It is a nightmare scenario. You’re driving your family to the Jersey Shore for vacation when another driver slams into your car — critically injuring your child. In the days that follow, you learn that your child will need years of physical therapy, and the driver who caused the accident has no insurance. Then the worst part: your auto insurance may not cover the loss your child has, and will continue, to suffer.
Stories like this are all too familiar to leading New Jersey Personal Injury Attorney Mike Mumola. He says that it is imperative that drivers know how much UM (uninsured motorist) and UIM (underinsured motorist) coverage they have on their policies.
“The wrong time to find out,” says Mumola, “is after the accidient. Uninsured and underinsured motorist coverage is extremely affordable, and is worth every penny. It is not easy to put your life back together after someone almost takes it from you, but this helps relieve the financial burden.”
Mumola says that $500,000 worth of UM/UIM coverage can be added to many auto insurance policies for just a few dollars a month. The key, says Mumola, is asking.
“If you don’t know how much uninsured or underinsured motorist coverage you have, you probably don’t have enough.”
Source
Thursday, January 28, 2010
Tuesday, December 15, 2009
Reclaiming customers from insurance companies
The advent of direct repair programs (DRPs), concierge programs and other insurance company offerings have muddied the waters when it comes to managing customer relationships, with many customers mistakenly believing that the insurance company is in charge of the repair process. A recent Society of Collision Repair Specialists survey even found that many shops consider the insurance company, not the vehicle owner, their actual customer.
"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."
How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?
A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."
Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.
"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."
Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.
In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.
"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.
Source
"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."
How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?
A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."
Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.
"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."
Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.
In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.
"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.
Source
Saturday, November 28, 2009
Insurance company suing county, DA over auto accident
A large insurance company is taking Cayuga County and its district attorney to court over a car accident that took place this year in New Jersey.
The county received notice earlier this month that Allstate Insurance Company is suing the county and District Attorney Jon Budelmann for $9,494 over a Jan. 23 accident. According to the complaint, Budelmann was driving a county-owned vehicle at the time on Interstate 80 in Warren County, N.J., when his vehicle and that of Jeanne Zecchine collided.
According to the complaint filed Sept. 4 in Warren County, N.J. court, the requested sum would cover damage to Zecchine's vehicle. Allstate, Zecchine's insurance provider, will also seek court and attorney fees as part of the suit.
Budelmann said Monday that Zecchine's vehicle swerved into his lane and struck his vehicle. He was traveling on that highway after attending a New York State District Attorneys Association meeting in New York City, he said.
This is the first Budelmann has heard of the accident since the county handed the claim to the insurance company in January, he said.
“I assumed the insurance company had been handling it,” Budelmann said.
Budelmann does not have a personal, county-owned vehicle, he said, and was issued the vehicle for that specific meeting.
The county has 35 days to respond to the complaint.
Source
The county received notice earlier this month that Allstate Insurance Company is suing the county and District Attorney Jon Budelmann for $9,494 over a Jan. 23 accident. According to the complaint, Budelmann was driving a county-owned vehicle at the time on Interstate 80 in Warren County, N.J., when his vehicle and that of Jeanne Zecchine collided.
According to the complaint filed Sept. 4 in Warren County, N.J. court, the requested sum would cover damage to Zecchine's vehicle. Allstate, Zecchine's insurance provider, will also seek court and attorney fees as part of the suit.
Budelmann said Monday that Zecchine's vehicle swerved into his lane and struck his vehicle. He was traveling on that highway after attending a New York State District Attorneys Association meeting in New York City, he said.
This is the first Budelmann has heard of the accident since the county handed the claim to the insurance company in January, he said.
“I assumed the insurance company had been handling it,” Budelmann said.
Budelmann does not have a personal, county-owned vehicle, he said, and was issued the vehicle for that specific meeting.
The county has 35 days to respond to the complaint.
Source
Sunday, November 15, 2009
Cost of living and doing business pushing people to leave N.J.
CENTRAL JERSEY — Fanklin resident Jim Morano and his wife recently acquired a home in South Carolina after his wife's sister and mother passed away.The couple plans on keeping the home as a winter getaway, but they're also wondering whether it should be their permanent residence because of New Jersey's income-tax rates, among the highest in the nation. Both own small businesses.
