away from glass or any hanging object that might fall.
• Verify that your home’s roof and chimney are well-maintained, with proper support.
• Apply safety film to windows and glass doors.
• Add anchor bolts or steel plates between the home and its foundation.
• For older homes, work with a civil engineer or city building department to verify that your home is up to code for the earthquake peril.
• Communicate to family members an emergency meeting place should your family get separated during an earthquake.

If you are in your home when an earthquake occurs, stay inside and move away from windows, skylights, doors, and objects that might fall. Crawl under a sturdy item such as a large table or desk.  Stay where you are until the shaking stops.

Get more personal lines insurance and risk management tips and ideas from IRMI.

Copyright 2010
International Risk Management Institute, Inc.

Makapuu12

Yesterday, my daughters and I hiked the Makapuu Lighthouse trail.  This was the third time we hiked this trail.  It is an easy, paved trail which winds up the mountain and ends up on the top of Makapuu Point.  It took us about 1/2 hour to reach the top, and about 20 minutes to hike back down.

Once you reach the top, there’s a beautiful panoramic view of Makapuu Beach all the way to Kaneohe.  The Koolau mountains are just an awesome sight from this viewpoint.  There’s also a nice view of Rabbit Island.

If that wasn’t enough, the upper portion of the trail overlooks a humpback whale sanctuary.  And just our luck, there were whales to be seen yesterday.  It looked like a pod of about 3 or 4 whales swimming around.

If you’re looking for a good beginner’s hike in Hawaii, I would highly recommend this trail.

Are you good at picking winners?  The NFL playoffs started this weekend, and I decided to pick the winners of each game, all the way to the Super Bowl winner.  If there’s any indication that my picks aren’t too good, then look no further. 

I chose Dallas, Green Bay, Cincinnati and New England for the first weekend.  Dallas was the only pick that I had that won their game.  The other 3 teams that I chose lost.  I’m sure glad that I didn’t have money riding on the games.  What a loser.

Still, I’m not completely done yet.  I have Minnesota, New Orleans, Indy and San Diego winning their games this weekend.  For the conference championships, I have Minnesota and Indy moving to the Super Bowl.  And my Super Bowl pick?  Minnesota!

Like I said, I’m not too confident after the first weekend.  But, you never know…