Swapping info after car crash can lead to ID-theft burn

By Michelle Singletary, Published: August 18

In the age of identity theft, we are bound to run into conflicting information about what data we should share with providers, government agencies and especially strangers.

Recently, the National Association of Insurance Commissioners cautioned drivers about providing too much information following an auto accident.

In many cases, the association said, drivers put themselves in jeopardy of being identity-theft victims by supplying personal information such as their driver’s license number.

The association has put together a checklist and created a mobile application for iPhones and Android devices to help people after an accident. The app is called WreckCheck, and you can get it at www.insureuonline.org. (If you can’t get the app, you can download a paper version.) Neither the app nor the paper checklist spells out state-specific requirements for sharing information.

After I wrote about this issue last week, I heard from a few personal-injury attorneys who told me that in some states, drivers are required to exchange license numbers. In Virginia, for example, drivers involved in an accident are required to provide their names, addresses, driver’s license and vehicle registration numbers. Maryland law mandates that drivers give similar information but specifically says, “on request, exhibit his license to drive.” You are to do the same for the police investigating the accident.

I asked the NAIC about the conflicting information. As a result, it made some changes and clarifications to its checklist, and the new version is online.

“Of course we urge consumers to follow their local laws,” said Scott Holeman, communications director of NAIC. “This is one of the reasons NAIC recommends you always call the police in the event of an accident. They are your first, best resource on the nuances of state law, especially if someone is injured.”

If you aren’t sure what’s required, you can assume the police can help coordinate the required exchange of information, Holeman said.

But the larger point is that we still are being asked to voluntarily provide personal information that makes us vulnerable. Identity theft is increasingly becoming not simply a minor bother in people’s lives but an ordeal. In 2011, identity fraud increased 13 percent, according to Javelin Strategy & Research. More than 11.6 million adults became victims of identity fraud. A contributing factor was a 67 percent increase in data breaches. Victims of data breaches are 9.5 times more likely to be a subject of identity fraud, Javelin found.

In the worst cases, people spend an extraordinary amount of time and money trying to clear up the damage when their personal information is stolen. Their credit can be ruined. Sometimes victims are mistaken for the identity thief and wrongly arrested.

My father-in-law’s Medicare card has his Social Security number on it. And yet the federal government, which issued the card to him, warns citizens, especially seniors, to be careful about sharing their Social Security number.

For tips on how to reduce the risk of identity theft, including those who have to use a Medicare card, go to www.privacyrights.org and search for “Coping With Identity Theft: Reducing the Risk of Fraud.”

I heard from one reader who was harassed by a driver who had hit her while she was walking in a parking lot.

“In the ambulance, I shared with the police officer my driver’s license and provided my telephone number, which is unlisted for professional and personal reasons,” the reader said. “I personally did not give any information to the driver of the car who hit me. On the Sunday morning following the accident, the driver called me at my home several times and even offered to come to my home to bring me flowers. Certainly he was expressing concern for me but was also anxious about what the legal outcome would be for him. He was a stranger who now knew where I lived, that I had been seriously injured by his actions, and was distraught.”

The driver had gotten the women’s information by looking at the accident report.

“When he continued to call me periodically, I had to ask his insurance agent and the policeman to communicate the message to the driver not to call me again,” she said.

So we have the NAIC, the standard-setting and regulatory support organization created and governed by the chief insurance regulators in the country, cautioning about giving out too much information. And some state laws that directly require us to do so.

Err on the side of caution. Only provide the information that is absolutely necessary or required by law.

You can find the article by Michelle Singletary here: http://www.washingtonpost.com/swapping-info-after-car-crash-can-lead-to-id-theft-burn/2012/08/16/d38f274c-e7c7-11e1-a3d2-2a05679928ef_story.html

Parked cars can cause problems

You probably know that poor driving habits can result in a poor driving record, which can negatively affect auto insurance costs. But did you know that parked cars can present problems that can also result in insurance headaches? Here’s how:


•     Risky/illegal parking — Stop only in places that are designated for standing still or parking — you’re less likely to get hit by another vehicle.

•     Hitting parked cars — If you hit a parked car, stop and call the police. It’s not a good idea to just leave a note on the windshield without calling the police. If the note blows away, then it’s just as if you drove off without stopping, which turns a minor encounter into a more serious hit-and-run incident.

•     Hitting an illegally parked car — If you hit an “illegally” parked car, the question typically becomes one of negligence. Generally, when a moving vehicle hits a stationary vehicle, the operator of the moving vehicle is at fault. A person backing up has a duty to make sure that the way is clear. But this issue can get confusing and sometimes a “percentage of fault” may be assigned to each driver. However, because your moving vehicle hit a stationary vehicle you would likely be assigned most, if not all, of the fault.

Call the police and your insurance company

Remember: Always call the police and complete an accident report and be sure to report the incident to your insurance company. Which hopefully is with me :-)

Courtesy: Farmers Friendly Voice, an e-news update from your Farmers agent June 2012

Why You Should Choose Us For Your Business Insurance

As a small business owner myself, we have a few things in common:

1) You like to save money...I like to save money too.

2) You want to protect your business, your future...That's what we do best.

3) You want quality and stability...I represent some of the oldest and best rated companies

And...We offer FREE QUOTES. Give me a call.

ATTORNEY's ADVICE - NO CHARGE

I got the following email today. I must admit, this has some pretty good advice...even though it is from a lawyer:

ATTORNEY's ADVICE - NO CHARGE


Not A Joke!! Even If you dislike attorneys..You will love them for these tips.

Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! A corporate attorney sent the following out to the employees in his company:

1. Do not sign the back of your credit cards . Instead, put "PHOTO ID REQUIRED"

2. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers . The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.

3. Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. (DUH!) You can add it if it is necessary. But if you have It printed, anyone can get it.

4. Place the contents of your wallet on a photocopy machine . Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel..... Keep the photocopy in a safe place.

I also carry a photocopy of my passport when I travel either here or abroad. We've all heard horror stories about fraud that's committed on us in stealing a Name, address, Social Security number, credit cards.

Unfortunately, I, an attorney, have first hand knowledge because my wallet was stolen last month... Within a week, the thieves ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer, received a PIN number from DMV to change my driving record information online, and more.

But here's some critical information to limit the damage in case this happens to you or someone you know:

5. We have been told we should cancel our credit cards immediately. But the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.

6. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one).

But here's what is perhaps most important of all : (I never even thought to do this.)

7. Call the 3 national credit reporting organizations immediately to place a fraud alert on your name and also call the Social Security fraud line number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name.

The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit.

By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks..

Now, here are the numbers you always need to contact about your wallet, if it has been stolen:

1.) Equifax: 1-800-525-6285

2.) Experian (formerly TRW): 1-888-397-3742

3.) Trans Union : 1-800-680 7289

4.) Social Security Administration (fraud line):  1-800-269-0271

If you are willing to pass this information along, it could really help someone that you care about.

a rate is a rate is a rate

I often get this question -- “How are auto insurance rates calculated?” In short, I simply explain that an insurance rate formula looks like an equation from the movie Beautiful Mind.  All kidding aside, to help demystify how rates are determined, let’s look at a couple of factors that are used to determine rates.

Two major factors are considered when looking at your insurance rate. Your personal profile and specifics regarding your insured automobile:

Personal Profile are all the things that make you unique-

• Your age: The consideration here really is driving experience. If you are under 25 the auto insurance actuaries are not your friend.
• Driver history: If you have recent claims on your driving history (tickets, accidents, DUIs, etc.), you might expect to pay more for your policy.
• Credit rating: How much weight your credit score influences your rate changes from company to company and from state to state.
• Address: Do you live in a heavily populated area? An area with a high-crime rate? Or an area with heightened risk of theft? How many accidents happen in your zip code per capita? etc etc etc
• Marital status: Most insurance company's factors show preference to married couples. That's right -- First your taxes, now your insurance too.

Auto Factors are all the things that make your auto unique-

• Vehicle's loss history: The more accidents your auto's make and model has had across the U.S., your state, your county, your city, the higher rate you will most likely have. 
• Vehicle theft history: Similar to accidents. The frequency that your type of auto is stolen, the higher risk is typically assigned to your auto.
• Cost to repair: How much do the parts of your car cost? Are the parts to your car more expensive than other cars in it's class?

So as you can see, to know exactly your specific rate is determined is...well...complicated. And there is no harm in calling us to get a FREE quote. 

Five Insurance Mistakes For You To Avoid

In today’s tight economy, every one of us is looking at our finances with an eye toward trimming costs. Cutting back on lattes, clipping coupons and do-it-yourself home repairs are all smart places to start (as long as you’re handy with a hammer), but I feel it is necessary to educate you on pitfalls to avoid if you're looking at cutting your insurance coverage.


Simply reducing coverage or dropping important coverages altogether can leave you dangerously underinsured in the event of a loss or disaster. Here are the five biggest insurance mistakes consumers make, according to the Insurance Information Institute, along with suggestions to avoid these pitfalls while still saving money:

• Insuring a home for its real estate value rather than for the cost of rebuilding. When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. A customer should make sure that they have enough coverage to completely rebuild their home and replace their belongings.

 A better way to save: Raise deductibles. An increase from $500 to $1,000 or to a percentage deductible can save up to 25 percent on premium payments.

• Selecting an insurance company by price alone. It is important to choose a company with solid agents that can provide sound financially advise and provide good customer service. Also, a top-tier claims organization is critical in selecting an insurance company.

A better way to save: You should select an insurance company that will respond to your needs and handle claims fairly and efficiently.

• Dropping Flood insurance. Damage from flooding is not covered under standard Homeowners and Renters insurance policies. Coverage is available from the National Flood Insurance Program (NFIP), [Whom I am registered with and can write a flood policy for you] as well as from some private insurance companies. Many homeowners are unaware they are at risk for flooding, but in fact 25 percent of all flood losses occur in low-risk areas.

A better way to save: Before purchasing a home, check with the NFIP [or me] to determine whether the property is situated in a flood zone; if so, consider a less risky area. If you are already living in a designated flood zone, look at mitigation efforts that can reduce your risk of flood damage and consider purchasing flood insurance. Additional information on flood insurance can be found at www.FloodSmart.gov. [or me again]

• Only purchasing the legally required amount of liability for your car. In today’s litigious society, buying only the minimum amount of liability means a customer is likely to pay more out-of-pocket if they are sued—and those costs are steep.

A better way to save: Consider dropping collision and/or comprehensive coverage on older cars worth less than $1,000. The insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident.

• Neglecting to buy Renters insurance. Most renters think they don’t need insurance or believe that the landlord is providing insurance for the tenant. A Renters insurance policy covers possessions and additional living expenses if a tenant has to move out due to an insured disaster, such as a fire or hurricane. Equally important, it provides liability protection in the event someone is injured in the home and decides to sue.

Have a Happy New Year Everyone!