“We're kind of scratching our head,” said Morano, who has a Ph.D. in food science and a master's degree in business administration. “If you already own a residence outside of New Jersey, at some point in time, the differential is going to pay you to leave.”
Affordability issues facing businesses and residents in New Jersey will be the focus of an Oct. 2 forum at Raritan Valley Community College sponsored by the Somerset County Business Partnership along with the Courier News and MyCentralJersey.com. Sponsors also include the college, Allstate Insurance and Affinity Federal Credit Union.Republican gubernatorial candidate Chris Christie and Independent candidate Chris Daggett both are expected to attend. Gov. Jon Corzine also has been invited.
Source
“We're kind of scratching our head,” said Morano, who has a Ph.D. in food science and a master's degree in business administration. “If you already own a residence outside of New Jersey, at some point in time, the differential is going to pay you to leave.”
Affordability issues facing businesses and residents in New Jersey will be the focus of an Oct. 2 forum at Raritan Valley Community College sponsored by the Somerset County Business Partnership along with the Courier News and MyCentralJersey.com. Sponsors also include the college, Allstate Insurance and Affinity Federal Credit Union.Republican gubernatorial candidate Chris Christie and Independent candidate Chris Daggett both are expected to attend. Gov. Jon Corzine also has been invited.
Source
Wednesday, October 28, 2009
Allstate suing N.J. county, district attorney over auto accident
Allstate Insurance Co. is taking a New Jersey county and its district attorney to court over an auto accident involving one of its policyholders.
The suit seeks $9,494 for a Jan. 23 accident where Cayuga County District Attorney Jon Budelmann was driving a county-owned vehicle on Interstate 80 in Warren County, N.J., when it struck another vehicle driven by an Allstate customer, according to the Auburn Citizen.
The complaint, filed Sept. 4, in Warren County, says the requested sum would cover losses to Allstate’s customer. The insurer also will seek court and attorney fees as part of the suit, according to the report.
Budelmann told the Citizen the other vehicle swerved into his lane, striking him as he returned from a New York State District Attorneys Association meeting in a car issued to him by the county to attend the meeting. The district attorney added that the newspaper’s inquiry marked the first he heard about the suit, and that he assumed the county’s insurance company handled the claim.
Source
The suit seeks $9,494 for a Jan. 23 accident where Cayuga County District Attorney Jon Budelmann was driving a county-owned vehicle on Interstate 80 in Warren County, N.J., when it struck another vehicle driven by an Allstate customer, according to the Auburn Citizen.
The complaint, filed Sept. 4, in Warren County, says the requested sum would cover losses to Allstate’s customer. The insurer also will seek court and attorney fees as part of the suit, according to the report.
Budelmann told the Citizen the other vehicle swerved into his lane, striking him as he returned from a New York State District Attorneys Association meeting in a car issued to him by the county to attend the meeting. The district attorney added that the newspaper’s inquiry marked the first he heard about the suit, and that he assumed the county’s insurance company handled the claim.
Source
Thursday, October 15, 2009
High Point Launches Free 'Get Home Safe' Program
RED BANK, N.J., July 22 /PRNewswire/ -- High Point Auto Insurance, a group of New Jersey car insurance companies, announced today that it is launching a free, first-in-the-industry customer safety benefit called Get Home Safe. Get Home Safe will offer High Point policyholders up to $50 for a free cab ride to get home safely by avoiding dangerous driving circumstances. The insurance carrier aims to take an active role in saving lives on New Jersey roads by preventing accidents, injury and death as a result of unsafe driving. The initiative is getting significant recognition from New Jersey non-profits and advocates for road safety and serious injury prevention.
"We are a special company made up of special people. Our customers are special too; they are part of our family, so of course we want to keep them safe," says Gerry Wilson, CEO. "Insurance companies generally go to work after the accident happens, but we're trying to stop accidents before they even happen. That's more than just insurance. If we can prevent even one accident or injury with this benefit, we'll consider this a big success," continued Wilson.
"We are excited about the Get Home Safe benefit not only because it is the first of its kind, but because it gives us the opportunity to show our customers how much we truly care about their safety," says President and COO Jim Tignanelli. "Customers who find themselves in an unsafe driving situation can take advantage of this free benefit simply by submitting their receipt from a cab or car service. High Point will reimburse them up to $50 as part of our Get Home Safe benefit," explained Tignanelli.
"There are a host of reasons why calling a taxi is a safer option than driving," says Marc V. Buro, President of High Point subsidiary company Teachers Auto Insurance Company of New Jersey. "Maybe you are just too tired to operate your vehicle safely, or your car is unfit to drive. Maybe you had one more glass of wine with dinner than expected. Get Home Safe makes it easier for policyholders to choose to travel safely, without worrying about the risk of driving or the cost of a cab."
"We hope that other insurance carriers replicate this offer for their policyholders because it's such a socially responsible program. It speaks to our mission of engaging individuals to create safer streets in our communities," says Tom Everson, Executive Director of Keep Kids Alive Drive 25((R)), a national non-profit safety organization.
"In New Jersey alone, there are 1,800 traumatic brain injuries sustained in car crashes every year which lead to disability or death. Many of these crashes are attributed to falling asleep at the wheel, intoxication and distraction," said Wendy Berk of the Brain Injury Association of New Jersey. "Some drivers don't consider the possibility of surviving with a traumatic brain injury after a collision, and choose to drive under unsafe circumstances. It's interesting to think about how many of these crashes could have been prevented with a free taxi ride."
"Every day, lives are permanently changed by injuries sustained in auto-related accidents. We applaud High Point for its Get Home Safe initiative; it is a concrete step toward making New Jersey's roads safer for everyone - drivers, passengers and pedestrians," said Ann Wilson, Director of the New Jersey Coalition for Prevention, an advocacy program that provides education about decreasing the incidence of traumatic injury and disabling conditions.
Source
"We are a special company made up of special people. Our customers are special too; they are part of our family, so of course we want to keep them safe," says Gerry Wilson, CEO. "Insurance companies generally go to work after the accident happens, but we're trying to stop accidents before they even happen. That's more than just insurance. If we can prevent even one accident or injury with this benefit, we'll consider this a big success," continued Wilson.
"We are excited about the Get Home Safe benefit not only because it is the first of its kind, but because it gives us the opportunity to show our customers how much we truly care about their safety," says President and COO Jim Tignanelli. "Customers who find themselves in an unsafe driving situation can take advantage of this free benefit simply by submitting their receipt from a cab or car service. High Point will reimburse them up to $50 as part of our Get Home Safe benefit," explained Tignanelli.
"There are a host of reasons why calling a taxi is a safer option than driving," says Marc V. Buro, President of High Point subsidiary company Teachers Auto Insurance Company of New Jersey. "Maybe you are just too tired to operate your vehicle safely, or your car is unfit to drive. Maybe you had one more glass of wine with dinner than expected. Get Home Safe makes it easier for policyholders to choose to travel safely, without worrying about the risk of driving or the cost of a cab."
"We hope that other insurance carriers replicate this offer for their policyholders because it's such a socially responsible program. It speaks to our mission of engaging individuals to create safer streets in our communities," says Tom Everson, Executive Director of Keep Kids Alive Drive 25((R)), a national non-profit safety organization.
"In New Jersey alone, there are 1,800 traumatic brain injuries sustained in car crashes every year which lead to disability or death. Many of these crashes are attributed to falling asleep at the wheel, intoxication and distraction," said Wendy Berk of the Brain Injury Association of New Jersey. "Some drivers don't consider the possibility of surviving with a traumatic brain injury after a collision, and choose to drive under unsafe circumstances. It's interesting to think about how many of these crashes could have been prevented with a free taxi ride."
"Every day, lives are permanently changed by injuries sustained in auto-related accidents. We applaud High Point for its Get Home Safe initiative; it is a concrete step toward making New Jersey's roads safer for everyone - drivers, passengers and pedestrians," said Ann Wilson, Director of the New Jersey Coalition for Prevention, an advocacy program that provides education about decreasing the incidence of traumatic injury and disabling conditions.
Source
Monday, September 28, 2009
Appeals court approves, N.J. implements controversial PIP fee schedule
New Jersey insurance regulators implemented a controversial medical fee schedule for reimbursing doctors who treat auto injuries, after an appeals court ruled it legal.
A three-judge panel upheld the use of the fee schedule, but ordered state insurance regulators to review their use of the Ingenix database, owned by UnitedHealth Group, for setting rates.
The New Jersey Superior Court, Appellate Division, in Trenton, agreed on the database’s use with a group of health care providers who appealed the New Jersey Department of Banking and Insurance’s revision to the Personal Injury Protection (PIP) medical fee schedule in 2007.
The alliance of medical providers argued that the Ingenix database is designed, because it is operated for health insurance companies, to reduce reimbursement rates paid to doctors, thus causing its use in determining PIP rates to cut fees paid for service.
The court said forcing a departmental review of the use of the Ingenix database was preferable to the other two options: allowing use of a “flawed database” or acting in a way that “might eliminate a valid, but untested, resource for the use of the insurer,” according to the 50-page ruling.
But the court, ruling seven months after a court hearing on the matter, sided with regulators on the regulators’ effort to change rates, saying the health care providers who filed the appeal failed to “provide any documentation to support their claims,” according to the ruling.
“Given the lack of documentation and being mindful that the burden remains with appellants challenging an agency determination,” the judges ruled, “we are unable to conclude that PIP reimbursement rates do not reflect the reasonable and prevailing fees of 75% of the providers in the region.”
The department argued that the “reasonable and prevailing rates” were derived from reliable data, including the Ingenix database of what is actually paid for coverage, and the Consolidated Services Group, a vendor hired by insurers to evaluate and approve certain treatment and care paths for PIP patients prior to services being provided.
The court ruled that the department set the schedule using considered and informed judgment, but added that while “many elements of the process can be criticized, ultimately, the entire scope of the process must be assessed.”
New Jersey officials say these PIP fee schedule changes – first proposed in 2005, then modified based on comments and concerns in 2006 – are critical to reining in higher insurance costs.
New Jersey has the highest auto insurance costs in the nation. The first PIP fee schedule was put into place in New Jersey in 1991, but more serious reform efforts, seeking to stem years of fast-rising premiums for vehicle owners, were undertaken over the last six years.
Source
A three-judge panel upheld the use of the fee schedule, but ordered state insurance regulators to review their use of the Ingenix database, owned by UnitedHealth Group, for setting rates.
The New Jersey Superior Court, Appellate Division, in Trenton, agreed on the database’s use with a group of health care providers who appealed the New Jersey Department of Banking and Insurance’s revision to the Personal Injury Protection (PIP) medical fee schedule in 2007.
The alliance of medical providers argued that the Ingenix database is designed, because it is operated for health insurance companies, to reduce reimbursement rates paid to doctors, thus causing its use in determining PIP rates to cut fees paid for service.
The court said forcing a departmental review of the use of the Ingenix database was preferable to the other two options: allowing use of a “flawed database” or acting in a way that “might eliminate a valid, but untested, resource for the use of the insurer,” according to the 50-page ruling.
But the court, ruling seven months after a court hearing on the matter, sided with regulators on the regulators’ effort to change rates, saying the health care providers who filed the appeal failed to “provide any documentation to support their claims,” according to the ruling.
“Given the lack of documentation and being mindful that the burden remains with appellants challenging an agency determination,” the judges ruled, “we are unable to conclude that PIP reimbursement rates do not reflect the reasonable and prevailing fees of 75% of the providers in the region.”
The department argued that the “reasonable and prevailing rates” were derived from reliable data, including the Ingenix database of what is actually paid for coverage, and the Consolidated Services Group, a vendor hired by insurers to evaluate and approve certain treatment and care paths for PIP patients prior to services being provided.
The court ruled that the department set the schedule using considered and informed judgment, but added that while “many elements of the process can be criticized, ultimately, the entire scope of the process must be assessed.”
New Jersey officials say these PIP fee schedule changes – first proposed in 2005, then modified based on comments and concerns in 2006 – are critical to reining in higher insurance costs.
New Jersey has the highest auto insurance costs in the nation. The first PIP fee schedule was put into place in New Jersey in 1991, but more serious reform efforts, seeking to stem years of fast-rising premiums for vehicle owners, were undertaken over the last six years.
Source
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